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McGraw-Hill/Irwin
McGraw-Hill/Irwin

2005 The McGraw-Hill

Companies,
2005 The McGraw-Hill Companies, All rights reserved
All rights reserved

CHAPTER 3

DATABASES AND DATA

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WAREHOUSES

McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, All rights reserved

OPENING CASE STUDY

Chrysler Spins a Competitive Advantage with

Supply Chain Management Software
Chapter 2 supply chain management is a
key business initiative
Chryslers SCM is called SPIN, a Web-based
system

3-3

OPENING CASE STUDY

Behind SPIN are powerful databases
Databases store a wealth of information

Inventory
Work-in-progress
Supplier information
Recall notices
Customer purchases

This chapter databases and data

warehouses
3-4

STUDENT LEARNING OUTCOMES

1. Describe business intelligence and its role

2. Compare databases and data warehouses
by OLTP and OLAP
3. List/describe key characteristics of a
relational database
4. Define 5 software components of a DBMS

3-5

STUDENT LEARNING OUTCOMES

5. List/describe key characteristics of a data

warehouse
6. Define 4 major types of data-mining tools
7. List key considerations in managing
information as a resource

3-6

INTRODUCTION

Organizations need business intelligence

Business intelligence (BI) knowledge
about your customers, competitors, business
partners, competitive environment, and
internal operations to make effective,
important, and strategic business decisions

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INTRODUCTION

IT tools help process information to create

business intelligence according to:
OLTP
OLAP

3-8

INTRODUCTION

Online transaction processing (OLTP)

the gathering of input information, processing
that information, and updating existing
information to reflect the gathered and
processed information
Databases support OLTP
Operational database databases that support
OLTP
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INTRODUCTION

Online analytical processing (OLAP) the

manipulation of information to support
decision making
Databases can support some OLAP
Data warehouses only support OLAP, not OLTP
Data warehouses are special forms of databases
that support decision making

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INTRODUCTION

3-11

THE RELATIONAL DATABASE

MODEL
There are many types of databases
The relational database model is the most
popular
Relational database uses a series of
logically related two-dimensional tables or
files to store information in the form of a
database
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Databases Are

Collections of information
Created with logical structures
With logical ties within the information
With built-in integrity constraints

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Databases Collections of Information

Databases have many tables
Consider Solomon Enterprises that provides
concrete to home and commercial builders.
Tables or files include:

Order
Customer
Concrete Type
Employee
Truck
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Databases Collections of Information

3-15

Databases Created with Logical

Structures
In databases, the row number is irrelevant
Not true in spreadsheet software
In databases, column names are very
important. Column names are created in the
data dictionary
Data dictionary contains the logical
structure of the information in a database
3-16

Databases With Logical Ties Within

the Information
Logical ties must exist between the tables or
files in a database
Logical ties are created with primary and
foreign keys
Primary key field (or group of fields in
some cases) that uniquely describes each
record
Can you find primary keys in Figure 3.1 on
page 129?
3-17

Databases With Logical Ties Within

the Information
Foreign key primary key of one file that
appears in another file
Foreign keys help you create logical ties
within the information in a database

3-18

Databases With Logical Ties Within

the Information

3-19

Databases With Built-In Integrity

Constraints
Integrity constraints rules that help
ensure the quality of the information
Examples

Primary keys must be unique

Foreign keys must be present
Sales price cannot be negative
Phone number must have area code
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DATABASE MANAGEMENT SYSTEM

TOOLS
Database management system (DBMS)
helps you specify the logical organization for
a databases and access and use the
information within a database
Word processing software = document
Spreadsheet software = workbook
DBMS software = database

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DATABASE MANAGEMENT SYSTEM

TOOLS

5 software components:
1.
2.
3.
4.
5.

DBMS engine
Data definition subsystem
Data manipulation subsystem
Application generation subsystem
Data administration subsystem

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DATABASE MANAGEMENT SYSTEM

TOOLS

3-23

DBMS Engine
DBMS engine accepts logical requests
from the various other DBMS subsystems,
converts them into their physical equivalent,
and actually accesses the database and data
dictionary as they exist on a storage device
DBMS engine separates the logical from the
physical
3-24

DBMS Engine

Physical view how information is

physically arranged, stored, and accessed on
some type of storage device
Logical view how you as a knowledge
worker need to arrange and access
information
With a database, you only concern yourself
with your logical view
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Data Definition Subsystem

Data definition subsystem helps you

create and maintain the data dictionary and
define the structure of the files in a database
You must create a data dictionary before
entering information into a database
Module J covers this for Microsoft Access

3-26

Data Manipulation Subsystem

Data manipulation subsystem helps you
add, change, and delete information
This is your primary DBMS interface as you
work with a database

Views
Report generators
QBE tools
SQL
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Views

View allows you to see the contents of a

database file

Make whatever changes you want

Perform simple sorting
Query to find the location of information
Looks similar to a workbook with no row numbers

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Views

3-29

Report Generators

Report generator helps you quickly define

formats of reports and what information you
want to see in a report
You can save report formats and generate
reports at any time with up-to-date
information

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Report Generators

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Report Generators

3-32

QBE Tools

Query-by-example (QBE) tool helps you

graphically design the answer to a question
What driver most often delivers concrete to
Triple A Homes?

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QBE Tools

3-34

SQL

Structured query language (SQL)

standardized fourth-generation language
found in most DBMSs
Performs the same task as a QBE tool
But uses a sentence structure instead of pointand-click interface

SQL is used mostly by IT people

3-35

Application Generation Subsystem

Application generation subsystem

contains facilities to help you develop
transaction-intensive applications
Data entry screen (called forms)
Programming languages

Used mostly by IT specialists

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Data Administration Subsystem

Data administration subsystem helps you

manage the overall database environment

Backup and recovery

Security management
Query optimization
Concurrency control
Change management
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Data Administration Subsystem

Backup and recovery

Periodically back up information
Recover a database if a failure occurs

Security management
Who has access to what information
Who can perform certain tasks (e.g., add,
change, or delete) on information
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Data Administration Subsystem

Query optimization
Restructure physical view of information to
optimize response times to queries

Concurrency control
What happens if two people makes changes to
the same information at the same time?

3-39

Data Administration Subsystem

Change management
What is the effect of structural changes to a
database?
What if you add a new column?
What happens if you delete a column?
What happens if you change a columns
attributes?

3-40

DATA WAREHOUSES AND DATA

MINING
Data warehouses support OLAP and decision
making
Data warehouses do not support OLTP
Data-mining tools are the tools you use to
work with a data warehouse
DBMS software = database
Data-mining tools = data warehouse
3-41

What Is a Data Warehouse?

Data warehouse logical collection of

information gathered from operational
databases used to create business
intelligence that supports business analysis
activities and decision-making tasks

3-42

What Is a Data Warehouse?

3-43

What Is a Data Warehouse?

Multidimensional
Rows and columns
Also layers
Many times called hypercubes
What are the dimensions in Figure 3.8 on
page 142?

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What Are Data-Mining Tools?

Data-mining tools software tools that you

use to query information in a data warehouse

Query-and-reporting tools
Intelligence agents
Multidimensional analysis tools
Statistical tools

3-45

What Are Data-Mining Tools?

3-46

Query-And-Reporting Tools

Query-and-reporting tools similar to QBE

tools, SQL, and report generators in the
typical database environment

3-47

Intelligent Agents

Use various artificial intelligence tools such

as neural networks and fuzzy logic to form
the basis for information discovery and
building business intelligence
Help you find hidden patterns in information
Chapter 4 focuses more on these

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Multidimensional Analysis Tools

Multidimensional analysis (MDA) tools

slice-and-dice techniques that allow you to
view multidimensional information from
different perspectives
Bring new layers to the front
Reorganize rows and columns

3-49

Statistical Tools

Help you apply various mathematical models

to the information stored in a data warehouse
to discover new information
Regression
Analysis of variance
And so on

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Data Marts

Data warehouses can support all of an

organizations information
Data marts have subsets of an
organizationwide data warehouse
Data mart subset of a data warehouse in
which only a focused portion of the data
warehouse information is kept
3-51

Data Marts

3-52

Data Mining as a Career Opportunity

Knowledge of data mining can be a

substantial career opportunity for you
Query and Analysis and Enterprise Analytic Tools
(Business Objects)
Business Intelligence and Information Access
tools (SAS)
Many in Cognos (the data warehouse leader)
PowerAnalyzer (Informatica)
3-53

Considerations in Using a Data

Warehouse
Do you need a data warehouse?
Perhaps database OLAP is sufficient

Do all employees need the entire data

warehouse?
If no, build smaller data marts

How up-to-date must the information be?

What data-mining tools do you need?
3-54

MANAGING THE INFORMATION

RESOURCE
Information is an organizational resource
Just like people, capital, and equipment
It must be managed effectively

3-55

MANAGING THE INFORMATION

RESOURCE
Who should oversee your organizations
information resource?
Chief information officer (CIO) oversees an
organizations information resource
Data administration plans for, oversees the
development of, and monitors the information
resource
Database administration technical and
operational aspects of managing information
3-56

MANAGING THE INFORMATION

RESOURCE
Is information ownership a consideration?
If you create information, you own it
You will also share it with others
Because you own it, you are responsible for its
quality

3-57

MANAGING THE INFORMATION

RESOURCE
How clean must your information be?
Duplicate information (records) must be
eliminated
Inaccurate information must be corrected
Information forms the basis of business
intelligence
If your business intelligence is bad, you will make
poor decisions
3-58

CAN YOU

1. Describe business intelligence and its role

2. Compare databases and data warehouses
by OLTP and OLAP
3. List/describe key characteristics of a
relational database
4. Define 5 software components of a DBMS

3-59

CAN YOU

5. List/describe key characteristics of a data

warehouse
6. Define 4 major types of data-mining tools
7. List key considerations in managing
information as a resource

3-60

CHAPTER 3

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3
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McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, All rights reserved