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ISYS6299– Information System

Concept
Week 3 - Data and Knowledge
Management
Learning Objectives
1.Discuss ways that common challenges in managing data can be
addressed using data governance.
2.Define Big Data, and discuss its basic characteristics.
3.Explain how to interpret the relationships depicted in an entity-
relationship diagram.
4.Discuss the advantages and disadvantages of relational databases.
5.Explain the elements necessary to successfully implement and
maintain data warehouses.
6.Describe the benefi ts and challenges of implementing knowledge
management systems in organizations.
Chapter Outline
1. Managing Data
2. Big Data
3. The Database Approach
4. Database Management Systems
5. Data Warehouses and Data Marts
6. Knowledge Management
Managing Data

Difficulties in managing data:


• Data increases exponentially with time
• Multiple sources of data
• Data rot, or data degradation
• Data security, quality, and integrity
• Government Regulation

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Managing Data

Clickstream data are produced by visitors and customers when they visit a
website and click on hyperlinks. These data provide a trail of the users’ activities
in the website, including user behavior and browsing patterns.

Internal Sources
• Corporate databases, company documents
Personal Sources
• Personal thoughts, opinions, experiences
External Sources
• Commercial databases, government reports, and corporate Web sites.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Data Governance

Data governance is an approach to managing information across an entire


organization.
Master data management is a process that spans all of an organization’s
business processes and applications.
Master data are a set of core data that span all of an enterprise’s
information systems.
Transaction data, which are generated and captured by operational
systems, describe the activities, or transactions, of the business.
In contrast, master data involve multiple transactions and are used to
categorize, aggregate, and evaluate the transaction data.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Big Data

Two Descriptions of Big Data

From Gartner Research (www.gartner.com)


Diverse, high-volume, high-velocity information assets that require
new forms of processing to enable enhanced decision making, insight
discovery, and process optimization.

From the Bid Data Institute (www.the-bigdatainstitute.com)


• Exhibit variety
• Includes structured, unstructured, and semi-structured data
• Are generated at high velocity with an uncertain pattern
• Do not fit neatly into traditional, structured, relational databases
• Can be captured, processed, transformed, and analyzed in a
reasonable amount of time only by sophisticated information
systems.
Source: Chapter05-Data and Knowledge Management
Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Big Data

Defining Big Data

Big Data Generally Consist of:


• Traditional enterprise data
• Machine-generated/sensor data
• Social Data
• Images captured by billions of devices located around the
world
 Digital cameras, camera phones, medical scanners, and
security cameras
Source: Chapter05-Data and Knowledge Management
Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Big Data

Characteristics of Big Data


• Volume
Big Data consist of vast quantities of data.
• Velocity
Big Data flows into an organization at incredible speeds.
• Variety
Big Data includes a huge variety of different data in differing
data formats.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Big Data

Characteristics of Big Data


• Volume
Big Data consist of vast quantities of data.
• Velocity
Big Data flows into an organization at incredible speeds.
• Variety
Big Data includes a huge variety of different data in differing
data formats.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Big Data

Managing Big Data


• When properly analyzed big data can reveal valuable patterns and information.
• Database environment
• Traditional relational databases versus NoSQL databases
• Open source solutions

Leveraging Big Data


• Creating Transparency
• Enabling Experimentation
• Segmenting Population to Customize Actions
• Replacing/Supporting Human Decision Making with Automated Algorithms
• Innovating New Business Models, Products, and Services
• Organizations Can Analyze Far More Data

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014). John Willey & Sons, Inc.Michigan.
The Database Approach

Database management system (DBMS) minimize the following


problems:
• Data redundancy: The same data are stored in many places.
• Data isolation: Applications cannot access data associated
with other applications.
• Data inconsistency: Various versions of the data do not agree.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
The Database Approach

DBMS maximize the following strengths:


• Data security: Because data are “put in one place” in databases, there is a
potential for losing a lot of data at once. Therefore, databases have
extremely high security measures in place to deter mistakes and attacks.
• Data Integrity: Data meet certain constraints, such as no alphabetic
characters in a Social Security number field.
• Data independence: Application and data are not linked to each other, so
that all applications are able to access the same data.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
The Database Approach

Figure 5.1. Database Management System

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
The Database Approach
Data Hierarchy:
A bit is a binary digit, or a
“0” or a “1”.
A byte is eight bits and
Hierarchy of Data for a Computer-Based File represents a single
character (e.g., a letter,
number or symbol).
A field is a group of logically
related characters (e.g., a
word, small group of words, or
identification number).
A record is a group of
logically related fields (e.g.,
student in a university
database).
A file is a group of logically
related records.
A database is a group of
logically related files.
Source: Chapter05-Data and Knowledge Management
Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Designing the Database

The data model is a diagram that represents the entities in the database and their
relationships.
• An entity is a person, place, thing, or event about which information is
maintained. A record generally describes an entity.
• An attribute is a particular characteristic or quality of a particular entity.
• The primary key is a field that uniquely identifies a record.
• Secondary keys are other field that have some identifying information but
typically do not identify the file with complete accuracy.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Designing the Database
Entity-relationship diagram model

Source:
Chapter05-Data and Knowledge Management
Introduction to Information Systems, 5th edition
Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Database Management Systems

A database management system is a set of programs that provide


users with tools to add, delete, access, and analyze data stored in one
location.
The relational database model is based on the concept of two-
dimensional tables.
• Structured query language allows users to perform
complicated searches by using relatively simple statements or
keywords.
• Query by example allows users to fill out a grid or template to
construct a sample or description of the data he or she wants.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Database Management Systems
Student Database Example

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Data Warehouses and Data
Marts
• A data warehouse is a repository of historical data organized by
subject to support decision makers in the organization.
• Historical data in data warehouses can be used for identifying
trends, forecasting, and making comparisons over time.
• Online analytical processing (OLAP) involves the analysis of
accumulated data by end users (usually in a data warehouse).
• In contrast to OLAP, online transaction processing (OLTP) typically
involves a database, where data from business transactions are
processed online as soon as they occur.
• A data mart is a low-cost, scaled-down version of a data warehouse
that is designed for the end-user needs in a small organization or a
strategic business unit (SBU) or a departement in a large
organization.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Data Warehouses and Data Marts

The six basic characteristics of data warehouses:


• Data are organized by business dimension or subject (for example, by customer,
vendor, product, price level and region). This arrangement is different from
transactional systems, where data are organized by business process, such as order
entry, inventory control, and account receivable.
• Use online analytical processing.
• Integrated. Data are collected from multiple systems and are integrated around
subjects. For example, customer data can be extracted from internal (and external)
systems and integrated around a customer identifier to create a comprehensive view
of the customer.
• Time variant. Data warehouses and data marts maintain historical data, can store
years of data. Companies need historical data to detect trends, deviations from trends,
and long-term relationships.
• Nonvolatile. Only IT profesionals can change or update the data. Consequently, the
data warehouse or mart reflects history, which is critical for trend analysis.
Warehouses and marts are updated, but through IT-controlled load processes rather
than by users.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Data Warehouses and Data Marts
Data Warehouse Framework & Views

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014). John Willey & Sons, Inc.Michigan.
Data Warehouses and Data Marts
Relational databases

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Data Warehouses and Data Marts

Multidimensional databases

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition,
Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Data Warehouses and Data
Marts

Benefits of Data Warehousing


• End users can access data quickly and easily via Web browsers
because they are located in one place.
• End users can conduct extensive analysis with data in ways that
may not have been possible before.
• End users have a consolidated view of organizational data.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Knowledge Management

• Knowledge management is a process that helps organizations


manipulate important knowledge that is part of the organization’s
memory, usually in an unstructured format.
• Knowledge that is contextual, relevant, and actionable.
• Intellectual capital is another term often used for knowledge.
• Explicit knowledge: objective, rational, technical knowledge that has
been documented. Examples: policies, procedural guides, reports,
products, strategies, goals, core competencies
• Tacit knowledge: cumulative store of subjective or experiential
learning. Examples: experiences, insights, expertise, know-how,
trade secrets, understanding, skill sets, and learning

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Knowledge Management

• Knowledge management systems refer to


the use of information technologies to
systematize, enhance, and expedite
intrafirm and interfirm knowledge
management.
• Best practices are the most effective and
efficient ways of doing things.

Source: Chapter05-Data and Knowledge Management


Introduction to Information Systems, 5th edition, Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Knowledge Management

Knowledge Management System Cycle


• Create knowledge. Knowledge is created as
people determine new ways of doing things or
develop know-how. Sometimes external
knowledge is brought in.
• Capture knowledge.
New knowledge must be identified as valuable
and be represented in a reasonable way.
• Refine knowledge. New knowledge must be
placed in context so that it is actionable. This is
where tacit qualities (human insights) must be
captured along with explicit facts.

Source:
Chapter05-Data and Knowledge Management
Introduction to Information Systems, 5th edition,
Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Knowledge Management
Knowledge Management System Cycle
(continue..)
• Store knowledge. Useful knowledge
must the be stored in a reasonable
format in a knowledge repository so
that other members of the
organization can access it.
• Manage knowledge. Like a library, the
knowledge must be kept current. To
accomplish this objective, knowledge
must be reviewed regularly to verify
that it is relevant and accurate.
• Disseminate knowledge. Knowledge
must be made available in a useful
format to anyone in the organization
who needs it, anywhere and anytime. Source:
Chapter05-Data and Knowledge Management
Introduction to Information Systems, 5th edition,
Rainer, Prince, Cegielski (2014).
John Willey & Sons, Inc.Michigan.
Thank You

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