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Chapter 3 Database Management PowerPoint Presentation Jack Van Deventer Ward M. Eagen © 2006 Pearson Education Canada Inc. 3-1 Chapter 3 Objectives Understand why databases are important to modern organizations Understand how databases work Understand how organizations can maximize their strategic potential with databases © 2006 Pearson Education Canada Inc. 3-2 Case: Ontario Fire Marshal Ontario’s Office of the Fire Marshal (OFM) is constructing an online database to be shared by the provinces 500+ fire departments to access incident-related information re statistics, trends, and cross-comparisons of the province’s fires The purpose is to aid decision making, reduce risk, and bolster local business cases for resources Fire services are ‘data rich, information poor’ Must be Internet-based and capable of extracting data from legacy systems from all of the province © 2006 Pearson Education Canada Inc. 3-3 Database Management for Strategic Advantage Database – a collection of related data organized in a way to facilitate data searches Use databases to: Create a book Track book sales Set salaries and wages Pay employees © 2006 Pearson Education Canada Inc. 3-4 Database Management for Strategic Advantage The Database Approach: Foundational Concepts DBMS – Database Management Systems Use a DBMS software to create, store, organize, and retrieve data from a single database or several databases Example: Microsoft Access, FileMaker Pro © 2006 Pearson Education Canada Inc. 3-5 Database Management for Strategic Advantage Advantages of the Database Approach Program-data independence Minimal data redundancy Improved data consistency Improved data sharing Increased productivity of application development Enforcement of standards Improved data quality Improved data accessibility Reduced program maintenance © 2006 Pearson Education Canada Inc. 3-6 Brief Case #1: Major Drilling and Tenrox Major Drilling Group International Inc. from Moncton, N.B. is a minor contractor to mining companies around the world Their outdated client/server architecture was a problem architecturally, with poor performance, and costly maintenance Montreal firm Tenrox developed a Web-based solution that reduces data redundancy, enhances performance and enforces business rules © 2006 Pearson Education Canada Inc. 3-7 Database Management for Strategic Advantage Effective Management of Databases The database administrator (DBA) : Works with programmers and analysts to design and implement the database Works with users and managers to establish database policies Implements security features and establishes database permissions © 2006 Pearson Education Canada Inc. 3-8 Key Database Activities Entering and Querying Data Form Structured Query Language (SQL) Query by example (QBE) © 2006 Pearson Education Canada Inc. 3-9 Key Database Activities Creating Database Reports Report – a compilation of data that is organized and produced in printed format Report generators © 2006 Pearson Education Canada Inc. 3-10 Key Database Activities Database Design Must be organized Few or no redundancies Data model – a map of entity relationships Keys Primary key Combination primary key Secondary key © 2006 Pearson Education Canada Inc. 3-11 © 2006 Pearson Education Canada Inc. 3-12 When Things Go Wrong: Royal Bank and SAS RBC with SAS implemented software to comply with anti-terrorism and anti-money laundering regulations that went into effect Sept. 11, 2001 Formerly, all searches were manual: Now software compares client data with control lists from Canadian Federal authorities and positive results are reported There is a constant dilemma in conflict between individual privacy and compliance with the law © 2006 Pearson Education Canada Inc. 3-13 Accounting and Finance: Gesco Founded in 1938, Gesco Canada has one hundred sales reps, sales managers, and sales support staff, thousands of customers, an extensive product line over a territory 5600 km across The gathering and analyzing of data is a crucial corporate asset in supporting business strategy Gresco has adopted and online database solution Field reps log on and input data which is instantly available and summarized for account managers Key accounts are designated and forms made available to field reps online © 2006 Pearson Education Canada Inc. 3-14 Operations Management: BC Assessment BC Assessment launched ‘LinkBC’ in 2003 allowing municipalities to access property data via the Web BC spent 2004 expanding its online property database offering municipalities older records and opening it up to the private sector Users can compare information in different locations and ‘slice and dice’ the information any way they choose Data goes back 4 years but enhancements will extend it to 10 Ontario also offers the data online through MPAC: egovernment is trying to present a single face to business, constituents, and other departments © 2006 Pearson Education Canada Inc. 3-15 Brief Case #2: Nexus Canadian/US border crossing delays are a constant problem for commuters Express entry is offered as a service for a fee to low-risk commuters through dedicated lanes After security clearance and an interview, commuters are issued a special RF-enabled card The RF signal launches the commuter’s file and visual confirmation completes the process Now the service is localized but will be tied into a central database in the future © 2006 Pearson Education Canada Inc. 3-16 Key Database Activities Database Associations One-to-one (teams to stadiums) One-to-many (player to team) Many-to-many (players to games) © 2006 Pearson Education Canada Inc. 3-17 Key Database Activities Entity-Relationship Diagramming (ERD) Commonly used when designing databases One draws entities (tables) as boxes and lines between entities to show relationships © 2006 Pearson Education Canada Inc. 3-18 Key Database Activities The Relational Model of Databases Entities linked by a common key field Records = rows Fields = columns Other models exist Hierarchical Network Object-oriented model © 2006 Pearson Education Canada Inc. 3-19 Key Database Activities Normalization A technique for making complex databases more efficient and more easily handled by the DBMS Eliminates data redundancy © 2006 Pearson Education Canada Inc. 3-20 © 2006 Pearson Education Canada Inc. 3-21 © 2006 Pearson Education Canada Inc. 3-22 Key Database Activities Data Dictionary A document that explains each piece of information in the database Field name Data type • Numeric, text, date/time • Useful for sorting and allocating storage Is this field a key field? Business rules • Update authority • Valid data values © 2006 Pearson Education Canada Inc. 3-23 How Organizations Get the Most from Their Data Linking Web Sites to Databases Example: Amazon 2.5 million titles Managing online data effectively © 2006 Pearson Education Canada Inc. 3-24 Marketing: Pizza Hut Pizza Hut uses Teradata Warehouse Miner data mining software for competitive intelligence Their data warehouse contains data from POS on 40 million households: 40-50% of NA market Recovered the cost of licensing, integrating, and staff training in the first quarter of implementation The ability to group household segments into target markets has turned direct mail from a breakeven cost centre into a profit centre Benefits include minimizing data redundancy, reduced proprietary data structures and simplified management © 2006 Pearson Education Canada Inc. 3-25 How Organizations Get the Most from Their Data Data Mining A method for better understanding data Information on customers, products, markets, etc. Drill down: from summary to more detailed data Sort and extract information Trends, correlations, forecasting, statistics © 2006 Pearson Education Canada Inc. 3-26 How Organizations Get the Most from Their Data Data Mining Online Transaction Processing (OLTP) Immediate automated responses to user requests Multiple concurrent transactions A big part of interactive Internet e-commerce © 2006 Pearson Education Canada Inc. 3-27 How Organizations Get the Most from Their Data Data Mining Online Analytical Processing (OLAP) Graphical software tools that provide complex analysis of data stored in a database Drills down to deeper levels of consolidation Time series and trend analysis “What if” and “why” questions © 2006 Pearson Education Canada Inc. 3-28 How Organizations Get the Most from Their Data Data Mining Merging Transaction and Analytical Processing Real-time OLAP diminishes performance because the database must be “locked” during execution time Solution: replicate transactions on a second database server © 2006 Pearson Education Canada Inc. 3-29 How Organizations Get the Most from Their Data Data Mining Merging Transaction and Analytical Processing Operational Systems • Interact with customers and run a business in real time • Examples: Order processing, reservation systems Informational Systems • Support decision making based on stable point-in-time or historical data © 2006 Pearson Education Canada Inc. 3-30 Global Perspectives: Transborder Data Security and Privacy Cultural issues pose significant challenges for organizations in the Global Economy The European Union Data Protection Directive, Oct. 1998 limits how personal data may be used in Europe The Personal Information Protection and Electronic Documents Act provides similar restrictions in Canada U.S. regulations fall short of either in many respects For example data collected in Europe and Canada may only be used for the purposes for which they were collected whereas it is routinely sold in the U.S. Hopefully, there will be single treaty on privacy developed © 2006 Pearson Education Canada Inc. 3-31 How Organizations Get the Most from Their Data Data Warehousing Integrating multiple large databases into a single repository Queries, analysis, and processing Purpose: Put key business information into the hands of decision makers Cost: Millions © 2006 Pearson Education Canada Inc. 3-32 How Organizations Get the Most from Their Data Data Marts Instead of one large data warehouse, many organizations create multiple data marts Each contains a subset of the data Example: Finance, inventory, personnel Each data mart is customized for particular DSS applications Cost: Typically less than $1 million © 2006 Pearson Education Canada Inc. 3-33 Coming Attractions: Using Databases to Stop Telemarketers The US Congress implemented a ‘do not call’ database that makes it illegal for telemarketers to call those on it Implemented Oct. 1, 2003, 55 million Americans registered in the first 5 months The telemarketing industry is greatly opposed to such acts as it restricts their market Canada has no such legislation but is closely watching the effects of the legislation in the US and a similar Canadian Law is likely © 2006 Pearson Education Canada Inc. 3-34 Information Systems: Newfoundland Health Card Newfoundland and Labrador are developing a comprehensive electronic health-care record $3.6 million was earmarked for building a Unique Personal Identifier/Client Registry system for the first phase The federal government added $5.4 million to its development: it is interested in using it as a template Working with no real authority, the process requires getting people involved and consensus-building The next phase is to build a provincial Pharmacy Network linking 170 pharmacies and 1000 physicians to reduce adverse reactions to medication © 2006 Pearson Education Canada Inc. 3-35 Final Case: RBC Analytics Analytics are used to making decisions based on the ‘slicing and dicing’ of data into business intelligence Examples include using analytic tools to ‘troll’ through a data warehouse to detect buying patterns, to examine the effectiveness of your operations, or to measure alignment of IT with business goals RBC uses analytics to accurately segment and serve diverse groups more profitably A study by the technological research firm IDC showed that the average ROI from analytics was 431% and the market for analytic software will reach US $4.8 billion by 2007 © 2006 Pearson Education Canada Inc. 3-36