1. 1
Chapter
3
Data Resource Management
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2. 2
Learning Objectives
Explain the importance of implementing data
resource management processes and
technologies in an organization.
Understand the advantages of a database
management approach to managing the data
resources of a business.
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3. 3
Learning Objectives (continued)
 Explain how database management software helps
business professionals and supports the operations
and management of a business.
 Illustrate each of the following concepts:
 Major types of databases
 Data warehouses and data mining
 Logical data elements
 Fundamental database structures
 Database access methods
 Database development
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4. 4
Section I
Managing Data Resources
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5. 5
Data Resource Management
A managerial activity
Applies information systems technology to
managing data resources to meet needs of
business stakeholders.
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6. 6
Foundation Data Concepts
Levels of data
Character
Single alphabetical, numeric, or other
symbol
Field
Groupings of characters
Represents an attribute of some entity
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7. 7
Foundation Data Concepts (continued)
Records
Related fields of data
Collection of attributes that describe an
entity
Fixed-length or variable-length
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8. 8
Foundation Data Concepts (continued)
Files (table)
A group of related records
Classified by
Primary use
Type of data
permanence
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9. 9
Foundation Data Concepts (continued)
Database
Integrated collection of logically related
data elements
Consolidates records into a common pool
of data elements
Data is independent of the application
program using them and type of storage
device
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10. 10
Foundation Data Concepts (continued)
 Logical Data Elements
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11. 11
Types of Databases
Operational
Supports business processes and operations
Also called subject-area databases,
transaction databases, and production
databases
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12. 12
Types of Databases (continued)
Distributed
Replicated and distributed copies or parts of
databases on network servers at a variety of
sites.
Done to improve database performance and
security
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13. 13
Types of Databases (continued)
External
Available for a fee from commercial sources
or with or without charge on the Internet or
World Wide Web
Hypermedia
Hyperlinked pages of multimedia
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14. 14
Data Warehouses and Data Mining
Data warehouse
Stores data extracted from operational,
external, or other databases of an
organization
Central source of “structured” data
May be subdivided into data marts
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15. 15
Data Warehouses and Data Mining (continued)
Data mining
A major use of data warehouse databases
Data is analyzed to reveal hidden
correlations, patterns, and trends
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16. 16
Database Management Approach
Consolidates data records and objects into
databases that can be accessed by many
different application programs
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17. 17
Database Management Approach (continued)
Database Management System
Software interface between users and
databases
Controls creation, maintenance, and use of
the database
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18. 18
Database Management Approach (continued)
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19. 19
Database Management Approach (continued)
Database Interrogation
Query
Supports ad hoc requests
Tells the software how you want to
organize the data
SQL queries
Graphical (GUI) & natural queries
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20. 20
Database Management Approach (continued)
Report Generator
Turns results of query into a useable
report
Database Maintenance
Updating and correcting data
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21. 21
Database Management Approach (continued)
Application Development
Data manipulation language
Data entry screens, forms, reports, or web
pages
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22. 22
Implementing Data Resource Management
Database Administration
Develop and maintain the data dictionary
Design and monitor performance of
databases
Enforce database use and security standards
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23. 23
Implementing Data Resource Management (continued)
Data Planning
Corporate planning and analysis function
Developing the overall data architecture
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24. 24
Implementing Data Resource Management (continued)
Data Administration
Standardize collection, storage, and
dissemination of data to end users
Focused on supporting business processes
and strategic business objectives
May include developing policy and setting
standards
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25. 25
Implementing Data Resource Management (continued)
Challenges
Technologically complex
Vast amounts of data
Vulnerability to fraud, errors, and failures
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26. 26
Section II
Technical Foundations of Database
Management
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27. 27
Database Structures
Hierarchical
Treelike
One-to-many relationship
Used for structured, routine types of
transaction processing
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28. 28
Database Structures (continued)
Network
More complex
Many-to-many relationship
More flexible but doesn’t support ad hoc
requests well
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29. 29
Database Structures (continued)
Relational
Data elements stored in simple tables
Can link data elements from various tables
Very supportive of ad hoc requests but
slower at processing large amounts of data
than hierarchical or network models
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30. 30
Database Structures (continued)
Multi-Dimensional
A variation of the relational model
Cubes of data and cubes within cubes
Popular for online analytical processing
(OLAP) applications
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31. 31
Database Structures (continued)
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32. 32
Database Structures (continued)
Object-oriented
Key technology of multimedia web-based
applications
Good for complex, high-volume applications
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33. 33
Database Structures (continued)
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34. 34
Accessing Databases
Key fields (primary key)
A field unique to each record so it can be
distinguished from all other records in a
table
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35. 35
Accessing Databases (continued)
Sequential access
Data is stored and accessed in a sequence
according to a key field
Good for periodic processing of a large
volume of data, but updating with new
transactions can be troublesome
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36. 36
Accessing Databases (continued)
Direct access
Methods
Key transformation
Index
Indexed sequential access
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37. 37
Database Development
Data dictionary
Directory containing metadata (data about
data)
Structure
Data elements
Interrelationships
Information regarding access and use
Maintenance & security issues
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38. 38
Database Development (continued)
Data Planning & Database Design
Planning & Design Process
Enterprise model
Entity relationship diagrams (ERDs)
Data modeling
Develop logical framework for the
physical design
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39. 39
Discussion Questions
How should an e-business enterprise store,
access, and distribute data & information
about their internal operations & external
environment?
What roles do database management, data
administration, and data planning play in
managing data as a business resource?
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40. 40
Discussion Questions (continued)
What are the advantages of a database
management approach to organizing,
accessing, and managing an organization’s
data resources?
What is the role of a database management
system in an e-business information system?
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41. 41
Discussion Questions (continued)
Databases of information about a firm’s
internal operations were formerly the only
databases that were considered to be
important to a business. What other kinds of
databases are important for a business today?
What are the benefits and limitations of the
relational database model for business
applications?
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42. 42
Discussion Questions (continued)
Why is the object-oriented database model
gaining acceptance for developing applications
and managing the hypermedia databases at
business websites?
How have the Internet, intranets, extranets,
and the World Wide Web affected the types
and uses of data resources available to
business end users?
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43. 43
Real World Case 1 – IBM versus Oracle
What key business strategies did Janet Perna
implement to help IBM catch up to Oracle in
the database management software market?
What is the business case for both IBM’s and
Oracle’s product strategy for their database
software?
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44. 44
Real World Case 1 (continued)
Which approach would you recommend to a
company seeking a database system today?
What do you see as the key factor to IBM’s
success?
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45. 45
Real World Case 1 (continued)
The case states that “database software has
become more of a commodity.” Do you agree?
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46. 46
Real World Case 2 – Experian Automotive
How do the database software tools discussed
in this case help companies exploit their data
resources?
What is the business value of the automotive
database created by Experian?
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47. 47
Real World Case 2 (continued)
What other business opportunities could you
recommend to Experian that would capitalize
on their automotive database?
The case states that Experian’s automotive
database “has raised the hackles of privacy
advocates.” What legitimate privacy concerns
and safeguard suggestions might be raised
about this database and its use?
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48. 48
Real World Case 3 – Shell Exploration
Why do companies still have problems with
the quality of the data resources stored in their
business information systems?
What is a “data silo?”
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49. 49
Real World Case 3 (continued)
How do data warehouse approaches help
companies like Shell and OshKosh meet their
data resource management challenges?
What business benefits can companies derive
from a data warehouse approach?
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50. 50
Real World Case 4 – BlueCross BlueShield & Warner Bros.
What is a storage area network? Why are so
many companies installing SANs?
What are the reasons for the quick payback
on SAN investments?
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51. 51
Real World Case 4 (continued)
What are the challenges and alternatives to
SANs as a data storage technology?
What are some advantages of SANs?
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52. 52
Real World Case 5 – Sherwin-Williams & Krispy Kreme
Tips for Managing External Data
Purchase external data from a reliable
source that will do most of the refining for
you and will work with you on contingency
plans.
Run a test load first. A load of test data can
pave the way for accurate production loads.
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53. 53
Real World Case 5 (continued)
Managing external data (continued)
Don’t collect data until business and IT staff
have agreed on the amount, frequency,
format, and content of the data you need.
Don’t acquire more data or use more data
sources than you really need.
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54. 54
Real World Case 5 (continued)
Managing external data (continued)
Don’t mingle external and homegrown data
without adding unique identifiers to each
record, in case you need to pull it out.
Don’t overestimate the data’s integrity.
Nothing beats direct customer contact and
tactical details behind the data.
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55. 55
Real World Case 5 (continued)
What challenges in acquiring and using data
from external sources are identified in this
case?
Do you prefer the Sherwin-Williams or Krispy
Kreme approach to acquiring external data?
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56. 56
Real World Case 5 (continued)
What other sources of external data might a
business use to gain valuable marketing and
competitive intelligence?
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