Managing Data Resources

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2006 by Prentice Hall

Virgin Mobile Australia Case

Challenge: Fragmented and isolated corporate systems creating a single integrated view of customers and operations Solution: single integrated corporate data warehouse, using a single data model. Oracle 9i database provides near real-time access to customer activity, customer profitability, and customer reactions Illustrates the importance of managing data resources for achieving profitability
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2006 by Prentice Hall

ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

File Organization Terms and Concepts Bit: Smallest unit of data; binary digit (0,1) Byte: Group of bits that represents a single character Field: Group of words or a complete number Record: Group of related fields File: Group of records of same type
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ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

File Organization Terms and Concepts (Continued)

Database: Group of related files

Entity: Person, place, thing, event about which information is maintained Attribute: Description of a particular entity

Key field: Identifier field used to retrieve, update, sort a record

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ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

The Data Hierarchy

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2006 by Prentice Hall

ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

Entities and Attributes

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2006 by Prentice Hall

ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

Problems with the Traditional File Environment Data Redundancy and Inconsistency: Data redundancy: The presence of duplicate data in multiple data files so that the same data are stored in more than one place or location Data inconsistency: The same attribute may have different values.

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Management Information Systems

Chapter 7 Managing Data Resources ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

Problems with the Traditional File Environment (Continued)

Program-data dependence:
The coupling of data stored in files and the specific programs required to update and maintain those files such that changes in programs require changes to the data Lack of flexibility: A traditional file system can deliver routine scheduled reports after extensive programming efforts, but it cannot deliver ad-hoc reports or respond to unanticipated information requirements in a timely fashion.
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ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

Problems with the Traditional File Environment (Continued) Poor security: Because there is little control or management of data, management will have no knowledge of who is accessing or even making changes to the organizations data. Lack of data sharing and availability: Information cannot flow freely across different functional areas or different parts of the organization. Users find different values of the same piece of information in two different systems, and hence they may not use these systems because they cannot trust the accuracy of the data.
2006 by Prentice Hall

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Management Information Systems

Chapter 7 Managing Data Resources ORGANIZING DATA IN A TRADITIONAL FILE ENVIRONMENT

Traditional File Processing

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2006 by Prentice Hall

THE DATABASE APPROACH TO DATA MANAGEMENT

Database Management System (DBMS)

Software for creating and maintaining databases

Permits firms to rationally manage data for the entire firm Acts as interface between application programs and physical data files Separates logical and design views of data Solves many problems of the traditional data file approach
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THE DATABASE APPROACH TO DATA MANAGEMENT

The Contemporary Database Environment

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THE DATABASE APPROACH TO DATA MANAGEMENT

Components of DBMS:

Data definition language: Specifies content and structure of database and defines each data element
Data manipulation language: Used to process data in a database

Data dictionary: Stores definitions of data elements and data characteristics

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THE DATABASE APPROACH TO DATA MANAGEMENT

Sample Data Dictionary Report

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THE DATABASE APPROACH TO DATA MANAGEMENT

Types of Databases:

Relational DBMS Hierarchical and network DBMS Object-oriented databases

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THE DATABASE APPROACH TO DATA MANAGEMENT

Relational DBMS: Represents data as two-dimensional tables called relations

Relates data across tables based on common data element

Examples: DB2, Oracle, MS SQL Server

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THE DATABASE APPROACH TO DATA MANAGEMENT

The Relational Data Model

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THE DATABASE APPROACH TO DATA MANAGEMENT

Three Basic Operations in a Relational Database: Select: Creates subset of rows that meet specific criteria

Join: Combines relational tables to provide users with information

Project: Enables users to create new tables containing only relevant information

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2006 by Prentice Hall

THE DATABASE APPROACH TO DATA MANAGEMENT

The Three Basic Operations of a Relational DBMS

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THE DATABASE APPROACH TO DATA MANAGEMENT

Hierarchical and Network DBMS Hierarchical DBMS: Organizes data in a tree-like structure Supports one-to-many parent-child relationships

Prevalent in large legacy systems

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THE DATABASE APPROACH TO DATA MANAGEMENT

A Hierarchical Database for a Human Resources System

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THE DATABASE APPROACH TO DATA MANAGEMENT

Hierarchical and Network DBMS Network DBMS: Depicts data logically as many-to-many relationships

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THE DATABASE APPROACH TO DATA MANAGEMENT

The Network Data Model

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THE DATABASE APPROACH TO DATA MANAGEMENT

Hierarchical and Network DBMS Disadvantages: Outdated Less flexible compared to RDBMS

Lack support for ad-hoc and English languagelike queries

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THE DATABASE APPROACH TO DATA MANAGEMENT

Object-Oriented Databases:
Object-oriented DBMS: Stores data and procedures as objects that can be retrieved and shared automatically Object-relational DBMS: Provides capabilities of both object-oriented and relational DBMS

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CREATING A DATABASE ENVIRONMENT

Designing Databases:
Conceptual design: Abstract model of database from a business perspective Physical design: shows arrangement of DB on direct access storage device

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CREATING A DATABASE ENVIRONMENT

Designing Databases: (Continued) Entity-relationship diagram: Methodology for documenting databases illustrating relationships between database entities Normalization: Process of creating small stable data structures from complex groups of data

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CREATING A DATABASE ENVIRONMENT

An UnNormalized Relation for ORDER

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CREATING A DATABASE ENVIRONMENT

Normalized Tables Created from ORDER

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CREATING A DATABASE ENVIRONMENT

An Entity-Relationship Diagram

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CREATING A DATABASE ENVIRONMENT

Distributing Databases

Centralized database:
Used by single central processor or multiple processors in client/server network

There are advantages and disadvantages to having all corporate data in one location.
Security is higher in central environments, risks lower. If data demands are highly decentralized, then a decentralized design is less costly, and more flexible.
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Management Information Systems

Chapter 7 Managing Data Resources CREATING A DATABASE ENVIRONMENT

Distributed database:

Databases can be decentralized either by partitioning or by replicating Partitioned database: Database is divided into segments or regions. For example, a customer database can be divided into Eastern customers and Western customers, and two separate databases maintained in the two regions.
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Management Information Systems

Chapter 7 Managing Data Resources CREATING A DATABASE ENVIRONMENT

Duplicated database: The database is completely duplicated at two or more locations. The separate databases are synchronized in off hours on a batch basis. Regardless of which method is chosen, data administrators and business managers need to understand how the data in different databases will be coordinated and how business processes might be effected by the decentralization.
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Management Information Systems

Chapter 7 Managing Data Resources CREATING A DATABASE ENVIRONMENT

Distributed Databases

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Figure 7-13

2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources CREATING A DATABASE ENVIRONMENT

Ensuring Data Quality:

Corporate and government databases have unexpectedly poor levels of data quality.
National consumer credit reporting databases have error rates of 20-35%. 32% of the records in the FBIs Computerized Criminal History file are inaccurate, incomplete, or ambiguous. Gartner Group estimates that consumer data in corporate databases degrades at the rate of 2% a month.
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Management Information Systems

Chapter 7 Managing Data Resources CREATING A DATABASE ENVIRONMENT

Ensuring Data Quality: (Continued) The quality of decision making in a firm is directly related to the quality of data in its databases. Data Quality Audit: Structured survey of the accuracy and level of completeness of the data in an information system Data Cleansing: Consists of activities for detecting and correcting data in a database or file that are incorrect, incomplete, improperly formatted, or redundant
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Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Multidimensional Data Analysis Online Analytical Processing (OLAP): Multidimensional data analysis Supports manipulation and analysis of large volumes of data from multiple dimensions/perspectives

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Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Multidimensional Data Model

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Figure 7-14

2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Data Warehousing and Data Mining Data warehouse: Supports reporting and query tools Stores current and historical data

Consolidates data for management analysis and decision making

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Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Components of a Data Warehouse

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Figure 7-15

2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Data mart: Subset of data warehouse Contains summarized or highly focused portion of data for a specified function or group of users Data mining: Tools for analyzing large pools of data

Find hidden patterns and infer rules to predict trends

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Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Benefits of Data Warehouses: Improved and easy accessibility to information

Ability to model and remodel the data

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2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Databases and the Web The Web and Hypermedia database: Organizes data as network of nodes Links nodes in pattern specified by user

Supports text, graphic, sound, video, and executable programs

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2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

A Hypermedia Database

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Figure 7-16

2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Databases and the Web

Database server:
Computer in a client/server environment runs a DBMS to process SQL statements and perform database management tasks. Application server:

Software handling all application operations

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Management Information Systems

Chapter 7 Managing Data Resources DATABASE TRENDS

Linking Internal Databases to the Web

7.46

Figure 7-17

2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Management Opportunities:
Business firms have exceptional opportunities to exploit modern relational database technologies to improve decision making, and to increase the efficiency of their business processes.

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2006 by Prentice Hall

Management Information Systems

Chapter 7 Managing Data Resources MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Management Challenges: Organizational obstacles to a database environment Need for cooperation in developing corporate-wide data administration Cost/benefit considerations Bringing about significant change in the database environment of a firm can be very expensive and time consuming.

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Management Information Systems

Chapter 7 Managing Data Resources MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Solution Guidelines: The critical elements for creating a database environment are: Data administration Data-planning and modeling methodology

Database technology and management

Users
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Management Information Systems

Chapter 7 Managing Data Resources MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Key Organizational Elements in the Database Environment

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Figure 7-18

2006 by Prentice Hall