Technology and Data Analytics

The topic of Technology and analytics consist of 2 parts :

 Information systems and Data Governance

 System development and Data Analytics

Information Systems and Data Governance

Information system is an important part of company’s value chain.

MIS are often classified based on functions:

 Accounting
 Finance
 Manufacturing
 Logistics
 Sales
 Human Resource

These all different functions are integrated in to a single system which is called as Enterprise
Resource Planning (ERP) systems

Accounting Information Systems are is subsystem of MIS. AIS consist of :

GL/FRS (General ledger financial reporting system - concerned with transation with
external parties , like customers , suppliers , owners . It typically produces income
statement , balance sheet and other report required by management

Management reporting system MRS – it provided report used in decision making and
internal management , Proforma financial statement , cost benefit analysis

Transaction Processing system TPS – It performs routine transaction necessary to run the
business

Accounting cycles involve all the 5 accounting processes like sale to customer on credit and
recognition of receivables , collection of cash from customers , purchase on credit and
recognition of payables , Cash disbursement for trade payables , Payment of cash to
employee for work performed and allocation of cost
Data , Database and Data management system

Organized collection of data in a computer system is database

A single integrated system leads to increased data accessibility

Database management system is an integrated set of program that :

 Creates Database
 Maintain the element
 Safeguard the data from loss
 Make available to program , applications and inquiries

DB2 , Oracle and SQL (Microsoft) are examples of DBMS

3 Basic operation in relational model are:

 Selecting
 Joining
 Projecting

Two important feature of relational data structure are :

 Cardinality
 Referential Integrity

A distributed database is stored in two or more physical sites using either replication or
partitioning

 Replication or snapshot technique makes duplicates to be stored at multiple

locations. Changes are periodically copied and sent to each location. If a database is
small, storing multiple copies may be cheaper than retrieving records from a central
site
 Fragmentation or partitioning stores specific records where they are most needed

The database administrator (DBA) is the individual who has overall responsibility for
developing and maintaining the database and for establishing controls to protect its integrity

Only the DBA should be able to update data dictionaries , The responsibility for creating,
maintaining, securing, restricting access to, and redefining and restructuring the database
belongs to the DBA

The data dictionary is a file that describes both the physical and logical characteristics of
every data element in a database

The data dictionary includes, for example, the name of the data element (e.g., employee
name, part number), the amount of disk space required to store the data element (in bytes),
and what kind of data is allowed in the data element (e.g., alphabetic, numeric).
The data dictionary contains the size, format, usage, meaning, and ownership of every data
element. This greatly simplifies the programming process

Data from a relational database can be displayed in graphs and reports, changed, and
otherwise controlled using a program called Query Management Facility (QMF)

The schema is a description of the overall logical structure of the database using
datadefinition language, which is the connection between the logical and physical structures
of the database.

The database mapping facility is software that is used to evaluate and document the
structure of the database

An object-oriented database is a response to the need to store not only numbers and
characters but also graphics and multimedia applications

Advanced database systems provide for online analytical processing (OLAP), also called
multidimensional data analysis, which is the ability to analyze large amounts of data from
numerous perspectives

Using OLAP, users can compare data in many dimensions, such as sales by product, sales by
geography, and sales by salesperson

The following technologies are replacing OLAP :

 In-memory analytics is a process that queries data stored directly in the computer’s
memory (i.e., RAM) as opposed to querying data located on the computer’s internal
or external storage devices (e.g., hard drives).
 Search engine technology stores data at a document/transaction level, and data is
not pre-aggregated like it would be when contained in an OLAP or in-memory
technology application. Users are able to have full access to their raw data and
create the aggregations themselves

A data warehouse contains not only current operating data but also historical information
from throughout the organization. Thus, data from all operational systems are integrated,
consolidated, and standardized in an organization-wide database into which data are copied
periodically. These data are maintained on one platform and can be read but not changed

Data Cleansing cleans up data that are incorrect , duplicated and incomplete from the data
base
Data mining is the process of analyzing data from different perspectives and summarizing it
into useful information.

Data mining software can help find abnormal patterns and unforeseen correlations among
the data , Internal auditors can use data mining techniques to detect fraud

Data mart is a subset of the data warehouse that can be tailored to user data requirements

Data Governance and Risk