BI and DSS

Posted on 2006-04-28
Last Modified: 2008-02-01
Dear experts.
I was wondering that how business intelligence and decision support database differ from operational database? I think that the operational database is the data collected on a daily bases and BI and DSS is information gathered for strategic and analytical purpose. Am I hitting the right target??
Question by:drmopco
    LVL 57

    Assisted Solution

    True.  Think of it this way.  An operational database may have in row for every item sold.  Where a BI/DSS database may just have a row for each type of item sold per day and the number sold.

    So if I sold 100 gallons of milk, my operational database will have 100 rows.  My BI/DSS will have one, that says I sold 100.

    However, that is a very simple example.  Each business must deciced how they want to analyze their data for BI/DSS purposes.

    In some instaces is the same exact data, but just orginized differently.  We provide the same data to two different parts of the same company.  One part uses it for operational information, the other part uses it for BI/DSS.  Same exact data, but orginized differently.

    Author Comment

    Thank you for your explanation. It helps me a lot to understand. I think that Operational databases support “operation”.  Operational databases are optimized for fast updates. By normalizing a database you store complex data that is easy for the database to update. This increases the number of tables in the database. The problem is that it makes running queries and reports slower.
     Business intelligence and decision support databases are often times read only and do not require updating. Their tables are optimized for searching, queries, and reports. Often time you will denormalize the database to reduce the number of the tables. This decreases the time required to search the database. I hope I am hitting right target.

    LVL 3

    Accepted Solution

    Dear drmopco ,
    Operational system and its limitation:

    Every company starts its business with and IT system which directly collects all transactions and organization charges on that. Now consider when your customers will grow the system size more and more. At time your operational system will require not be able to respond all reports along with allowing transactions.

    DSS what and Why ?

    For that reason you purge data of your operational system into DSS (decession support system) and from there your you get reports. The only problem with DSS system it requires multiple extracts and loading into DSS which over burduns your system.

    Data warehouse and Business intelligence

    To resolve this problem you can then create data warehouse which maintains historical data loaded into database of 2 to 10 years or more. Over that Data warehouse you get reports and trends about your business and its competators and how can you imporve business, what innovations can be performed. etc.

    I am a teacher of Data warehouse and Business intelligence. For further questions please reply.

    Author Comment

    Thank you for your time. I think that an operational database is used to manage more dynamic bits of data. These types of databases allow you to do more than simply view archived data. Operational databases allow you to modify that data which includes adding, changing or delete in under words manipulation of data Thus making it possible for users to track real-time information. For example, a company might have an operational database used to track quantities of material in stock and out stock. When client purchase materials this database can be used to give an accurate amount of material purchased and sold. On the other hand Business Intelligence is a broad is a broad category of application programs and technologies for gathering, storing, analysing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.  In a short form Operations database give access to manipulate and Business gives an analytical processing.


    LVL 3

    Expert Comment


    You are exectly right.

     I found basic useful basic definations of data warehousing catagories of DW and OLAP etc on section of you can verify it.

    Let me know if i can help you out in any area.

    Author Comment

    Thank you for the link. I am getting clear for the defination of data warehousing.
    Thanks agian.

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