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Summary – Foundation of Business Intelligence: Databases and Information Management


Data are becoming more important than ever, since the inception of digitalization trend demands businesses to be more connected via the internet. This means entities needs to transform themselves from using traditional file management system to a more advanced one. Traditional system could create problems such as data redundancy and inconsistency, program-data dependence, inflexibility, poor security, and lack of data sharing availability.

Database management system (DBMS) solves these problems with software that permits centralization of data and data management so that businesses have a single consistent source for all their data needs. The principal capabilities of a DBMS include a data definition capability, a data dictionary capability, and a data manipulation language.

Furthermore, to access the information from databases to improve business performance and decision making, entities need some principal tools and technologies to be used, which includes data warehouses and data marts, Hadoop, in-memory computing, and analytical platforms. Data mining analyzes large pools of data, including the contents of data warehouses, to find pattern and rules that can be used to predict future behavior and guide decision making.

On the other hand, developing a database environment requires policies and procedures for managing organizational data as well as a good data model and database technology. Data that are inaccurate, incomplete, or inconsistent create serious operational and financial problems for businesses because they may create inaccuracies in providing the data and lead to inaccurate decisions about the actions that should be taken by the firm.

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