Chapter 5

Data Resource
Management

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
 Explain the 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 with 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 each of the
following concepts:
Major types of databases
Data warehouses and data mining
Logical data elements
Fundamental database structures
Database development

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 Section 1
Technical Foundations of Database
Management

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I. Database Management System

Data resources must be structured and

organized in some logical manner so
they can be accessed, processed,
retrieved, and managed easily

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II. Fundamental Data Concepts
Character – the most basic logical data
element that can be observed, a single
alpha or numeric or other symbol,
represented by one byte
Field – a grouping of related characters,
as a last name or a salary, represents an
attribute of some entity General Purpose
Application Programs – perform
common information processing jobs for
end users
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II. Fundamental Data Concepts
Record – a grouping of attributes that
describe an entity
File – a group of related data records
Database – a collection of logically
related data elements

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II. Fundamental Data Concepts

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III. Database Structures (Models)
 Hierarchical Structure – treelike structure of one-
to-many parent-child relationships (each child can
have only one parent)

 Network Structure – similar to hierarchical but

allows many-to-many relationships (a child record
can have more than one parent)

 Relational Structure – the most widely used

database model today; data is represented as a
series of two-dimensional tables called Relations;
each column is a named attribute of the entity,
each row is an unnamed instance of that entity

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III. Database Structures (Models)
Relational Operations
Select – create a subset that meets a criterion
Join – temporarily combine two or more tables for
comparison
Project – create a subset of the columns in the
temporary tables

Multidimensional Structure – variation of the

Relational model using multidimensional
structures to organize and express
relationships

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III. Database Structures (Models)

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III. Database Structures (Models)

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III. Database Structures (Models)

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III. Database Structures (Models)
Object-Oriented Structure – combining the
data of interest and the processes that act on
that data into a structure called an object
Encapsulation – allows complex data types
Inheritance – allows replication of some/all of the
characteristics of a parent object in the creation of
a child object
Evaluation of Database Structures – databases
have grown more complex as needs have
changed and grown in complexity

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III. Database Structures (Models)

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 Database Pioneer Rethinks the Best Way
to Organize Data

How do databases currently focus on

data to be stored?
What is suggested as a better away to
focus on data warehouses?
What gains do these changes promise?

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IV. Database Development
Database Administrator (DBA) – controls
development and administration of the
database

Data Definition Language (DDL) – used to

specify the contents, relationships, and
structure of the database

Data Dictionary – directory containing the

metadata

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IV. Database Development
Metadata – data about the data

Data Planning and Database Design

Data Modeling (Entity-Relationship Diagrams) –
logical models of the data itself; this must be done
before choosing the database model

Schema – the physical/internal view of a system

Subschema – the logical/external view of a system

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IV. Database Development

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IV. Database Development
Entity Relationship Diagram

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 AAA Missouri: Data Quality Is an
Important First Step

What problem did AAA Missouri have?

How does Melissa solve this problem?
What other benefits does this software
provide?
What is the ultimate goal of using this
software? What business benefit will
that provide?

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 Hadoop: Ready for the Large-scale
Databases of the Future

What is the strength of Hadoop?

What does Hadoop do differently from
pervious databases?
Why do we need something different
today for handling data in databases?
What does this tell you about the future
od handling data?

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 Section 2
Managing Data Resources

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I. Data Resource Management

Data are an organizational resource that

must be managed as any other resource

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I. Data Resource Management
Types of Databases Used by
Organizations and End-Users

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II. Types of Databases

Operational Databases – store detailed data to

support business processes and operations

Distributed Databases – many organizations

distribute their databases over multiple
locations
Replication – complex process of updating
distributed data

Duplication – simplified method of updating

distributed data

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II. Types of Databases

External Databases – outside the firm,

free or fee-based
Hypermedia Databases – hyperlinked
pages of multimedia

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 Coty: Using Real-Time Analytics to Track
Demand

What percentage of retails products are

usually out of stock in the U.S.?
What percentage of promotional items
are usually out of stock in the U.S.?
What effect does this have on business?
How does Coty deal with these issues?

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III. Data Warehouses and Data Mining

Data Warehouse – stores data extracted

from other databases
Data Mart – subset of a data warehouse
focusing on a single topic, customer,
product, etc.
Data Mining – analyzing a data
warehouse to reveal hidden patterns
and trends
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III. Data Warehouses and Data Mining
Components of a Data Warehouse System

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III. Data Warehouses and Data Mining
A Data Warehouse and its Data Mart Subsets

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III. Data Warehouses and Data Mining

Data Mining Extracts Business Knowledge

from a Data Warehouse

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 Better Analytics Means Better Care

According to this case, what is the state

of healthcare and BI?
In what ways did the system improve
patients’ health?
How does SETMA view the cost and
benefits of the system?

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IV. Traditional File Processing

Data was stored in independent files without

regard to other needs for that data

Problems of File Processing – databases seek

to solve these problems
1. Data Redundancy – the same data is kept in
more than one location; databases seek to
Control (NOT reduce!) Redundancy; this led to
Data Inconsistency – same data in multiple
locations but the Values were Different

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IV. Traditional File Processing

Problems of File Processing – databases seek

to solve these problems
2. Lack of data Integration – data not easily
available for ad hoc requests
3. Data Dependence – data and programs were
“tightly coupled”, changing one meant having to
change the other
4. Lack of Data Integrity (Standardization) – data
was defined differently by different end users or
applications

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 Online Dating: The Technology Behind
Finding Love
Are all dating sites the same? For users,
what makes the difference between
different dating sites?
What is the biggest challenge for
eHarmony?
When is the demand for eHarmony’s
services greatest? Why might this be?
What does this mean from a business
perspective?
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V. Database Management Approach

Consolidate the data from separate files into

databases accessible by multiple application
programs
Database Management System (DBMS) – a
collection of programs to create, maintain, and use
(retrieve) data in a database
Database Maintenance – organizational databases
need to be updated continually
Application Development – facilitated by the Data
Manipulation Language (DML) provided by the
DBMS

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V. Database Management Approach

Database Interrogation – query (“ask”) the

database for information
 Query Language – allows ad hoc requests of the
database
 SQL Queries (Structured Query Language) –
standard query language found in many
databases
 Boolean Logic – 3 logical operators: AND, OR,
and NOT
 Graphical and Natural Queries – easier methods
of structuring SQL statements 5-38