2. CHAPTER OUTLINE
7.1 Managing Data
7.2 The Database Approach
7.3 Database Management Systems
7.4 Data Warehousing
7.5 Data Visualization
7.6 Knowledge Management
3. LEARNING OBJECTIVES
Recognize the importance of data, issues
involved in managing data and their lifecycle.
Describe the sources of data and explain how
data are collected.
Explain the advantages of the database
approach.
4. Learning Objectives (continued)
Explain the operation of data warehousing
and its role in decision support.
Explain data governance and how it helps to
produce high-quality data.
Define knowledge, and describe different
types of knowledge.
7. Examples of Data Sources
E-mails
Credit card
swipes
RFID tags
Digital video
surveillance
Radiology scans
Blogs
8. 7.1 Managing Data
Difficulties in Managing Data
Amount of data increases
exponentially.
Data are scattered and collected
by many individuals using
various methods and devices.
Data come from many sources.
Data security, quality and
integrity are critical.
9. Difficulties in Managing Data (continued)
An ever-increasing amount of data needs to be
considered in making organizational decisions.
The Data Deluge
12. 7.2 The Database Approach
Database management system (DBMS)
provides all users with access to all the data.
DBMSs minimize the following problems:
Data redundancy
Data isolation
Data inconsistency
13. Database Approach (continued)
• Specific type of software for creating, storing,
organizing, and accessing data from a database
• Separates the logical and physical views of the
data
• Logical view: how end users view data
• Physical view: how data are actually structured and
organized
• Examples of DBMS: Microsoft Access, DB2, Oracle
Database, Microsoft SQL Server, MySQL
14. Database Approach (continued)
• Databases provide information to help the company run the
business more efficiently, and help managers and
employees make better decisions.
• Tools for analyzing, accessing vast quantities of data:
• Data warehousing
• Multidimensional data analysis
• Data mining
• Utilizing Web interfaces to databases
23. Entity-Relationship Modeling
Database designers plan the database
design in a process called entity-
relationship (ER) modeling.
ER diagrams consists of entities, attributes
and relationships.
Entity classes
Instance
Identifiers
27. Normalization
Normalization is a method for analyzing and
reducing a relational database to its most
streamlined form for:
Minimum redundancy
Maximum data integrity
Best processing performance
Normalized data is when attributes in the
table depend only on the primary key.
33. 7.4 Data Warehousing
Data warehouse
Data warehouses are organized by business
dimension or subject.
Data warehouses are multidimensional.
A Data Cube
34. Data Warehousing (continued)
Data warehouse is a repository of historical
data organized by subject to support decision
makers in the organization and include:
Online analytical processing which involves
the analysis of accumulated data by end
users;
Multidimensional data structure which
allows data to be represented in a three-
dimensional matrix (or data cube).
35. Data Warehousing (continued)
• Database that stores current and
historical data that may be of interest
to decision makers
• Consolidates and standardizes data
from many systems, operational and
transactional databases
• Data can be accessed but not altered
36. Data Warehousing (continued)
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.
43. 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.
44. Copyright 2007 John Wiley
& Sons, Inc.
Chapter 4 44
Data Marts & Data Mining
Data mart is a small data warehouse,
designed for the end-user needs in a
strategic business unit (SBU) or a
department.
Data mining involves searching for valuable
business information in a large database,
data warehouse, or data mart.
Used to predict trends and behaviors.
Identify previously unknown patterns.
45. Copyright 2007 John Wiley
& Sons, Inc.
Chapter 4 45
7.5 Data Visualization Technologies
Geographic Information Systems (GIS) is a
computer-based system for capturing,
integrating, manipulating and displaying data
using digitized maps.
Find locations for new restaurants.
Emerging GIS applications integrated with global
positioning systems (GPSs).
Virtual Reality is interactive, computer-
generated, three-dimensional graphics
delivered to the user through a head-mounted
display.
46. Data Visualization(Continued)
Knowledge Visualization improves knowledge
transfer by providing tools that allow
knowledge workers to manipulate knowledge
into representations that have more meaning.
50. Copyright 2007 John Wiley
& Sons, Inc.
Chapter 4 50
Knowledge Management System
Cycle
Create knowledge. Determine new ways.
Capture knowledge. Identify as valuable.
Refine knowledge. Make it actionable.
Store knowledge. Store in a reasonable
format.
Manage knowledge. Verify it is relevant,
accurate.
Disseminate knowledge. Made available.
#10:Figure 4.1 illustrates the processing of data into information and then knowledge.
#11:This figure puts data, information, knowledge, and wisdom into perspective.
#12:Data redundancy: The same data are stored in many places.
Data isolation: Applications cannot access data associated with other applications.
Data inconsistency: Various copies of the data do not agree.
#15:Data security: Keeping the organization’s data safe from theft, modification,
and/or destruction.
Data integrity: Data must meet constraints (e.g., student grade point averages
cannot be negative).
Data independence: Applications and data are independent of one another.
Applications and data are not linked to each other, meaning that
applications are able to access the same data.
#17:A bit is a binary digit, or a “0” or a “1”.
A byte is eight bits and 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.
#22: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.
#23:Entity classes are groups of entities of a certain type.
An instance of an entity class is the representation of a particular entity.
Entity instances have identifiers, which are attributes that are unique to that entity instance.
#25: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.
#33:A data warehouse is a repository of historical data organized by subject to support
decision makers in the organization.
The data cube has three dimensions: customer, product, and time.
#37:This figure (Figure 4.9) shows the process of building and using a data warehouse.
#38:This is the first slide (Figure 4.10) of five showing the relationship between relational databases
and a multidimensional data structure (or data cube).
#47: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.
#48: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
#49: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.