Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

MANAGEMENT
INFORMATION SYSTEMS

Ramesh Behl
George M Marakas
James A O’Brien
10E

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MANAGEMENT
DATA RESOURCE

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 Learning Objectives
• Explain the business value of
implementing data resource management
processes and technologies in an
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organization.
• Outline the advantages of a database
management approach to managing the
data resources of a business, compared to
a file processing approach.
• Explain how database management
software helps business professionals and
supports the operations and management
of a business.

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 Learning Objectives
• Provide examples to illustrate the
following concepts
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– Major types of databases

– Data warehouses and data mining
– Logical data elements
– Fundamental database structures
– Database development

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 Introducing the Database
and the DBMS
• Database: shared, integrated computer structure
that stores a collection of data
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• End-user data: raw facts of interest to the end

user
• Metadata: data about data; provides description
of data characteristics
• DBMS: collection of programs; manages structure
and control access to data

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 Role and Advantages of the
DBMS
• DBMS is the intermediary between the user and
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the database
• Database structure stored as file collection
• Access database through the DBMS
• DBMS enables data to be shared
• DBMS integrates many users’ views of the data

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 Role and Advantages of the
DBMS (continued)
• Advantages of a DBMS:
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– Improved data access

– Improved data security
– Better data integration
– Minimized data inconsistency
– Improved decision making
– Increased end-user productivity

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 Types of Databases
• Databases can be classified according to:
– Number of users
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– Database location(s)
– Expected type and extent of use

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 Based on number of Users
• Single-user database supports only one user at a
time
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– Desktop database – single-user, runs on PC

• Multiuser database supports multiple users at the

same time
– Workgroup database supports a small number
– Enterprise database supports a large number

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 Types of Databases
(continued)
• Centralized database: data located at a single site
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• Distributed database: data distributed across

several different sites
• Operational database: supports a company’s day-
to-day operations
– Transactional or production database
• Data warehouse: stores data used for tactical or
strategic decisions

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 Types of Databases
(continued)
TYPES OF DATA
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• Unstructured data : exist in their original state

• Structured data : result from formatting
• Semistructured data : processed to some extent

• XML Database : supports semistructured XML

data

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 Database Design
• Focused on the structure to be used for end-user
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data
• Designer must identify database’s expected use
• A well-designed database:-
 Facilitates data management
 Generates accurate and valuable information
• Poorly designed database:
 Causes difficult-to-trace errors

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 Introduction to Database
Designing
• Designers, programmers, and end users see data in
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different ways
• Different views of same data lead to designs that do
not reflect organization’s operation
• Data modeling reduces complexities of database
design
• Various degrees of data abstraction help reconcile
varying views of same data

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 Data Modeling and Data
Models
• Data models
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– Relatively simple representations of complex

real-world data structures; often graphical
• Data modeling is iterative and progressive

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 The Importance of Data
Models
• Facilitate interaction among the designer, the
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applications programmer, and the end user

• End users have different views and needs for
data
• Data model organizes data for various users

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 Data Model Basic Building
Blocks
• Entity: anything about which data are to be
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collected and stored

• Attribute: a characteristic of an entity
• Relationship: describes an association among
entities
– One-to-many (1:M) relationship
– Many-to-many (M:N or M:M) relationship
– One-to-one (1:1) relationship
• Constraint: a restriction placed on the data

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 Business Rules
• Descriptions of policies, procedures, or
principles
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– Apply to any organization that stores and

uses data to generate information
• Description of operations to create/enforce
actions
• Must be in writing and kept up to date
• Must be easy to understand and widely
disseminated
• Describe characteristics of data as viewed by
the company

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 Discovering Business Rules
• Sources of business rules:
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– Company managers
– Policy makers
– Department managers
– Written documentation
• Procedures
• Standards
• Operations manuals
– Direct interviews with end users

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 Discovering Business Rules
(continued)
• Standardize company’s view of data
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• Communications tool between users and designers

• Allow designer to understand the nature, role, and
scope of data
• Allow designer to understand business processes
• Allow designer to develop appropriate relationship
participation rules and constraints

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 Translating Business Rules
into Data Model
Components
• Generally, nouns translate into entities
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• Verbs translate into relationships among

entities
• Relationships are bidirectional
• Two questions to identify the relationship type:
– How many instances of B are related to one
instance of A?
– How many instances of A are related to one
instance of B?

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Logical Data Elements

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 Logical Data Elements

• File or table
– A group of related records
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– Master file
– Transaction file
– History file
– Archival file
• Database
– An integrated collection of logically
related data elements
• World’s largest database?

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Electric Utility Database

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 Database Structures

• Common database structures…

– Hierarchical
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– Network
– Relational
– Object-oriented
– Multi-dimensional

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Models
The Evolution of Data

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Database Structures

Network Structure

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 Relational Structure
• Most widely used structure
– Data elements are stored in tables
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– Row represents a record; column is a field

– Can relate data in one file with data in
another,
if both files share a common data element

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 Relational Operations

• Select
– Create a subset of records that meet a stated
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criterion
• Example: employees earning more than
$30,000
• Join
– Combine two or more tables temporarily
– Looks like one big table
• Project
– Create a subset of columns in a table

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Multidimensional Model

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Object-Oriented Structure

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 Evaluation of Database Structures

• Hierarchical
– Works for structured, routine transactions
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– Can’t handle many-to-many relationships

• Network
– More flexible than hierarchical
– Unable to handle ad hoc requests
• Relational
– Easily responds to ad hoc requests
– Easier to work with and maintain
– Not as efficient/quick as hierarchical or
network

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 Database Development

• Database Administrator (DBA)

– Enterprise database development
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– Improves integrity and security

– Data Definition Language (DDL)
• Data contents, relationships, and
structure
– Specifications
• Data dictionary
• Metadata repository

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 Data Dictionary

• A data dictionary
– Contains data about data (metadata)
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– Specialized software manages data

definitions
• Contains information on…
– Names, types and descriptions of data
– Relationships
– Requirements for access and use
– Maintenance
– Security

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 Data Planning and Database Design

• Database development is top-down

process
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– Develop an enterprise model

– Define the information needs of end users
– Identify the key data elements

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Database Development

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Entity Relationship Diagram

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 Database Tables and
Normalization
• Normalization
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– Process for evaluating and correcting table

structures to minimize data redundancies
• Reduces data anomalies
– Works through a series of stages called normal
forms:
• First normal form (1NF)
• Second normal form (2NF)
• Third normal form (3NF)

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 Database Tables and
Normalization (continued)
• Normalization (continued)
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– 2NF is better than 1NF; 3NF is better than 2NF

– For most business database design purposes,
3NF is as high as needed in normalization
– Highest level of normalization is not always most
desirable
• Denormalization produces a lower normal form
– Price paid for increased performance is greater
data redundancy

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Logical and Physical Database Views

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 Data Resource Management

• Managerial activity
– Uses data management, data warehousing,
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and other IS technologies

– Manages data for business stakeholders

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 RWC 2: Medical IT Is Getting Personal

• Duke University Health System

– Personalized approach to treating patients
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– Analytics engine on top of clinical repository

– Decision support tools pick best treatment
• Beth Israel Deaconess Medical Center
– Catch details that elude a doctor
– Tests personalized for patient
• National Cancer Institute
– Blend data warehouse with Web collection tools
– More patient data for research

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Types of Databases

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Components of Web-Based System

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Data Warehouse Components

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Data Warehouse and Data Marts

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Data Mining

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Traditional File Processing

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Database Management Approach

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Better Graphic?
Common DBMS Software Components

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DBMS Major Functions

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 Database Interrogation

• SQL Queries
– Structured Query Language
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– International standards
– In many DBMS packages
– Query form is
SELECT…FROM…WHERE…

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 Database Interrogation

• Boolean Logic
– Developed by George Boole
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– Mid-1800s
– Used to refine searches
– Three logical operators: AND, OR, NOT

• Example
– Cats OR felines AND NOT dogs OR
Broadway

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 Database Maintenance

• Accomplished by
– Transaction processing systems
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– Utilities and other applications,

supported by DBMS
– Records new business transactions
– Updating and correcting data
• Customer addresses

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 Application Development

• DBMS tools
– 4GL programming language
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– Built-in software development tools

– Data manipulation language (DML)
statements
• Eliminate conventional programming

• Applications
– Data entry screens
– Forms
– Reports
– Web pages

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 RWC 3: Mergers Go More Smoothly

• IT issues make or break mergers

• Data Center feels impact
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• Knowledge lost if “acquired” IT people let

go
• Documentation necessary
• Companies need to know what goes on in
their data centers

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 RWC 4: Data Mining

• Aggregate data for better decisions

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• Applebee’s
– Uses back-of-house data to analyze food preparation
– Combined with front-of-house data
• Determine time spent with customer
• What is selling / what to order / what to promote

• Travelocity
– 600,000 comments in e-mails and call notes
– Set up mining system to extract meaning

• VistaPrint
– Analyzes customer online behavior 5-59