Seminar 2 – Part 1 Managing Data to Improve Business Performance Ref: Chapter 3 of Turban and Volonino

Learning Objectives Describe how data and document management impact profits and performance. Understand how managers are supported or constrained by data quality. Discuss the functions of databases and database management systems. Understand how logical views of data provide a customized support and improve data security. Describe the tactical and strategic benefits of data warehouses, data marts, and data centers.

Learning Objectives cont’d 6. Describe transaction and analytic processing systems. Explain how enterprise content management and electronic records management reduce cost, support business operations, and help companies meet their regulatory and legal requirements.

Applebee’s International Learns & Earns Problem: Huge quantities of data in many Databases. Solution: Enterprise data warehouse implemented. Click Applebee’s image for link to company historic chronology. Click Teradata for link (solution implemented by Applebee’s) Results: Improved profitability.

Applebee’s enterprise data warehouse and feedback loop. Figure illustrates data stages at Applebee’s enterprise: data are collected, processed & stored in data warehouse; processed by analytical tools such as data mining & decision modeling; knowledge acquired from data analysis directs promotional & other decisions. Management can receive feedback regarding success of management strategies.

Data, Master Data, and Document Management Data management is crucial for productivity of managers and employees Data – Organisations key asset Data decisions  high quality data High Quality Data  how data is managed

Data life cycle Data Management – a structured approach to managing data. Principles of Diminishing Value, 90/90 Rule, and Principles of data in context. Informational slide. Life cycle identifies way data travel through an organization from their capture or creation to their use in supporting data-driven solutions such as SCM, CRM & EC. 3 general data principles illustrate the importance of the data life cycle perspective & guide IT investment decisions: 1. diminishing data value; 2. principle of 90/90 data use; 3. principle of data in context.

Analyzing Any Business Business analytics Foundational tools for discussion.

Data Visualization Data visualization to format data into meaningful contexts for users. Means to present data in ways that are easier, faster for users to understand thereby increasing productivity, efficiency, & effectiveness. The table provides more precise data whereas the graph takes much less time & effort to understand. Dartmouth University’s development department realized their efforts to target alumnae for contributions to its capital campaign were not as effective as they could be. Invested in data visualization tools which helped them to know where & when to invest their time to maximize return on that time. Dow Jones industrial average (DJIA) for a single day in tabular display and graphical display.

MDM – Master Data Management Master Data Management (MDM) – integrating to provide a more unified view of data Operational versus Analytical Master Data Management Demystifying Master Data Management Would You Like Fries With That? And Does Cross-Selling Justify Master Data Management? Links to videos & articles relevant to better understanding of topic. Data management's top eight stories of 2008 Human resources data analytics brings metrics to workforce management

Main entities of company Master Data Entities Main entities of company Customers Suppliers Employees Different Master Data needs Assign for students to present to each other.

Model of an enterprise data warehouse. E T L = extract, transform, load. Transforming data into information & then to knowledge.

Quality of the decision based on the data Data Quality Data’s usefulness Quality of the decision based on the data Accuracy Accessibility Relevance vs. Reliability Timeliness Completeness Data Quality Example Last few slides for discussion – How does data mining provide intelligence to decision makers? Establishes customers’ patterns for better decision making. See A Closer Look, 3.3. What are the 2 types of data mining systems, and how do they provide value to defense organizations?

Document Management Effective business continuity planning requires the timely restoration of critical functions after a disruption to normal business operations. This would include developing plans for recovery of essential IT infrastructure, critical applications, and time sensitive business processes. In the aftermath of emergency situations, however, it is all too common to find that organizations fail to plan adequately to protect and replicate paper records, as necessary to mitigate risk and continue operations. What types of waste can DMS reduce? How? See A Closer Look, 3.4. What is the value of providing access to documents via the Internet or a corporate intranet? Avoids development of silos because everyone with need can have access from central KM database.

Document Management Implementation of any record management and/or paper digitization solution is a significant undertaking and must be approached with a detailed plan of action and significant buy-in and approval from all stakeholders. Implementation breaks down into 4 distinct phases: Identifying objectives Identifying products that meet those objectives Implementing a system Digitization of records

File Management Systems - Example of primary and foreign keys. Informational slide. A record needs a unique identifier to avoid data redundancy. A computer system essentially organizes data into a hierarchy that begins with bits & proceeds to bytes, fields, records, files & databases.

Hierarchy of data for a computer-based file. Informational slide. Figure illustrates primary & foreign keys.

A file Management Approach Data management problems arising from the file environment approach led to the development of databases & database management systems (DBMS). Why? Data redundancy – same data duplicated in several files creating silos. Data inconsistency – data values are not synchronized across various copies of the data such as problems faced by Applebee’s & Dartmouth. Data isolation – file organization creates silos of data that make it extremely difficult to access data from different applications. Data security – difficult because new applications are added on an ad hoc basis. Applications increase as the number of people who can access the data. Lack of data integrity – much harder to enforce the rules. Data concurrency – accessing & recording of data may be going on at the exact same time. Computer-based files of this type cause problems such as redundancy, inconsistency, and data isolation.

Database and Database Management Systems Centralized database stores all related files in one physical location. Why is this negative? Natural & unnatural disasters could be catastrophic. Redundancy to avoid disasters is extremely expensive.

DBMS Data Access – An integrated Approach DBMS acts as an interface between application programs & physical data files. It provides users with tools to add, delete, maintain, display, print, search, select, sort & update data. Companies use DBMS in a broad range of information systems. Microsoft Access, Oracle 11g, & DB2 are examples. DBMS provides 2 views of data: physical view & logical view. Major data functions performed by DBMS are: Data filtering & profiling. Data quality. Data synchronization. Data enrichment. Data maintenance. Database management system provides access to all data in the database.

Data Warehouse, Marts and Centers - Data warehouse framework and views. Assign students to find examples of organizations for each of the operational systems data modules & describe it for the others. This figure diagrams the process of building & using a data warehouse. All share these 9 major characteristics: organization, consistency, time variant, nonvolatile, relational, client/server, web-based, integration, & real-time.

Content Management Electronic records management from creation to retention or destruction. Shows differences between documents & records as well as relationship between document management & records management. Records are different from documents in that they cannot be modified or deleted except in controlled circumstances. Documents are generally subject to revision.

ERM Vendors – check these out! ACCUTRAC® SOFTWARE Click images to websites to view videos of electronic records management & a records management center.

Managerial Issues Reducing uncertainty. Cost-benefit issues & justification. Where to store data physically. Legal issues. Internal or external collection, storage, maintenance, & purging of databases of information. Disaster recovery. Data security & ethics. Privacy. Legacy systems. Data delivery. There are always managerial issues in every organization and at every level. Legacy systems, privacy, disaster recovery, legal issues, etc., are all issues that will not go away possibly for generations to come. Perhaps reducing uncertainty is the one that overarches all the others.