Nama : Rismawaty (Maksi-39/AUD)

RINGKASAN CHAPTER 3
DATA MANAGEMENT, BIG DATA, AND BUSINESS INTELLIGENCE

 Databases are collections of datasets or records stored in a systematic way generated by business
apps, sensors, operations, and transaction processing systems (TPS). Data warehouse integrate data
from multiple databases and data silos and organize them for complex analysis, knowledge
discovery, and to support decision making.
 Database management systems (DBMSs) are software used to manage the additions, updates and
deletions of data as transactions occur; and support data queries and reporting. Relational
database management systems (RDBMS) store data in tables consisting of columns and rows,
similar to format of a spreadsheet. RDBMSs provide access to data using a declarative language-
structured query language (SQL).
 The differences between databases and data warehouses are:
1. Databases are designed and optimized to ensure that every transaction gets recorded and
stored immediately. Databases are volatile and OLTP systems. Database volatile because data
are constantly being updated, added, or edited.
2. Data warehouse are designed and optimized for analysis and quick response to queries. Data
warehouse are nonvolatile, OLAP systems, and subject oriented.
 Many new systems were developed in order to cope with the unfolding requirements for DBMS-
namely, handling big data, scalability, and fault tolerance for large Web applications. Scalability
means the system can increase in size to handle data growth or the load of increasing number of
concurrent users. Fault tolerance means that a single failure will not result in nay loss of service.
 Poor quality data lack integrity and cannot be trusted because they are incomplete, out of context,
outdated, inaccurate, inaccessible, or so overwhelming that they require weeks to analyze. The cost
of poor quality data are: lost business, time spent preventing errors, time spent correcting errors.
 The data life cycle is a model that illustrates the way data travel through an organization. The data
life cycle begins with the storage in a database, to being loaded into a data warehouse for analysis,
then reported to knowledge workers or used in business apps.
 As data become more complex and their volumes explode, database performance degrades. One
solution is the use of master data and master data management (MDM). MDM processes integrate
data from various sources or enterprise applications to create a more complete (unified) view of a
 customer, product, or their entity. Master data describes the enterprise’s business entities upon
which transactions are done and the dimensions around which analyses are done.
 The four values (V) of analytics are: variety, volume, velocity, and veracity. Emphasis in this
direction will not only increase confidence in the datasets, but also significantly reduce the efforts
for analytics and enhance the quality of decision making.
 Human expertise and judgement are needed to interpret the output of analytics. Data are
worthless if you cannot analyze, interpret, understand, and apply the results in context. This brings
up several challenges: data need to be prepared for analysis, dirty data degrade the value of
analytics, data must be put into meaningful context. If the wrong analysis or database are used, the
output would be nonsense.
 Data warehouses that pull together data from disparate sources and databases across an entire
enterprise are called enterprise data warehouse (EDW). The procedures to prepare EDW data for
analytics are extract, transform, and load (ETL) which are:
1. Extracted from designed database
2. Transformed by standardizing formats, cleaning, and integrating them
3. Loaded into a data warehouse
Three technologies involved in preparing raw data for analytics include ETL, change data capture
(CDC), and data deduplication. CDC processes capture the change made at data sources and then
apply those changes throughout enterprise data stores to keep data synchronized.
 Real-time data warehousing and analytics is known as an active data warehouse (ADW). Companies
with an ADW are able to:
1. Interact with a customer to provide superior customer service
2. Respond to business events in near real time
3. Share up-to-date status data among merchants, vendors, customers, and associates.
 Data warehouses are infrastructure investments that companies make to support ongoing and
future operations, such as: marketing and sales, pricing and contracts, forecasting, sales, and
financial.
 Data analytics help users discover insights, for example:
1. To monitor and regulate the temperature and climate conditions of perisable foods as they are
transported from farm to supermarket.
2. To sniff for signs of spoilage of fruits and raw vegetables and detect the risk of Escherichia coli
contamination
 3. To track the condition of operating machinery and predict the probability of failure
4. To track the wear of engines and determine when preventive maintenance is needed.
 Business Intelligence (BI) provides data at the moment of value to a decision maker-enabling it to
extract crucial facts from enterprise data in real time or near real time. For example : in retailer to
make decision about what to order, how much, and when in order. Companies use BI solutions to
determine what questions to ask and find answer to them.
 Data mining and text mining are used to discover knowledge that you did not know existed in the
databases. Data mining is not a single method or technique, but a collection of different techniques
that search for patterns and relationships in data. Text mining technology attempts to extract
meaningful information from unstructured textual data, often from social media.
 Enterprises invest in data mining tools to add business value. Business value falls into three
catagories:
1. Making more informed decisions at the time they need to be made
2. Discovering unknown sights, patterns, or realtionships
3. Automating and streaming or digitizing business processes.
 The basic steps involved in text analytics include the following: exploration, preprocessing,
categorizing and modeling.
 Companies cannot analyze all of their data. Therefore, unending challenge is :
1. How to determine which data to use for BI from what seems like unlimited options
2. Data quality, particularly with regard to online information, because the source and accuracy
might be verifiable.
 BI governance program mission is to achieve the following:
1. Clearly articulate business strategies
2. Deconstruct the business strategies into a set of specific goals and obejctives-the targets
3. Identify the key performance indicators (KPIs) that will be used to measure progress toward
each target
4. Prioritize the list of KPIs
5. Create a plan to achieve goals and objectives based on the priorities
6. Estimate the costs needed to implement the BI plan
7. Assess and update the priorities based on business results and changes in business strategy.
 Four factors factors contributing to increased use of BI: smart devices everywhere, data are big
business, advanced BI and analytics, cloud-enable BI and analytics.