Module 02
Database Approach
The database approach is a method of managing data where data is stored in a structured and organized way, typically using a database management system (DBMS). Key components include:
- Data Integrity: Ensuring data is accurate and consistent.
- Data Redundancy: Minimizing duplicate data by storing it in a centralized database.
- Data Security: Protecting data from unauthorized access or alterations.
- Data Independence: Allowing changes to the database structure without affecting the application programs.
2. Big Data
Big Data refers to extremely large datasets that are too complex for traditional data processing tools. The three main characteristics of Big Data are:
- Volume: The sheer amount of data generated every second from various sources like social media, sensors, and transactions.
- Velocity: The speed at which data is generated and needs to be processed.
- Variety: The different types of data (structured, unstructured, semi-structured) from various sources.
Big Data technologies, such as Hadoop and Spark, are used to store, process, and analyze these large datasets, providing valuable insights for decision-making.
3. Data Warehouse and Data Marts
- Data Warehouse: A centralized repository that stores large volumes of data collected from various sources within an organization. It is used for reporting, analysis, and decision-making. Data warehouses typically store historical data and support complex queries.
- Data Marts: A subset of a data warehouse, typically focused on a specific business area or department, like sales or finance. Data marts allow for quicker access to relevant data and are easier to manage than an entire data warehouse.
Key Differences:
- Scope: Data warehouses cover the entire organization, while data marts are focused on specific areas.
- Size: Data marts are smaller and more specialized, whereas data warehouses are large and comprehensive.
4. Knowledge Management (KM)
Knowledge Management is the process of capturing, distributing, and effectively using knowledge within an organization. It involves:
- Knowledge Creation: Generating new knowledge through research, innovation, and learning.
- Knowledge Storage: Storing knowledge in databases, documents, or other media so it can be accessed when needed.
- Knowledge Sharing: Distributing knowledge across the organization to ensure that everyone has access to the information they need.
- Knowledge Application: Using the knowledge effectively to solve problems, make decisions, and improve processes.
KM Tools and Techniques:
- Document Management Systems: Organize and store documents and files.
- Collaboration Tools: Facilitate communication and sharing of knowledge, such as intranets and social networks.
- Expert Systems: AI systems that simulate the decision-making abilities of a human expert
. Managers and Decision Making
Managers play a crucial role in decision-making within an organization, using data and information to make informed decisions. The decision-making process typically involves the following steps:
- Problem Identification: Recognizing and defining the problem or opportunity.
- Data Collection: Gathering relevant data from various sources, such as internal databases, market research, or financial reports.
- Data Analysis: Analyzing the data to identify trends, patterns, and insights that inform decision-making.
- Decision Making: Evaluating the options and choosing the best course of action based on the analysis.
- Implementation: Putting the chosen decision into action and monitoring the results.
- Evaluation: Reviewing the outcomes to assess the effectiveness of the decision and making adjustments as necessary.
Managers rely on various tools and techniques, including Business Intelligence (BI), to support their decision-making process, ensuring that they make data-driven, objective, and effective decisions.
2. Business Intelligence (BI) for Data Analysis and Presenting Results
Business Intelligence (BI) refers to the technologies, applications, and practices used to collect, integrate, analyze, and present business data. The primary goal of BI is to provide actionable insights that help managers and decision-makers make informed decisions.
Key Components of BI:
- Data Collection: BI tools collect data from various sources, including databases, spreadsheets, CRM systems, and external sources like social media.
- Data Integration: BI systems integrate data from different sources, ensuring consistency and accuracy. This often involves data cleaning, transformation, and loading (ETL) processes.
- Data Analysis: BI tools analyze data to uncover trends, patterns, and relationships. Techniques used in data analysis include:
- Descriptive Analytics: Summarizing historical data to understand what has happened.
- Diagnostic Analytics: Identifying the causes of past events or outcomes.
- Predictive Analytics: Using historical data and statistical models to predict future outcomes.
- Prescriptive Analytics: Recommending actions based on data analysis to achieve desired outcomes.
- Presenting Results: BI tools present the analyzed data in a user-friendly manner, often through:
- Dashboards: Visual displays of key performance indicators (KPIs) and metrics, providing a quick overview of business performance.
- Reports: Detailed documents that present data and analysis in a structured format, often used for more in-depth analysis.
- Data Visualization: Graphs, charts, and other visual representations of data that make complex information easier to understand.
Benefits of BI for Managers:
- Improved Decision-Making: By providing timely and accurate data, BI helps managers make informed decisions that align with business goals.
- Increased Efficiency: Automating data collection and analysis saves time and resources, allowing managers to focus on strategic tasks.
- Better Insights: BI tools help identify trends and patterns that might not be obvious, uncovering new opportunities for growth or improvement.
- Competitive Advantage: Companies that effectively use BI can respond faster to market changes, innovate more efficiently, and maintain a competitive edge.