Académique Documents
Professionnel Documents
Culture Documents
CHAPTER OVERVIEW
Chapter 5: Data Resource Management emphasizes management of the data resources of computer-using
organizations. This chapter reviews key database management concepts and applications in business information
systems.
LEARNING OBJECTIVES
After reading and studying this chapter, you should be able to:
1. Explain the business value of implementing data resource management processes and technologies in an
organization.
2. Outline the advantages of a database management approach to managing the data resources of a business,
compared with a file processing approach.
3. Explain how database management software helps business professionals and supports the operations and
management of a business.
SUMMARY
Data Resource Management. Data resource management is a managerial activity that applies information
technology and software tools to the task of managing an organizations data resources. Early attempts to manage
data resources used a file processing approach in which data were organized and accessible only in specialized files
of data records that were designed for processing by specific business application programs. This approach proved
too cumbersome, costly, and inflexible to supply the information needed to manage modern business processes and
organizations. Thus, the database management approach was developed to solve the problems of file processing
systems.
5-1
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
Database Management. The database management approach affects the storage and processing of data. The data
needed by different applications are consolidated and integrated into several common databases instead of being
stored in many independent data files. Also, the database management approach emphasizes updating and
maintaining common databases, having users application programs share the data in the database, and providing a
reporting and an inquiry/response capability so that end users can easily receive reports and quick responses to
requests for information.
Database Software. Database management systems are software packages that simplify the creation, use, and
maintenance of databases. They provide software tools so that end users, programmers, and database administrators
can create and modify databases; interrogate a database; generate reports; do application development; and perform
database maintenance.
Types of Databases. Several types of databases are used by business organizations, including operational,
distributed, and external databases. Data warehouses are a central source of data from other databases that have been
cleaned, transformed, and cataloged for business analysis and decision support applications. That includes data
mining, which attempts to find hidden patterns and trends in the warehouse data. Hypermedia databases on the
World Wide Web and on corporate intranets and extranets store hyperlinked multimedia pages on a Web site. Web
server software can manage such databases for quick access and maintenance of the Web database.
Data Access. Data must be organized in some logical manner on physical storage devices so that they can be
efficiently processed. For this reason, data are commonly organized into logical data elements such as characters,
fields, records, files, and databases. Database structures, such as the hierarchical, network, relational, and object-
oriented models, are used to organize the relationships among the data records stored in databases. Databases and
files can be organized in either a sequential or direct manner and can be accessed and maintained by either
sequential access or direct access processing methods.
Database Development. The development of databases can be easily accomplished using microcomputer database
management packages for small end-user applications. However, the development of large corporate databases
requires a top-down data planning effort that may involve developing enterprise and entity relationship models,
subject area databases, and data models that reflect the logical data elements and relationships needed to support the
operation and management of the basic business processes of the organization.
5-2
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
5-3
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
5-4
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
d. Hypermedia ():
A website stores information in a database consisting of a home page and other hyperlinked pages of
multimedia or mixed media (text, graphics and photographic images, video clips, audio segments, and so
on).
e. Operational ():
Databases that support the major business functions of an entire organization, also called subject area
databases, transaction databases, and production databases.
5-5
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
1. How should a business store, access, and distribute data and information about its internal operations
and external environment?
Store
Businesses should take a database management approach and store vital information in the form of structured
databases. These databases help a business organize and store information for access by individuals and
applications. Typically these data are stored as relational tables. These tables may support transaction
processing or information reporting applications. They may support summary data retrieval in the form of
multi-dimensional tables. They may also contain an organization's vast transaction history in order to support
data mining.
Access
People or applications should access information through the organization's database management system. This
system keeps the information organized and manages access control. Through this approach, many different
applications can share rather than duplicate the data. By structuring its information in this way, organizations
can increase its accuracy, reduce its redundancy, and make it available to the appropriate people both inside and
outside the organization.
Distribute
Information can be accessed via applications over the internal network, extranet, or the Internet through a
variety of applications. Where network connectivity poses limitations, database administrators may elect to
mirror a database (if it's updated centrally) or replicate a database (if information is updated remotely).
2. What role does database management play in managing data as a business resource?
Data is an asset and should be treated as such. Some data poses a liability should it fall into the wrong hands.
As a result, data is a critical organizational resource that requires professional management. This management
helps ensure the information's reliability and availability. Database managers also help inform business
managers learn about this resource's availability. Database managers support both data and application
acquisition processes by providing expert advice regarding the impact these acquisitions will have on the
organization's existing data structures.
3. What are the advantages of a database management approach to the file processing approach? Give
examples to illustrate your answer.
Advantages:
The database management approach consolidates data records and objects into databases that can be accessed
by many different applications. The management software serves as an interface between applications and
databases thereby reducing data dependence. It also helps solve other problems inherent in file processing such
as data redundancy, lack of data integration, and data integrity.
Example:
University course registration systems should share the same databases which support the student financial aid
processes. Shared information would include a student's name, ID, and financial status. In that way, if a student
changes his or her name or if the student's debits would prohibit course registration, both applications would
"know" about it.
4. Refer to the Real World Challenge in the chapter. In the case, it is quite evident that data were either
unavailable or inaccurate to the point that business decisions could not rely on them too much. Who was
responsible for the company being in that state of affairs?
From the case as written, it is not evident exactly who was responsible for this state of affairs. Most probably
the blame lay with several people in different areas. However, it was ultimately the responsibility of the IS/IT
5-6
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
department to make the data clean and useable. When the systems were first set up it should have been
evident to the persons in charge of developing the systems that the data were being stored in different
databases/locations, on different hardware, that the infrastructure of data storage was very distributed and
convoluted, and that the data would not be available across the organization. However, these same people may
not have been aware of the importance of certain data. At the same time, these IT designers should have been
aware of the importance of having any needed data available whenever and wherever it was needed. Again, the
responsibility ultimately lay with the designers of the system. The importance of oversight for even the best
persons in a field should be evident.
Another question should be asked here: if these data were needed and it took so long to access these data, why
did IT management take so long to do something about the problem? This is not a new situation to IT, and IT
management should have been able to see the problems and address them before they got completely out of
hand. Communication between users, operations management, and IT is important to solving problems. A
good question that should be asked is why this communication was not happening in this instance.
6. In the past, databases of information about a firms internal operations were the only databases that were
considered important to a business. What other kinds of databases are important for a business today?
Important databases:
Competitors products, prices, promotions, and markets
Customer trends, preferences, attitudes, demographics
Economics databases
Legislation tracking systems
Census databases
7. Refer to the Real World Solution in the chapter. Although trucking companies would not generally be
considered part of the new economy, they are nonetheless heavily reliant on data. Are all companies,
both old and new, going the way of becoming data-driven when it comes to running them? Was this
always the case?
Even though trucking companies are not generally considered part of the new economy per se, their reliance
on data makes their very success and profitability extremely reliant on the very thing that creates the new
economy information technology. The reason that most firms today adopt IT solutions is that they are more
and more reliant on data for their success. Competing without this data is just not a possibility in most
businesses in todays data-driven business world.
In the past this was also true, but was rarely recognized because of the lack of tools to work with the data at the
speed and with the quality that we see today in the information technology that provides todays solution. Once
the tools became available it quickly became apparent how important access to the daily data was and that IT
was the way to store it in a quality manner and access it in a timely fashion.
5-7
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
8. What are the benefits and limitations of the relational database model for business applications today?
Benefits:
Most popular of the three main database structures.
The data structures are logical and easy to understand.
Provides significant flexibility over time.
Limitations:
Cannot process large amounts of business transactions as quickly and efficiently as the hierarchical and
network models.
They depend on indexes that create memory and processing overhead.
9. Why is the object-oriented database model gaining acceptance for developing applications and managing
the hypermedia databases on business Web sites?
Object-oriented databases are able to handle complex types of data (graphics, pictures, voice, and text) better
than other structures. They are also relatively easy for programmers to use.
10. How have the Internet, intranets, and extranets affected the types and uses of data resources available to
business professionals? What other database trends are also affecting data resource management in
business?
Effects:
Networks allow business professionals to access and share information. Internet technologies have expanded
this access to information sources outside the organization.
Trends:
Larger datasets
More powerful analytical tools better able to generate output textually, graphically, and as animations
Increased adoption of a powerful yet free RDBMS called MySQL
Improved replication technologies
Offline data access enabled via mirroring or replication
Web 2.0
Mobile data access
5-8
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
1. Joining Tables
Notes: most businesses need the information a system provides and not the other way around. Encourage
students to focus on their business needs. These needs form the basic assumptions behind any design and
development exercise.
a. Using these data, design and populate a table that includes basic training rate information. Designate the
Technical field type as Yes/No (Boolean).
See Analysis Exercise Data Solutions files: [Chapter 05 - Solutions.mdb].
b. Using these data, design and populate a course table. Designate the CourseID field as a Primary Key
and allow your database to automatically generate a value for this field. Designate the Technical field
type as Yes/No (Boolean).
See Analysis Exercise Data Solutions files: [Chapter 05 - Solutions.mdb].
c. Prepare a query that lists each course name and its cost per day of training.
See Analysis Exercise Data Solutions files: [Chapter 05 - Solutions.mdb].
d. Prepare a query that lists the cost per student for each class. Assume maximum capacity and that you will
schedule two half-day classes on the same day to take full advantage of HOTTs per-day pricing schedule.
See Analysis Exercise Data Solutions files: [Chapter 05 - Solutions.mdb].
2. Training-Cost Management
a. Using the information provided in the sample below, add a course schedule table to your training
database. Designate the ScheduleID field as a Primary Key and allow your database program to
generate a value for this field automatically. Make the CourseID field a number field and the StartDate
field a date field.
See Analysis Exercise Data Solutions files: [Chapter 05 - Solutions.mdb].
b. Using the information provided in the sample below, add a class roster table to your training database.
Make the ScheduleID field a number field. Make the Reminder and Confirmed fields both Yes/No
(Boolean) fields.
See Analysis Exercise Data Solutions files: [Chapter 05 - Solutions.mdb].
c. Because the Class Schedule table relates to the Course Table and the Course Table relates to the Pricing
Table, why is it appropriate to record the Price per Day information in the Class Schedule table too?
The pricing table reflects current course costs. The PricePerDay cost in the Class Schedule table reflects the
price paid for the course. If the negotiated rate changes over time, we would not want that price change
reflected on courses already completed.
5-9
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
d. What are the advantages and disadvantages of using the participants name and e-mail address in the
Class Roster table? What other database design might you use to record this information?
Advantages:
Allows the instructor to record a different or "custom" version of the student's name and e-mail address
without affecting other users.
A roster-based query for name and e-mail address information will run more quickly.
Disadvantages:
All instructors would need to update their rosters with name or e-mail address changes.
A background process to automatically propagate changes would require additional CPU time
(and eliminate the benefit of "custom" names).
Alternative design:
Hierarchical
Network structure
Object-oriented
Note: this is a relational database, so "relational database" would not be an appropriate answer. A multi-
dimensional database would be great for tabulating student counts and grade averages by class, etc, but usually
would not be used to store base-level records.
e. Write a query that shows how many people have registered for each scheduled class. Include the class
name, capacity, date, and count of attendees.
See Analysis Exercise Data Solutions files: [Chapter 05 - Solutions.mdb].
a. What are your colleges or universitys policies regarding student directory data?
Policy manuals typically cover student and faculty behavior but rarely include operational policies, though this
information may be found on-line. If not readily available, the provost's office might make a good starting
point. Public universities are subject to the Freedom of Information Act and have no right to withhold this
information.
b. Does your college or university sell any of its student data? If your institution sells student data, what
data do they sell, to whom, and for how much?
Student privacy is a hot topic, so this information may be hard to find. On the other hand, this avenue of
research may be well worth pursuing for that very reason.
c. If your institution sells data, calculate the revenue earned per student. Would you be willing to pay this
amount per year in exchange for maintaining your privacy?
This is an open-ended question with no right or wrong answer. It should also make an interesting in-class
discussion topic.
Along a similar line of discussion, many credit card companies purchase instant credit scoring services that
compare a transaction in progress with previous transactions and incorporate this information into their
transaction approval process. Students may have experienced their valid transactions being denied or delayed
pending "verification." These services help reduce fraud rates and provide participating credit card companies
with a competitive advantage. Competition between credit card companies forces them to pass along a
substantial portion of their cost savings to their customers in the form of lower interest rates. Would students be
willing to pay higher interest rates or annual fees for greater privacy?
5-10
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
Note: though the names and organization have been changed, this exercise represents a real-world problem.
This exercise introduces students to the CSV format and familiarizes them with its structure and capabilities.
Note that many database applications also use XML when uploading or downloading information. The CSV
format is decades older than XML, is more common, and is far easier for humans to read. XML, on the other
hand, permits more sophisticated data structures and enables greater programming flexibility. This exercise
uses CSV because non-IT managers will more likely encounter it than they will raw XML files.
a. Download and save partners.csv from the MIS 9e OLC. Open the file using Microsoft Word.
Remember to look for the csv file type when searching for the file to open. Describe the datas
appearance.
The first line will contain field names. The CSV format doesn't require it, but it helps assure that users interpret
the data correctly. The second line will contain the first record of the data set. Quotation marks surround the
full name text field because it contains a comma. Commas separate each field. Each record comprises a single
"paragraph" as it appears in a word processing document.
b. Import the partner.csv file into Excel. Remember to look for the csv file type when searching for the
file to open. Does Excel automatically format the data correctly? Save your file as partner.xls.
Excel recognizes the CSV format and will import and format CSV data correctly, but it does so only as long as
the CSV format is used consistently throughout the file.
See Data Solutions Disk for a sample spreadsheet: [partners.xls]
c. Describe in your own words why you think database manufacturers use common formats to import and
export data from their systems.
By using a common format, database manufacturers ensure that their system can communicate information
between databases developed by other manufacturers. While database manufacturers would probably prefer the
whole world use nothing but their own proprietary systems, their customers demand this interoperability.
1
http://www.delicious.com/
5-11
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
1) What types of data do people maintain online for their personal use? Make a list.
Types of data people maintain online include:
E-mail containing just about anything
Contact information
Calendars/schedules
"Wish lists" or gift registries
Bookmarks
Blogs
Personal websites
Stock portfolios (for tracking stocks)
Office automation documents (word processing, spreadsheets, etc)
Account names/passwords
2) Can you transfer your personal notes from MySpace to a new Facebook? What difficulties would you
encounter?
Yes. MySpace has a "Sync with Facebook" tool. The tool has limitations. For example, it will sync profiles but
not pages, and it's liable to break any time there's an upgrade or security change to either site. Another problem
would involve figuring out how to set up the tool to work properly.
3) What are the advantages to keeping data online?
Advantages:
Free or inexpensive storage
Accessible anywhere via the Internet
Automated backups
Automatic updates/upgrades to service
4) What are the disadvantages to keeping data online?
Disadvantages
May disappear any time
May not be available offline when needed
Security is not guaranteed
May not integrate well with online/offline applications
Policies, fees, privacy settings may change with no or minimal notice.
5-12
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
5-13
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
5-14
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
2. How are the data-related issues faced by law enforcement similar to those that could be found in
companies? How are they different? Where do these problems come from? Explain.
Similarities
Large data volumes
Value in data mining
Privacy concerns
Security concerns
Differences
Non-financial transactions
Not well integrated between organizations
Problem source
Inadequate funding
Inadequate planning
Privacy zealots
Legal challenges
3. Imagine that you had access to the same crime-related information as that managed by police
departments. How would you analyze this information, and what actions would you take as a result?
Analysis
Track patterns to find persistent prolific offenders, high crime areas, and high crime targets.
Actions
Communicate and cooperate more effectively with other agencies.
Engage the public in crime awareness and reporting.
Reassign resources to maximize their effectiveness.
Determine which low-level criminal activities serve as indicators of high-level activity and shut these
5-15
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
5-16
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
2. The case discusses the large volume of very detailed information collected daily by law enforcement
agencies. Knowing this, how comfortable do you feel about the storing and sharing of that data? What
policies would you put in place to assuage some of those concerns? Break into small groups with your
classmates to discuss these issues and arrive at some recommendations.
Comfort, in this case, is a matter of personal opinion. Law and order advocates take the position that the
authors of the U.S. Constitution and its amendments did not see fit to specifically mention "privacy". Our
privacy rights derive from the U.S. Supreme Court's interpretation of various amendments. While privacy
rights advocates fear how governmental agencies might abuse personal information to curtail other personal
rights.
The general discussion could take two different paths:
Preventing governmental abuse
Preventing theft or misuse by individuals2
Policy areas
Data retention
Data access
Audit trails
Legal barriers to communication3
User software training
User policy training
2
One topic directly related to this includes sex offenders registries. The registries were intended to alert the public
and encourage public vigilance. However, some people have used this data to harass and even murder registered
offenders.
3
For example, while federal law bars the sale of weapons to people with certain mental illness, various state laws
may prohibit communicating this information to any other agency.
5-17
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
Privacy rights advocacy as part of all policy and software development initiatives
Recommendations
This area probably requires a massive overhaul not only of local, state, and federal law, but an equally massive
effort to overhaul these disparate information systems.
RWC 2: Duke University Health System, Beth Israel Deaconess Medical Center, and Others
Case Study Questions
1. What are the benefits that result from implementing the technologies described in the case? How are
those different for hospitals, doctors, insurance companies and patients? Provide examples of each from
the case.
Benefits
Real-time care
Identify experimental treatment candidates
Identify best medical tests to perform
Identify best treatment options
Differences by user group
Hospitals greater efficiency, lower error rates
Doctors improved productivity, increased effectiveness
Patients improved safety
Insurance lower costs, better risk assessment
Examples
Hospital identified and notified best H1N1 vaccine candidates
Doctor warned about patient metabolic problems
Patient limited radiation exposure
Insurance reduced unnecessary testing
2. Many of the technologies described in the case require access to large volumes of data in order to be
effective. At the same time, there are privacy considerations involved in the compiling and sharing of
such data. How do you balance those?
Balancing privacy recommendations
Limit access to patient identities
Inform patient of how their records are maintained and used
Track all accesses to patient records
Train staff about privacy policies and laws
Enforce privacy standards
Audit patient record access
Employ appropriate security measures to protect from unauthorized access
Trigger alarms (notifications) when the system detects suspicious activity
3. What other industries that manage large volumes of data could benefit from an approach to technology
similar to the one described in the case? Develop at least one example with sample applications.
All of them.
Valuable data with strong personal privacy issues
Customer data
Credit information
Tax data
Human resources data
School records
Financial aid information
Police records
5-18
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 05 - Data Resource Management
Adoption records
Genetic records
2. Some of the technologies described in the case verify the diagnostics made by doctors and can sometimes
make recommendations of their own. Does this improve the quality of care, or are these organizations
putting too much faith on a computer algorithm that did not attend medical school? Break into small
groups to discuss this and provide some recommendations about what organizations should do before
deploying these technologies in the field, if anything.
Faith in technology
At present, systems make recommendations to doctors. So long as doctors remain the final arbiters of treatment
decisions, then these systems pose little additional risk. While the system's programmer may not have
graduated from medical school, the rules they program into their systems come from medical experts. As a
result, these systems may help raise patient care quality.
There is some risk that a careless doctor may simply rely on whatever the program tells him or her to do without
applying his or her own knowledge and experience. More worrisome, at some future point hospitals might opt
to delegate treatment decisions to less qualified people who follow only what the system recommends and who
have no authority to override its decisions. While this might be useful in situations with no access to medical
expertise (submarines, for example), it could lead to avoidable errors.
5-19
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.