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5 Data Resource Management
CHAPTER OVERVIEW
Chapter 5: Data Resource Management emphasizes management of the data resources of computer–using
organizations. This chapter reviews key database management concepts and applications in business information
systems.
LEARNING OBJECTIVES
After reading and studying this chapter, you should be able to:
1. Explain the business value of implementing data resource management processes and technologies in an
organization.
4. Provide examples to illustrate each of the following concepts:
a. Major types of databases.
SUMMARY
• Data Resource Management. Data resource management is a managerial activity that applies information
technology and software tools to the task of managing an organization’s data resources. Early attempts to manage
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• Database Management. The database management approach affects the storage and processing of data. The data
• Database Software. Database management systems are software packages that simplify the creation, use, and
maintenance of databases. They provide software tools so that end users, programmers, and database administrators
can create and modify databases; interrogate a database; generate reports; do application development; and perform
database maintenance.
• Types of Databases. Several types of databases are used by business organizations, including operational,
• Data Access. Data must be organized in some logical manner on physical storage devices so that they can be
efficiently processed. For this reason, data are commonly organized into logical data elements such as characters,
• Database Development. The development of databases can be easily accomplished using microcomputer database
KEY TERMS AND CONCEPTS
1. Data dependence ():
The degree to which a given software application depends on the format of stored data. The greater the
dependence on format, the greater the long-term program maintenance costs.
2. Data dictionary ():
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5. Data mining ():
A process where data in a data warehouse is searched and analyzed to discover useful, new insights.
6. Data modeling ():
A process where the relationships between data elements are identified and defined.
7. Data redundancy ():
8. Data resource management ():
A managerial activity that applies information systems technology and management tools to the task of
9. Database administrator (DBA) ():
A specialist responsible for the development, maintenance, and security of an organization’s databases.
11. Database management approach ():
An approach to the storage and processing data in which independent files are consolidated into a common pool
12. Database management system – DBMS ():
A set of computer programs that controls the creation, maintenance, and use of an organization’s databases.
13. Database structure ():
The manner or format in which data are organized within files.
a. Hierarchical structure ():
A logical data structure in which the relationships between records form a hierarchy or tree structure. The
relationships among records are one-to-many, since each data element is related only to the parent element
stored above it.
14. Duplication ():
A process that copies one master database to multiple sites at pre-arranged times; also known as “mirroring”.
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15. File processing ():
16. Logical data elements ():
A conceptual framework of several levels of data representing various data groupings.
a. Attribute ():
A characteristic or quality of an entity.
b. Character ():
The most basic logical data element, consisting of a single alphabetic, numeric, or other symbol.
17. Metadata ():
Data describing the attributes, entities, relationships, and other characteristics of a database.
18. Replication ():
19. Structured Query Language ():
20. Types of databases ():
There are several major conceptual categories of databases that may be found in many organizations. These
include:
a. Data warehouse ():
A central store of data that has been copied from various organizational databases, standardized, and
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d. Hypermedia ():
A website stores information in a database consisting of a home page and other hyperlinked pages of
ANSWERS TO REVIEW QUIZ
Q.
A.
Key Term
Q.
A.
Key Term
1
Database integration
20
Relational model
2
Data integration
21
Multidimensional model
3
Database administrator (DBA)
22
Operational
4
23
Data warehouse
5
Data dictionary
24
External
6
Database interrogation
25
Data dependence
7
Database management system (DBMS)
26
Database structures
8
Distributed
27
Character
9
Object-oriented model
28
Replication
10
Hypermedia
29
Data integrity
11
Data resource management
30
Metadata
12
Data mining
31
Attribute
13
Data modeling
32
Types of databases
14
Field
33
Data redundancy
15
Record
34
Duplication
16
35
Entity
17
Database
36
Network structure
18
File processing
37
Logical data elements
19
Hierarchical structure
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ANSWERS TO DISCUSSION QUESTIONS
1. How should a business store, access, and distribute data and information about its internal operations
and external environment?
Store
Businesses should take a database management approach and store vital information in the form of structured
databases. These databases help a business organize and store information for access by individuals and
2. What role does database management play in managing data as a business resource?
Data is an asset and should be treated as such. Some data poses a liability should it fall into the wrong hands.
As a result, data is a critical organizational resource that requires professional management. This management
3. What are the advantages of a database management approach to the file processing approach? Give
examples to illustrate your answer.
Advantages:
The database management approach consolidates data records and objects into databases that can be accessed
by many different applications. The management software serves as an interface between applications and
4. Refer to the Real World Challenge in the chapter. In the case, it is quite evident that data were either
unavailable or inaccurate to the point that business decisions could not rely on them too much. Who was
responsible for the company being in that state of affairs?
From the case as written, it is not evident exactly who was responsible for this state of affairs. Most probably
the blame lay with several people in different areas. However, it was ultimately the responsibility of the IS/IT
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department to make the data “clean” and useable. When the systems were first set up it should have been
evident to the persons in charge of developing the systems that the data were being stored in different
5. What is the role of a database management system in a business information system?
6. In the past, databases of information about a firm’s internal operations were the only databases that
were considered important to a business. What other kinds of databases are important for a business
today?
Important databases:
• Competitors products, prices, promotions, and markets
7. Refer to the Real World Solution in the chapter. Although trucking companies would not generally be
considered part of the “new economy,” they are nonetheless heavily reliant on data. Are all companies,
both old and new, going the way of becoming data–driven when it comes to running them? Was this
always the case?
Even though trucking companies are not generally considered part of the “new economy” per se, their reliance
on data makes their very success and profitability extremely reliant on the very thing that creates the new
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8. What are the benefits and limitations of the relational database model for business applications today?
Benefits:
• Most popular of the three main database structures.
9. Why is the object-oriented database model gaining acceptance for developing applications and managing
the hypermedia databases on business Web sites?
Object-oriented databases are able to handle complex types of data (graphics, pictures, voice, and text) better
10. How have the Internet, intranets, and extranets affected the types and uses of data resources available to
business professionals? What other database trends are also affecting data resource management in
business?
Effects:
Networks allow business professionals to access and share information. Internet technologies have expanded
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ANSWERS TO ANALYSIS EXERCISES
1. Joining Tables
Notes: most businesses need the information a system provides and not the other way around. Encourage
students to focus on their business needs. These needs form the basic assumptions behind any design and
development exercise.
a. Using these data, design and populate a table that includes basic training rate information. Designate the
“Technical” field type as “Yes/No” (Boolean).
b. Using these data, design and populate a course table. Designate the CourseID field as a “Primary Key”
and allow your database to automatically generate a value for this field. Designate the “Technical” field
type as “Yes/No” (Boolean).
2. Training-Cost Management
a. Using the information provided in the sample below, add a course schedule table to your training
database. Designate the ScheduleID field as a “Primary Key” and allow your database program to
generate a value for this field automatically. Make the CourseID field a number field and the StartDate
field a date field.
See Analysis Exercise Data Solutions files: [Chapter 05 – Solutions.mdb].
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d. What are the advantages and disadvantages of using the participant’s name and e-mail address in the
Class Roster table? What other database design might you use to record this information?
Advantages:
• Allows the instructor to record a different or “custom” version of the student’s name and e-mail address
e. Write a query that shows how many people have registered for each scheduled class. Include the class
name, capacity, date, and count of attendees.
3. Selling the Sawdust
a. What are your college’s or university’s policies regarding student directory data?
Policy manuals typically cover student and faculty behavior but rarely include operational policies, though this
b. Does your college or university sell any of its student data? If your institution sells student data, what
data do they sell, to whom, and for how much?
Student privacy is a hot topic, so this information may be hard to find. On the other hand, this avenue of
c. If your institution sells data, calculate the revenue earned per student. Would you be willing to pay this
amount per year in exchange for maintaining your privacy?
This is an open-ended question with no right or wrong answer. It should also make an interesting in-class
discussion topic.
Along a similar line of discussion, many credit card companies purchase instant credit scoring services that
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4. Data Formats and Manipulation
Note: though the names and organization have been changed, this exercise represents a real-world problem.
This exercise introduces students to the CSV format and familiarizes them with its structure and capabilities.
a. Download and save “partners.csv” from the MIS 9e OLC. Open the file using Microsoft Word.
Remember to look for the “csv” file type when searching for the file to open. Describe the data’s
appearance.
The first line will contain field names. The CSV format doesn’t require it, but it helps assure that users interpret
b. Import the “partner.csv” file into Excel. Remember to look for the “csv” file type when searching for the
file to open. Does Excel automatically format the data correctly? Save your file as “partner.xls.”
Excel recognizes the CSV format and will import and format CSV data correctly, but it does so only as long as
c. Describe in your own words why you think database manufacturers use common formats to import and
export data from their systems.
By using a common format, database manufacturers ensure that their system can communicate information
whole world use nothing but their own proprietary systems, their customers demand this interoperability.
5. Cloud Data Transience
AVOS Buys Yahoo’s Delicious…
1
Delicious, Yahoo’s poorly named online bookmarking application, has a stagnant but loyal customer base. Delicious
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1) What types of data do people maintain online for their personal use? Make a list.
Types of data people maintain online include:
• E-mail – containing just about anything
2) Can you transfer your personal notes from MySpace to a new Facebook? What difficulties would you
encounter?
3) What are the advantages to keeping data online?
Advantages:
• Free or inexpensive storage
4) What are the disadvantages to keeping data online?
Disadvantages
• May disappear any time
ANSWERS TO REAL WORLD CHALLENGE/SOLUTION
Real World Challenge
1. This case chronicles the many issues associated with the IT environment in which U.S. Xpress currently
operates. How did U.S. Xpress get into this situation? Was this the result of different business priorities
in the past? If so, which ones? What are the lessons for companies that frequently acquire other
business?
a) Background
• early technology adopter – on-board satellite systems
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2. Moving forward, what does U.S. Xpress need to do in the future regarding its IT infrastructure in
general, and its data issues in particular? What do you think should be the next three steps the company
should take?
Next steps
• migrate to a single platform
3. Should companies take a periodic (e.g., clean every so often) approach or a continuous, more expensive,
approach to data quality? What are the advantages and disadvantages of each?
Recommendations
• conduct periodic data audits
Continuous cleaning advantages
• consistent quality
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Real World Solution
1. Once the technical aspects of data quality are put in place, who should be in charge of making decisions
about these issues? Is this a technical responsibility or a business one? What are the advantages and
disadvantages of either approach?
Who should be in charge of making decisions?
• business leaders with input from technology leaders
Technical responsibility – advantages
• efficiency
2. Are the benefits outlined in the case the result of better technology or improved decision making? Today,
is it possible to clearly separate the two anymore? What are the implications for U.S. Xpress as it decides
where to go next and how to invest in future projects?
Better technology
• better technology isn’t a benefit in and of itself
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ANSWERS TO REAL WORLD CASES
RWC 1: Beyond Street Smarts
Case Study Questions
1. What are some of the most important benefits derived by the law enforcement agencies mentioned in the
case? How do these technologies allow them to better fight crime? Provide several examples.
Benefits
• Analyze historic patterns
• Assess risk
2. How are the data-related issues faced by law enforcement similar to those that could be found in
companies? How are they different? Where do these problems come from? Explain.
Similarities
• Large data volumes
• Value in data mining
3. Imagine that you had access to the same crime-related information as that managed by police
departments. How would you analyze this information, and what actions would you take as a result?
Analysis
• Track patterns to find persistent prolific offenders, high crime areas, and high crime targets.
Actions
• Communicate and cooperate more effectively with other agencies.
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Real World Activities
1. The case discusses many issues related to data quality, sharing, and accessibility that both government
bodies and for-profit organizations face. Go online and research how these issues manifest themselves in
companies, and some of the approaches used to manage them. Would those apply to police departments?
Prepare a report to share your findings.
Data Quality
• Push data capture closer to the data source
2. The case discusses the large volume of very detailed information collected daily by law enforcement
agencies. Knowing this, how comfortable do you feel about the storing and sharing of that data? What
policies would you put in place to assuage some of those concerns? Break into small groups with your
classmates to discuss these issues and arrive at some recommendations.
Comfort, in this case, is a matter of personal opinion. Law and order advocates take the position that the
2
One topic directly related to this includes sex offenders registries. The registries were intended to alert the public
and encourage public vigilance. However, some people have used this data to harass and even murder registered
offenders.
3
For example, while federal law bars the sale of weapons to people with certain mental illness, various state laws
may prohibit communicating this information to any other agency.
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RWC 2: Duke University Health System, Beth Israel Deaconess Medical Center, and Others
Case Study Questions
1. What are the benefits that result from implementing the technologies described in the case? How are
those different for hospitals, doctors, insurance companies and patients? Provide examples of each from
the case.
Benefits
• Real-time care
2. Many of the technologies described in the case require access to large volumes of data in order to be
effective. At the same time, there are privacy considerations involved in the compiling and sharing of
such data. How do you balance those?
Balancing privacy recommendations
• Limit access to patient identities
3. What other industries that manage large volumes of data could benefit from an approach to technology
similar to the one described in the case? Develop at least one example with sample applications.
All of them.
Valuable data with strong personal privacy issues
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Real World Activities
1. The legal and regulatory environment of the health care industry has changed significantly in recent
times. How does this affect technology development and implementation in these organizations. Go online
and research new uses of information technology in health care motivated by these developments.
Prepare a presentation to share your findings.
Regulatory effects
• Significant IT commitments
• Non-regulatory projects put on hold
2. Some of the technologies described in the case verify the diagnostics made by doctors and can sometimes
make recommendations of their own. Does this improve the quality of care, or are these organizations
putting too much faith on a computer algorithm that did not attend medical school? Break into small
groups to discuss this and provide some recommendations about what organizations should do before
deploying these technologies in the field, if anything.
Faith in technology
At present, systems make recommendations to doctors. So long as doctors remain the final arbiters of treatment
decisions, then these systems pose little additional risk. While the system’s programmer may not have