Chap005

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.

Data Resource ManagementData Resource Management

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• 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

Learning Objectives Learning Objectives

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Learning ObjectivesLearning 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 DatabasesCase 1: Sharing Business Databases

• Amazon’s 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 DatabasesCase 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 eBay’s listings are uploaded to

the site using these resources

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Case 1: Sharing Business DatabasesCase 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 QuestionsCase 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 QuestionsCase Study Questions

• Should other companies follow Amazon and eBay’s 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 ElementsLogical Data Elements

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Logical Data ElementsLogical 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 ElementsLogical 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 DatabaseElectric Utility Database

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Database StructuresDatabase Structures

• Common database structures…• Hierarchical

• Network

• Relational

• Object-oriented

• Multi-dimensional

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Hierarchical StructureHierarchical Structure

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

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Network StructureNetwork Structure

• Used in some mainframe DBMS packages• Many-to-many relationships

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Relational StructureRelational 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 OperationsRelational 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 StructureMultidimensional 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 ModelMultidimensional Model

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Object-Oriented StructureObject-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 StructureObject-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 StructureObject-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 StructuresEvaluation of Database Structures

• Hierarchical• Works for structured, routine transactions• Can’t 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 DevelopmentDatabase 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 DictionaryData 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 DevelopmentDatabase Development

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Data Planning ProcessData 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 DiagramEntity Relationship Diagram

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Database Design ProcessDatabase 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 ProcessDatabase 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 ViewsLogical and Physical Database Views

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Data Resource ManagementData 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 StewardsCase 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 QuestionsCase 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 DatabasesTypes of Databases

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Operational DatabasesOperational 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 DatabasesDistributed 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 DatabasesDistributed 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 DatabasesExternal 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 DatabasesHypermedia 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 SystemComponents of Web-Based System

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Data WarehousesData 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 ComponentsData Warehouse Components

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Applications and Data MartsApplications and Data Marts

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Data MiningData 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 ProcessingTraditional 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 ProcessingTraditional File Processing

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Database Management ApproachDatabase 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 ApproachDatabase Management Approach

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Database Management SystemDatabase 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 organization’s databases

• Use the databases of an organization to provide the information needed by end users

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Common DBMS Software ComponentsCommon 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 ComponentsCommon 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 SystemDatabase 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 FunctionsDBMS Major Functions

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Database InterrogationDatabase 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 InterrogationDatabase Interrogation

• SQL Queries• Structured, international standard query language

found in many DBMS packages• Query form is SELECT…FROM…WHERE…

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Database InterrogationDatabase 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 InterrogationDatabase 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 WizardGraphical Query Wizard

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Database MaintenanceDatabase 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 DevelopmentApplication 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. DataCase 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. DataCase 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 QuestionsCase 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?

• Acxiom’s business raises many issues related to privacy. • Are the data collected by Acxiom really private?

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Case 4: Protecting the Data JewelsCase 4: Protecting the Data Jewels

• Harrah’s 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 JewelsCase 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 QuestionsCase 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 company’s data resources?

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