1. Data Management MIS 503 Management Information Systems MBA Program

2. Definitions Database: A DB is an organized collection of logically related data Data: stored representations of meaningful objects and events –Structured: numbers, text, dates –Unstructured: images, video, documents Information: data processed to increase knowledge in the person using the data Metadata: data that describes the properties and context of user data

3. Data Entities, Attributes, and Keys An entity is a generalized class of people, places, or things for which data is collected, stored, and maintained. A attribute is a characteristic of an entity. Data item - a value of an attribute can be found in the fields of the record describing an entity.

4. What Should an Entity Be? SHOULD BE: –An object that will have many instances in the database –An object that will be composed of multiple attributes –An object that we are trying to model SHOULD NOT BE: –A user of the database system –An output of the database system (e.g. a report)

5. Key Fields Keys are special fields that serve two main purposes: –Primary keys are unique identifiers of the relation in question. Examples include employee numbers, social security numbers, etc. This is how we can guarantee that all rows are unique –Foreign keys are identifiers that enable a dependent relation (on the many side of a relationship) to refer to its parent relation (on the one side of the relationship) –A secondary key is a field in a record that does not uniquely identify the record but which is used to look up fields (e.g., Last Name) in, for example, and index –Candidate Key – an attribute that could be a key…satisfies the requirements for being a key Keys can be simple (a single field) or composite (more than one field)

6. Data Model A data model is a diagram of entities and their relationships. Data modeling involves understanding a specific business problem and analyzing the data and information needed to deliver a solution. The data model will be optimized to balance storage efficiency and query efficiency

7. E-R Diagrams Entity-relationship (ER) diagrams use graphical diagrams to demonstrate the organization of and relationships between entities. Relationships include: –one-to-many (1:N) –one-to-one (1:1) –many-to-many (N:M)

8. ER Modeling

10. Relational Model - the relational model describes data using a standard tabular format –All data elements are placed in two-dimensional tables, called relations –A relation contains rows (tuples, records) and columns (attributes, fields) with each intersecting cell containing an item of data Each attribute has a domain, which is the structure or constraints on the type of data an attribute can hold Relational Database Model

11. Data Management Issues Data redundancy – Un-needed duplication of data Data integrity – Can we rely on the data? –Is it accurate? –Is it secure? Program-data dependence - programs and data that are developed and organized so that the data is linked to the application program and the data is incompatible with other programs or data management tools

12. The Database Approach to Data Management The database approach –Central repository of shared data –Data is managed by a controlling agent –Stored in a standardized, convenient form To implement a database one must have a Database Management System (DBMS)

13. Database Management Systems (DBMS) A database management system is a group of programs used as an interface between a database and application programs or a database and the user. –DBMSs are classified by the type of database model they support. –Modern information systems are usually built on data housed in one or more DBMS

14. Page 139 T ECHNICAL A SPECTS OF M ANAGING THE D ATA R ESOURCE A DBMS helps manage data by providing seven functions: 1.Data storage, retrieval, update 2.Backup 3.Recovery 4.Integrity control 5.Security control 6.Concurrency control 7.Transaction control Tools for Managing Data

15. Advantages of DBMSs Reduced data redundancy. Improved data integrity. Faster program development. Easier modification and updating. Data and program independence. Standardization of data access. A framework for program development. Better overall protection of the data. Shared data and information resources.

16. Data Normalization A common problem with data organization is that data are often not well organized –Anomalies are problems and irregularities in data. –Data anomalies often result in giving users incorrect information, causing them to be misinformed about actual business conditions. If data are not well organized, the table may need to be normalized…

17. Well-Structured Relations A relation that contains minimal data redundancy and allows users to insert, delete, and update rows without causing data inconsistencies Goal is to avoid anomalies –Insertion Anomaly – adding new rows forces user to create duplicate data –Deletion Anomaly – deleting rows may cause a loss of data that would be needed for other future rows –Modification Anomaly – changing data in a row forces changes to other rows because of duplication General rule of thumb: a table should not pertain to more than one entity type

18. What’s wrong with this table?

19. An Example of Normalization Click here to view a step-by-step example of normalizationhere

20. Page 137 T ECHNICAL A SPECTS OF M ANAGING THE D ATA R ESOURCE Database Architecture Database – shared collection of logically related data, organized to meet needs of an organization Database Architecture – way in which the data are structured and stored in the database

21. Page 137 Figure 5.3 The Data Pyramid

22. The Three-level DB Schema

23. Schema - a general description of the entire database that shows all of the record types and their relationships. –A user view (external schema) is the portion of the database a user can access. –The conceptual view is the logical design of the database (how should the database be organized regardless of physical constraints) –The internal view (physical view) is the physical storage structure for the database A subschema shows only some of the records and their relationships in the database. Database Schemas

24. SQL Structured Query Language - a query language is a specialized type of data manipulation language. Query languages make retrieving information and manipulating a database easy and fast. SQL - structured query language.

25. Structured Query Language (SQL) Basic structure of a SQL expression –The select clause lists the attributes desired in answer to a query –The from clause is a list of relations or tables that the query language processor should consult in filling the request –The where clause describes the attributes desired in the answer

26. Emerging Database Trends

27. Distributed Databases Distributed Processing - involves placing processing units at different locations and typing them together with data communications equipment and systems. –A distributed database is a database in which the actual data may be spread across several small databases connected via telecommunication devices.

28. Storage Area Networks (SAN) High-speed, special purpose network or subnet that interconnects different kinds of storage devices with associated data servers to benefit a larger network of users. Part of an overall network for computing resources. Usually physically located near larger computing resources such as a mainframe or server.

29. Network-Attached Storage (NAS) Hard disk storage with its own network address rather than being attached to a server or workstation. Includes: –Multi-disk Redundant Arrays of Integrated Disks (RAID) systems –Software to configure and map file locations –Designed to handle a variety of network protocols

30. The Data Warehouse Businesses collect a tremendous amount of transactions data from routine operations These data can be analyzed to understand the business better –Requires multidimensional analysis called Online Analytical Processing (OLAP) –Helps create a learning organization that is better able to understand its markets, customers and itself

31. Definition Data WarehouseData Warehouse: –A subject-oriented, integrated, time-variant, non- updatable collection of data used in support of management decision-making processes –Subject-oriented: e.g. customers, patients, students, products –Integrated: Consistent naming conventions, formats, encoding structures; from multiple data sources –Time-variant: Can study trends and changes –Nonupdatable: Read-only, periodically refreshed Data MartData Mart: –A data warehouse that is limited in scope

32. star schema Components of a star schema Fact tables contain factual or quantitative data Dimension tables contain descriptions about the subjects of the business 1:N relationship between dimension tables and fact tables Dimension tables are denormalized to maximize performance

35. Data Mining Discovers interesting structure in large amounts of data This structure consists of –Patterns –Statistical or predictive models of the data –Relationships between the data Applied extensively to customer data –Allows firms to determine for instance which products sell together

36. Reasons for Data Mining Increasing business unit and overall profitability Understanding customer desire and needs Identifying profitable customers and acquiring new ones Retaining customers and increasing loyalty Increasing ROI and reducing costs on promotions Cross-selling and up-selling Detecting fraud, waste, and abuse Determining credit risks Increasing web site profitability Increasing store traffic and optimizing store layouts Monitoring business performance

37. Approaches to Data Mining Visualization Statistical techniques Search and optimization Artificial intelligence (e.g., neural networks)

38. Object-Oriented Databases Traditionally relational databases supported a limited number of data types –Alphabet, numeric, dates, and time Modern organizations use a variety of data –Graphics objects, audio clips, videos, subscripted arrays, and complex data for data mining RDBMS vendors have extended their packages to handle such data objects

39. Threats to Data Security Accidental losses attributable to: –Human error –Software failure –Hardware failure Theft and fraud. Improper data access: –Loss of privacy (personal data) –Loss of confidentiality (corporate data) Loss of data integrity Loss of availability (through, e.g. sabotage)

40. Data Management Security Techniques/Procedures Views or subschemas Integrity controls Authorization rules User-defined procedures Encryption Authentication schemes Backup, journalizing, and checkpointing

41. The need to manage data is permanent Data can exist at several levels Application software should be separate from the database Application software can be classified by how they treat data 1.Data capture 2.Data transfer 3.Data analysis and presentation M ANAGERIAL I SSUES IN M ANAGING D ATA Page 140 Principles in Managing Data

42. Application software should be considered disposable Data should be captured once There should be strict data standards M ANAGERIAL I SSUES IN M ANAGING D ATA Page 143 Principles in Managing Data

43. M ANAGERIAL I SSUES IN M ANAGING D ATA Page 144 The Data Management Process Figure 5.6 Asset Management Functions

44. M ANAGERIAL I SSUES IN M ANAGING D ATA Organizations should have policies regarding: –Data ownership –Data administration Page 148 Data Management Policies

45. M ANAGERIAL I SSUES IN M ANAGING D ATA Page 148 Data Ownership Corporate information policy – foundation for managing the ownership of data

46. Page 149 Figure 5.8 Example Data Access Policy

47. Data Administration Page 150 Key functions of the data administration group: Promote and control data sharing Analyze the impact of changes to application systems when data definitions change Maintain the data dictionary Reduce redundant data and processing Reduce system maintenance costs and improve system development productivity Improve quality and security of data Insure data integrity M ANAGERIAL I SSUES IN M ANAGING D ATA

48. Data Administration Page 150-151 Key functions of the database administrator (DBA): Tuning database management systems. Selection and evaluation of and training on database technology. Physical database design. Design of methods to recover from damage to databases. Physical placement of databases on specific computers and storage devices. The interface of databases with telecommunications and other technologies. M ANAGERIAL I SSUES IN M ANAGING D ATA

49. CRM Customer relationship management (CRM): A customer service approach that focuses on building long-term and sustainable customer relationships that add value both for the customer and the company

50. CRM Classification of CRM programs –Loyalty program –Prospecting –Save or win back –Cross-sell/up-sell eCRM: Customer relationship management conducted electronically

51. CRM Extent of service 1.Customer acquisition (prepurchase support) 2.Customer support during purchase 3.Customer fulfillment (purchase dispatch) 4.Customer continuance support (postpurchase)

52. CRM Benefits of CRM –Provides: choices of products and services fast problem resolution and response easy and quick access to information Limitations of CRM –Requires integration with a company’s other information systems which is costly –Difficult to support mobile employees

53. CRM Five factors required to implement a CRM program effectively: 1.Customer-centric strategy 2.Commitments from people 3.Improved or redesigned processes 4.Software technology 5.Infrastructure

54. CRM Applications and Tools Classifications of CRM applications –Customer-facing applications –Customer-touching applications –Customer-centric intelligence applications –Online networking and other applications

55. CRM Applications and Tools Customer-facing applications Customer interaction center (CIC): A comprehensive service entity in which EC vendors address customer service issues communicated through various contact channels Intelligent agents in customer service and call centers

56. CRM Applications and Tools

57. CRM Applications and Tools (cont.) Customer-touching applications –Personalized Web Pages –E-Commerce Applications –Campaign Management

58. CRM Applications and Tools (cont.) –Web Self-Service Activities conducted by users on the Web to provide answers to their questions (e.g., tracking) or for product configuration Self-tracking Self-configuration and customization

59. CRM Applications and Tools Customer-centric applications –Data reports –Data warehouse A single, server-based data repository that allows centralized analysis, security, and control over the data

60. CRM Applications and Tools Data analysis and mining –Analytic applications automate the processing and analysis of CRM data can be used to analyze the performance, efficiency, and effectiveness of an operation’s CRM applications –Data mining involves sifting through an immense amount of data to discover previously unknown patterns

61. CRM Applications and Tools Online networking and other applications –Forums –Chat rooms –Usenet groups –E-mail newsletters –Discussion lists

62. CRM Applications and Tools Mobile CRM the delivery of CRM applications to any user, whenever and wherever needed Voice communication people are more comfortable talking with a person, even a virtual one, than they are interacting with machines. The smile and the clear pronunciation of the agent’s voice increases shoppers’ confidence and trust

63. CRM Applications and Tools

64. Role of knowledge management and intelligent agents in CRM –Automating inquiry routing and answering queries requires knowledge –Generated from historical data and from human expertise and stored in knowledge bases for use whenever needed –Intelligent agents support the mechanics of inquiry routing, autoresponders, and so on

65. 7 Habits of Highly Effective Data Modelers* Immerse –Immerse yourself in the task environment to find out what the client wants Challenge –Challenge existing assumptions; dig out the exceptions and test the boundaries of the model Generalize –Reduce the number of entities whenever possible; simpler is easier to understand Test –Read it to yourself and to others to see if it makes sense and is relevant to the problem * adapted from R. Watson (1999)

66. 7 Habits of Highly Effective Data Modelers Limit –Set reasonable limits to the time and scope of the data modeling activities. Identify the core entities and attributes that will solve the problem and stick to those Integrate –Identify how your project’s model fits with the organization’s information architecture. Can it be integrated with the corporate data model? Look at the big picture. Complete –Don’t leave the data model ill-defined. Define entities, attributes, and relationships carefully.

67. Questions?