BIS 201 – Management

Information Systems
Chapter No: 7
Managing Data Resources
 Topics
• What is Data Resource Management?
• Database – Definition & Types
• Data Warehousing
• OLAP & Data Mining
• Database Management
• Components of DBMS
• Database Management Lifecycle
 Data Resource Management
It is a Managerial activity that applies
Information Systems technologies like:-
– Database management
– Data Warehousing
– Other Data Management tools
to the task of managing the organizations
data resources – to meet the information
needs of their business stakeholders
 Database
A database is an integrated collection of
logically related data elements.

The data stored in a database are

independent of the application programs
using them & of the type of storage
devices on which they are stored.
 Types of Databases
1. Operational Databases
2. Distributed Databases
3. External Databases
4. Hypermedia Databases
 Operational Databases
These databases store detailed data needed to
support business processes & operations of a
company.
Other names for this are :-
• Subject Area Databases (SADB)
• Transaction Databases
• Production Databases
Examples:-
• HR Database
• Customer Database etc
 Operational Databases
HR Database

Payroll
Benefits

Employee Record 1 Employee Record 2

Employee Employee Salary Employee Employee Salary

Code Name Code Name

1001 James $3500 1002 Martha $2750

 Distributed Databases
Many Organizations replicate and distribute copies
of parts of databases to network servers at a
variety of sites.
These Distributed databases can reside on
network servers on the WWW on corporate
intranets or extranets etc.
Distributed
Databases

Partitioned Duplicate
Databases Databases
Distributed Databases
 External Databases
Access to a wealth of information from external databases
is available for a fee from commercial online services &
with or without charge from many sources on the WWW.
Examples:-
(Free Information Service by University of Bristol)
Databases grouped by subject:
• Arts and humanities databases
• General and reference databases
• Science, engineering and medical databases
• Social sciences and law databases
• Still and moving image databases
 Hypermedia Databases
A Hypermedia database consists of
hyperlinked pages of multimedia (text,
graphics, photographic images, video clips
etc)
A Hypermedia database consists of a
database of inter – related hypermedia
page elements rather that inter – related
records.
 Hypermedia Databases
Client PC NetworkServer Hypermedia Database

Web Intranet/
Browser Internet
HTML/
XML
Web Server
Software

Web Pages, Image

Files, Video Files,
Audio Files
 Data warehousing
A data warehouse stores data that have been
extracted from the various operational, external
& other databases of an organization.
It is a central source of data that has been
cleaned, transformed & catalogued so that they
can be used by managers & other business
professionals for data mining, online analytical
processing & other forms of business analysis,
market research & decision support.
Data warehousing
 Case Study :
Shell Exploration & Production
• Various units worldwide – each having their own IT resources
(collecting & processing local data)
• The fuel company wanted to combine data from its ERP
Financial applications with data from its various systems to
process information on – how much “GAS” & “OIL” the
company finds & collects?
• Steve Much (Data warehouse team leader – SHELL Scotland)
faced major problems – as each system had their set of
codes.
• The option of going back – cleansing & integrating data in
host system – wasn't an option which was feasible ???
 Case Study :
Shell Exploration & Production
• Steve Mutch found a tool from KALIDO LTD
(London) that analysed & mapped data from
various systems & then combined it into one
data warehouse.
• After 7 months of Data analysis and mapping
work – data from 27 data sources now came
together in one 450 GB Warehouse.
 Case Study :
Shell Exploration & Production
Benefits
– No single Business Unit lost control of its data.
– Hence all Business Heads contribute to a greater
understanding of information for the company as a
whole.
– After this success Mutch faced pressure from TOP
Executives to integrate data from other applications
also.
– Hence the TRUE POTENTIAL of a Data warehouse is
realized at SHELL
Uses of Datawarehousing
Data warehousing

Online Analytical Processing

Data Mining OLAP
 Online Analytical Processing
(OLAP)
Capability for manipulating and Analyzing large volumes of
data from multiple perspectives.
OLAP gives users quick, unlimited views of multiple
relationships in large quantities of data.
 Data Mining
In data mining, the data in the data warehouse is
analyzed to reveal hidden patterns & trends in
historical business activity.
These patterns can be used to help managers
make decisions about strategic changes in
business operations to gain competitive
advantages in marketplace.
Data mining can discover co-relations, patterns &
trends in vast amounts of business data (Tera
Bytes of data), stored in data warehouses.
 Data Mining
Interpretation /
Data Data Evaluation
Selection Transformation Mining

Business
Knowledge
Target Data Data Patterns
Warehouse
Databases
 Data Mining
• Data mining software uses advanced pattern recognition
algorithms as well as Mathematical & Statistical
techniques to sift through mountains of data to extract
previously unknown strategic business information.
• Use of Data mining:-
– Find root cause to quality or manufacturing problems
– Prevent customer attrition & acquire new customers
– Cross – sell to existing customers
– Perform “market research” to identify new products
 Data Mining
Example systems
– Enterprise miner
– AB Data mining Systems
– Attar Software
 Case : Bank Of America (BofA)
• BofA’s data warehouse was so large that for
some customers there were 300 data points.
Traditional database approaches could not work.
• BofA wanted to extract patterns form their data
warehouse for activities such as
– Identifying potential customers for aggressive
marketing
– Identifying new products and product packs.
• BofA had a variety of tailored products for
different markets such as Home loans, credit
cards etc. Sifting through the number of products
& finding desired patterns was a Herculean task.
 Case : Bank Of America (BofA)
Solution
• BofA purchased “Discovery” Datamining Software from
Hyperparallel and build a model for finding right
customers for new products.
• This model proved so accurate that it discovered people
already in process of applying and being approved for a
lending product.
Result
The resulting Direct Marketing Response rates have
dramatically exceeded past results.
 Database Management
Systems
• A Database Management System (DBMS) is a collection
of interrelated data (database) and a set of programs to
access those data.
• A Database Management System (DBMS) is a software
that:-
– Defines a database
– Stores the data
– Supports a Query Language
– Produces Reports
– Creates data entry screens
 Components of
Database Management Systems

Databases/ Files

Database Engine
Data Dictionary

Query Processor
Report
Forms
Gener
Writer
rator
 Components of
Database Management Systems
• Database Engine is the heart of the DBMS & is
responsible for storing, retrieving and updating data.
Eg Microsoft Jet Engine (Access)
• Data Dictionary holds the definition of all data tables.
Eg. MsysObjects (Access)
• Query Processor enables developers and users to store
& retrieve data with help of a Query Language.
Eg SQL& QBE (Access)
• Report Writer enables users to set up the report on the
screen to specify how items will be displayed or
calculated.
Eg Crystal Reports, Developer 2000 Reports
 Components of
Database Management Systems
• Form Generator helps the developer to create
input forms data.
Eg Visual Basic Forms
• Application Generator is a collection of Forms
and Reports designed for specific user tasks.
Eg. Application Wizards
• Security : As the primary goal of a database is to
share data with multiple users, the DBMS must
also be responsible for establishing and
maintaining security access controls.
 Database Development Lifecycle
DDLC
1. System Definition
Scope of database systems, it uses and its applications
are defined
2. Database Design
At the end of this phase, a complete logical and
physical design of database system on chosen DBMS is
ready
3. Database Implementation
Creating empty database files & implementing software
applications.
4. Loading or Data Conversion
Database is populated either by loading the data
directly or converting the existing files into the database
system format.
 Database Development Lifecycle
DDLC
5. Testing & Validation
The new system is tested & validated.
6. Operations
The Database system and its applications are put into
operation. Usually older system & the new system are
operated in parallel for some time.
7. Monitoring & Maintenance
During the Operation phase the system is constantly
monitored & maintained.
8. Building Web Interfaces to Database
With the emerging trends of E – business & e –
commerce, Its has become vital for organisations
to embed web interfaces onto their databases.
 CASE : Experian Automotive
• Experian Inc – a unit of a LONDON based company. It
runs one of the largest credit reporting agencies in the
US.
• Experian wanted to go beyond credit checks for
automotive loans.
• Experian wanted to collect vehicle data from various
Motor – vehicle departments in the US, & blend it with
other data such as “Change of Address” records &
then it could sell the enhanced data.
• To offer these services, Experian first needed a way to
extract, transfer and load data from 50 different US
State Department of Motor Vehicles (DMV) systems
into a single database.
 CASE : Experian Automotive
• This was difficult as per Ken Kauppila, VP(IT) at Experian
Automotive (California) – “As Each DMV had their own
format for entering data”
• Kaupilla decided to use ETL( Extracting, Transforming &
Loading) tools to combine very large data repositories.
• Using “ETL EXTRACT” by Evolutionary Technologies,
Experian created database that can incorporate vehicle
information within 48hrs of its entry into any State’s DMV
computer.
• Experian automotive database is the 10th largest automobile
database in the world (16 billion rows of data)
• The entire relational database is managed by just 3 IT
professionals