Chapter 7 Managerial Overview: Database Management
Outline 1. Foundation Data Concepts 2. The Database Management Approach 3. Use of Database Software in the Business Environment 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 programs.
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 approach? 2. Why is data resource management important to an organization?
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.
Conclusion 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 relevance. 4. Capable of supporting a business strategy that leads to a competitive advantage.
5. The basis for all endeavors involving information systems. 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 accordingly. 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 management.
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 project. 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 assignment. 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 25% Input data/editing 5% Report for client 40% Prospect priority logic 5% Report to research company manager 25%
Information. Week 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 32% Incomplete Data 25% Collection Errors 21% System Design 15% Other 7%
Responsible for Data Quality? Department Managers 35% IS Manager 32% Administrative Executive 11% Quality Manager 4% Other 18%
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 Department Enterprise Individual
Database Administration
Data Resource Management Data Administration Data Planning Database Administration
Database Management System Operating System Database Management System Application Programs Databases Data Dictionary
Database Management System Structured Query Language (SQL) has two components: Data Definition Language - Used to physically establish record types, fields and structural relationships. 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 software.
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 database. Contains a list of all files in the database, the number of records in each file and the names and types of each field. 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 programs. • Database maintenance. • Security information.
Abilities of the Data Dictionary Can report the status of any aspect of a firm’s metadata. 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 another. Does make data use by users easier because of the naming consistency.
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 users. • 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 warehouse.
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 Applications Data Marts Finished Goods Inventory Control Sales and Marketing Purchasing System Management Reporting Order Entry System Raw Material Inventory Data Warehouse Accounting Production Control
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 levels. Wal-Mart wants to address its 30% stockouts that result in lost business. The data warehouse also supports this application.
Summary • 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 warehousing. 2. How can data warehouses help a company to gain a competitive advantage in the market place?
Web Based Systems The Internet Intranets Extranets Network Server Hypermedia Databases Web Browser Web Server Software Client PCs or NCs HTML pages GIF image files Video Files
Distributed Database
Definitions 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 networks) • 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 complex. • Involves a significant amount of logic.
Replication • 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.
Partitioning • 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 countries. • How do you combine data for cross country searches? • 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 functions. • Assess the maturity and capabilities of existing systems. • Assess the data management and related technical skills needed to support a distributed data approach.
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. Don’t! 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.
Summary • 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 including: – 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 databases? 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 Dept Emplo. Dept A 1 A B 2 B C 3 C
Database Advantages • Centralized management of data, access, utilization and security. • 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 Specifications Logical Models User Needs Description 4. Logical Design 3. Conceptual Design Data Models
Database Products • IBM • 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 2 nd 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 B 2 B 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 8 i : 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 capabilities. * 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 ü Financial Applications: to capitalize on global opportunities, drive profitability, and build a smarter business. ü 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. ü 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 ü Order Management Applications: to achieve on time delivery at lowest cost through robust sales configuration functionality, integrated delivery planning and coordination with logistics partner. ü Projects Applications: to bridge between operations and finance, internet-enabled ebusiness applications that manage lifecycle of project. ü 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? v The software makes it easier for large businesses to enter, store, retrieve data like customer product orders, sales records, and personnel information. v 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. v Oracle software runs on PCs, workstations, minicomputers, mainframes and massively parallel computers as well as on personal digital assistants and set-top 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 solutions. § 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 database.
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 Oracle. 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 Approach Database Management System Database Access Direct Sequential Database Structures: Hierarchical Network Multidimensional Object-Oriented Relational DBMS Uses: Application Development Database Interrogation Database Maintenance Key Field Logical Data Elements Character Field Record File Database Query Language Report Generator Types of Databases Analytical External Data Warehouse Hypermedia Distributed Operational End User Uniform Resource Locator (URL)
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