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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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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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Part I Managing Data Resources

Data Resource Management

 Data is a vital organizational resource, which 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.
 That is why organizations and their managers need
to practice data resource management:
 A managerial activity that applies information
systems technology and management tools to the
task of managing data resources to meet needs of
business users.
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Foundation Data Concepts
 Data may be logically organized into
 characters, fields, records, files, and databases,
 just as writing can be organized in
 letters, words, sentences, paragraphs, and documents.

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Foundation Data Concepts (Continued)

 Logical Data Elements

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Foundation Data Concepts (continued)

 Levels of data
 Character (or Byte)
 Most basic logical data element
 Consists of single alphabetical, numeric, or other symbol
 Field
 The next higher level of data
 Consists of a groupings of characters
 Represents an attribute of some entity
 Records
 Related fields of data
 Represents a collection of attributes that describe an entity
 Fixed-length or variable-length records

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Foundation Data Concepts (continued)

 File (table)
 A group of related records
 Classified by
 The application for which they are primarily used
 Their permanence – master vs. transaction file
 Database
 An 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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Major Types of Databases

External
Databases on
the Internet &
Online Services

Client
PC or
Distributed
Databases at NC Network Operational
other locations
Server Databases of
the Organization

End User Data Analytical

Databases Warehouse Databases

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Types of Databases (continued)

 Operational databases
 Store detailed data needed to support the
operations of the entire organization.
 Also called subject-area databases, transaction
databases, and production databases
 Distributed databases
 Replicated and distributed copies or parts of
databases on network servers at a variety of sites.
 Can include segments of common operational and
common user databases.
 Done to improve database performance and
security

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Types of Databases (continued)

 External databases
 Access to external, privately owned online
databases is available for a fee from commercial
sources or with or without charge on the
Internet or World Wide Web

 End user databases

 Consist of a variety of files developed by end
users at their workstations.

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Types of Databases (continued)

 Data warehouse databases

 Store data from current and previous years that have been
extracted from the various operational and management
databases of an organization.
 A central source of data that has been standardized and
integrated so it can be used by managers and other end users.
 Analytical databases
 Store data and information extracted from selected
operational and external databases.
 Consist of summarized data and information most needed by
an organization’s managers and other end users.
 Also called management databases or information databases.

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Data Mining
 Generally, data mining (sometimes called data or
knowledge discovery) is the process of analyzing data from
different perspectives and summarizing it into useful
information - information that can be used to increase
revenue, cut costs, or both.
 Data mining software is one of a number of analytical tools
for analyzing data.
 It allows users to analyze data from many different
dimensions or angles, categorize it, and summarize the
relationships identified.
 Technically, data mining is the process of finding
correlations or patterns among dozens of fields in large
relational databases.

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The Database Management Approach
 Under the database management
approach:
 data records are consolidated into
databases
 that can be accessed by many different
application programs, serving multiple
users.

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The Database Management Approach
(continued)
Database Management System (DBMS)
 Database management systems are software
packages that simplify the creation, use, and
maintenance of databases.
 The DBMS
 Serves as a software interface between users and
databases
 Controls the creation, maintenance, and use of a
database

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Database Management Approach (continued)

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Database Management Packages

Database Database
Development Interrogation

Primary Tasks of
Database Management
Packages

Database Application
Maintenance Development

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Database Management Approach (continued)

 Database Development
 Database administrator uses a data definition language
(DDL) to develop and specify the data contents,
relationships, and structure of each database.
 Such information is cataloged and stored in a database
of data definitions and specifications called a data
dictionary.
 Database Interrogation - End users can use a DBMS
by asking information from a database using a
 Query language
 Supports ad hoc requests
 Tells the software how you want to organize the data
 SQL queries
 Graphical (GUI) & natural queries

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Database Management Approach (continued)

 Or a report generator
 Turns results of a query into a useable report
 Database Maintenance
 Updating and correcting data
 Application Development
 Data manipulation language
 Data entry screens, forms, reports, or web
pages

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 Managerial considerations for Data Resource
Management
 Data resource management is a critical
management activity (as discussed earlier).
 Management roles include:
 data administration,
 data planning, and
 database administration.

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Data Resource Management (Continued)

Data
Administration

Data
Planning

Database
Administration

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Data Resource Management (Continued)

 Database Administration
 Conduct a physical database design
 Conduct a logical database design
 Conduct database tuning and capacity planning
 Develop and maintain the data dictionary
 Evaluate and select database hardware and software
 Data Planning
 Prepare strategic and technical database plans
 Identify opportunities fro data sharing and potential
database applications
 Set procedures for data retention
 Set and enforce operational procedures and
standards.

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Data Resource Management (Continued)

 Data Administration
 Develop and enforce policies governing data
ownership and access control
 Conduct organizational data resource
requirements planning
 Develop organizational data model and data
architecture

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Part II: Technical Foundations of
Database Management

Database Structures
 Hierarchical
 Treelike
 One-to-many relationship
 Used for structured, routine types of transaction
processing
 Network
 More complex
 Many-to-many relationship
 More flexible but doesn’t support ad hoc requests well

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Database Structures (continued)

 Relational
 Data elements stored in simple two -
dimensional 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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Database Structures (continued)
Hierarchical Structure Network Structure
Dept Dept A Dept B

Employee Employee Employee

Project A Project B 2 3
1

Employee Project B
Employee Project A
1 2

Relational Structure
Dept Dname Dloc Dmgr Empno Ename Etitle Dept
A 1 A
B 2 B
C 3 C

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Database Structures (continued)

 Multi-Dimensional
 A variation of the relational model
 Can be visualized as cubes of data and cubes
within cubes of data.
 Popular structure for analytical databases that
support online analytical processing (OLAP)
applications.
 OLAP will be considered later.

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Database Structures (continued)

Multi-dimensional Structures 28
Database Structures (continued)

 Object-oriented
 An object consists of data values describing the
 attributes of an entity,
 plus the operations that can be performed upon the data.
 This capability is called encapsulation, and it allows
the object oriented model to better handle more
complex types of data (such as graphics, pictures,
voice, text) than other databases.
 This model also supports inheritance; that is’ new
objects can be automatically created by replicating
some or all of the characteristics of one or more
parent objects.
 Key technology of multimedia web-based
applications
 Good for complex, high-volume applications

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Database Structures (continued)

Object-oriented Structures 30
Accessing Databases
 Key fields (primary key)
 A field unique to each record so it can be
distinguished from all other records in a table
 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
 Direct access
 Methods
 Key transformation
 Index
 Indexed sequential access

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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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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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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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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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