END BACKNEXT Managing Data Resources Types of Databases Data Warehouses The Database Management Approach Section II Technical Foundations of Database Management

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Managing Data ResourcesTypes of DatabasesData WarehousesThe Database Management ApproachSection IITechnical Foundations of Database ManagementDatabase StructuresDatabase Development

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 5-1

Real World Cases

Data Resource Data Resource ManagementManagement

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Real World Cases

Learning ObjectivesLearning Objectives1. Explain the importance of implementing data

resource management processes and technologies in an organization.

2. Outline the advantages of the database management approach to managing the data resources of a business.

3. Explain how database management software helps business professionals and supports the operations and management of a business.

4. Provide examples to illustrate each of the following concepts:a. Major types of databasesb. Data warehouses and data miningc. Logical data elementsd. Fundamental database structuree. Database development

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Real World Cases

Managing Data Managing Data ResourcesResources

Data Resource ManagementData – A Vital Business AssetData – A Vital Business AssetData WarehousingData WarehousingReal World Case 1…Real World Case 1…

Argosy Gaming Co.: Argosy Gaming Co.: Challenges in Building a Challenges in Building a Data WarehouseData Warehouse Click to go to

Case 1

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Foundation Data ConceptsFoundation Data Concepts

• Character• Field• Record• File• Database

Graphically…

Data Organization StructureData Organization Structure

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EmployeeRecord 1

EmployeeRecord 2

EmployeeRecord 3

EmployeeRecord 4

NameField

SS No.Field

SalaryField

NameField

SS No.Field

SalaryField

NameField

SS No.Field

SalaryField

NameField

SS No.Field

SalaryField

Jones T.A. 275-32-3874 20,000 Klugman J.L. 349-88-7913 28,000 Alverez, J.S. 542-40-3718 100,000 Porter, M.L. 617-87-7915 50,000

Human ResourceDatabase

Payroll File Benefit File

Foundation Data ConceptsFoundation Data ConceptsData Organization StructureData Organization Structure

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Electric Utility Database

Entities: Customers, Meters, Bills, Payments, Meter Readings

Relationships: Bills Sent to Customers Customers Make Payments Customers Use Meters

Billing

MeterReading

PaymentProcessing

ServiceStart/Stop

Foundation Data ConceptsFoundation Data Concepts

Example: An Electric Utility DatabaseExample: An Electric Utility Database

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Types of DatabasesTypes of Databases• Operational Databases

• Distributed Databases

• External Databases

• Hypermedia Databases

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Distributed Database ModelDistributed Database Model

Client PC

DistributedDatabases

on Intranetsand OtherNetworks

End UserDatabases

DataWarehouse

DataMarts

OperationalDatabases

of theOrganization

NetworkServer

ExternalDatabases

on theInternet and

OnlineServices

Types of DatabasesTypes of Databases

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Operational DatabasesOperational DatabasesTypes of DatabasesTypes of Databases

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Web-Based Information SystemWeb-Based Information System

WebBrowser

The InternetIntranetsExtranets Web

ServerSoftware

HTMLXML

Web PagesImage FilesVideo FilesAudio Files

NetworkServer

Client PCsHypermedia

Database

Types of DatabasesTypes of Databases

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Components of a Complete Data Components of a Complete Data WarehouseWarehouse

Operational, External,and Other Databases

Data Acquisition(Capture, clean,

transform, transport,

load/apply)

WarehouseDesign

DataManagement

MetadataManagement

MetadataDirectory

MetadataRepository

AnalyticalData Store

EnterpriseWarehouse

DataMarts Data Analysis

(Query, report, analyze, mine,

deliver)

Web Information

System

Data WarehousesData Warehouses

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Shell Exploration: The Business Shell Exploration: The Business Value of a Data WarehouseValue of a Data Warehouse

Data WarehousesData Warehouses

• ERP or SCM Software Installation

• Combining Databases• 27 Sources Become 1 Huge

Data Warehouse• More Powerful Data Source

in One WarehouseGraphically…

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Data WarehousesData WarehousesApplications Data Marts

Finance

Marketing

Sales

Accounting

ManagementReporting

ERP

Purchasing

CRM

InveentoryControl

Shipping

Logistics

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• Identify New Product Bundles

• Find Root Causes to Quality or Manufacturing Problems

• Prevent Customer Attrition• Cross-Sell to Existing

Customers• Profile Customers with More

Accuracy

Data MiningData Mining

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Database

TargetData

TargetWarehouse

Patterns BusinessKnowledge

Data Trans-formationSelection

DataMining

Implementation/Evaluation

Using Data Mining to Develop Using Data Mining to Develop Business KnowledgeBusiness Knowledge

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• Sought to Profile Customers• Wanted to Identify More

Accurate, Specific Target Markets

• Extremely Accurate and Effective Results

• Customer Patterns Revealed

Data MiningData MiningBank of America: Benefits of Bank of America: Benefits of


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• Traditional File Processing• Information Wanted is in

Different Files• Each File Used by a

Different Application Program

• No Application Program Can Get the Information from these Files

File Processing ProgramsFile Processing Programs

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File Processing ProgramsFile Processing ProgramsExample – Bank File Processing SystemsExample – Bank File Processing Systems

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Problems of File Processing• Data Redundancy• Lack of Data Integration• Data Dependence• Other Problems

–Accuracy–Integrity–Completeness

File Processing ProgramsFile Processing Programs

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The Software Interface Between Users and the Databases

Controls How Databases are:–Created–Interrogated–Maintained–Provide Needed

Information

Database Management SystemDatabase Management System

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• Administrative Services Organization for 38 Credit Unions

• Making Switch to DBMS• Sought Demographic, Account,

and Product Information• New DB2 System Provided

Superior Results and Faster Reports

Database Management SystemDatabase Management SystemAlberta Central: Converting to Alberta Central: Converting to

Database ManagementDatabase Management

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Database Management SystemDatabase Management SystemInquiry

Customer Transaction Processing

CheckingAccountProgram

SavingsAccountProgram

InstallmentLoan

Program

Database Management System

CustomerDatabase

Checking Account DataSavings Account DataInstallment Loan DataOther Customer Data

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Common DBMS Software Components

•Database Definition•Nonprocedural Access•Application Development•Procedural Language Interface

•Transaction Processing•Database Tuning

Common Software ComponentsCommon Software Components

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Database Management SystemDatabase Management SystemmySQL DBMS ApplicationmySQL DBMS Application

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DatabaseManagement

OperatingSystem

DatabaseManagement

System

ApplicationPrograms

Databases

•Create: Database and Application DevelopmentCreate: Database and Application Development•Maintain: Database MaintenanceMaintain: Database Maintenance•Use: Database InterrogationUse: Database Interrogation

Three Major Uses of DBMS SoftwareThree Major Uses of DBMS Software

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Database Interrogation• SQL Queries• Graphical and Natural

QueriesDatabase MaintenanceDatabase Application

Development


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Example ApplicationMicrosoft Access

Report Generator


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• Sought Customer Buying Trends

• Improved Inventory Management

• Sought to Cut Paper Usage• Wanted POS System for

Data Capture• Successful Management Tool

Created

Database Management SystemDatabase Management SystemWH Smith PLC: Transaction WH Smith PLC: Transaction

Processing and Database Processing and Database InterrogationInterrogation

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Example ApplicationQuery Wizard of

Microsoft Access

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Technical Technical Foundations Foundations

of Database Managementof Database Management• Need for Organization• Use Logical Structure• Processed Efficiently• Retrieved Quickly Real World Case 2- Real World Case 2- Owens & Minor and NBC Owens & Minor and NBC

UniversalUniversal Click to go toCase 2

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Database StructuresDatabase StructuresThree Major Database StructuresThree Major Database Structures

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Database StructuresDatabase StructuresThree Major Database StructuresThree Major Database Structures•Hierarchical Structure•Network Structure•Relational Model•Multidimensional Structure

Department Table Employee Table

Deptno Dname Dloc Dmgr Empno Ename Etitle Esalary DeptnoEmp 1Emp 2Emp 3Emp 4Emp 5Emp 6

Dept ADept BDept C

Dept ADept B

Dept A

Dept BDept CDept B

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Database StructuresDatabase StructuresThe Multidimensional StructureThe Multidimensional Structure

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Database StructuresDatabase StructuresThe Object-Oriented StructureThe Object-Oriented Structure

Attributes•Customer•Balance•Interest Operations•Deposit (Amount)•Withdraw (Amount)•Get Owner

Attributes•Credit Line•Monthly Statements Operations•Calculate Interest•Print Monthly Statement

Attributes•Number of Withdrawals•Quarterly Statement Operations•Calculate Interest Paid•Print Quarterly Statement

Bank Account Object

Checking Account Object Savings Account Object

Inheritance Inheritance

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Database StructuresDatabase StructuresObject-Oriented Graphical DisplayObject-Oriented Graphical Display

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Database StructuresDatabase StructuresEvaluation of Database StructuresEvaluation of Database Structures•Hierarchical – Natural for Many Applications

•Network Structures – Handles Many-to-Many Relationships Well

•Neither Handles Ad Hoc Inquiries Well

•Relational Structures – Easily Retrieves Ad Hoc Requests

•Relational is Not as Efficient

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Database StructuresDatabase StructuresExperian Automotive: The Experian Automotive: The Business Value of Relational Business Value of Relational Database ManagementDatabase Management•Vehicle Data Collection Unit of Credit Reporting Company

•Data Collected to be Sold•50 Different DMV Systems•Database Processes 175 Million Records per Month

•Provided New Revenue Streams

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Database DevelopmentDatabase Development•Database Administrators (DBAs)

•Data Definition Language (DDL)

•Data Dictionary•Metadata•Metadata Repository

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Database DevelopmentDatabase DevelopmentExample ApplicationTable Wizard of

Microsoft Access

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Database DevelopmentDatabase Development1- Data Planning

Develops a model of business processes

Enterprise model of business processes with documentation

2- Requirements SpecificationDefine information needs of

End users in a business processes

Description of users needs maybe represented in natural

language or using the tools of a particular design technology

3- Conceptual DesignExpresses all information

requirements in the form of aHigh-level model

Physical Data ModelsStorage representations and

access methods

5- Physical DesignDetermines the data storage

structures and access methods

Logical Data Modelse.g., relational, network,

hierarchical, multidimensional,Or object-oriented models

4- Logical DesignTranslates the conceptual

models into the data model of a DBMS

Conceptual Data ModelsOften expressed as entity

relationship models

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Data PlanningData Planning• Data Planning Process

• Enterprise Model

• Entity Relationship Diagram

Product Supplier

ProductStock

WarehousePurchase

Order

PurchaseOrder Item

Co

ntain

s

Sto

cked as

Ordered on Supplies

Holds

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Data PlanningData Planning

• 15,000 Database Table Definitions

• Many Problems Without Definition Organization

• Use of Oracle DBMS• Importance of Proper

Installation and Maintenance

Aetna and Shop at Home Network: Aetna and Shop at Home Network: Development Solutions Development Solutions

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Data PlanningData PlanningLogical and Physical Database ViewsLogical and Physical Database Views

BankDatabases

CheckingApplication

SavingsApplication

InstallmentLoan

Application

Checking andSavings

Data Model

InstallmentLoan

Data Model

Banking Services Data Model

Database Management System

Logical User ViewsData elements and relationships (the subschemas) needed for checking, savings, or installment loan processing

Data elements and relationships (the schema) needed for the support of all bank services

Software InterfaceThe DBMS provides access to the bank’s databases

Physical Data ViewsOrganization and location of data on the storage of media

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SummarySummary1. Data Resource

Management2. Database Management3. Database Software4. Types of Databases5. Data Access6. Database Development

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KEY TERMSKEY TERMSData DictionaryData MiningData ModelingData Resource ManagementDatabase AdministratorDatabase Management

ApproachDatabase Management System

(DBMS)Database Structure

a. Hierarchical - Multidimensional

b. Network c. Object-Orientedd. Relational

DBMS usesa. Application Developmentb. Database Developmentc. Database Interrogationd. Database Maintenance

File ProcessingLogical Data Elements

a. Characterb. Field c. Recordd. Filee. Database

MetadataQuery LanguageReport GeneratorTypes of Databases - Data Warehouse - Distributed - External - Hypermedia - Operational

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Real World Cases

Real World Case 1 Argosy Gaming Co.: Challenges of Building a Data Warehouse

Click to go toCase 1

Real World Case 2 Owens & Minor and NBC Universal: Protecting Strategic Data Resources


Optional Case StudiesOptional Case Studies

Real World Case 3 Henry Schein Inc.: The Business Value of a Data Warehouse

Real World Case 4 Anadarko Petroleum and Prudential Financial: Challenges of Data Resource Management



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Telecommunications and Networks

Chapter 6

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Argosy Gaming Co.: Argosy Gaming Co.: Challenges of Building Challenges of Building

a Data Warehousea Data Warehouse

• Forced to Map and Analyze the Data • Data Warehouse Brings Customer Data

Together• Corporate Management Analyzes Data • Finds Conflicting Definitions • Limits Effective Decisions

1- What is the business value of a data 1- What is the business value of a data warehouse? Use Argosy Gaming as an warehouse? Use Argosy Gaming as an

example.example.

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Return toChapter 5

Business values would include:Business values would include:

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• Coordinates Source Data Extracting Process

• Developed Consistent Categories of Data

• Better Planning for Future Activities

• Storing Data Values and Structures

2- Why did Argosy use an ETL software 2- Why did Argosy use an ETL software tool? What benefits and problems arose? tool? What benefits and problems arose?

How were they solved?How were they solved?Benefits would include:Benefits would include:

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•Preparing ETL Process

•Conflicting Data Definitions

•Warehouse Data not Dependable/Usable

2- Why did Argosy use an ETL software 2- Why did Argosy use an ETL software tool? What benefits and problems arose? tool? What benefits and problems arose?

How were they solved?How were they solved?Problems would include:Problems would include:

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3- What are some of the major 3- What are some of the major responsibilities that business responsibilities that business professionals and managers professionals and managers

have in data warehouse have in data warehouse development? Use Argosy development? Use Argosy Gaming as an example. Gaming as an example.

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Return toChapter 5

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• Planning-Data Warehouse/Data Mining

• Must have Quality Data• Achievements from Data• Architecture-Centralized/Distributed • ETL Foundation-Future

Growth

Responsibilities would include:Responsibilities would include:

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Return toChapter 5

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• Planning-Data Warehouse/Data Mining

• Must have Quality Data• Achievements from Data• Architecture-Centralized/Distributed • ETL Foundation-Future

Growth• Identify problems/Achieve

Consensus

Responsibilities would include:Responsibilities would include:

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Return toChapter 5

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Owens & Minor and NBC Owens & Minor and NBC Universal: Protecting Strategic Universal: Protecting Strategic

Data ResourcesData Resources

• Storage of Detailed Data• Access Information-External Databases

• Increased Use of Internet Databases

• Data Warehousing/ Mining Adds Value

1- Why have developments in IT 1- Why have developments in IT helped to increase the value of the helped to increase the value of the

data resources of many companies?data resources of many companies?Developments would include:Developments would include:

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Return toChapter 5

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• Protect Business-Intelligence Data

• Restricting Access to Data

• Acquire Web-Intelligent Software

• Challenges of System Administration

2- How have these IT capabilities 2- How have these IT capabilities increased the security challenges increased the security challenges for a company’s data resources?for a company’s data resources?

Increased Challenges would include:Increased Challenges would include:

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• Establish Role-Level Security• Store Security Role-Levels• Restrict Use of Business-Intelligence • Authentication/Authorization

Encryption

3- How can companies use IT to 3- How can companies use IT to meet the challenges of data meet the challenges of data

resource security?resource security?Ways to Meet Challenges would include:Ways to Meet Challenges would include:

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Return toChapter 5

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• Establish Role-Level Security• Store Security Role-Levels• Restrict Use of Business-Intelligence • Authentication/Authorization

Encryption• Create Web Portals and

User Roles

3- How can companies use IT to 3- How can companies use IT to meet the challenges of data meet the challenges of data

resource security?resource security?Ways to Meet Challenges would include:Ways to Meet Challenges would include:

Return toCases Page

Return toChapter 5

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Henry Schein Inc.: The Henry Schein Inc.: The Business Value of a DataBusiness Value of a Data

1- What are some of the 1- What are some of the key requirements for key requirements for building a good data building a good data

warehouse? Use Henry warehouse? Use Henry Schein Inc. as an Schein Inc. as an

example.example.Return to

Cases Page

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• Right Skills-Build Data Warehouse

• Ensure Data Quality• Plan-Needed Information and Reports

• Analyze-Old Reports/Data• Standardize Transactional Codes• Develop/Test Summary Tables

Requirements would include:Requirements would include:

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•Data Extraction Software

•Query/Reporting Software•Data Transformation/Loading Software

2- What are the key software 2- What are the key software tools needed to construct and tools needed to construct and use a data warehouse? use a data warehouse?

Key software tools would include:Key software tools would include:

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•Most Profitable Customers•Customers To Target•Analyze Business by Areas•Use Specific Direct Marketing

3- What is the business value of 3- What is the business value of a data warehouse to a a data warehouse to a company?company?

The business value would include:The business value would include:

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•Most Profitable Customers•Customers To Target•Analyze Business by Areas•Use Specific Direct Marketing

•Add More Fields to Reports

3- What is the business value of 3- What is the business value of a data warehouse to a a data warehouse to a company?company?


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Anadarko Petroleum Anadarko Petroleum and Prudential Financial: and Prudential Financial:

Challenges of Data Resource Challenges of Data Resource ManagementManagement

1- How did Anadarko 1- How did Anadarko Petroleum meet its data Petroleum meet its data resource management resource management

challenges? What is the challenges? What is the business value of their business value of their

approach?approach?Return to

Cases Page

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•IT Team Worked on:– Communication– Planning– Change Management

•Technology Wedded to Business Strategy

•Effective Overall Leadership

Anadarko met its challenges by:Anadarko met its challenges by:

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•Improved Performance•Lower Costs•Anadarko Ahead of Competitors

•Standard Networked Storage Model


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2-2- What are the business What are the business benefits of the data benefits of the data

resource management resource management processes that Patricia processes that Patricia Graham is selling to Graham is selling to

business users at business users at Prudential Financial?Prudential Financial?

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•Time Savings•Quality Improvement •Foster Communication •More Time for Running Business

Business benefits would include:Business benefits would include:

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3-3- How does effective data How does effective data resource management resource management

contribute to the strategic contribute to the strategic business goals of companies? business goals of companies? Use Anadarko and Prudential Use Anadarko and Prudential

Financial as examples.Financial as examples.

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•Improved Performance/Time Savings

•Reduced Costs•Serve Customers Better

Contributions would include:Contributions would include:

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•Improved Performance/Time Savings

•Reduced Costs•Serve Customers Better•Improved Data Quality

Contributions would include:Contributions would include:

Return toCases Page

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