Chapter 7: Managerial Overview

Chapter 7
Managerial Overview:
Database Management
1. Foundation Data Concepts
2. The Database Management Approach
3. Use of Database Software in the Business
4. Types of Databases
5. Data Resource Management
Foundation Data Concepts
How Data is Organized in Information Systems:
• Character - Most basic element of data, consists of a
single alphabetic, numeric, or other symbol.
• Field - Consists of a grouping of characters.
• Record - Consists of a grouping of related fields of data.
• File - Consists of a grouping of related records.
• Database - Consists of a grouping of related files.
Database Management Approach
The Database Management Approach consolidates data records
and objects into databases that can be accessed by many different
application programs.
This Approach Involves Three Basic Activities:
1. Updating and Maintaining Common Databases
2. Sharing the Data in Common Databases
3. Providing an Inquiry/Response and Reporting Capability
The Use Of Database Software
A software package that uses this approach is the Database
Management System(DBMS), which serves as a software
interface between users and databases.
The Four Major Uses of a DBMS Package are:
1. Database Development - Microsoft Access which allow end
users to easily develop the databases they need.
2. Database Interrogation - Provides a response to questions
from a database.
3. Database Maintenance - Updates continually to reflect new
business transactions and other events.
4. Application Development - Develop custom application
Data Resource Management
Benefits of Database Management:
Limitations of Database
1. Reduces duplication of data
1. Difficult and expensive to install
2. Easy to obtain information
2. Greater storage required
3. Computer programming is simplified
3. Longer processing time
4. Security can be increased
4. Vulnerable to errors
Types of Databases
There are Six Major Types of Databases:
1. Operational Databases - Stores detailed data to support the operations of the entire
organization. Ex. Customer database, inventory database.
2. Analytical Databases - Stores data and information extracted from selected operational
and external databases.
3. Data Warehouses - Stores data from current and previous years that has been extracted
from the various operational databases of an organization.
4. Distributed Databases - Stores copies or parts of databases.
5. External Databases - Stores a wealth of information from commercial online services,
available to companies with a fee.
Possible Exam Questions
1. What are the advantages to the database management
2. Why is data resource management important to an
What is a database?
• A database is an integrated collection of logically
related records or objects.
• A database consolidates records previously stored
in separate files into a common pool of data
records that provides data for many applications.
Data is a vital organizational resource that
needs to be managed like other important
business assets.
Most organizations could not survive or
succeed without quality data about their
internal operations and external environment.
This Stuff Called Data
1. Facts and figures of potential importance in
running a business.
2. The basis for frequent business decisions by all
types and levels of people within an enterprise.
3. Information when used by people that apply
4. Capable of supporting a business strategy that
leads to a competitive advantage.
5. The basis for all endeavors involving information
6. Specific and its uniqueness must be identified.
e.g. part number, customer number, social security
number, etc.
7. Needs to be coded in a consistent manner for use
in multiple systems.
8. Both static and dynamic and must be managed
9. Often expensive to obtain with a necessary degree
of accuracy.
10. Voluminous and relatively expensive to store so
that it can be quickly accessed.
11. In multiple forms with the expanding scope of IT
use by enterprises.
12. Either centralized, decentralized or distributed.
13. Either personal, departmental or enterprise-wide.
14. An organizational resource that has major value
and needs to be protected.
A Logical Data Process
• Capture and identification.
• Input.
• Processing.
• Compression.
• Storage.
• Access and retrieval.
• Transmission.
• Presentation.
Saturn Automobile Prospect Project
As an employee of BIS Market Research, Inc. you are
being assigned as a member of a two person team to
assist the Saturn Dealership Group by developing an
approach that will help identify good sales prospects to
buy an automobile. To meet the needs of the client, you
will design a survey questionnaire, build a database and
produce a report for the client that provides a list of
prospects in priority sequence.
You will also produce a report for BIS Market Research
Assignment Steps
1. Interviewing a Saturn representative.
2. Deciding on the appropriate data needed to accomplish
this assignment is critical to the overall success of the
3. Deciding on an appropriate and efficient coding system
for the data is also an important part of the project. A
poor job in this step will result in poor overall results.
4. Designing a survey form (questionnaire) that a prospect
would be willing to complete that will also serve as the
source document to the create the database.
5. Inputting the data from the survey forms into the database
including editing the source document for accuracy and
completeness. You should keep a record of documents that
you conclude are not valid to be included in the survey report.
6. Determining logical criteria that identifies and prioritizes
the better prospects.
7. Producing a final report for the client that lists the better
prospects in priority sequence. All the prospects should be
included in this final report with the best at the top of the
report in descending order.
8. A second report should be prepared for BIS Market
Research management highlighting the major learning points
from the project. Think of this as a useful document for the
next group that will have a similar assignment.
Project Time Line
10/26/00 Interview a Saturn Dealership Group
representative to help determine information to be
collected through the survey and begin to lay out the
questionnaire (survey form).
11/2/00 Turn in questionnaire/source document at the
beginning of class.
Complete the survey in class using a form provided by
the instructor.
5/7/00 Meet in PC Lab in Social Science I, Room 135
between 10:00 and 2:00. (in two groups)
Create a database.
Better understand the specific aspects of the
Complete the assignment on your own if you do
not finish in the scheduled lab.
11/21/00 Submit final project as a team.
PC Project Grade Structure
Input form design/layout
Input data/editing
Report for client
Prospect priority logic
Report to research company manager 25%
InformationWeek Survey
Has corrupt data ever delayed business?
Yes - 70%
No - 30%
Is your company data acceptably accurate?
Yes - 31%
No - 69%
Are processes in place to check database woes?
Yes - 56%
No - 44%
Causes of Poor Data Integrity
Entry Errors
Incomplete Data
Collection Errors
System Design
Responsible for Data Quality?
Department Managers
IS Manager
Administrative Executive
Quality Manager
Data Management Design Criteria
• Availability
• Performance
• Cost
• Data Integrity
Traditional Files
Separate files created for a specific application
like an employee master file to support the
payroll application.
Made up of specific information (fields)
necessary to process the payroll.
The master file is updated based on the payroll
application processing schedule.
Traditional File Characteristics
• Redundant data.
• Could involve an update problem versus
incorrect data.
• Lack of flexibility to use the data.
• Lack of data sharing and availability.
• Possible poor security.
Data Demographics
Database Administration
Data Resource Management
Database Management System
Database Management System
Structured Query Language (SQL) has two
Data Definition Language - Used to physically
establish record types, fields and structural
Data Manipulation Language (includes query but
any access of data in a relational database is
considered a query) - Used to create, read, update
and delete records in the database and to navigate
between different records and types of records.
Database Objectives
1. Provide for efficient storage, update and retrieval of data.
2. Provide high integrity to promote user trust in the data.
3. Be adaptable to and scalable to new and unforeseen
business requirements and applications.
Database Administration
A data and/or database administrator is responsible for the
data planning, definition, architecture and management of
data within an organization. This includes:
• Conducting a physical database design.
• Conducting a logical database design.
• Conducting database tuning and capacity planning.
• Establishing and maintaining a data dictionary.
• Evaluating and selecting database hardware and
Definition of Data Dictionary
• A computer-based catalog containing
metadata (data about data).
• An integral part of most database
management systems (DBMS).
• A significant tool of database administration.
Data Dictionary Software
The software manages a database of data definitions,
that is, metadata about the structure, data elements
and other characteristics of the organization’s
Contains a list of all files in the database, the number
of records in each file and the names and types of each
Does not contain any of the actual data in the database.
Information in the Data Dictionary
• Names and descriptions of all types of data
records and their interrelationships.
• Requirements for end users access.
• Requirements for use of application
• Database maintenance.
• Security information.
Abilities of the Data Dictionary
Can report the status of any aspect of a firm’s
DBA’s can make changes to definitions.
Active data dictionaries automatically enforce
standard data element definitions meaning end
users must follow the rules of the program’s data
entry procedure.
Why Data Dictionaries
Remember that this tool is primarily used by programmers.
• Assures consistency of naming within different programs
so that data integrity is improved.
• Is integrated within the database so it facilitates the use of
the RDBMS.
• Facilitates conversion from one software system to
Does make data use by users easier because of the naming
Two Possible Exam Questions
1. What is metadata?
2. Why is the use of a data dictionary
increasingly more important within
many companies?
Data Warehouse
Book Definition
Data Warehouses are an integrated collection
of data extracted from operational, historical,
and external databases, and screened, edited,
and standardized for retrieval and analysis
(data mining), to provide business intelligence
for managerial (empowered employee)
decision making.
Data Warehouses
• An important and very logical type of
database used by organizations and end
• Stores data from current and previous years
that has been extracted from various
operational databases of an organization.
• May be subdivided into data marts, which
hold specific subsets of data from the
Data Warehouse Challenge
The task of extracting, cleaning and loading
information into a data warehouse takes an
enormous amount of time and effort.
Estimates are that on average 80% of the effort
to build an effective data warehouse goes into
this task.
A Data Warehouse and its Data Mart Subsets
Data Marts
Finished Goods
Sales and
Entry System
Raw Material
Data Mining
• A major use of data warehouse databases
• Processes data in a data warehouse to
identify key factors and trends in historical
factors of business activities
• Can be used to help make decisions about
strategic changes in business operations to
gain operational efficiencies, improve
customer service and/or gain competitive
advantages in the market place
Wal-Mart IT Strategy
A data warehouse is an integral part of Wal-Mart’s
Information Systems strategy that says:
It is no longer good enough to link just internal
information systems. You have to integrate them
from one end of the business value chain to the
other--from suppliers through to customers.
Retail Link System
• Vendors manage inventory replenishment.
• Vendors receive a profit and loss statement for products that
they provide to Wal-Mart.
• 4,000 vendors access a data warehouse that provides them
with the same information provided to internal employees.
• The data warehouse has 7.5 terrabytes of data that includes
52 weeks of rolling history of transactions by product, store,
supplier and date.
• Inquiries exceed 10,000 a day.
Joint Forecasting
Wal-Mart is also implementing Collaborative Forecasting and
Replenishment (CFAR) to coordinate product forecasting.
This produces a better forecast than one done independently.
Both Wal-Mart and its vendors are willing to live with the forecast.
Suppliers gain the ability to better plan capacity and production
Wal-Mart wants to address its 30% stockouts that result in lost
The data warehouse also supports this application.
• A data warehouse is a central source of data
• It includes edited, standardized, integrated
and frequently updated data.
• Data within the data warehouse is used by
managers and other end user professionals
for a variety of forms of business analysis,
market research, and decision support.
Possible Exam Questions
1. Explain the basic concept of data
2. How can data warehouses help a company
to gain a competitive advantage in the
market place?
Web Based Systems
The Internet
y p erm ed ia
D atab ases
Web Server
Client PCs
or NCs
HTML pages
GIF image files
Video Files
Distributed Database
A database is a collection of logically related records
or files. It consolidates many records previously
stored in separate files so that a common pool of
data records serves many applications.
Distributing databases or portions of a database to
remote sites where the data are most frequently used
is made possible through the use of a network that
interconnects the distributed databases.
Distributed Database Examples
Operational databases: Store detailed data needed to
support the operations of an entire organization.
Analytical databases: Data extracted from selected
operational and external databases.
Hypermedia databases: Consisting of a home page and
other hyper-linked pages of multimedia or mixed media
(text, photographic images, video clips, etc.)
Why Distributed Data?
• Improve performance of remote operations.
• Cost effective. (lower operating costs)
• Faster response time to improve productivity and
allow for better decision making. (faster local
• Send smaller amounts of data over distance.
(lessen capacity demands on the network)
Ways to Distribute Data
• Programmatic Updates
• Replication
• Partitioning
Programmatic Updates
• A change in a primary record sends an
automatic update to all secondary records
• Adds to programming overhead.
• Keeping track of where data goes can be
• Involves a significant amount of logic.
• One master database, many servants.
• Replication in two ways (master to servant) or
(master to servant AND servant to master)
• Updated in real-time, nightly, weekly or monthly.
• Lower possible cost.
• Conflict resolution can be a problem.
• Restart and recovery is also an issue.
• One master and many servants but each
servant can be different.
• Regional databases.
• Update only those that are relevant.
Korn Ferry International
International recruitment company.
Has operations in 77 cities in 41 countries.
Database of employers and employees.
Partitioned databases for seven different
• How do you combine data for cross country
• How do you keep data consistent?
Choosing the Best Data Approach
• Determine the high priority business needs.
• Analyze the structure and the way a business
• Assess the maturity and capabilities of existing
• Assess the data management and related technical
skills needed to support a distributed data
Key Considerations
1. Systems performance. i.e. access time to data
2. Cost to implement and support the system.
3. Data integrity implications.
Which of these three factors always seems
to be a distant third consideration?
Worth Remembering
If you have a choice as to whether to distribute
data or not.
Why distribute data if a single copy will do the job?
Systems Approach
Distributed databases can reside on
network servers, on the World Wide Web,
on corporate intranets, extranets or on other
company networks.
• Distribution of a database is done to improve performance,
lower cost and gain a higher level of responsibility for the
management of data.
• There are several possible ways to distribute data
– Partitioning
– Replication
– Programmatic Updates
• Analyze the structure and needs of a business to determine
the right approach regarding data and data management.
Possible Exam Questions
1. Why is there a need and a trend for distributed
2. What criteria should be used to decide whether to
distribute a database and which factors usually
receive the highest priority?
Business and IT Issues
In creating a distributed system, where do you put:
The computer nodes?
The applications?
The data?
The users?
The telecommunications function?
The network control?
The authority and responsibility?
Distributed Data
Static data is much easier to distribute than
dynamic data.
Product descriptions
Product prices
Product inventory
Customer ID information
Customer Account status
Distributed Systems
Geographic distribution does not
necessarily mean great distances.
To have a true distributed system
(database) there must be a comprehensive,
coordinated system that manages the data.
Database Structures
Hierarchical Structure
Network Structure
Relational Structure
Database Advantages
• Centralized management of data, access, utilization and
• Provides greater data flexibility.
• Increases access and availability.
• Reduction of redundant data.
• Eliminates data confusion and misinterpretation.
• Program data dependence is reduced.
• Reduces program development and maintenance cost.
Database Development
1. Data Planning
Physical Models
Enterprise Model
5. Physical Design
2. Requirements
Logical Models
User Needs
4. Logical Design
3. Conceptual Design
Data Models
Database Products
• Oracle
• Microsoft
• Sybase
• Informix
Oracle Corporation
Oracle Corporation Profile
Oracle is a supplier of software for information management.
The company develops, manufactures, markets and distributes
computer software to manage and grow their business. Its
product line includes database, server, application
development and decision support tools.
Founded: 1977 by CEO Lawrence J. Ellison
Fortune 500 rank: 195
Headquarters: Redwood City, CA
Employees : 43,800 as of 1999
* Oracle software is utilized by 90% of Fortune 500 companies and
government organizations worldwide. It is the 2nd world‘s second
largest software company with annual sales more than $9.7 billion
Core Strategy and Company Values
Core Strategy: Giving their customers unprecedented speed
and capability in the execution of technology strategies in
the advent of the Internet age and B2B e-commerce.
Company Values: Delivered are through the integration of
services capability, comprised of Oracle Consulting, Oracle
Support Services, and Oracle Education.
Oracle’s Software Products
Two broad categories:
• Systems software:- complete internet platform to
develop and deploy applications for computing on
the internet and corporate intranets.
• Business applications software:- automates the
performance of specific business data processing
functions for customer relationship management,
strategic procurement, project management and
human resources management.
Oracle 8i
Oracle 8i : an object-relational database that
supports the close integration of objects and
complex data types with a relational database
engine’s mission-critical infrastructure, including
management tools, data integrity, and query
* Yahoo selected Oracle as the backbone of its data
warehouse because of the speed, scalability, and
performance, which made them earn a high
recognition by users and advertisers.
Enterprise Resource Planning
 Financial Applications: to capitalize on global
opportunities, drive profitability, and build a smarter
 Human Resource Applications: to lower HR administrative
costs, improve and leverage the skills of the workforce,
compensate to compete for scarce resources, and empower
managers with the right information.
 Purchasing Applications: to acquire goods and services at
the lowest total cost by automating the entire purchasing
lifecycle from planning to procurement and payment.
Enterprise Resource Planning
 Order Management Applications: to achieve on time
delivery at lowest cost through robust sales configuration
functionality, integrated delivery planning and
coordination with logistics partner.
 Projects Applications: to bridge between operations and
finance, internet-enabled ebusiness applications that
manage lifecycle of project.
 Manufacturing Applications: to increase revenue,
profitability, and customer loyalty by increasing customer
responsiveness and quality, reducing costs across the
supply chain, and increasing operational efficiency.
Customer Relationship Management
Marketing Applications
Sales Applications
Service Applications
Call Center Applications
E-commerce applications
Business Intelligence Applications
Communications Utilities Applications:
Financial Services Applications
Architecture and Tools
Why is Oracle So Popular?
 The software makes it easier for large businesses to enter,
store, retrieve data like customer product orders, sales
records, and personnel information.
 It is the only company to implement complete global ebusiness solutions that extend from front office customer
relationship management to back office operational
applications to platform infrastructure.
 Oracle software runs on PCs, workstations,
minicomputers, mainframes and massively parallel
computers as well as on personal digital assistants and settop devices.
Why is Oracle so popular (cont’d)
 Oracle helps their customers in a cost effective way to
expand market opportunities, improve business process
efficiencies, attract and retain customers. Their full suite of
e-business products includes
1) internet-ready platform
2) internet-enabled business applications.
3) professional services for help in formulating business strategy, as
well as in designing, customizing, and implementing e-business
 Oracle demonstrates the scalability and partitioning
capabilities needed to grow its data on a nightly basis
without worry, the flexibility to take advantage of new
selling strategies devised by the sales force, and the query
response speed to deliver information upon demand.
Database Management Products
1. Data definition language.
2. Data query/manipulation language.
3. Data dictionary (an automated or manual
tool about data maintained in the
Related Database Tools
• Data Warehousing
• Data Mining
• Online Application Processing (OLAP)
Possible Exam Questions
1. Give three examples of key elements of Customer
Relationship Management (CRM) software provided by
2. Explain two reasons why Oracle gained a competitive
edge in the database market within the computer industry.
Management Implications
Assure consistent and uniform control of data
across the entire enterprise.
Insure the correct definition of data across the
entire enterprise.
Ensure consistent data collection and input.
Define responsibility for data management.
Key Terms in Chapter 7
Data Administration
Data Dictionary
Data Modeling
Data Planning
Data Resource Management
Database Administration
Database Administrator
Database Management
Database Management
Database Access
Database Structures:
DBMS Uses:
Application Development
Database Development
Database Interrogation
Database Maintenance
Key Field
Logical Data Elements
Query Language
Report Generator
Types of Databases
Data Warehouse
End User
Uniform Resource Locator

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