© 2006 Pearson Education Canada Inc. 3-1 Chapter 3 Database Management PowerPoint Presentation Jack Van Deventer Ward M. Eagen

© 2006 Pearson Education Canada Inc.3-2 Chapter 3 Objectives Understand why databases are important to modern organizations Understand why databases are important to modern organizations Understand how databases work Understand how databases work Understand how organizations can maximize their strategic potential with databases Understand how organizations can maximize their strategic potential with databases

© 2006 Pearson Education Canada Inc.3-3 Database Management for Strategic Advantage Database – a collection of related data organized in a way to facilitate data searches Database – a collection of related data organized in a way to facilitate data searches Use databases to: Use databases to:  Create a book  Track book sales  Set salaries and wages  Pay employees

© 2006 Pearson Education Canada Inc.3-4 Database Management for Strategic Advantage The Database Approach: Foundational Concepts The Database Approach: Foundational Concepts  DBMS – Database Management Systems  Use a DBMS software to create, store, organize, and retrieve data from a single database or several databases  Example: Microsoft Access, FileMaker Pro

© 2006 Pearson Education Canada Inc.3-5 Database Management for Strategic Advantage Advantages of the Database Approach Advantages of the Database Approach  Program-data independence  Minimal data redundancy  Improved data consistency  Improved data sharing  Increased productivity of application development  Enforcement of standards  Improved data quality  Improved data accessibility  Reduced program maintenance

© 2006 Pearson Education Canada Inc.3-6 Database Management for Strategic Advantage Effective Management of Databases Effective Management of Databases  The database administrator (DBA) :  Works with programmers and analysts to design and implement the database  Works with users and managers to establish database policies  Implements security features and establishes database permissions

© 2006 Pearson Education Canada Inc.3-7 Key Database Activities Entering and Querying Data Entering and Querying Data  Form  Structured Query Language (SQL)  Query by example (QBE)

© 2006 Pearson Education Canada Inc.3-8 Key Database Activities Creating Database Reports Creating Database Reports  Report – a compilation of data that is organized and produced in printed format  Report generators

© 2006 Pearson Education Canada Inc.3-9 Key Database Activities Database Design Database Design  Must be organized  Few or no redundancies  Data model – a map of entity relationships  Keys  Primary key  Combination primary key  Secondary key

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© 2006 Pearson Education Canada Inc.3-11 Key Database Activities Database Associations Database Associations  One-to-one (teams to stadiums)  One-to-many (player to team)  Many-to-many (players to games)

© 2006 Pearson Education Canada Inc.3-12 Key Database Activities The Relational Model of Databases The Relational Model of Databases  Entities linked by a common key field  Records = rows  Fields = columns  Other models exist  Hierarchical  Network  Object-oriented model

© 2006 Pearson Education Canada Inc.3-13 Key Database Activities Normalization Normalization  A technique for making complex databases more efficient and more easily handled by the DBMS  Eliminates data redundancy

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© 2006 Pearson Education Canada Inc.3-16 How Organizations Get the Most from Their Data Linking Web Sites to Databases Linking Web Sites to Databases  Example: Amazon  2.5 million titles  Managing online data effectively

© 2006 Pearson Education Canada Inc.3-17 Marketing: Pizza Hut Pizza Hut uses Teradata Warehouse Miner data mining software for competitive intelligence Pizza Hut uses Teradata Warehouse Miner data mining software for competitive intelligence Their data warehouse contains data from POS on 40 million households: 40-50% of NA market Their data warehouse contains data from POS on 40 million households: 40-50% of NA market Recovered the cost of licensing, integrating, and staff training in the first quarter of implementation Recovered the cost of licensing, integrating, and staff training in the first quarter of implementation The ability to group household segments into target markets has turned direct mail from a break- even cost centre into a profit centre The ability to group household segments into target markets has turned direct mail from a break- even cost centre into a profit centre Benefits include minimizing data redundancy, reduced proprietary data structures and simplified management Benefits include minimizing data redundancy, reduced proprietary data structures and simplified management

© 2006 Pearson Education Canada Inc.3-18 How Organizations Get the Most from Their Data Data Mining Data Mining  A method for better understanding data  Information on customers, products, markets, etc.  Drill down: from summary to more detailed data  Sort and extract information  Trends, correlations, forecasting, statistics

© 2006 Pearson Education Canada Inc.3-19 How Organizations Get the Most from Their Data Data Warehousing Data Warehousing  Integrating multiple large databases into a single repository  Queries, analysis, and processing  Purpose: Put key business information into the hands of decision makers  Cost: Millions