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CHAPTER SIX
Databases
and
Information
Management
Copyright © 2013 Pearson Canada Inc.
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Management Information Systems
Chapter 6 Databases and Information Management
LEARNING OBJECTIVES
After reading this chapter, you will be able to answer the
following questions:
1. What are the problems of managing data resources in a
traditional file environment, and how are they solved by
a database management system?
2. What are the major capabilities of a database
management system (DBMS), and why is a relational
DBMS so powerful?
3. What are some important principles of database design?
continued …
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Management Information Systems
Chapter 6 Databases and Information Management
LEARNING OBJECTIVES (continued)
4. What are the principal tools and technologies for
accessing information from databases to improve
business performance and decision making?
5. Why are information policy, data administration, and
data quality assurance essential for managing a firm’s
data resources?
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Management Information Systems
Chapter 6 Databases and Information Management
Toronto Opens up its Data
• Problem: The City of Toronto decided to open its data to the
public
• Solutions: Allowed public access to much of the data that had
previously been kept private
• Used appropriate technology to ensure proper privacy and
security of data
• Demonstrates importance of database management in creating
open access to data
• Illustrates need to ensure data safeguards are in place to
ensure proper privacy
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
File organization terms and concepts
• Bit: Smallest unit of data; binary digit (0,1)
• Byte: Group of bits that represents a single
character
• Field: Group of words or a complete number
• Record: Group of related fields
• File: Group of records of same type
Continued …
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
File Organization Concepts (continued)
• Database: Group of related files
• Entity: Person, place, thing, event about which
information is maintained
• Attribute: Description of a particular entity
• Key field: Identifier field used to retrieve,
update, sort a record
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
Problems with the traditional file environment
• Data redundancy and inconsistency
• Program-data dependence
• Lack of flexibility
• Poor security
• Lack of data sharing and availability
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
Problems with the Traditional File
Environment
• Data Redundancy and Inconsistency:
• Data redundancy: The presence of
duplicate data in multiple data files so that
the same data are stored in more than one
place or location
• Data inconsistency: The same attribute may
have different values.
Continued …
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
Problems with the Traditional File
Environment (continued)
• Program-Data Dependence:
• The coupling of data stored in files and the specific
programs required to update and maintain those
files such that changes in programs require
changes to the data
Continued …
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
Problems with the Traditional File
Environment (continued)
• Lack of Flexibility
• A traditional file system can deliver routine
scheduled reports after extensive programming
efforts, but it cannot deliver ad-hoc reports or
respond to unanticipated information requirements
in a timely fashion
Continued …
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Management Information Systems
Chapter 6 Databases and Information Management
Organizing Data in a Traditional File Environment
Problems with the Traditional File
Environment (continued)
• Poor security
• Management may have no knowledge of who is
accessing or making changes to the organization’s
data
• Lack of data sharing and availability:
• Information cannot flow freely across different
functional areas or different parts of the
organization.
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
Database management systems
• How a DBMS solves the problems of the traditional
file environment
• Relational DBMS
• Operations of a relational DBMS
• Hierarchical and network DBMS
• Object-oriented DBMS
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
Relational DBMS
• Represents data as two-dimensional tables
called relations
• Relates data across tables based on
common data element
• Examples: Access, DB2, Oracle, MS SQL
Server
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
Operations of a Relational DBMS
• Select: Creates subset of rows that meet
specific criteria
• Join: Combines relational tables to provide
users with information
• Project: Enables users to create new tables
containing only relevant information
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
Object-oriented DBMS
• Stores data and procedures as objects that
can be retrieved and shared automatically
• Provides capabilities of both object-oriented
and relational DBMS
Hybrid OODBMS:
• combine benefits of relational and objectoriented DBMS
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
Capabilities of Database Management
Systems
• Data Definition Language
• Data Dictionary
• Querying and Reporting
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
Designing Databases
• Conceptual design: Abstract model of database from
a business perspective
• Physical design: Detailed description of business
information needs
• Entity-relationship diagram: Methodology for
documenting databases illustrating relationships
between database entities
• Normalization: Process of creating small stable data
structures from complex groups of data
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
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Management Information Systems
Chapter 6 Databases and Information Management
The Database Approach to Data Management
Distributed database:
• A database that is stored in more than one physical
location
• Reduce the vulnerability of a single, massive central
site
• Increase service and responsiveness to local users
• Can often run on smaller, less expensive computers
• Depend on high-quality telecommunications lines
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
Data warehouse
• Stores current and historical data from many core operational
transaction systems
• Consolidates and standardizes information for use across
enterprise, but data cannot be altered
• Data warehouse system will provide query, analysis, and
reporting tools
Data marts
• Subset of data warehouse
• Summarized or highly focused portion of firm’s data for use by
specific population of users
• Typically focuses on single subject or line of business
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
Tools for Business Intelligence
• Tools for consolidating, analyzing, and providing
access to vast amounts of data to help users make
better business decisions
• Example of Best Western building customer
relationships with CRM
• Principle tools include:
• Software for database query and reporting
• Online analytical processing (OLAP)
• Data mining
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
Online analytical processing (OLAP)
• Supports multidimensional data analysis
• Viewing data using multiple dimensions
• Each aspect of information (product, pricing,
cost, region, time period) is different dimension
• E.g., how many washers sold in East in June
compared with other regions?
• OLAP enables rapid, online answers to ad hoc
queries
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
Data Mining
• Tools for analyzing large pools of data
• Find hidden patterns and infer rules to
predict trends
–
–
–
–
–
Associations
Sequences
Classifications
Clusters
Forecasts
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
Text Mining
• Extracts key elements from large
unstructured data sets (e.g., stored e-mails)
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
Web Mining
• Discovery and analysis of useful patterns
and information from WWW
• Techniques
– Web content mining
• Knowledge extracted from content of Web
pages
– Web structure mining
• E.g., links to and from Web page
– Web usage mining
• User interaction data recorded by Web
server
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Management Information Systems
Chapter 6 Databases and Information Management
What can Businesses Learn from Text Mining?
Read the Window on Technology and answer
the following questions:
1. What challenges does the increase in unstructured
data present for businesses?
2. How does text mining improve decision making?
What are the challenges involved in text mining?
3. What kinds of companies are most likely to benefit
from text mining software? Explain your answer.
4. How might text mining lead to the erosion of
personal information privacy? (See Chapter 4.)
Explain.
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
Databases and the Web
• Many companies use Web to make some internal
databases available to customers or partners
• Typical configuration includes:
• Web server
• Application server/middleware/CGI scripts
• Database server (hosting DBM)
• Advantages of using Web for database access:
• Ease of use of browser software
• Web interface requires few or no changes to database
• Inexpensive to add Web interface to system
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Management Information Systems
Chapter 6 Databases and Information Management
Using Databases to Improve Business Performance and Decision Making
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Management Information Systems
Chapter 6 Databases and Information Management
Managing Data Resources
Establishing an information policy
• Specifies the organization’s rules for sharing,
disseminating, acquiring, standardizing, classifying,
and inventorying information
• Data administration is responsible for specific
policies and procedures through which data is
managed
• Data governance
• Database administration
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Management Information Systems
Chapter 6 Databases and Information Management
Managing Data Resources
Ensuring Data Quality
• Data Quality Audit
– Structured survey of the accuracy and
completeness of data in an information system
• Data cleansing
– consists of activities for detecting and correcting
data in an information system
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Management Information Systems
Chapter 6 Databases and Information Management
Credit Bureau Errors – Big People Problems
Read the Window on Organizations, and then discuss the
following questions:
1.Assess the business impact of credit bureaus’ data
quality problems for the credit bureaus, for lenders, and
for individuals.
2.Are any ethical issues raised by credit bureaus’ data
quality problems? Explain your answer.
3.Analyze the management, organization, and technology
factors responsible for credit bureaus’ data quality
problems.
4.What can be done to solve these problems?
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CHAPTER SIX
Databases
and
Information
Management
Copyright © 2013 Pearson Canada Inc.
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