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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?

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Real World Case 5 (continued)

What other sources of external data might a business use to gain valuable marketing and competitive intelligence?