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5 Data Resource Management
CHAPTER OVERVIEW
Chapter 5: Data Resource Management emphasizes management of the data resources of computer–using
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.
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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
• Database Management. The database management approach affects the storage and processing of data. The data
needed by different applications are consolidated and integrated into several common databases instead of being
• 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,
distributed, and external databases. Data warehouses are a central source of data from other databases that have been
• 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
management packages for small end-user applications. However, the development of large corporate databases
requires a top-down data planning effort that may involve developing enterprise and entity relationship models,
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KEY TERMS AND CONCEPTS
1. Data dependence (203):
2. Data dictionary (188):
A software application and database containing descriptions and definitions concerning the structure, data
elements, interrelationships, and other characteristics of an organization’s databases.
7. Data redundancy (203):
The degree to which data has been duplicated between various files and databases. The greater the redundancy,
the more difficult data maintenance tasks become.
8. Data resource management (193):
A managerial activity that applies information systems technology and management tools to the task of
managing an organization’s data resources. Its three major components are database administration, data
administration, and data planning.
12. Database management system – DBMS (204):
A set of computer programs that controls the creation, maintenance, and use of an organization’s databases.
13. Database structure (183):
The manner or format in which data are organized within files.
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b. Multidimensional model (185):
A relational database containing summary information cross tabulated by various data categories.
14. Duplication (197):
A process that copies one master database to multiple sites at pre–arranged times; also known as “mirroring”.
15. File processing (202):
16. Logical data elements (178):
A conceptual framework of several levels of data representing various data groupings.
a. Attribute (178):
A characteristic or quality of an entity.
b. Character (178):
The most basic logical data element, consisting of a single alphabetic, numeric, or other symbol.
A collection of related data fields that taken together describe a single entity.
17. Metadata (188):
Data describing the attributes, entities, relationships, and other characteristics of a database.
18. Replication (197):
A periodic two-way exchange of information additions, deletions, and changes between databases so they once
again contain identical information.
19. Structured Query Language (206):
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20. Types of databases (193):
There are several major conceptual categories of databases that may be found in many organizations. These
include:
a. Data warehouse (199):
A central store of data that has been copied from various organizational databases, standardized, and
integrated for use throughout an organization.
b. Distributed (193):
The concept of mirroring or replicating databases or portions of a database to remote sites where the data is
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ANSWERS TO REVIEW QUIZ
Q.
A.
Key Term
Q.
A.
Key Term
1
11
Database integration
20
13e
Relational model
2
3
Data integration
21
13b
Multidimensional model
8
20b
Distributed
27
16b
Character
9
13d
Object-oriented model
28
18
Replication
10
20d
Hypermedia
29
4
Data integrity
11
8
Data resource management
30
17
Metadata
12
5
Data mining
31
16a
Attribute
13
6
Data modeling
32
20
Types of databases
14
16e
Field
33
7
Data redundancy
15
16g
Record
34
14
Duplication
16
16f
35
16d
Entity
17
16c
Database
36
13c
Network structure
18
15
File processing
37
16
Logical data elements
19
13a
Hierarchical structure
3
9
Database administrator (DBA)
22
20e
Operational
4
19
Structured Query Language (SQL)
23
20a
Data warehouse
5
2
Data dictionary
24
20c
External
6
10
Database interrogation
25
1
Data dependence
7
12
Database management system (DBMS)
26
13
Database structures
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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
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4. Refer to the Real World Case on Data-Driven Crime Fighting in the chapter. Given the very
decentralized nature of law enforcement, with more than 18,000 units in the United States alone, what can be
done to encourage sharing information across organizational boundaries? Would an ad-hoc approach suffice,
or is a central coordinating body needed? What are the implications of creating such an organization?
To increase information sharing, law enforcement agencies might start with developing standard data structures
5. What is the role of a database management system in a business information system?
The DBMS is to data what an operating system is to a computer. It allows application developers to focus on
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 Case on Medical IT in the chapter. What do these automated or semi-automated
technologies spell for the future of medicine? How much of this discipline can be captured using these
algorithms. What about pharmacy?
Future of medicine
Automated systems can help reduce human error rates in diagnosis, treatment, medication, and billing.
Algorithms
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.
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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).
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].
b. Using the information provided in the sample below, add a class roster table to your training database.
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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:
Disadvantages:
Alternative design:
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.
See Analysis Exercise Data Solutions files: [Chapter 05 – Solutions.mdb].
3. Selling the Sawdust
a. What are your college’s or university’s policies regarding student directory data?
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?
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.
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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.
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
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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
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.
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Actions
• Communicate and cooperate more effectively with other agencies.
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
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
authors of the U.S. Constitution and its amendments did not see fit to specifically mention “privacy”. Our
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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
• Identify experimental treatment candidates
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
• Inform patient of how their records are maintained and used
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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
• Customer data
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
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RWC 3: Cogent Communications, Intel, and Others
Case Study Questions
1. Place yourself in the role of a manager at a company undergoing a merger or acquisition. What would be
the most important things customers would expect from you while still in that process? What role would IT
play in meeting those expectations? Provide at least three examples.
Role:
Customers expect the same or better service than they are currently receiving – though they likely fear a service
2. Focus on what Andi Mann in the case calls “tribal knowledge.” What do you think he means by that, and
why is it so important to this process? What strategies would you suggest for companies that are faced with
the extensive presence of this issue in an acquired organization? Develop some specific recommendations.
Tribal knowledge: is the organizational knowledge maintained in the minds of its employees. In many cases,
only experienced employees possess information about who does what, when, and why. While these employees
3. Most of the discussion on the case focused on hardware and software issues. However, these are
essentially enablers for underlying business processes developed by each of the companies involved. What
different alternatives do companies have for merging their business processes, and what role would IT play in
supporting those activities? Pay particular attention to data management and governance issues.
Alternative:
1) Merge everything starting with areas resulting in the greatest cost savings or enabling the most significant
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Real World Activities
1. The case extensively discusses the idea of “virtualization” and the role it plays in the merger process. Go
online to research this concept and prepare a report about what it entails, how it works, what are its
advantages and disadvantages, and other applications in addition to those noted in the case.
Virtualization: Machine virtualization uses a control program to simulate hardware environments in order to
host a variety of applications. It stands between the application and the computer‘s operating system.
2. Search the Internet for reports of merger and acquisition cases where IT issues played an important role,
either positive or negative. How did different organizations handle IT-related matters in the situations you
found? What was the ultimate outcome of the process? Prepare a presentation to share your findings with the
class.
Negative: lack of advance preparation, misalignment between IT and strategy, complexity, lack of integration
RWC 4: Applebee’s, Travelocity, and Others
1. What are the business benefits of taking the time and effort required to create and operate data
warehouses such as those described in the case? Do you see any disadvantages? Is there any reason why all
companies shouldn’t use data warehousing technology?
Benefits: these include actionable insights into business processes and the competitive environment
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2. Applebee’s noted some of the unexpected insights obtained from analyzing data about “back–of–house”
performance. Using your knowledge of how a restaurant works, what other interesting questions would you
suggest to the company? Provide several specific examples.
Suggestions:
• Analyze condiment preferences. American Airlines saved $50,000 per year simply by removing olives
from its salads – olives most people didn’t enjoy anyway.
3. Data mining and warehousing technologies use data about past events to inform better decision making
in the future. Do you believe this stifles innovative thinking, causing companies to become too constrained by
the data they are already collecting to think about unexplored opportunities? Compare and contrast both
viewpoints in your answer.
Constraining: managing a business based on the analysis of results has been likened to driving a car by looking
Real World Activities
by the company that complement those discussed in the case. What other examples can you find of companies
that have benefited from using these technologies? Prepare a report to summarize your findings.
2. In the opening of the case, Randall Parman of Applebee’s International compared data to gold. Although
it is easy to figure out the value of gold at any time, valuing data has always been subject to controversy.
Search the Internet for alternative methodologies to putting a price tag on the data assets of a company.
Contrast different approaches and share your findings with the class.
Organizations typically treat data and its maintenance as an expense. Under certain circumstances databases
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