1. Chapter 3
Data Resource Management

2. Learning Objectives
Explain the importance of implementing data resource management processes and technologies in an organization.
Understand the advantages of a database management approach to managing the data resources of a business.

3. Learning Objectives (continued)
Explain how database management software helps business professionals and supports the operations and management of a business.
Illustrate each of the following concepts:
Major types of databases
Data warehouses and data mining
Logical data elements
Fundamental database structures
Database access methods
Database development

4. Managing Data Resources
Section I
Managing Data Resources

5. Data Resource Management
A managerial activity
Applies information systems technology to managing data resources to meet needs of business stakeholders.

6. Foundation Data Concepts
Levels of data
Character
Single alphabetical, numeric, or other symbol
Field
Groupings of characters
Represents an attribute of some entity

7. Foundation Data Concepts (continued)
Records
Related fields of data
Collection of attributes that describe an entity
Fixed-length or variable-length

8. Foundation Data Concepts (continued)
Files (table)
A group of related records
Classified by
Primary use
Type of data
permanence

9. Foundation Data Concepts (continued)
Database
Integrated collection of logically related data elements
Consolidates records into a common pool of data elements
Data is independent of the application program using them and type of storage device

10. Foundation Data Concepts (continued)
Logical Data Elements

11. Types of Databases Operational
Supports business processes and operations
Also called subject-area databases, transaction databases, and production databases

12. Types of Databases (continued)
Distributed
Replicated and distributed copies or parts of databases on network servers at a variety of sites.
Done to improve database performance and security

13. Types of Databases (continued)
External
Available for a fee from commercial sources or with or without charge on the Internet or World Wide Web
Hypermedia
Hyperlinked pages of multimedia

14. Data Warehouses and Data Mining
Stores data extracted from operational, external, or other databases of an organization
Central source of “structured” data
May be subdivided into data marts

15. Data Warehouses and Data Mining (continued)
A major use of data warehouse databases
Data is analyzed to reveal hidden correlations, patterns, and trends

16. Database Management Approach
Consolidates data records and objects into databases that can be accessed by many different application programs

17. Database Management Approach (continued)
Database Management System
Software interface between users and databases
Controls creation, maintenance, and use of the database

18. Database Management Approach (continued)

19. Database Management Approach (continued)
Database Interrogation
Query
Supports ad hoc requests
Tells the software how you want to organize the data
SQL queries
Graphical (GUI) & natural queries

20. Database Management Approach (continued)
Report Generator
Turns results of query into a useable report
Database Maintenance
Updating and correcting data

21. Database Management Approach (continued)
Application Development
Data manipulation language
Data entry screens, forms, reports, or web pages

22. Implementing Data Resource Management
Database Administration
Develop and maintain the data dictionary
Design and monitor performance of databases
Enforce database use and security standards

23. Implementing Data Resource Management (continued)
Data Planning
Corporate planning and analysis function
Developing the overall data architecture

24. Implementing Data Resource Management (continued)
Data Administration
Standardize collection, storage, and dissemination of data to end users
Focused on supporting business processes and strategic business objectives
May include developing policy and setting standards

25. Implementing Data Resource Management (continued)
Challenges
Technologically complex
Vast amounts of data
Vulnerability to fraud, errors, and failures

26. Technical Foundations of Database Management
Section II
Technical Foundations of Database Management

27. Database Structures Hierarchical Treelike One-to-many relationship
Used for structured, routine types of transaction processing

28. Database Structures (continued)
Network
More complex
Many-to-many relationship
More flexible but doesn’t support ad hoc requests well

29. Database Structures (continued)
Relational
Data elements stored in simple tables
Can link data elements from various tables
Very supportive of ad hoc requests but slower at processing large amounts of data than hierarchical or network models

30. Database Structures (continued)
Multi-Dimensional
A variation of the relational model
Cubes of data and cubes within cubes
Popular for online analytical processing (OLAP) applications

31. Database Structures (continued)

32. Database Structures (continued)
Object-oriented
Key technology of multimedia web-based applications
Good for complex, high-volume applications

33. Database Structures (continued)

34. Accessing Databases Key fields (primary key)
A field unique to each record so it can be distinguished from all other records in a table

35. Accessing Databases (continued)
Sequential access
Data is stored and accessed in a sequence according to a key field
Good for periodic processing of a large volume of data, but updating with new transactions can be troublesome

36. Accessing Databases (continued)
Direct access
Methods
Key transformation
Index
Indexed sequential access

37. Database Development Data dictionary
Directory containing metadata (data about data)
Structure
Data elements
Interrelationships
Information regarding access and use
Maintenance & security issues

38. Database Development (continued)
Data Planning & Database Design
Planning & Design Process
Enterprise model
Entity relationship diagrams (ERDs)
Data modeling
Develop logical framework for the physical design

39. Discussion Questions
How should an e-business enterprise store, access, and distribute data & information about their internal operations & external environment?
What roles do database management, data administration, and data planning play in managing data as a business resource?

40. Discussion Questions (continued)
What are the advantages of a database management approach to organizing, accessing, and managing an organization’s data resources?
What is the role of a database management system in an e-business information system?

41. Discussion Questions (continued)
Databases of information about a firm’s internal operations were formerly the only databases that were considered to be important to a business. What other kinds of databases are important for a business today?
What are the benefits and limitations of the relational database model for business applications?

42. Discussion Questions (continued)
Why is the object-oriented database model gaining acceptance for developing applications and managing the hypermedia databases at business websites?
How have the Internet, intranets, extranets, and the World Wide Web affected the types and uses of data resources available to business end users?

43. Real World Case 1 – IBM versus Oracle
What key business strategies did Janet Perna implement to help IBM catch up to Oracle in the database management software market?
What is the business case for both IBM’s and Oracle’s product strategy for their database software?

44. Real World Case 1 (continued)
Which approach would you recommend to a company seeking a database system today?
What do you see as the key factor to IBM’s success?

45. Real World Case 1 (continued)
The case states that “database software has become more of a commodity.” Do you agree?

46. Real World Case 2 – Experian Automotive
How do the database software tools discussed in this case help companies exploit their data resources?
What is the business value of the automotive database created by Experian?

47. Real World Case 2 (continued)
What other business opportunities could you recommend to Experian that would capitalize on their automotive database?
The case states that Experian’s automotive database “has raised the hackles of privacy advocates.” What legitimate privacy concerns and safeguard suggestions might be raised about this database and its use?

48. Real World Case 3 – Shell Exploration
Why do companies still have problems with the quality of the data resources stored in their business information systems?
What is a “data silo?”

49. Real World Case 3 (continued)
How do data warehouse approaches help companies like Shell and OshKosh meet their data resource management challenges?
What business benefits can companies derive from a data warehouse approach?

50. Real World Case 4 – BlueCross BlueShield & Warner Bros.
What is a storage area network? Why are so many companies installing SANs?
What are the reasons for the quick payback on SAN investments?

51. Real World Case 4 (continued)
What are the challenges and alternatives to SANs as a data storage technology?
What are some advantages of SANs?

52. Real World Case 5 – Sherwin-Williams & Krispy Kreme
Tips for Managing External Data
Purchase external data from a reliable source that will do most of the refining for you and will work with you on contingency plans.
Run a test load first. A load of test data can pave the way for accurate production loads.

53. Real World Case 5 (continued)
Managing external data (continued)
Don’t collect data until business and IT staff have agreed on the amount, frequency, format, and content of the data you need.
Don’t acquire more data or use more data sources than you really need.

54. Real World Case 5 (continued)
Managing external data (continued)
Don’t mingle external and homegrown data without adding unique identifiers to each record, in case you need to pull it out.
Don’t overestimate the data’s integrity. Nothing beats direct customer contact and tactical details behind the data.

55. Real World Case 5 (continued)
What challenges in acquiring and using data from external sources are identified in this case?
Do you prefer the Sherwin-Williams or Krispy Kreme approach to acquiring external data?

56. Real World Case 5 (continued)
What other sources of external data might a business use to gain valuable marketing and competitive intelligence?