Managing Data to Improve Business

Performance

Learning Objectives
Recognize the importance of data,
managerial issues and life cycle

Describe sources of data, collection, and

quality
DBMS
Describe Data Warehousing and Analytical
Processing

Data
What is Data ?
Importance of Data ?
Data Quality ?
Result of Dirty Data ?

Difficulties of Managing Data

Amount of data increases exponentially.
Data are scattered and collected by many
individuals using various methods and
devices.
Data comes from many sources including
internal sources, personal sources and
external sources.
Data security, quality and integrity are
critical.

Types of Data in Organizations

Transaction Records
Documents

Document Management System

(DMS)
Consists of hardware and software that
manage and archive electronic
documents and also convert paper
documents into e-documents.
DMS, besides capturing and storing the
documents takes care of indexing which
facilitates searching of documents from
the repository.

Data(transaction records) Management

Conventional file system vs DBMS:
Disadvantages of Conventional file system
Redundancy
Inconsistency
Security issues etc.

Database Management System (DBMS)

DBMS Storage of data and program to
manage it
Examples of DBMS software Oracle, MS
SQLServer, DB2, MySQL, PostGRESQL

Database
Collection of storage objects like tables.
TABLE
EMPNO

NAME

SALARY DEPTNO

10

ARUN

30000

10

20

KIRAN

40000

20

FIELD

RECORD

DBMS Key Concepts

Data Models
Hierarchical
Network
Relational
etc

Data Views
Keys
Primary, Foreign, Candidate, Alternate

Indexes
SQL(Structured Query Language)

Data Life Cycle

Transactional vs. Analytical Data

Processing
Transactional processing takes place in operational systems

(TPS) that provide the organization with the capability to

perform business transactions and produce transaction reports.
The data are organized mainly in a hierarchical structure and
are centrally processed. This is done primarily for fast and
efficient processing of routine, repetitive data.
Analytical processing involves the analysis of accumulated
data. Analytical processing, sometimes referred to as business
intelligence, includes data mining, decision support systems
(DSS), querying, and other analysis activities. These analyses
place strategic information in the hands of decision makers to
enhance productivity and make better decisions, leading to
greater competitive advantage.

Data Warehousing
Data warehouse is a repository of historical data
organized by subject to support decision makers
in the organization and include:
Online analytical processing(OLAP) which involves
the analysis of accumulated data by end users.
Multidimensional data structure which allows data
to be represented in a three-dimensional matrix
(or data cube).
Unlike the data tables in the database which are
designed to optimize storage, the data tables in a
warehouse are designed to respond to analysis
query.
Data warehousing entails an ETL process:
Extracting data from various sources
Transforming it to fit operational needs
Loading it into the end target (Data mart)

BIG DATA

Background :
For decades companies have been
making business decisions based on
transactional data stored in relational
databases.
In the recent years, companies have
realized that the non traditional, less
structured data in the form of
weblogs, social media, email, sensors
is trove of potential treasure as this
can be mined for useful insights.

How big is big data ?

Misconception of big data :
If it is data and it is big, it is big data

What is big today may not be big

tomorrow
Big data has attributes that challenges
constraints of a system or business
needs.

4 Vs of big data
Volume
Velocity
Variety
Value

Volume
Machine generated data is produced in
much larger quantities than nontraditional data.
For example, a single jet engine can
generate 10 TB of data in 30 minutes

Velocity
Social media data streams while not
as massive as machine-generated data
produce a large influx of opinions and
relationships valuable to customer
relationship management. Even at 140
characters per tweet, the high velocity
(or frequency) of Twitter data ensures
large volumes.

Variety
Traditional data formats tend to be
relatively well described and change
slowly. In contrast, non-traditional
data formats exhibit a dazzling rate of
change.

Value
The economic value of different data
varies significantly. Typically there is
good information hidden amongst a
larger body of non-traditional data;
the challenge is identifying what is
valuable and then transforming and
extracting that data for analysis.

Why Big Data ?

When big data is distilled and analyzed

in combination with traditional
enterprise data, enterprises can
develop a more thorough and insightful
understanding of their business.

It leads to enhanced productivity, a

stronger competitive position and
greater innovation.

Examples

The proliferation of smart phones and other GPS devices offers

advertisers an opportunity to target consumers when they are in
close proximity to a store, a coffee shop or a restaurant. This opens
up new revenue for service providers and offers many businesses a
chance to target new customers.

Retailers usually know who buys their products. Use of social media
and web log files from their ecommerce sites can help them
understand who didnt buy and why they chose not to.. This can
enable much more effective micro customer segmentation and
targeted marketing campaigns, as well as improve supply chain
efficiencies.

Social media sites like Facebook and LinkedIn simply wouldnt exist
without big data. Their business model requires a personalized
experience on the web, which can only be delivered by capturing
and using all the available data about a user or member.