What is Database?

A database is a tool that organized the data in order to serve multiple applications. The database does this through the centralization process. It centralized the huge amount of data in order to control the redundancy problems of data. It means the whole data of an enterprise is appearing to the users at one location, which reduces the problem of data redundancy and the problem of data inconsistency. 

What is the purpose of a Database Management System?

A database management system is used to manage the data. The management process involved the retrieving process of the data in the database, the manipulation process of the data in a database, and many more. The DBMS (DBMS stands for the database management system) manipulates the data itself. There is a definition of the rules for the process of validation and the process of manipulation in the DBMS. The most commonly used query languages in the DBMS are the fourth-generation query language like SQL.

How management process of the database works for BI?

There are multiple tools involved in the management process of the database for the business intelligence system. Those tools are:

Data warehouse:

The most managerial activity for an enterprise is the storage and management of the data. The Data warehouse works as a central repository system for an enterprise, in this system the enterprise stores the data. Through this repository system, the data of an enterprise is a central place and there will be no issues regarding data like data redundancy, data inconsistency, and many others. It is the collection of integrated databases for the process of database management.

Moreover, the data warehouse helps in the generation of reports like the annual reports, the analysis reports, and many others. For all the above-mentioned features of the data warehouse, it is the core component of the BI.

Working:

The working flow of the data warehouse includes:

• The extraction process of the data
• The process of data cleansing and the data transformation
• The process of archiving the data
• The steering process of the data

Data mining

This process helps in increasing revenue and decrease the cost. Data mining is used for the purpose of finding correlations among data in large databases. It is software that uses the tools for reading data, extracting data, and many others. The goal of this software is prediction and discovery.

Major elements:

There are five major elements of data mining that are:

• The extraction and transformation process of data in the data warehouse.
• Use the multidimensional database system for the storage of the data.
• The analysis process is done with the application software.
• It uses multiple forms in order to present the data like graphs, tables, etc. 
• It provides access to the data to business analysts and IT professionals.