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Chapter 5 Data
Resource Management
James A. O'Brien, and George Marakas.
Management Information Systems with MISource
2007, 8th ed. Boston, MA: McGraw-Hill, Inc.,
2007. ISBN: 13 9780073323091
Learning Objectives
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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 to a
file processing approach
Explain how database management software helps business
professionals and supports the operations and management
of a business
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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Case 1 Sharing Business
Databases
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Amazon’s data vault
 Product descriptions
 Prices
 Sales rankings
 Customer reviews
 Inventory figures
 Countless other layers of content
Took 10 years and a billion dollars to build
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Case 1 Sharing Business
Databases
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Amazon opened its data vault in 2002
 65,000 developers, businesses, and entrepreneurs
have tapped into it
 Many have become ambitious business partners
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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 1 Sharing Business
Databases
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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
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Case Study Questions
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What are the business benefits to Amazon and eBay of
opening up some of their databases to developers and
entrepreneurs?
 Do you agree with this strategy?
What business factors are causing Google to move
slowly in opening up its databases?
 Do you agree with its go-slow strategy?
Should other companies follow Amazon and eBay’s lead
and open up some of their databases to developers and
others?
 Defend your position with an example of the risks and
benefits to an actual company
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Logical Data Elements
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Logical Data Elements
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Character
 A single alphabetic, numeric, or other symbol
Field or data item
 Represents an attribute (characteristic or quality)
of some entity (object, person, place, event)
 Example: salary, job title
Record
 Grouping of all the fields used to describe the attributes of an
entity
 Example: payroll record with name, SSN, pay rate
File or table
 A group of related records
Database
 An integrated collection of logically related
data elements
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Electric Utility Database
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Database Structures
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Common database structures…
 Hierarchical
 Network
 Relational
 Object-oriented
 Multi-dimensional
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Hierarchical Structure
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Early DBMS structure
Records arranged in treelike structure
Relationships are one-tomany
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Network Structure
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Used in some mainframe DBMS packages
 Many-to-many relationships
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Relational Structure
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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
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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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Multidimensional Structure
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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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Object-Oriented Structure
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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
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Object-Oriented Structure
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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Object-Oriented Structure
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Used in object-oriented database management
systems (OODBMS)
Supports complex data types more efficiently
than relational databases
 Example: graphic images, video clips,
web pages
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Evaluation of Database Structures
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Hierarchical
 Works for structured, routine transactions
 Can’t handle many-to-many relationship
Network
 More flexible than hierarchical
 Unable to handle ad hoc requests
Relational
 Easily responds to ad hoc requests
 Easier to work with and maintain
 Not as efficient/quick as hierarchical or network
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Database Development
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Database Administrator (DBA)
 In charge of enterprise database development
 Improves the integrity and security of
organizational databases
 Uses Data Definition Language (DDL) to
develop and specify data contents,
relationships, and structure
 Stores these specifications in a data
dictionary or a metadata repository
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Data Dictionary
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A data dictionary
 Contains data about data (metadata)
 Relies on specialized software component to
manage a database of data definitions
It contains information on..
 The names and descriptions of all types of
data records and their interrelationships
 Requirements for end users’ access and use
of application programs
 Database maintenance
 Security
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Database Development
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Data Planning Process
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Database development is a top-down process
 Develop an enterprise model that defines the
basic business process of the enterprise
 Define the information needs of end users in
a business process
 Identify the key data elements that are
needed to perform specific business activities
(entity relationship diagrams)
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Entity Relationship Diagram
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Database Design Process
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Data relationships are represented in a data model that
supports a business process
This model is the schema or subschema on which to
base…
 The physical design of the database
 The development of application programs to support
business processes
Logical Design
 Schema - overall logical view of relationships
 Subschema - logical view for specific end users
 Data models for DBMS
Physical Design
 How data are to be physically stored and
accessed on storage devices
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Logical and Physical Database Views
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Data Resource Management
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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
Data stewards
 Dedicated to establishing and maintaining the
quality of data
 Need business, technology, and diplomatic skills
 Focus on data content
Judgment is a big part of the job
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Case Study Questions
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Why is the role of a data steward considered to
be innovative?
What are the business benefits associated with
the data steward program at Emerson?
How does effective data resource management
contribute to the strategic goals of an
organization?
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Types of Databases
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Operational Databases
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Stores detailed data needed to support business
processes and operations
 Also called subject area databases (SADB),
transaction databases, and production
databases
 Database examples: customer, human
resource, inventory
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Distributed Databases
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Distributed databases are copies or parts of databases stored on
servers at multiple locations
 Improves database performance at worksites
Advantages
 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, any where
Disadvantages
 Maintaining data accuracy
Replication
 Look at each distributed database and find changes
 Apply changes to each distributed database
 Very complex
Duplication
 One database is master
 Duplicate the master after hours, in all locations
 Easier to accomplish
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External Databases
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Databases available for a fee from commercial
online services, or free from the Web
 Example: hypermedia databases, statistical
databases, bibliographic and full text
databases
 Search engines like Google or Yahoo are
external databases
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Hypermedia Databases
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A hypermedia database contains
 Hyperlinked pages of multimedia
 Interrelated hypermedia page elements,
rather than interrelated data records
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Components of Web-Based
System
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Data Warehouses
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Stores static data that has been extracted from
other databases in an organization
 Central source of data that has been cleaned,
transformed, and cataloged
 Data is used for data mining, analytical
processing, analysis, research, decision support
Data warehouses may be divided into data marts
 Subsets of data that focus on specific aspects
of a company (department or business process)
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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 in data warehouses are analyzed to reveal
hidden patterns and trends
 Market-basket analysis to identify new
product bundles
 Find root cause of qualify or manufacturing
problems
 Prevent customer attrition
 Acquire new customers
 Cross-sell to existing customers
 Profile customers with more accuracy
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Traditional File Processing
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Data are organized, stored, and processed in
independent files
 Each business application designed to use
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
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Database Management
Approach
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The foundation of modern methods of managing
organizational data
 Consolidates data records formerly in
separate files into databases
 Data can be accessed by many different
application programs
 A database management system (DBMS) is
the software interface between users and
databases
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Database Management
Approach
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Database Management System
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In mainframe and server computer systems, a
software package that is used to…
 Create new databases and database
applications
 Maintain the quality of the data in an
organization’s databases
 Use the databases of an organization to
provide the information needed by end users
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Common DBMS Software
Components
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Database definition
 Language and graphical tools to define
entities, relationships, integrity constraints,
and authorization rights
Nonprocedural access
 Language and graphical tools to access data
without complicated coding
Application development
 Graphical tools to develop menus, data entry
forms, and reports
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Common DBMS Software
Components
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Procedural language interface
 Language that combines nonprocedural access
with full capabilities of a programming language
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Transaction processing
 Control mechanism prevents interference from
simultaneous users and recovers lost data after
a failure
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Database tuning
 Tools to monitor, improve database performance
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Database Management System
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Database Development
 Defining and organizing the content,
relationships, and structure of the data needed
to build a database
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Database Application Development
 Using DBMS to create prototypes of queries,
forms, reports, Web pages
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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
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End users use a DBMS query feature or report
generator
 Response is video display or printed report
 No programming is required
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Query language
 Immediate response to ad hoc data requests
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Report generator
 Quickly specify a format for information you
want to present as a report
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Database Interrogation
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SQL Queries
 Structured, international standard query
language found in many DBMS packages
 Query form is SELECT…FROM…WHERE…
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Database Interrogation
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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
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Graphical and Natural Queries
 It is difficult to correctly phrase SQL and other
database language search queries
 Most DBMS packages offer easier-to-use,
point-and-click methods
 Translates queries into SQL commands
 Natural language query statements are similar
to conversational English
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Graphical Query Wizard
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Database Maintenance
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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
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Use DBMS software development tools to
develop custom application programs
 Not necessary to develop detailed datahandling 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 Acxiom Corp. Data
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Acxiom does three things really well…
 Manages large volumes of data
 Cleans, transforms, and enhances that data
 Distills business intelligence from that data to
drive smart decisions
Refined data is sold to customers
 Developing telemarketing lists
 Identifying prospects for credit card offers
 Screen prospective employees
 Detecting fraudulent financial transactions
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Case 3 Acxiom Corp. Data
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Primary business activities
 Building its data library
 Selling data
 Managing other companies’ data and data
centers
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Case Study Questions
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Acxiom is in a unique type of business. How
would you describe the business of Acxiom?
 Are they a service- or product-oriented
business?
It is easy to see that Acxiom has focused on a
wide variety of data from different sources.
 How does Acxiom decide which data to collect,
and for whom?
Acxiom’s business raises many issues related
to privacy.
 Are the data collected by Acxiom really private?
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Case 4 Protecting the Data Jewels
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Harrah’s Entertainment and other casino
companies closely guard customer data
 Both hard copy and electronic files
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Concerns
 Broader access to CRM systems
 More frequent job switching
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Case 4 Protecting the Data Jewels
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Protection methods
 Nondisclosure, non-compete, and
nonsolicitation agreements that specify
customer lists
 Trade-secret laws and legal action
 Limiting access to sensitive information
 Physical security
 Strong password protection
 Reinforcement of signed agreements during
exit interviews
 Monitoring electronic communication
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Case Study Questions
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Why have developments in IT helped to
increase the value of the data resources of
many companies?
How have these capabilities increased the
security challenges associated with protecting
a company’s data resources?
How can companies use IT to meet the
challenges of data resource security?
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