1. Chapter 3 Database Management
Information Systems Today
Leonard Jessup and Joseph Valacich

2. Chapter 3 Objectives
Understand why databases are important to modern organizations
Understand how databases work
Understand how organizations can maximize their strategic potential with databases

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

4. Database Management for Strategic Advantage
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

5. Database Management for Strategic Advantage
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

6. Database Management for Strategic Advantage
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

7. Key Database Activities
Entering and Querying Data
Form
Structured Query Language (SQL)
Query by example (QBE)

8. Key Database Activities
Creating Database Reports
Report – a compilation of data that is organized and produced in printed format
Report Generators

9. Key Database Activities
Database Design
Must be organized
Few or no redundancies
Data model – a map of entity relationships
Keys
Primary key
Combination primary key
Secondary key

11. Key Database Activities
Database Associations
One-to-one (teams to stadiums)
One-to-many (player to team)
Many-to-many (players to games)

12. Key Database Activities
Entity-Relationship Diagramming (ERD)
Commonly used when designing databases
One draws entities (tables) as boxes and lines between entities to show relationships

13. Key Database Activities
The Relational Model of Databases
Entities linked by a common key field
Records = rows
Fields = columns
Other models exist
Hierarchical
Network
Object-oriented model

14. Key Database Activities
Normalization
A technique for making complex databases more efficient and more easily handled by the DBMS
Eliminates data redundancy

17. Key Database Activities
Data Dictionary
A document that explains each piece of information in the database
Field name
Data type
Numeric, text, date/time
Useful for sorting and allocating storage
Is this field a key field?
Business rules
Update authority
Valid data values

18. How Organizations Get the Most from Their Data
Linking Web Sites to Databases
Example: Amazon
2.5 million titles
Managing online data effectively

19. How Organizations Get the Most from Their Data
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

20. How Organizations Get the Most from Their Data
Data Mining
Online Transaction Processing (OLTP)
Immediate automated responses to user requests
Multiple concurrent transactions
A big part of interactive Internet e-commerce

21. How Organizations Get the Most from Their Data
Data Mining
Online Analytical Processing (OLAP)
Graphical software tools that provide complex analysis of data stored in a database
Drills down to deeper levels of consolidation
Time series and trend analysis
“What if” and “why” questions

22. How Organizations Get the Most from Their Data
Data Mining
Merging Transaction and Analytical Processing
Real-time OLAP diminishes performance because the database must be “locked” during execution time
Solution: replicate transactions on a 2nd database server

23. How Organizations Get the Most from Their Data
Data Mining
Merging Transaction and Analytical Processing
Operational Systems
Interact with customers and run a business in real time
Examples: Order processing, reservation systems
Informational Systems
Support decision making based on stable point-in-time or historical data

24. How Organizations Get the Most from Their Data
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

25. How Organizations Get the Most from Their Data
Data Marts
Instead of one large data warehouse, many organizations create multiple data marts
Each contains a subset of the data
Example: finance, inventory, personnel
Each data mart is customized for particular DSS applications
Cost: typically less than $1 million