Data Resource Management

Chapter 5

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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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 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 the following concepts– Major types of databases

– Data warehouses and data mining

– Logical data elements

– Fundamental database structures

– Database development

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Fundamental Data Concepts

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Database Management

In all Information Systems, data resources must be organized in a logical manner so that:

1- They can be accessed easily

2- Processed efficiently

3- Retrieved quickly

4- Managed effectively

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Logical Data Elements

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Logical Data Elements

Field(data item)

RecordCharacter

•a grouping of related characters

•Represents an attribute (quality or characteristic) of some entity (object, person, place, event)

•Examples… salary, job title

•Grouping of all the fields used to describe the attributes of an entity

•Example… payroll records with name, SSN, pay rate

•A single alphabetic, numeric, or other symbol

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Logical Data Elements

File(table, flat file)

Database

•Group of related records

•Integrated collection of logically related data elements

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Electric Utility Database

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Database Structure

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Database Structures

1. Hierarchical

2. Network

3. Relational

4. Object-oriented

5. Multidimensional

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Common Database Structures: Hierarchical

– Early DBMS structure– Records arranged in tree-like structure– Relationships are one-to-many– Access data elements by moving progressively downward from the root and along

the branches of the tree

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Common Database Structures: Network

– Used in some mainframe DBMS packages

– Many-to-many relationships Any data element can be related to any number of other data elements

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Common Database Structures: Relational

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

Relational operations include:

– 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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Common Database Structures: Multidimensional

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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Common Database Structures: Object-Oriented

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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Common Database Structures: Object-Oriented

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

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

•Can’t handle many-to-many relationship

•Unable to handle ad hoc requests

Network

•More flexible than hierarchical

•Unable to handle ad hoc requests

Relational

•Easily responds to ad hoc requests

•Easier to work with & maintain

•Not as efficient or quick as hierarchical or network

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Database Development

Database Administrator (DBA)

In charge of enterprise-wide database development

Improves integrity and security of organizational databases

Uses Data Definition Language (DDL) to develop and specify data content, relationships, and structure

Stores these specifications in a data dictionary or metadata repository

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Data Dictionary

Data Dictionary

Contains data about data (metadata)

Relies on specialized software component to manage a database of data definitions

Can be active or passive

Contains information

on…

Security

Database maintenance

Requirements for end users’ access and use of applications

Names and descriptions of all types of data records and their interrelationships

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Example of a Data Dictionary

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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: Applebee’s, Travelocity, and Others

Applebee’s– Uses data for basic business decisions, such as

replenishing food supplies based on how much finished product was sold daily

– Developing more sophisticated analyses that look at how well items are selling

This will help the company make better decisions about what to order and what products to promote

Today, organizations extensively aggregate and mine their data to make better decisions– Travelocity mined 600,000 comments so it could

better monitor and respond to customer issues

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Case Study Questions

What are the business benefits of taking the time and effort required to create and operate data warehouses such as those described in the case?

– Do you see any disadvantages?

– Is there any reason why all companies shouldn’t use data warehousing technology?

Applebee’s noted some of the unexpected insights obtained from analyzing data about “back-of-house” performance

– Using your knowledge of how a restaurant works, what other interesting questions would you suggest to the company?

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Case Study Questions

Data mining and warehousing technologies use data about past events to inform better decision-making in the future

– Do you believe this stifles innovative thinking, causing companies to become too constrained by the data they are already collecting to think about unexplored opportunities?

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Types of Databases

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Operational Databases

Stores detailed data needed to supportbusinesses and operations

Also called subject area databases (SADB), transaction databases, and

production databases

Database examples:customer databases, human resource

databases, inventory databases

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Distributed Databases

Distributed databases are copies or parts of databases stored on servers at multiple locations

Advantages Disadvantages

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, anywhere

Improved database performance at worksites

Maintaining data accuracy

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Distributed Databases

Look at each distributed database and find changes

Apply changes to each distributed database

Very complex

One database is master

Duplicate the master after hours, in all locations

Easier to accomplish

Requires extra computing power & bandwidth

Duplication

Replication

Updating data can be done in 2 ways:

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External Databases

Databases available for a fee from the Web, or from commercial

online services

Search engines like Google or Yahooare external databases

Hypermedia databases

Statistical databases

Bibliographic andfull-text databases

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Components of Web-Based System

A hypermedia database contains– Website database– Consist of hyperlinked pages of multimedia– Interrelated hypermedia page elements,

rather than interrelated data records

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Data Warehouses

Central source of data that has been cleaned,transformed, and cataloged

Stores static data that has been extracted fromother databases in an organization

Subsets of data that focus on specific aspects of a company (department or process)

Data warehouses may be divided into data marts

Data is used for data mining, analytical processing, analysis, research, decision support

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Data Warehouse Components

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Applications and Data Marts

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Data Mining

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Data Mining

Data in data warehouse are analyzed to reveal hidden patterns and trends

Examples:

– Perform market-basket analysis to identify new business processes

– Find root causes to quality problems

– Cross sell to existing customers

– Profile customers with more accuracy

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Data Mining

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Traditional File Processing

Data are organized, stored, and processedin independent files

Each business application uses 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 - Banks

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Database Management Approach

The foundation of modern methodsof managing organizational data

The foundation of modern methodsof managing organizational data

A database management

system (DBMS) is the software

interface between users and databases

Consolidates data records,

formerly in separate files, into databases

Data can be accessed by

many different application programs

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Database Management Approach

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Database Management System

In mainframe and server computer systems, database management software is used to…In mainframe and server computer systems, database management software is used to…

Create new databasesand database applications

Maintain the quality of the datain an organization’s databases

Use the databases of an organization toprovide the information needed by end users

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Common DBMS Software Components

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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 User Makes DBMS

Query

End User Makes DBMS

Query

Response is a video displayor a printed report

QueryLanguage

Immediate response to ad hoc

data requests

Report Generator

Quickly specifya format for

information you want to present

as a report

No programming required

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Database Interrogation

SQL Queries– Structured, international standard query

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

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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

Most DBMS packages offer easier-to-usepoint-and-click methods

Translates queries into SQL commands

It is difficult to correctly phrase SQL andother database language search queries

Natural language query statements aresimilar to conversational English

Graphical and Natural Queries

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Microsoft 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 toolsto 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: Amazon, eBay, and Google

Amazon’s data vault– Product descriptions– Prices– Sales rankings– Customer reviews– Inventory figures– Countless other layers of content

10 years & $1 billion

to build

10 years & $1 billion

to build

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Case 3: Amazon, eBay, and Google

Amazon opened its data vault in 2002– 65,000 developers, businesses, and

entrepreneurs have tapped into it– Many have become 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 3: Amazon, eBay, and Google

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