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Chapter 7

Essentials of Management Information Systems, 6e


Chapter 7 Managing Data Resources

Managing Data Resources

7.1 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Objectives

1. Why do businesses have trouble finding the


information they need in their information
systems?

2. How does a database management system help


businesses improve the organization of their
information?

7.2 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Objectives

3. How do the principal types of database models


affect the way businesses can access and use
information?

4. What are the managerial and organizational


requirements of a database environment?

5. What new tools and technologies can make


databases more accessible and useful?

7.3 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Management Challenges

1. Organizational obstacles to a database


environment

2. Cost/benefit considerations

7.4 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Organizing Data in a Traditional File Environment

File Organization Terms and Concepts

• Bit: Smallest unit of data; binary digit (0,1)

• Byte: Group of bits that represents a single character


• Field: Group of words or complete number
• Record: Group of related fields
• File: Group of records of the same type

7.5 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Organizing Data in a Traditional File Environment

File Organization Terms and Concepts

• Database: Group of related files


• Entity: Person, place, thing, or event about which
information must be kept
• Attribute: A piece of information describing a
particular entity
• Key field: Field that uniquely identifies every
record in a file

7.6 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Organizing Data in a Traditional File Environment

The data hierarchy

Figure 7-1
7.7 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Organizing Data in a Traditional File Environment

Entities and attributes

Figure 7-2
7.8 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Organizing Data in a Traditional File Environment

Problems with the Traditional File Environment

• Data redundancy

• Program-data dependence

• Lack of flexibility

• Poor security

• Lack of data-sharing and availability

7.9 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Organizing Data in a Traditional File Environment

Traditional file processing

Figure 7-3
7.10 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Database Management Systems

Database
• Collection of centralized data
• Controls redundant data
• Data stored so as to appear to users in one location

• Services multiple application

7.11 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

The contemporary database environment

Figure 7-4
7.12 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Database Management Systems

Database Management System (DBMS)


• Creates and maintains databases
• Eliminates requirement for data definition
statements
• Acts as interface between application programs
and physical data files
• Separates logical and physical views of data

7.13 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Database Management Systems

Three Components to a DBMS


1. Data definition language: Formal language
programmers use to specify structure of database
2. Data manipulation language: For extracting data
from database, e.g. SQL
3. Data dictionary: Tool for storing, organizing
definitions of data elements and data
characteristics

7.14 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Sample data dictionary report

Figure 7-5
7.15 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Database Management Systems

How a DBMS Solves Problems of a


Traditional File Environment
• Reduces data redundancy
• Eliminates data inconsistency
• Uncouples programs from data
• Increases access and availability of data
• Allows central management of data, data use, and
security

7.16 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Types of Databases

Relational DBMS
• Represents data as two-dimensional tables called
relations

• Relates data across tables based on common data


element
• Examples: DB2, Oracle, MS SQL Server

7.17 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

The relational data model

Figure 7-6
7.18 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Types of Databases

Three Basic Operations in a Relational


Database
• Select: Creates subset of rows that meet specific
criteria
• Join: Combines relational tables to provide users
with information
• Project: Enables users to create new tables
containing only relevant information

7.19 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

The three basic operations of a relational DBMS

Figure 7-7
7.20 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Types of Databases

Hierarchical DBMS
• Older system presenting data in tree-like structure

• Models one-to-many parent-child relationships

• Found in large legacy systems requiring intensive high-


volume transactions: Banks; insurance companies
• Examples: IBMs IMS

7.21 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

A hierarchical database for a human resources system

Figure 7-8
7.22 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Types of Databases

Network DBMS
• Older logical database model
• Models many-to-many parent-child relationships
• Example: Student – course relationship: Each
student has many courses; each course has many
students

7.23 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

The network data model

Figure 7-9
7.24 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Types of Databases

Disadvantages of Hierarchical and


Network DBMS
• Outdated

• Less flexible compared to RDBMS

• Lack support for ad-hoc and English language-like


queries

7.25 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

The Database Approach to Data Management

Types of Databases

Object-Oriented Databases (OODBMS)


• Stores data and procedures as objects
• Better able to handle graphics and recursive data
• Data models more flexible
• Slower than RDBMS
• Hybrid: object-relational DBMS

7.26 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Designing Databases

Two Design Exercises in Creating Database


• Conceptual (logical) design: Abstract model of
database from business perspective
• Physical design: How the database is actually
arranged on direct access storage devices

7.27 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Designing Databases

Conceptual Database Design


• Identifies relationships between data elements
• Identifies most efficient way to group data
elements
• Identifies redundant data elements
• Identifies grouping of data elements needed for
specific applications

7.28 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Designing Databases

Entity-Relationship Diagram
A methodology for documenting databases that
illustrates the relationship between various
elements in the database
Normalization
The process of creating small, stable, and adaptive
data structures from complex groups of data when
designing a relational database

7.29 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

An entity-relationship diagram

Figure 7-10
7.30 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

An unnormalized relation for ORDER

Figure 7-11
7.31 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

A normalized relation for ORDER

Figure 7-12
7.32 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Distributing Databases

Distributed Database
• Partitioned or replicated to more than one location
• Increases service and responsiveness
• Reduces vulnerability of single, massive central site
• Depend on telecommunication lines
• Pose security risks through distribution of sensitive data
• Central data must be updated or justified with local data

7.33 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Distributed databases

Figure 7-13
7.34 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Key organizational elements in the database environment

Figure 7-14
7.35 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Management Requirements for Database Systems

Data Administration
• Develop information policy
• Define information requirements
• Plan for data
• Oversee logical database design and database
dictionary development
• Monitor use of information

7.36 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Management Requirements for Database Systems

Data Planning and Modeling Methodology


• Enterprise-wide planning for data
• Identify key entities, attributes, and relationships
that constitute the organization’s data

7.37 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Creating a Database Environment

Management Requirements for Database Systems

Database Technology, Management,


and Users
• Databases require DBMS software and staff
• Database design group defines and organizes
structure and content of database
• Database administration: establish physical
database, logical relations, access rules

7.38 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Multidimensional Data Analysis

Online Analytical Processing (OLAP)


• Multidimensional data analysis
• Enables users to view the same data in different
ways using multiple dimensions
• Each aspect of information – product, price,
region – represents a different dimension

7.39 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Multidimensional data model

Figure 7-15
7.40 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Data Warehouses and Datamining

• Data warehouse: Stores current and historical data


for reporting, analysis
• Data mart: Subset of data warehouse with
summary of data for specific users
• Datamining: Techniques to find hidden patterns,
relationships in large pools of data to infer rules
for predicting future trends

7.41 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Components of a data warehouse

Figure 7-16
7.42 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Data Warehouses and Datamining

Benefits of Data Warehouses


• Improved information and accessibility
• Ability to model and remodel data
• Enable access to data without affecting
performance of underlying operational legacy
systems

7.43 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Window on Management

Data Reveal New Sales Opportunities


• How did the use of data warehouses and
datamining help management at these companies
make better decisions?
• What value do these systems provide?

7.44 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Data Warehouses and Datamining

Hypermedia database
• Organizes data as network of nodes
• Links nodes in pattern specified by user
• Supports text, graphic, sound, video and
executable programs

7.45 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

A hypermedia database

Figure 7-17
7.46 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Databases and the Web

Linking Internal Databases to the Web


• Database server:
– Hosts DBMS
– Receives SQL requests
– Provides required data
• Middleware:
– Works between Web server and DBMS to take requests
– Handles connectivity to database
– Can be application server or CGI scripts

7.47 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Linking internal databases to the Web

Figure 7-18
7.48 © 2005 by Prentice Hall
Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Databases and the Web

Advantages to Web Access to Databases


• Browser software easy to use; little training
• Web interface requires no changes to internal
database
• Costs less than custom interfaces

7.49 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Database Trends

Window on Technology

Web Access for Royal Bank Statements


Pays Off
• What are the business benefits of providing a Web
interface for the Bankbook Reconstruct
application?
• What value does this application provide the
company and its customers?

7.50 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Chapter 7 Case Study

Database Woes Plague Homeland Security and Law Enforcement

1. Briefly summarize why it is important to connect


much of the data in many of the federal, state, and
local information systems.
2. Describe the major data management problems in
bringing these data together.
3. Describe the management, organization, and
technology issues that need to be addressed to make
these data easily available to those who need it.

7.51 © 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 7 Managing Data Resources

Chapter 7 Case Study

Database Woes Plague Homeland Security and Law Enforcement

4. Suppose you are a consultant to the federal


government. Based on what you have read in
this chapter, suggest and describe three
approaches you might recommend for making
this massive amount of data easily and quickly
available when needed.

7.52 © 2005 by Prentice Hall

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