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CHAPTER 5
MANAGING ORGANIZATIONAL
DATA AND INFORMATION
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Learning Objectives
Discuss traditional data file organization and its
problems
Explain how a database approach overcomes the
problems associated with traditional file environment,
and discuss the advantages of the database approach
Describe how the three most common data models
organize data, and the advantages and disadvantages of
each model
Describe how a multidimensional data model organizes
data
Distinguish between a data warehouse and a data mart
Discuss the similarities and difference between data
mining and text mining
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Chapter Overview
Basics of Data
Arrangement and The Traditional Databases: The
Access File Environment Modern Approach
• The Data • Problems with • Locating Data in
Hierarchy the File Approach Databases
• Storing and • Creating the
Accessing Records Database
Database Logical Data Data
Management Systems Models Warehouse
• Logical versus • Hierarchical Model • Multidimensional
Physical View • Network Model Model
• DBMS • Relational Model • Data Marts
Components • Advantages and • Data Mining
Disadvantages of the • Text Mining
Three Models
• Emerging Models
• Other Models
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Case: FedEx Pinpoints Profitable
Customers
The Problem
customers are classified as good , bad, or
ugly by the cost of doing business with
them and the profits they return
keep the good customers, improve the bad
customers, and drop the ugly ones
easy to identify customers who spend money with
them but difficult to identify customers who are
profitable for them
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Case (continued…)
The Solution
use a data warehouse, stocked with customer data, that
allows the company to compare the complex mix of
marketing and servicing costs that go into retaining
each individual customer versus the revenues he, she,
or it might bring in
The Results
“good” customers - expect a phone call if their
shipping volumes falter, which can prevent
defections before they occur
“bad” customers – can be turned into profitable
customers by charging higher shipping rates
“ugly” customers – can be ignored
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Case (continued…)
What have we learned from this case??
Organizations can now scrutinize their
customers (or other data) very carefully
with advanced data management and analysis tools
Customized strategies can be developed to cut
costs, transform the marginal customer into a
profitable customer, and permit more profitable
pricing structures
Other types of data can give an organization
important feedback about its products, services,
markets, and coming trends
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Basics of Data Arrangement
and Access
The Data Hierarchy
Field - a logical grouping of characters into a word, a small
group of words, or a complete number
Record - a logical grouping of related fields
File - a logical grouping of related records
Database - a logical grouping of related files
Entity - a person, place, thing, or event about which
information is maintained
Attribute - each characteristic or quality describing a
particular entity
Primary Key - field that uniquely identifies the record
Secondary Key - field that has some identifying information,
but typically does not identify the file with complete accuracy
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Basics of Data Arrangement
and Access (continued …)
Storing and Accessing Records
Indexed Sequential Access Method (ISAM)
» uses an index of key fields to locate individual records
» index - lists the key field of each record and where that
record is physically located in storage
» track index - shows the highest value of the key field
that can be found on a specific track
Direct File Access Method
» uses the key field to locate the physical address of a
record
» transform algorithm - translates the key field directly
into the record’s storage location on disk
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 4 Computer Software
Database
Accounting Dept. Accounts Programs Management
System
Central Central
Location Location
New York Los Angeles
Chicago Kansas City
User User
Chicago Kansas City
Centralized Database Distributed Database
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Database : The Modern
Approach (continued …)
Creating a Database
Conceptual design - an abstract model of the
database from the user or business perspective
Physical design - shows the way a database is
actually arranged with a storage devices
Entity-relationship (ER) modeling
» process of planning the database design
» ER diagram - document of the conceptual data model
» Entity classes Instance Identifiers
Relationships
Normalization
» method for analyzing and reducing a relational database to
its most streamlined form for minimum redundancy,
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
DBMS (continued …)
Logical versus Physical View
Physical view - deals with the actual, physical
arrangement and location of data in the direct
access storage devices (DASD)
Logical view - represents data in a format that
is meaningful to a user and to the software
programs that process that data
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
DBMS (continued …)
DBMS Components
Data model
» defines the way data are conceptually structured
Data definition language (DDL)
» defines what types of information are in the database
and how they will be structured
» functions of the DDL
> provide a means for associating related data
> indicate the unique identifiers (or keys) of the
records
> set up security access and change restrictions
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
DBMS (continued …)
DBMS Components (cont’)
Data manipulation language (DML)
» used with third-generation, fourth-generation, or
object-oriented languages to query the contents of
the database, store or update information in the
database, and develop database applications
» Structured query language (SQL) - most popular
relational database language, combining both DML
and DDL features
Data Dictionary
» stores definitions of data elements and data
characteristics
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information
Data Warehouses
Data Warehouses
Framework and ViewAccess Applications
EIS/DSS
Custom-Built
A Application
Data P (4GL tools)
Mart I Production
Metadata Marketing S Reporting
Legacy Select Reposition Tools
Extract M
Transform L
OLTT Enterprise Data D
Integrate
Data Mart D Relational
Maintain Query Tools
Warehouse Risk L
Preparation Management E
External OLAP/ROLAP
W
Target Database(s) A
Operational (RDB, MDDB) Data R Web
System/Data Mart E Browsers
Engineering Data
Mining
Introduction to Information Technology
Turban, Rainer and Potter
Chapter 5 Managing Organizational Data and Information