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Chapter 7

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.

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Chapter 7

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  1. Chapter 7 Managerial Overview: Database Management

  2. 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

  3. 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.

  4. 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

  5. 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.

  6. Data Resource Management Benefits of Database Management: Limitations of Database Management: 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

  7. 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.

  8. Possible Exam Questions 1. What are the advantages to the database management approach? 2. Why is data resource management important to an organization?

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. A Logical Data Process • Capture and identification. • Input. • Processing. • Compression. • Storage. • Access and retrieval. • Transmission. • Presentation.

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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%

  21. 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%

  22. Causes of Poor Data Integrity Entry Errors 32% Incomplete Data 25% Collection Errors 21% System Design 15% Other 7%

  23. Responsible for Data Quality? Department Managers 35% IS Manager 32% Administrative Executive 11% Quality Manager 4% Other 18%

  24. Data Management Design Criteria • Availability • Performance • Cost • Data Integrity

  25. 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.

  26. 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.

  27. Data Demographics Department Enterprise Individual

  28. Database Administration

  29. Data Administration Data Planning Database Administration Data Resource Management

  30. Operating System Database Management System Application Programs Database Management Databases Data Dictionary Database Management System

  31. 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.

  32. 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.

  33. 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.

  34. A computer-based catalog containing metadata (data about data). An integral part of most database management systems (DBMS). A significant tool of database administration. Definition of Data Dictionary

  35. The software manages a database of data definitions, that is, metadata about the structure, data elements and other characteristics of the organization’s database. Data Dictionary Software 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.

  36. 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.

  37. 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.

  38. 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.

  39. 1. What is metadata? 2. Why is the use of a data dictionary increasingly more important within many companies? Two Possible Exam Questions

  40. Data Warehouse

  41. 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.

  42. 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.

  43. 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.

  44. A Data Warehouse and its Data Mart Subsets ApplicationsData Marts Finished Goods Inventory Control Sales and Marketing Data Warehouse Purchasing System Management Reporting Order Entry System Accounting Raw Material Inventory Production Control

  45. 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

  46. 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.

  47. 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.

  48. 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.

  49. 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.

  50. 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?

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