Chapter 5

Introduction to Information Technology
Turban, Rainer and Potter

Chapter 5 Managing Organizational Data and Information
CHAPTER 5
MANAGING ORGANIZATIONAL
DATA AND INFORMATION
Learning Objectives
Discuss traditional data file organization and its
problems
Explain how a database approach overcomes the
problems associated with traditional file environment,
and discuss the advantages of the database approach
Describe how the three most common data models
organize data, and the advantages and disadvantages of
each model
Describe how a multidimensional data model organizes
data
Distinguish between a data warehouse and a data mart
Discuss the similarities and difference between data
mining and text mining
Chapter Overview
Basics of Data
Arrangement and The Traditional Databases: The
Access File Environment Modern Approach
• The Data • Problems with • Locating Data in
Hierarchy the File Approach Databases
• Storing and • Creating the
Accessing Records Database
Database Logical Data Data
Management Systems Models Warehouse
• Logical versus • Hierarchical Model • Multidimensional
Physical View • Network Model Model
• DBMS • Relational Model • Data Marts
Components • Advantages and • Data Mining
Disadvantages of the • Text Mining
Three Models
• Emerging Models
• Other Models
Case: FedEx Pinpoints Profitable
Customers
 The Problem
customers are classified as good , bad, or
ugly by the cost of doing business with
them and the profits they return
keep the good customers, improve the bad
customers, and drop the ugly ones
easy to identify customers who spend money with
them but difficult to identify customers who are
profitable for them
Case (continued…)
 The Solution
use a data warehouse, stocked with customer data, that
allows the company to compare the complex mix of
marketing and servicing costs that go into retaining
each individual customer versus the revenues he, she,
or it might bring in
The Results
“good” customers - expect a phone call if their
shipping volumes falter, which can prevent
defections before they occur
“bad” customers – can be turned into profitable
customers by charging higher shipping rates
“ugly” customers – can be ignored
Case (continued…)
What have we learned from this case??
Organizations can now scrutinize their
customers (or other data) very carefully
with advanced data management and analysis tools
Customized strategies can be developed to cut
costs, transform the marginal customer into a
profitable customer, and permit more profitable
pricing structures
Other types of data can give an organization
important feedback about its products, services,
markets, and coming trends
Basics of Data Arrangement
and Access
The Data Hierarchy
Field - a logical grouping of characters into a word, a small
group of words, or a complete number
Record - a logical grouping of related fields
File - a logical grouping of related records
Database - a logical grouping of related files
Entity - a person, place, thing, or event about which
information is maintained
Attribute - each characteristic or quality describing a
particular entity
Primary Key - field that uniquely identifies the record
Secondary Key - field that has some identifying information,
but typically does not identify the file with complete accuracy
Basics of Data Arrangement
and Access (continued …)
 Storing and Accessing Records
Indexed Sequential Access Method (ISAM)
» uses an index of key fields to locate individual records
» index - lists the key field of each record and where that
record is physically located in storage
» track index - shows the highest value of the key field
that can be found on a specific track
Direct File Access Method
» uses the key field to locate the physical address of a
record
» transform algorithm - translates the key field directly
into the record’s storage location on disk
Chapter 4 Computer Software
Traditional File Environment

The organization has multiple
applications with related data files
Each application has a specific
data file related to it,
containing all the data records
needed by the application
Each application comes

with an associated
application-specific data
file
Traditional File Environment
(continued …)
Problems with the file approach
data redundancy - the same piece of information
could be duplicated in several places
data inconsistency - the various copies of the data no
longer agree
data isolation - difficulty in accessing data from
different applications
security - new applications may be added to the
system on an ad hoc basis
data integrity - data values must often meet integrity
constraints
application/data independence - the applications and
data in computer systems should be independent
Database : The Modern Approach

 Database Management System Academic Info.
Team Data
provides access to all the data Employee Data
Tuition Data
Example : University administration Financial Aid
Student Data
Course Data
Registrar Office Class Programs Course Data
Registration Data
Database
Accounting Dept. Accounts Programs Management
System
Athletics Dept. Sports Programs

Database : The Modern
Approach (continued …)
 Locating Data in Databases
Centralized database
» all the related files are in one physical location
» used on large, mainframe computers
» saves the expenses associated with multiple computers
» provides database administrators with the ability to work
on a database as a whole at one location
» files are not accessible except via the centralized host
computer
» recovery from disasters can be more easily accomplished
at a central location
» vulnerable to a single pint of failure
» speed problem

 Locating Data in Databases (cont’)
Distributed database
» complete copies of a database, or portions of a
database, are in more than one location, which is
usually close to the user
» replicated database - complete copies of the entire
database are delivered to many locations, primarily to
alleviate the single-point-of-failure problems of a
centralized database as well as to increase user access
responsiveness
» partitioned databases - these are subdivided, a
portion of the entire database in each location
Centralized vs. Distributed
Databases
User User User User
New York Los Angeles New York Los Angeles
Central Central
Location Location
New York Los Angeles
Chicago Kansas City
New York New York
User User
Chicago Kansas City
Centralized Database Distributed Database
 Creating a Database
Conceptual design - an abstract model of the
database from the user or business perspective
Physical design - shows the way a database is
actually arranged with a storage devices
Entity-relationship (ER) modeling
» process of planning the database design
» ER diagram - document of the conceptual data model
» Entity classes  Instance  Identifiers 
Relationships
Normalization
» method for analyzing and reducing a relational database to
its most streamlined form for minimum redundancy,
Database Management Systems

A software program (or group of programs) that
provides access to a databases
Permits an organization to store data in one location,
from which it can be updated and retrieved
Provides access to the stored data by various
application programs
Provides mechanisms for maintaining the integrity of
stored information, managing security and user
access, recovering information when the system fails,
and accessing various database functions form within
an application written in a third-generation, fourth-
generation, or object-oriented language
DBMS (continued …)
 Logical versus Physical View
Physical view - deals with the actual, physical
arrangement and location of data in the direct
access storage devices (DASD)
Logical view - represents data in a format that
is meaningful to a user and to the software
programs that process that data
 DBMS Components
Data model
» defines the way data are conceptually structured
Data definition language (DDL)
» defines what types of information are in the database
and how they will be structured
» functions of the DDL
> provide a means for associating related data
> indicate the unique identifiers (or keys) of the
records
> set up security access and change restrictions
 DBMS Components (cont’)
Data manipulation language (DML)
» used with third-generation, fourth-generation, or
object-oriented languages to query the contents of
the database, store or update information in the
database, and develop database applications
» Structured query language (SQL) - most popular
relational database language, combining both DML
and DDL features
Data Dictionary
» stores definitions of data elements and data
characteristics
Logical Data Models

A manager’s ability to use a database is highly
dependent on how the database is structured
logically and physically.
In a logically structuring database, businesses
need to consider the characteristics of the data and
how the data will be accessed.
Three common data models : hierarchical,
network, and relational
Using these models, database designer can build
logical or conceptual view of data that can then be
physically implemented into virtually any
database with any DBMS.
Logical Data Models (continued …)

 Hierarchical Database Model
structures data into an inverted “tree” in which each
record contains two elements rigidly
1st : a single root or master field, often called a key,
which identifies the type location or ordering of the records
2nd : a variable number of subordinate fields,
which defines the rest of the data within a record
all fields have only one “parent”, each parent may have
many “children”
advantage : speed and efficiency
problem : access to data is predefined before the
programs; and each relationship must be explicitly
defined when the database is created
Hierarchical Data Model

Sales
East Coast Midwest West Coast Region
China Stemware Flatware China Stemware Flatware

Product
Category
China Stemware Flatware
Plates Bowls Plates Bowls Plates Bowls Product


 Network Database Model
creates relationship among data through a linked-list
structure in which subordinate records (members)
can be linked to more than one data element (owner)
pointer - explicit link, storage addresses that contain
the location of a related record
many-to-many relationships are possible
complexity : for every set of linked data elements, a
pair of pointers must be maintained

 Relational Database Model
based on a simple concept of tables in order to capitalize
on characteristics of rows and columns of data
relations - tables tuple - row attribute -
column
select operation - creates a subset consisting of all
records in the file that meet stated criteria
join operation - combines relational tables to provide the
user with more information than is available in
individual tables
project operation - creates a subset consisting of columns
in a table, permitting the user to create new tables that
Relational Database Model
Smith, A. Dir. Accounting 43 China
Jones, W. Dir. Total Quality 32 Stemware

Management
Lee, J. Dir. Information 46 China

Technology
Durham, K. Manager, Production 35 Stemware
Stone, L. Administrative Asst. 28 Flatware

Company Data Models

MODEL ADVANTAGES DISADVANTAGES
Hierarchical Speed and efficiency in Access to data is predefined by
database search exclusively hierarchical
relationships, predetermined by
administrator. Limited search/
query flexibility. Not all data is
naturally hierarchical.
Network Many more relationships The most complicated model to
database between data elements can design, implement, and maintain.
be defined. Greater speed Greater query flexibility than
and efficiency than hierarchical model, but less than
relational database models. relational model.
Relational Conceptual simplicity; no Lower processing efficiency and
database predefined relationships speed. Data redundancy is
among data. High flexibility in common, requiring additional
ad hoc querying. New data and maintenance.
records can be added easily

 Emerging Data Models
Object-oriented database model - an object - a small
amount of data put together with all the data needed in
order to perform an operation with that data
» Object - similar to an entity in that it represents a person,
place, or thing, but it also contains all of the data that the
object needs in order to perform an operation
» Attributes - characteristics that describe the state of that
object
» Method - an operation, action, or a behavior the object may
undergo
» Messages - from other objects activate operations contained
within the object
» Class - all the messages to which the object will respond, as

Emerging Data Models (cont’)
Object-relational database model - adds new object
storage capabilities to relational database management systems
Hypermedia database model - stores chunks of
information in a form of nodes connected by links established
by the user
Other Database Models
Geographical information database - contains locational
data for overlaying on maps or images
Knowledge database- stores decision rules used to evaluate
situations and help users make decisions like an experts
Multimedia database - stores data on many media : sounds,
video, images, graphics animation, and text.
Data Warehouses
A data warehouse is a relational and or

multidimensional database management
system designed to support management
decision making.
The data in the “warehouse” is stored in a
single, agreed-upon format even when
underlying operational databases store the
data differently.
Data Warehouses
Framework and ViewAccess Applications
EIS/DSS
Custom-Built
A Application
Data P (4GL tools)
Mart I Production
Metadata Marketing S Reporting
Legacy Select Reposition Tools
Extract M
Transform L
OLTT Enterprise Data D
Integrate
Data Mart D Relational
Maintain Query Tools
Warehouse Risk L
Preparation Management E
External OLAP/ROLAP
W
Target Database(s) A
Operational (RDB, MDDB) Data R Web
System/Data Mart E Browsers
Engineering Data
Mining
Data Warehouses (continued ...)

Data Warehouse Offers Many Business Advantages
It provides business users with a “customer-centric” view
of the company’s heterogeneous data by helping to
integrate data from sales, service, manufacturing and
distribution, and other customer-related business
systems.
It provides added value to the company’s customers by
allowing them to access better information when data
warehouse is coupled with Internet technology.
It consolidates data about individual customers and
provides a repository of all customer contacts for
segmentation modeling, customer retention planning, and

Data Warehouse Advantages (cont’)
It removes barriers among functional areas by
offering a way to reconcile views from multiple
sources, thus providing a look at activities that cross
functional lines.
It reports on trends across multidivisional and/or
multinational operating units, including trends or
relationships in areas such as merchandising,
production planning, and so forth.

 Multidimensional Database Model
can be the core of data warehouses
data are stored in arrays
consists of at least three dimensions
dimensions are the edges of the cube, and represent
the primary “views” of the business data
the data are intimately related and can be viewed and
analyzed from different perspectives, which are
called dimensions
allows for the effective, efficient, and convenient
storage and retrieval of large volumes of data

Data Marts
a scaled-down version of a data warehouse that
focuses on a particular subject area
usually designed to support the unique business
requirements of a specific department or business
process. Example : Marketing data mart
takes less time to build, costs less, and less complex
the indiscriminate introduction of multiple data marts
with no linkage to each other, or to an enterprise data
warehouse, will cause problems

 Data Mining
provides a means of extracting previously
unknown, predictive information from the base of
accessible data in data warehouses
discovers hidden patterns, correlations, and
relationships among organizational data
predicts future trends and behaviors, allowing
businesses to make proactive, knowledge-driven
decisions
functions of data mining
» classification » clustering » association
» sequencing » forecasting
What’s in IT for Me?

For Accounting
Data gathered about each transaction (business
event) in the organization is stored in its
databases
For Finance
Computerized databases external to the
organization, such as CompuStat or Dow Jones,
provides financial data on organizations in its
industry
What’s in IT for Me? (continued …)

For Marketing
Databases including customer name, address,
purchase, amount, etc, help to plan targeted
marketing campaigns and to evaluate the
success of previous campaigns.
Data mining is critical for many marketing
efforts to remain competitive.
For Production/Operations Management
Organizational databases are accessed for
determining optimum inventory levels for parts
in a production process
Information in databases are used to know
when to perform required service on machines
What’s in IT for Me? (continued …)

For Human Resources Management
Organizational databases contain extensive data
on employees, such as name, address, gender,
race, age, salary, hiring date, current job
descriptions, past job descriptions, and past
performance evaluations
For MIS
Vacancies for MIS include data entry and data
storage management to database management
and data analyst

Chapter 5

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Introduction to Information Technology

Turban, Rainer and Potter

Traditional File Environment

Each application comes

Database : The Modern Approach

Athletics Dept. Sports Programs

Database : The Modern

New York New York

Database Management Systems

Logical Data Models

Logical Data Models (continued …)

Hierarchical Data Model

East Coast Midwest West Coast Region

China Stemware Flatware China Stemware Flatware

Plates Bowls Plates Bowls Plates Bowls Product

Logical Data Models (continued …)

Logical Data Models (continued …)

Relational Database Model

Smith, A. Dir. Accounting 43 China

Jones, W. Dir. Total Quality 32 Stemware

Lee, J. Dir. Information 46 China

Durham, K. Manager, Production 35 Stemware

Stone, L. Administrative Asst. 28 Flatware

Company Data Models

Logical Data Models (continued …)

Logical Data Models (continued …)

A data warehouse is a relational and or

Data Warehouses (continued ...)

Data Warehouses (continued ...)

Data Warehouses (continued ...)

Data Warehouses (continued ...)

Data Warehouses (continued ...)

What’s in IT for Me?

What’s in IT for Me? (continued …)

What’s in IT for Me? (continued …)

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