30/08/2010
1
Chapter 3
Managing Data to Improve Business Performance
Information Technology for ManagementImproving Performance in the Digital Economy
3-1Copyright 2010 John Wiley & Sons, Inc.
Chapter Outline
• 3.1 Data, Master Data, and Data Management• 3.2 File Management Systems• 3.3 Database Management Systems• 3.4 Data Warehouses, Data Marts, and Data
Centers• 3.5 Enterprise Content Management• 3.6 Managerial Issues
3-2Copyright 2010 John Wiley & Sons, Inc.
30/08/2010
2
Learning Objectives
1.Describe how data and document management impact profits and performance.
2.Understand how managers are supported or constrained by data quality.
3.Discuss the functions of databases and database management systems.
4.Understand how logical views of data provide a customized support and improve data security.
5.Describe the tactical and strategic benefits of data warehouses, data marts, and data centers.
3-3Copyright 2010 John Wiley & Sons, Inc.
Learning Objectives cont’d
6. Describe transaction and analytic processing systems.1.Explain how enterprise content management and
electronic records management reduce cost, support business operations, and help companies meet their regulatory and legal requirements.
Copyright 2010 John Wiley & Sons, Inc. 3-4
30/08/2010
3
Figure IT 7eU The Business Performance Management Cycle and IT Model
Copyright 2010 John Wiley & Sons, Inc. 3-5
Applebee’s International Learns & Earns
Copyright 2010 John Wiley & Sons, Inc. 3-6
Problem: Huge quantities of data in many databases.
Solution: Enterprise data warehouse implemented.
Results: Improved profitability.
30/08/2010
4
Figure 3.1 Applebee’s enterprise data warehouse and feedback loop.
Copyright 2010 John Wiley & Sons, Inc. 3-7
Copyright 2010 John Wiley & Sons, Inc. 3-8
3.1 Data, Master Data, and Document Management
30/08/2010
5
Importance of data management
Copyright 2010 John Wiley & Sons, Inc. 3-9
• Helps companies to improve productivity. Ensuring that people can find what they need without a long and difficult search.
• Transforms raw data into usable corporate information.
• Opportunity to earn revenues.
• Ability to cut expenses.
Uncertainty: A Constraint on Managers
Copyright 2010 John Wiley & Sons, Inc. 3-11
Examples of damages due to data analysis failures:
• TransAlta: data error cost the firm US$24M
• Healthcare industry: increased costs by billions ofand maybe of thousands of lives.
30/08/2010
6
Data Management
Copyright 2010 John Wiley & Sons, Inc. 3-12
Data Management:
Structured approach for capturing, storing, processing, integrating, distributing and archiving
data effectively throughout their life cycle
Life cycle:
The way data travels through an organization from their capture or creation to their use and final
disposal
Figure 3.2 Data life cycle.
Copyright 2010 John Wiley & Sons, Inc. 3-13
30/08/2010
7
Data Management
Copyright 2010 John Wiley & Sons, Inc. 3-14
• Principle of diminishing data value: value of data diminishes as the data ages.
• Principle of 90/90 data use: as high as 90 percent of data is seldom accessed after 90 days.
• Principle of data in context: end users need to see data in a meaningful format and context.
Data Visualization
Copyright 2010 John Wiley & Sons, Inc. 3-15
Dow Jones industrial average (DJIA) for a single day in tabular display and graphical display.
30/08/2010
8
Data Management: Problems and Challenges
Copyright 2010 John Wiley & Sons, Inc. 3-17
Data management is a major challenge because:
• Volume of data increases exponentially, only a small amount of data is relevant
• Data is collected and created by many individuals using different methods and devices
• Data security, quality and integrity are critical
MDM
Copyright 2010 John Wiley & Sons, Inc. 3-18
Master Data Management:
Process whereby companies integrate data from various sources or enterprise applications to provide
a more unified view of it
MDM consolidates data into a master reference file
Demystifying Master Data Management
30/08/2010
9
MDM
Copyright 2010 John Wiley & Sons, Inc. 3-19
Data entity:
Anything real or abstract about which a company wants to collect and store data
• Main entities: customers, products, suppliers,employees and assets
MDM
Copyright 2010 John Wiley & Sons, Inc. 3-20
Benefits of a unified view of customers:
• Better, more accurate customer data
• Ensure that all employees have reliable information on customers
• More responsive business decisions
30/08/2010
10
Figure 3.4. Model of an enterprise data warehouse.
Copyright 2010 John Wiley & Sons, Inc. 3-21
(Source: From Syncsort, synchsort.com. Used with permission.)
Data quality and integrity
Copyright 2010 John Wiley & Sons, Inc. 3-22
Data quality:
Measure of the data's usefulness as well as the quality of the decisions based on it.
• Five dimensions: accuracy, accessibility, relevance, timeliness and completeness
Captaris® Alchemy®: Document Management Software
30/08/2010
11
Table 3.2
Copyright 2010 John Wiley & Sons, Inc. 3-23
Copyright 2010 John Wiley & Sons, Inc. 3-24
3.2 File Management Systems
30/08/2010
12
Document Management
Copyright 2010 John Wiley & Sons, Inc. 3-20
•Companies create business records
•Document management:
Automated control of these records from initial creation to final archiving or destruction
•DMS:
Software + Hardware that manages documents.
PAPER DOCUMENTS E -DOCS
Document Management
• Medical records
• Customer satisfaction service
• Emergency services
• Legal cases
Copyright 2010 John Wiley & Sons, Inc. 3-20
30/08/2010
13
Figure 3.6Hierarchy of data for a computer-based
file.
Copyright 2010 John Wiley & Sons, Inc. 3-26
Limitations of data file environment• In the past the applications functioned
independently of one another.• Problems:
o Redundancyo Inconsistencyo Isolationo Securityo Integrity
o Concurrency
• In the present: DBMS
Copyright 2010 John Wiley & Sons, Inc. 3-20
30/08/2010
14
Figure 3.8
Copyright 2010 John Wiley & Sons, Inc. 3-28
Computer-based files of this type cause problems such as redundancy,inconsistency, and data isolation.
Copyright 2010 John Wiley & Sons, Inc. 3-29
3.3 Databases and Database Management Systems (DBMS)
30/08/2010
15
Databases:
Optimal way to store and access organizational data
OTLP:Online transaction processing
DBMS (Database Management System):
Permits an organization to centralize data, manage it efficiently, and provide access to the stored data by application programs.
Databases
Copyright 2010 John Wiley & Sons, Inc. 3-30
Figure 3.9 (a) Centralized database. (b) Distributed database with complete or partial copies of the central database in more than one location.
30/08/2010
16
Table 3.3
Copyright 2010 John Wiley & Sons, Inc. 3-31
Figure 3.10
Copyright 2010 John Wiley & Sons, Inc. 3-32
Database management system provides access to all data in the database.
30/08/2010
17
Copyright 2010 John Wiley & Sons, Inc. 3-33
3.4 Data Warehouses, Data Marts, and Data Centers
Data warehouse:
Is a regular database. The main difference is that data warehouse is designed and optimized to respond to analysis
questions that are critical for a business.
OLAP:
Online analytical processing
Data Warehouse
30/08/2010
18
Figure 3.11Data warehouse framework and views.
Copyright 2010 John Wiley & Sons, Inc. 3-34
Figure 3.12Teradata Corp.’s enterprise data
warehouse.
Copyright 2010 John Wiley & Sons, Inc. 3-35
(Source: Teradata Corporation [teradata.com], with permission.)
30/08/2010
19
Table 3.4
Copyright 2010 John Wiley & Sons, Inc. 3-36
Table 3.5
Copyright 2010 John Wiley & Sons, Inc. 3-37
30/08/2010
20
Data Mart:
Lower-cost, scaled-down version of data warehouse
Data Center:
Facilities containing mission-critical information and components that deliver data and IT services to the
enterprise.
Data Mart and Data Center
Copyright 2010 John Wiley & Sons, Inc. 3-38
3.5 Enterprise Content Management
30/08/2010
21
ECM
• Enterprise Content Management:
Includes electronic document, web content, digital asset and electronic records management (ERM)
Copyright 2010 John Wiley & Sons, Inc. 3-20
ERM
• Creating backups is not a form of ERM, content must be organized so it can be easily retrieved by the enterprise or the government
• IT personnel needs to establish ERM policies: retaining and destroying records
Copyright 2010 John Wiley & Sons, Inc. 3-20
30/08/2010
22
Figure 3.13
Copyright 2010 John Wiley & Sons, Inc. 3-39
Electronic records management from creation to retention or destruction.
Copyright 2010 John Wiley & Sons, Inc. 3-41
3.6 Managerial Issues
30/08/2010
23
Managerial Issues
1. Reducing uncertainty.2. Cost-benefit issues & justification.3. Where to store data physically.4. Legal issues.5. Internal or external collection, storage,
maintenance, & purging of databases of information.
6. Disaster recovery.7. Data security & ethics.8. Privacy.9. Legacy systems.10.Data delivery.
Copyright 2010 John Wiley & Sons, Inc. 3-42
• 9/11
• Blackberry banned in Arabia
• Privacy
National Security depends on Intelligence and Data Mining
30/08/2010
24
More information
Data management's top eight stories of 2008
Operational vs. Analytical MDM
Copyright 2010 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein.
Copyright 2010 John Wiley & Sons, Inc. 3-40