McGraw-Hill/Irwin

Copyright 2008 2008,The TheMcGraw-Hill McGraw-HillCompanies, Companies,Inc. Inc.All Allrights rightsreserved. reserved.

Chapter

5
Data Resource Management

McGraw-Hill/Irwin

Copyright 2008 2008,The TheMcGraw-Hill McGraw-HillCompanies, Companies,Inc. Inc.All Allrights rightsreserved. reserved.

Learning Objectives
Explain the business value of implementing data resource management processes and technologies in an organization Outline the advantages of a database management approach to managing the data resources of a business, compared to a file processing approach Explain how database management software helps business professionals and supports the operations and management of a business
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Learning Objectives
Provide examples to illustrate the following concepts
Major types of databases Data warehouses and data mining Logical data elements Fundamental database structures Database development

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Case 1: Sharing Business Databases

Amazons data vault
Product descriptions Prices Sales rankings Customer reviews Inventory figures Countless other layers of content

Took 10 years and a billion dollars to build

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Case 1: Sharing Business Databases

Amazon opened its data vault in 2002
65,000 developers, businesses, and entrepreneurs have tapped into it Many have become ambitious business partners

eBay opened its $3 billion databases in 2003

15,000 developers and others have registered to use it and to access software features 1,000 new applications have appeared 41 percent of eBays listings are uploaded to the site using these resources
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Case 1: Sharing Business Databases

Google recently unlocked access to its desktop and paid-search products
Dozens of Google-driven services cropped up Developers can grab 1,000 search results a day for free; anything more requires permission In 2005, the Ad-Words paid-search service was opened to outside applications

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Case Study Questions

What are the business benefits to Amazon and eBay of opening up some of their databases to developers and entrepreneurs?
Do you agree with this strategy?

What business factors are causing Google to move slowly in opening up its databases?
Do you agree with its go-slow strategy?

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Case Study Questions

Should other companies follow Amazon and eBays lead and open up some of their databases to developers and others?
Defend your position with an example of the risks and benefits to an actual company

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Logical Data Elements

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Logical Data Elements

Character
A single alphabetic, numeric, or other symbol

Field or data item

Represents an attribute (characteristic or quality) of some entity (object, person, place, event)
Examples: salary, job title

Record
Grouping of all the fields used to describe the attributes of an entity
Example: payroll record with name, SSN, pay rate
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Logical Data Elements

File or table
A group of related records

Database
An integrated collection of logically related data elements

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Electric Utility Database

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Database Structures
Common database structures
Hierarchical Network Relational Object-oriented Multi-dimensional

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Hierarchical Structure
Early DBMS structure Records arranged in tree-like structure Relationships are one-to-many

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Network Structure
Used in some mainframe DBMS packages Many-to-many relationships

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Relational Structure

Most widely used structure

Data elements are stored in tables Row represents a record; column is a field Can relate data in one file with data in another, if both files share a common data element
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Relational Operations
Select
Create a subset of records that meet a stated criterion
Example: employees earning more than $30,000

Join
Combine two or more tables temporarily Looks like one big table

Project
Create a subset of columns in a table

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Multidimensional Structure
Variation of relational model
Uses multidimensional structures to organize data Data elements are viewed as being in cubes Popular for analytical databases that support Online Analytical Processing (OLAP)

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Multidimensional Model

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Object-Oriented Structure
An object consists of
Data values describing the attributes of an entity Operations that can be performed on the data

Encapsulation
Combine data and operations

Inheritance
New objects can be created by replicating some or all of the characteristics of parent objects

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Object-Oriented Structure

Source: Adapted from Ivar Jacobsen, Maria Ericsson, and Ageneta Jacobsen, The Object Advantage: Business Process Reengineering with Object Technology (New York: ACM Press, 1995), p. 65. Copyright @ 1995, Association for Computing Machinery. By permission.

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Object-Oriented Structure
Used in object-oriented database management systems (OODBMS) Supports complex data types more efficiently than relational databases
Examples: graphic images, video clips, web pages

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Evaluation of Database Structures

Hierarchical
Works for structured, routine transactions Cant handle many-to-many relationship

Network
More flexible than hierarchical Unable to handle ad hoc requests

Relational
Easily responds to ad hoc requests Easier to work with and maintain Not as efficient/quick as hierarchical or network
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Database Development
Database Administrator (DBA)
In charge of enterprise database development Improves the integrity and security of organizational databases Uses Data Definition Language (DDL) to develop and specify data contents, relationships, and structure Stores these specifications in a data dictionary or a metadata repository

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Data Dictionary
A data dictionary
Contains data about data (metadata) Relies on specialized software component to manage a database of data definitions

It contains information on..

The names and descriptions of all types of data records and their interrelationships Requirements for end users access and use of application programs Database maintenance Security
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Database Development

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Data Planning Process

Database development is a top-down process
Develop an enterprise model that defines the basic business process of the enterprise Define the information needs of end users in a business process Identify the key data elements that are needed to perform specific business activities (entity relationship diagrams)

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Entity Relationship Diagram

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Database Design Process

Data relationships are represented in a data model that supports a business process This model is the schema or subschema on which to base
The physical design of the database The development of application programs to support business processes

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Database Design Process

Logical Design
Schema - overall logical view of relationships Subschema - logical view for specific end users Data models for DBMS

Physical Design
How data are to be physically stored and accessed on storage devices

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Logical and Physical Database Views

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Data Resource Management

Data resource management is a managerial activity
Uses data management, data warehousing, and other IS technologies Manages data resources to meet the information needs of business stakeholders

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Case 2: Emerson & Sanofi, Data Stewards

Data stewards
Dedicated to establishing and maintaining the quality of data Need business, technology, and diplomatic skills Focus on data content

Judgment is a big part of the job

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Case Study Questions

Why is the role of a data steward considered to be innovative? What are the business benefits associated with the data steward program at Emerson? How does effective data resource management contribute to the strategic goals of an organization?

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Types of Databases

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Operational Databases
Stores detailed data needed to support business processes and operations
Also called subject area databases (SADB), transaction databases, and production databases Database examples: customer, human resource, inventory

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Distributed Databases
Distributed databases are copies or parts of databases stored on servers at multiple locations
Improves database performance at worksites

Advantages
Protection of valuable data Data can be distributed into smaller databases Each location has control of its local data All locations can access any data, any where

Disadvantages
Maintaining data accuracy
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Distributed Databases
Replication
Look at each distributed database and find changes Apply changes to each distributed database Very complex

Duplication
One database is master Duplicate the master after hours, in all locations Easier to accomplish

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External Databases
Databases available for a fee from commercial online services, or free from the Web
Examples: hypermedia databases, statistical databases, bibliographic and full text databases Search engines like Google or Yahoo are external databases

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Hypermedia Databases
A hypermedia database contains
Hyperlinked pages of multimedia Interrelated hypermedia page elements, rather than interrelated data records

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Components of Web-Based System

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Data Warehouses
Stores static data that has been extracted from other databases in an organization
Central source of data that has been cleaned, transformed, and cataloged Data is used for data mining, analytical processing, analysis, research, decision support

Data warehouses may be divided into data marts

Subsets of data that focus on specific aspects of a company (department or business process)
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Data Warehouse Components

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Applications and Data Marts

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Data Mining
Data in data warehouses are analyzed to reveal hidden patterns and trends
Market-basket analysis to identify new product bundles Find root cause of qualify or manufacturing problems Prevent customer attrition Acquire new customers Cross-sell to existing customers Profile customers with more accuracy
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Traditional File Processing

Data are organized, stored, and processed in independent files
Each business application designed to use specialized data files containing specific types of data records

Problems
Data redundancy Lack of data integration Data dependence (files, storage devices, software) Lack of data integrity or standardization
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Traditional File Processing

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Database Management Approach

The foundation of modern methods of managing organizational data
Consolidates data records formerly in separate files into databases Data can be accessed by many different application programs A database management system (DBMS) is the software interface between users and databases

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Database Management Approach

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Database Management System

In mainframe and server computer systems, a software package that is used to
Create new databases and database applications Maintain the quality of the data in an organizations databases Use the databases of an organization to provide the information needed by end users

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Common DBMS Software Components

Database definition
Language and graphical tools to define entities, relationships, integrity constraints, and authorization rights

Nonprocedural access
Language and graphical tools to access data without complicated coding

Application development
Graphical tools to develop menus, data entry forms, and reports
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Common DBMS Software Components

Procedural language interface
Language that combines nonprocedural access with full capabilities of a programming language

Transaction processing
Control mechanism prevents interference from simultaneous users and recovers lost data after a failure

Database tuning
Tools to monitor, improve database performance

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Database Management System

Database Development
Defining and organizing the content, relationships, and structure of the data needed to build a database

Database Application Development

Using DBMS to create prototypes of queries, forms, reports, Web pages

Database Maintenance
Using transaction processing systems and other tools to add, delete, update, and correct data
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DBMS Major Functions

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Database Interrogation
End users use a DBMS query feature or report generator
Response is video display or printed report No programming is required

Query language
Immediate response to ad hoc data requests

Report generator
Quickly specify a format for information you want to present as a report
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Database Interrogation
SQL Queries
Structured, international standard query language found in many DBMS packages Query form is SELECTFROMWHERE

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Database Interrogation
Boolean Logic
Developed by George Boole in the mid-1800s Used to refine searches to specific information Has three logical operators: AND, OR, NOT

Example
Cats OR felines AND NOT dogs OR Broadway

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Database Interrogation
Graphical and Natural Queries
It is difficult to correctly phrase SQL and other database language search queries Most DBMS packages offer easier-to-use, point-and-click methods Translates queries into SQL commands Natural language query statements are similar to conversational English

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Graphical Query Wizard

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Database Maintenance
Accomplished by transaction processing systems and other applications, with the support of the DBMS
Done to reflect new business transactions and other events Updating and correcting data, such as customer addresses

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Application Development
Use DBMS software development tools to develop custom application programs
Not necessary to develop detailed data-handling procedures using conventional programming languages Can include data manipulation language (DML) statements that call on the DBMS to perform necessary data handling

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Case 3: Acxiom Corp. Data

Acxiom does three things really well
Manages large volumes of data Cleans, transforms, and enhances that data Distills business intelligence from that data to drive smart decisions

Refined data is sold to customers

Developing telemarketing lists Identifying prospects for credit card offers Screen prospective employees Detecting fraudulent financial transactions
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Case 3: Acxiom Corp. Data

Primary business activities
Building its data library Selling data Managing other companies data and data centers

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Case Study Questions

Acxiom is in a unique type of business. How would you describe the business of Acxiom?
Are they a service- or product-oriented business?

It is easy to see that Acxiom has focused on a wide variety of data from different sources.
How does Acxiom decide which data to collect, and for whom?

Acxioms business raises many issues related to privacy.

Are the data collected by Acxiom really private?
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Case 4: Protecting the Data Jewels

Harrahs Entertainment and other casino companies closely guard customer data
Both hard copy and electronic files

Concerns
Broader access to CRM systems More frequent job switching

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Case 4: Protecting the Data Jewels

Protection methods
Nondisclosure, non-compete, and nonsolicitation agreements that specify customer lists Trade-secret laws and legal action Limiting access to sensitive information Physical security Strong password protection Reinforcement of signed agreements during exit interviews Monitoring electronic communication
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Case Study Questions

Why have developments in IT helped to increase the value of the data resources of many companies? How have these capabilities increased the security challenges associated with protecting a companys data resources?

How can companies use IT to meet the challenges of data resource security?

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