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McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
3
Data Resource Management
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Learning Objectives
Explain the importance of implementing data resource management processes and technologies in an organization.
Understand the advantages of a database management approach to managing the data resources of a business.
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Learning Objectives (continued)
Explain how database management software helps business professionals and supports the operations and management of a business.
Illustrate each of the following concepts:Major types of databasesData warehouses and data miningLogical data elementsFundamental database structuresDatabase access methodsDatabase development
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Section I
Managing Data Resources
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Data Resource Management
A managerial activityApplies information systems technology to
managing data resources to meet needs of business stakeholders.
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Foundation Data Concepts
Levels of dataCharacter
Single alphabetical, numeric, or other symbol
FieldGroupings of charactersRepresents an attribute of some entity
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Foundation Data Concepts (continued)
RecordsRelated fields of dataCollection of attributes that describe an
entityFixed-length or variable-length
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Foundation Data Concepts (continued)
Files (table)A group of related recordsClassified by
Primary useType of datapermanence
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Foundation Data Concepts (continued)
DatabaseIntegrated collection of logically related
data elementsConsolidates records into a common pool
of data elementsData is independent of the application
program using them and type of storage device
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Foundation Data Concepts (continued)
Logical Data Elements
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Types of Databases
OperationalSupports business processes and operationsAlso called subject-area databases,
transaction databases, and production databases
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Types of Databases (continued)
DistributedReplicated and distributed copies or parts of
databases on network servers at a variety of sites.
Done to improve database performance and security
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Types of Databases (continued)
ExternalAvailable for a fee from commercial sources
or with or without charge on the Internet or World Wide Web
HypermediaHyperlinked pages of multimedia
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Data Warehouses and Data Mining
Data warehouseStores data extracted from operational,
external, or other databases of an organization
Central source of “structured” dataMay be subdivided into data marts
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Data Warehouses and Data Mining (continued)
Data miningA major use of data warehouse databasesData is analyzed to reveal hidden
correlations, patterns, and trends
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Database Management Approach
Consolidates data records and objects into databases that can be accessed by many different application programs
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Database Management Approach (continued)
Database Management SystemSoftware interface between users and
databasesControls creation, maintenance, and use of
the database
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Database Management Approach (continued)
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Database Management Approach (continued)
Database InterrogationQuery
Supports ad hoc requestsTells the software how you want to
organize the dataSQL queriesGraphical (GUI) & natural queries
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Database Management Approach (continued)
Report GeneratorTurns results of query into a useable
report
Database MaintenanceUpdating and correcting data
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Database Management Approach (continued)
Application DevelopmentData manipulation languageData entry screens, forms, reports, or web
pages
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Implementing Data Resource Management
Database AdministrationDevelop and maintain the data dictionaryDesign and monitor performance of
databasesEnforce database use and security standards
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Implementing Data Resource Management (continued)
Data PlanningCorporate planning and analysis functionDeveloping the overall data architecture
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Implementing Data Resource Management (continued)
Data AdministrationStandardize collection, storage, and
dissemination of data to end usersFocused on supporting business processes
and strategic business objectivesMay include developing policy and setting
standards
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Implementing Data Resource Management (continued)
ChallengesTechnologically complexVast amounts of dataVulnerability to fraud, errors, and failures
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Section II
Technical Foundations of Database Management
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Database Structures
HierarchicalTreelikeOne-to-many relationshipUsed for structured, routine types of
transaction processing
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Database Structures (continued)
NetworkMore complexMany-to-many relationshipMore flexible but doesn’t support ad hoc
requests well
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Database Structures (continued)
RelationalData elements stored in simple tablesCan link data elements from various tablesVery supportive of ad hoc requests but
slower at processing large amounts of data than hierarchical or network models
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Database Structures (continued)
Multi-DimensionalA variation of the relational modelCubes of data and cubes within cubesPopular for online analytical processing
(OLAP) applications
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Database Structures (continued)
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Database Structures (continued)
Object-orientedKey technology of multimedia web-based
applicationsGood for complex, high-volume applications
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Database Structures (continued)
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Accessing Databases
Key fields (primary key)A field unique to each record so it can be
distinguished from all other records in a table
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Accessing Databases (continued)
Sequential accessData is stored and accessed in a sequence
according to a key fieldGood for periodic processing of a large
volume of data, but updating with new transactions can be troublesome
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Accessing Databases (continued)
Direct accessMethods
Key transformationIndexIndexed sequential access
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Database Development
Data dictionaryDirectory containing metadata (data about
data)StructureData elementsInterrelationshipsInformation regarding access and useMaintenance & security issues
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Database Development (continued)
Data Planning & Database DesignPlanning & Design Process
Enterprise modelEntity relationship diagrams (ERDs)Data modeling
Develop logical framework for the physical design
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Discussion Questions
How should an e-business enterprise store, access, and distribute data & information about their internal operations & external environment?
What roles do database management, data administration, and data planning play in managing data as a business resource?
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Discussion Questions (continued)
What are the advantages of a database management approach to organizing, accessing, and managing an organization’s data resources?
What is the role of a database management system in an e-business information system?
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Discussion Questions (continued)
Databases of information about a firm’s internal operations were formerly the only databases that were considered to be important to a business. What other kinds of databases are important for a business today?
What are the benefits and limitations of the relational database model for business applications?
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Discussion Questions (continued)
Why is the object-oriented database model gaining acceptance for developing applications and managing the hypermedia databases at business websites?
How have the Internet, intranets, extranets, and the World Wide Web affected the types and uses of data resources available to business end users?
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Real World Case 1 – IBM versus Oracle
What key business strategies did Janet Perna implement to help IBM catch up to Oracle in the database management software market?
What is the business case for both IBM’s and Oracle’s product strategy for their database software?
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Real World Case 1 (continued)
Which approach would you recommend to a company seeking a database system today?
What do you see as the key factor to IBM’s success?
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Real World Case 1 (continued)
The case states that “database software has become more of a commodity.” Do you agree?
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Real World Case 2 – Experian Automotive
How do the database software tools discussed in this case help companies exploit their data resources?
What is the business value of the automotive database created by Experian?
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Real World Case 2 (continued)
What other business opportunities could you recommend to Experian that would capitalize on their automotive database?
The case states that Experian’s automotive database “has raised the hackles of privacy advocates.” What legitimate privacy concerns and safeguard suggestions might be raised about this database and its use?
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Real World Case 3 – Shell Exploration
Why do companies still have problems with the quality of the data resources stored in their business information systems?
What is a “data silo?”
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Real World Case 3 (continued)
How do data warehouse approaches help companies like Shell and OshKosh meet their data resource management challenges?
What business benefits can companies derive from a data warehouse approach?
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Real World Case 4 – BlueCross BlueShield & Warner Bros.
What is a storage area network? Why are so many companies installing SANs?
What are the reasons for the quick payback on SAN investments?
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Real World Case 4 (continued)
What are the challenges and alternatives to SANs as a data storage technology?
What are some advantages of SANs?
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Real World Case 5 – Sherwin-Williams & Krispy Kreme
Tips for Managing External DataPurchase external data from a reliable
source that will do most of the refining for you and will work with you on contingency plans.
Run a test load first. A load of test data can pave the way for accurate production loads.
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Real World Case 5 (continued)
Managing external data (continued)Don’t collect data until business and IT staff
have agreed on the amount, frequency, format, and content of the data you need.
Don’t acquire more data or use more data sources than you really need.
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Real World Case 5 (continued)
Managing external data (continued)Don’t mingle external and homegrown data
without adding unique identifiers to each record, in case you need to pull it out.
Don’t overestimate the data’s integrity. Nothing beats direct customer contact and tactical details behind the data.
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Real World Case 5 (continued)
What challenges in acquiring and using data from external sources are identified in this case?
Do you prefer the Sherwin-Williams or Krispy Kreme approach to acquiring external data?