Foundations of Business
Intelligence: Databases and

Information Management
Wienand Omta
Fabiano Dalpiaz

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drs. ing. Wienand Omta

Learning Objectives
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Describe how the problems of managing data resources in a traditional file environment are solved by a database management system.
Describe the capabilities and value of a database management system.
Apply important database design principles.
Evaluate tools and technologies for accessing information from databases to improve business performance and decision making.
Assess the role of information policy, data administration, and data quality assurance in the management of firm’s data resources.

Banco de Credito Del Peru Banks on Better Data
Management
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Problem: Multiple outdated systems, duplicate, inconsistent data

Solutions: Replace heterogeneous legacy systems with single repository for business information
SAP integrated software suite included modules for enterprise resource planning, and a data warehouse to support enterprise-wide tracking, reporting, and analysis
Demonstrates IT’s role in successful data management
Illustrates digital technology’s ability to lower costs while improving performance Organizing Data in a Traditional File Environment
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File organization concepts

– Database: Group of related files
– File: Group of records of same type

– Record: Group of related fields
– Field: Group of characters as word(s) or number
• Describes an entity (person, place, thing on which we store information) • Attribute: Each characteristic, or quality, describing entity
– Example: Attributes DATE or GRADE belong to entity
COURSE

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The data hierarchy
A computer system organizes data in a hierarchy that starts with the bit, which represents either a 0 or a 1. Bits can be grouped to form a byte to represent one character, number, or symbol. Bytes can be grouped to form a field, and related fields can be grouped to form a record. Related records can be collected to form a file, and related files can be organized into a database.

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Organizing Data in a Traditional File Environment
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Problems with the traditional file environment (files maintained separately by different departments)
– Data redundancy:
• Presence of duplicate data in multiple files
– Data inconsistency:
• Same attribute has different values
– Program-data dependence:
• When changes in program requires changes to data accessed by program
– Lack of flexibility
– Poor security
– Lack of data sharing and availability

Traditional File Processing
The use of a traditional approach to file processing encourages each functional area in a corporation to develop specialized applications.
Each application requires a unique data file that is likely to be a subset of the master file.
These subsets of the master file lead to data redundancy and inconsistency, processing inflexibility, and wasted storage resources. 7

The Database Approach to Data Management
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Database
– Serves many applications by centralizing data and controlling redundant data

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Database management system (DBMS)
– Interfaces between applications and physical data files

– Separates logical and physical views of data
– Solves problems of traditional file environment
• Controls redundancy
• Eliminates inconsistency
• Uncouples programs and data
• Enables organization to central manage data and data security
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Human Resources database with multiple views

FIGURE
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A single human resources database provides many different views of data, depending on the information requirements of the user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the company’s payroll department.

The Database Approach to Data Management
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Relational DBMS

– Represent data as