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6-1 © 2011 Pearson Canada Inc.

6 Chapter
Databases and
Information
Management
6-2 © 2011 Pearson Canada Inc.
LEARNING OBJECTIVES
Management Information Systems
Chapter 6 Databases
and Information Management
After reading this chapter, you will be able to answer the
following questions:

• What are the problems of managing data resources in a
traditional file environment, and how are they solved by
a database management system?
• What are the major capabilities of a database
management system (DBMS), and why is a relational
DBMS so powerful?
• What are some important principles of database design?
continued …
6-3 © 2011 Pearson Canada Inc.
LEARNING OBJECTIVES (continued)
Management Information Systems
Chapter 6 Databases
and Information Management
• What are the principal tools and technologies for
accessing information from databases to improve
business performance and decision making?
• Why are information policy, data administration, and
data quality assurance essential for managing a firm’s
data resources?
6-4 © 2011 Pearson Canada Inc.
Can HP Mine Success from an Enterprise Data Warehouse?
• Problem: HP’s numerous systems unable to deliver the
information needed for a complete picture of business
operations, lack of data consistency
• Solutions: Build a data warehouse with a single global
enterprise-wide database; replacing 17 database technologies
and 14 000 databases in use
• Created consistent data models for all enterprise data and
proprietary platform
• Demonstrates importance of database management in creating
timely, accurate data and reports
• Illustrates need to standardize how data from disparate
sources are stored, organized, and managed






Management Information Systems
Chapter 6 Databases
and Information Management
6-5 © 2011 Pearson Canada Inc.
Organizing Data in a Traditional File Environment
File organization concepts
• Bit: Smallest unit of data; binary digit (0,1)
• Byte: Group of bits that represents a single
character
• Field: Group of words or a complete number
• Record: Group of related fields
• File: Group of records of same type

Management Information Systems
Chapter 6 Databases
and Information Management
Continued …
6-6 © 2011 Pearson Canada Inc.
Organizing Data in a Traditional File Environment
Management Information Systems
Chapter 6 Databases
and Information Management
File Organization Concepts (continued)
• Database: Group of related files
• Entity: Person, place, thing, event about which
information is maintained
• Attribute: Description of a particular entity
• Key field: Identifier field used to retrieve,
update, sort a record
6-7 © 2011 Pearson Canada Inc.
Organizing Data in a Traditional File Environment
Management Information Systems
Chapter 6 Databases
and Information Management
Catch [Figure 6-2]
Figure 6-1
6-8 © 2011 Pearson Canada Inc.
Organizing Data in a Traditional File Environment
Problems with the traditional file environment
• Data redundancy and inconsistency
• Program-data dependence
• Lack of flexibility
• Poor security
• Lack of data sharing and availability

Management Information Systems
Chapter 6 Databases
and Information Management
6-9 © 2011 Pearson Canada Inc.
Traditional File Processing
Figure 6-2
The use of a traditional approach to file processing encourages each functional area in a corporation to
develop specialized applications and files. Each application requires a unique data file that is likely to be a
subset of the master file. These subsets of the master file lead to data redundancy and inconsistency,
processing inflexibility, and wasted storage resources.
Management Information Systems
Chapter 6 Databases
and Information Management
Organizing Data in a Traditional File Environment
6-10 © 2011 Pearson Canada Inc.
Problems with the Traditional File
Environment
• Data Redundancy and Inconsistency:
• Data redundancy: The presence of
duplicate data in multiple data files so that
the same data are stored in more than one
place or location
• Data inconsistency: The same attribute may
have different values.

Continued …
Management Information Systems
Chapter 6 Databases
and Information Management
Organizing Data in a Traditional File Environment
6-11 © 2011 Pearson Canada Inc.
Problems with the Traditional File
Environment (continued)
• Program-Data Dependence:
• The coupling of data stored in files and the specific
programs required to update and maintain those
files such that changes in programs require
changes to the data
Continued …
Management Information Systems
Chapter 6 Databases
and Information Management
Organizing Data in a Traditional File Environment
6-12 © 2011 Pearson Canada Inc.
Problems with the Traditional File
Environment (continued)
• Lack of Flexibility
• A traditional file system can deliver routine
scheduled reports after extensive programming
efforts, but it cannot deliver ad-hoc reports or
respond to unanticipated information requirements
in a timely fashion
Continued …
Management Information Systems
Chapter 6 Databases
and Information Management
Organizing Data in a Traditional File Environment
6-13 © 2011 Pearson Canada Inc.
Problems with the Traditional File
Environment (continued)
• Poor security
• Management may have no knowledge of who is
accessing or making changes to the organization’s
data
• Lack of data sharing and availability:
• Information cannot flow freely across different
functional areas or different parts of the
organization.
Management Information Systems
Chapter 6 Databases
and Information Management
Organizing Data in a Traditional File Environment
6-14 © 2011 Pearson Canada Inc.
Database management systems
• How a DBMS solves the problems of the traditional
file environment
• Relational DBMS
• Operations of a relational DBMS
• Hierarchical and network DBMS
• Object-oriented DBMS

The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
6-15 © 2011 Pearson Canada Inc.
The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
6-16 © 2011 Pearson Canada Inc.
Relational DBMS
• Represents data as two-dimensional tables
called relations
• Relates data across tables based on
common data element
• Examples: Access, DB2, Oracle, MS SQL
Server
The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
6-18 © 2011 Pearson Canada Inc.
Operations of a Relational DBMS
• 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
The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
6-19 © 2011 Pearson Canada Inc.
The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
6-20 © 2011 Pearson Canada Inc.
Object-oriented DBMS
• Stores data and procedures as objects that
can be retrieved and shared automatically
• Provides capabilities of both object-oriented
and relational DBMS
Hybrid OODBMS:
• combine benefits of relational and object-
oriented DBMS

The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
Capabilities of Database Management
Systems

• Data Definition Language
• Data Dictionary
• Querying and Reporting

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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
Figure 6-6
6-23 © 2011 Pearson Canada Inc.
The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
Figure 6-7
Sample of an SQL query.
6-24 © 2011 Pearson Canada Inc.
The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
Figure 6-8
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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
Designing Databases
• Conceptual design: Abstract model of database from
a business perspective
• Physical design: Detailed description of business
information needs
• Entity-relationship diagram: Methodology for
documenting databases illustrating relationships
between database entities
• Normalization: Process of creating small stable data
structures from complex groups of data
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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
Figure 6-11
An entity-relationship diagram.
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The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
Distributed database:
• A database that is stored in more than one physical
location
• Reduce the vulnerability of a single, massive central
site
• Increase service and responsiveness to local users
• Can often run on smaller, less expensive computers
• Depend on high-quality telecommunications lines
6-30 © 2011 Pearson Canada Inc.
Distributed Databases
Figure 6-12
There are alternative ways of distributing a database. The central database can be partitioned (a) so that each remote
processor has the necessary data to serve its own local needs. The central database also can be replicated (b) at all remote
locations.
The Database Approach to Data Management
Management Information Systems
Chapter 6 Databases
and Information Management
6-31 © 2011 Pearson Canada Inc.
Management Information Systems
Chapter 6 Databases
and Information Management
Data warehouse
• Stores current and historical data from many core operational
transaction systems
• Consolidates and standardizes information for use across
enterprise, but data cannot be altered
• Data warehouse system will provide query, analysis, and
reporting tools
Data marts
• Subset of data warehouse
• Summarized or highly focused portion of firm’s data for use by
specific population of users
• Typically focuses on single subject or line of business

Using Databases to Improve Business Performance and Decision Making
6-32 © 2011 Pearson Canada Inc.
Components of a Data Warehouse
Figure 6-13
The data warehouse extracts current and historical data from multiple operational systems inside the
organization. These data are combined with data from external sources and reorganized into a central
database designed for management reporting and analysis. The information directory provides users
with information about the data available in the warehouse.
Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
6-33 © 2011 Pearson Canada Inc.
• Read the Window on Management, and then discuss the
following questions:
• Why was it so difficult for Canadian Tire to analyze the data it
had collected?
• What kind of challenges did Canadian Tire encounter when
implementing its data warehouse? What management,
organization, and technology issues had to be addressed?
• How did the data warehouse improve decision making and
operations at Canadian Tire? Are there benefits to customers?
• Do you think the issues facing the Bank of Montreal were the
same or similar to those faced by Canadian Tire?
Canadian Tire Warehouses Business Intelligence for
Profitability
Management Information Systems
Chapter 6 Databases
and Information Management
Using Databases to Improve Business Performance and Decision Making
6-34 © 2011 Pearson Canada Inc.
Management Information Systems
Chapter 6 Databases
and Information Management
Business Intelligence
• Tools for consolidating, analyzing, and providing
access to vast amounts of data to help users make
better business decisions
• Example of Best Western building customer
relationships with CRM
• Principle tools include:
• Software for database query and reporting
• Online analytical processing (OLAP)
• Data mining
Using Databases to Improve Business Performance and Decision Making
6-35 © 2011 Pearson Canada Inc.
Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
Figure 6-14
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Online analytical processing (OLAP)
• Supports multidimensional data analysis
• Viewing data using multiple dimensions
• Each aspect of information (product, pricing,
cost, region, time period) is different dimension
• E.g., how many washers sold in East in June
compared with other regions?
• OLAP enables rapid, online answers to ad hoc
queries
Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
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Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
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Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
Data Mining
• Tools for analyzing large pools of data
• Find hidden patterns and infer rules to
predict trends
– Associations
– Sequences
– Classifications
– Clusters
– Forecasts
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Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
Text Mining
• Extracts key elements from large
unstructured data sets (e.g., stored e-mails)
6-40 © 2011 Pearson Canada Inc.
Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
Web Mining
• Discovery and analysis of useful patterns
and information from WWW
• Techniques
– Web content mining
• Knowledge extracted from content of Web
pages
– Web structure mining
• E.g., links to and from Web page
– Web usage mining
• User interaction data recorded by Web
server

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Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
Figure 6-16
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Using Databases to Improve Business Performance and Decision Making
Management Information Systems
Chapter 6 Databases
and Information Management
Databases and the Web
• Many companies use Web to make some internal
databases available to customers or partners
• Typical configuration includes:
• Web server
• Application server/middleware/CGI scripts
• Database server (hosting DBM)
• Advantages of using Web for database access:
• Ease of use of browser software
• Web interface requires few or no changes to database
• Inexpensive to add Web interface to system

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Managing Data Resources
Management Information Systems
Chapter 6 Databases
and Information Management
Establishing an information policy
• Specifies the organization’s rules for sharing,
disseminating, acquiring, standardizing, classifying,
and inventorying information
• Data administration is responsible for specific
policies and procedures through which data is
managed
• Data governance
• Database administration
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Managing Data Resources
Management Information Systems
Chapter 6 Databases
and Information Management
Ensuring Data Quality
• Data Quality Audit
– Structured survey of the accuracy and
completeness of data in an information system
• Data cleansing
– consists of activities for detecting and correcting
data in an information system
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• Read the Window on Technology, and then discuss
the following questions:

The Databases Behind MySpace
Managing Data Resources
Management Information Systems
Chapter 6 Databases
and Information Management
• What kind of databases and database servers does MySpace
use?
• Why is database technology so important for a business such
as MySpace?
• How effectively does MySpace organize and store the data on
its site?
• What data management problems have arisen? How has
MySpace solved or attempted to solve these problems?
6-46 © 2011 Pearson Canada Inc.
6 Chapter
Databases and
Information
Management