Information Systems

Management - IS433

Semester 1, 2015

Lecture 3
2

Database, Data Warehouse, and Data Mining

Managing Data to Improve Business Performance

IS433 Information Management

Lecture 3 Learning Objectives

3

1.
2.
3.
4.
5.
6.
7.

Describe how data and document management impact profits

and performance.
Understand how managers are supported or constrained by
data quality.
Discuss the functions of databases and database management
systems.
Understand how logical views of data provide a customized
support and improve data security.
Describe the tactical and strategic benefits of data warehouses,
data marts, and data centers.
Describe transaction and analytic processing systems.
Explain how enterprise content management and electronic
records management reduce cost, support business operations,
and help companies meet their regulatory and legal
requirements.

IS433 Information Management

IT-Performance Model
4

IS433 Information Management

Applebees international learns and earns

from ITs data (Case Study)
5

The Problem:
Over the past decades, business have invested heavily in IT
infrastructures (eg. ISs) to capture, store, analyze and
communicate data.
Creation of ISs to manage and process data and the
deployment of communication networks does not generate
value, as measured by an increase in profit (profit =
revenues expenses)
Company realized that Profit increases when employees
learn from data and use data to increase revenues, reduce
expenses or both.
In the learn and earn model., from their data, they can
predict what actions will lead to the greatest increase in net
earnings.

Business uncertainty
6

What will be monthly demand for Product X over each of the

next 3 months?
Knowing demand for Product X means Knowing how
much order. Sales quantity and sales revenues are
maximized because there are no inventory shortages or
lost sales. Expenses are minimized because there is no
unsold inventory
Which marketing promotions for Product Y are customers
most likely respond to?
Knowing which marketing promotion will get the highest
response rate maximizes sales revenues while avoiding the
huge expense of a useless promotion. IS433 Information Management

Applebees international learns and earns

from ITs data
7

Applebee -- the largest casual dinning enterprise in the

world. As of 2008, 2000 Applebees restaurants operating

in 49 states and 17 countries, 510 company owned.
*** To make difference and to build CUSTOMER LOYALTY
(return visits), management wanted customers to
experience a good time while having a great meal at
attractive prices.
To achieve this goal, management had to 1. be able to
forecast demand ACCURATELY and 2. to become familiar
with customers experiences and regional food preferences.
For example, knowing which items to add to the menu
based on past food preferences helps motivate return visits.
IS433 Information Management

Problem
8

Another problem is that it is difficult to bring together huge

quantities of data located in different databases in a way

that creates value.
Without efficient processes for managing vast amounts of
customers data and turning data into usable knowledge,
companies can miss critical opportunities to find insights
hidden in the data.

IS433 Information Management

IT Solution
9

Applebee implemented an enterprise data warehouse (EDW) from

teradata (teradata.com) with data analysis capabilities that helped

management acquire and accurate understanding of sales, demand, and
costs.
EDW is a data repository whose data are analyzed and used throughout
the organization to improve responsiveness (to customer) and ultimately
net earnings.
Collect data concerning the previous days sales from all point-of-sale
(POS) systems located at every company-owned restaurant.
Organize this data to report every item sold in 15-min intervals.
Reduce time required to collect POS data from 2 weeks to 1 day.
Respond quickly to guests needs and respond to changes in guests
preferences.
Help company provide services that attract customers and build loyalty.
IS433 Information Management

Results
10

Management can collect and analyze detailed data in near

real-time using EDW.

Regional managers can select the best menu offerings and
operate more efficiently.
From customer satisfaction surveys, be able to identify
regional preferences, predict product demand and build
financial models.
Improved customers experience, satisfaction, and loyalty
Increase earnings
Total sales increased by 3.9% over prior year and opened 16
new restaurants.
IS433 Information Management

Lessons learned from this case

11

Learn Importance of timely and detailed data

collection, data analysis based on insights from data.

Learn that it is necessary to collect vast amount of
data, organize and store them PROPERLY in one
place and then use the results of analysis to make
better marketing and make strategic decisions.

IS433 Information Management

Applebees International Learns & Earns

Problem: Huge quantities of data

in many Databases.
Solution: Enterprise data
warehouse implemented.

Results: Improved
profitability.
IS433 Information Management

13

Data, Master Data, and Document

Management

IS433 Information Management

Data Management
14

Basic rule is that, to maximize earnings, companies

invest in data management technologies that increase

The opportunity to earn revenues. (Customer
relationship management)
The ability to cut expenses (Inventory
management)

To improve business processes and performance, managers

and decision makers need rapid access to data.

IS433 Information Management

Data Management
15

Data management is about the design of data

infrastructures to provide employees with

complete, timely, accurate, accessible,
understandable, and relevant data.
By definition, Data management is a structured
approach for Capturing, Storing, Processing,
Integrating, Distributing, Securing, and
Archiving data EFFECTIVELY throughout their
life cycle.

IS433 Information Management

Uncertainty: A constraint on managers

16

The viability of business decisions depends on access to

high-quality data,
Quality of data depends on effective approaches to data
management.
Too often, managers and information workers are
constrained by data that cant be trusted because they are
incomplete, out of context, outdated, inaccurate,
inaccessible require weeks to analyze
In those situations, decision maker is facing too much
uncertainty to make intelligent Business decisions.

IS433 Information Management

Uncertainty: A constraint on managers

17

Data errors and inconsistencies lead to mistakes and lost

opportunities such as failed deliveries, invoicing blunders,

and problems synchronizing data from multiple locations.
Lead to Data analysis errors that resulted from the use of
inaccurate formulas or untested models.

TransAlta is Canadian power generator company. A spreadsheet

mistake led to buying more US power transmission hedging contracts
at higher prices. The data error cost US$24 million.
In the retail sector, the cost of errors due to unreliable and incorrect
data alone is estimated to be as high as $40 billion annually
In the healthcare industry, data errors not only increase healthcare
costs by billions of dollars, but also cost thousands of lives. (Read A
Closer Look 3.1)

IS433 Information Management

Cost of Poor Quality Data

18

Cost of Poor Quality Data = Lost of Business Value +

Cost to prevent errors + Cost to correct Errors

Examples:

Loss of Business sales opportunities are missed, orders

returned because wrong items were delivered, or errors
frustrate and drive away customers.
Preventing errors amount of time taken by employees to
verify the information to avoid mistakes.
Correcting errors correction required to process
corrections to database.
Organizations with at least 1,000 knowledge workers lose ~
$5.7 million annually in time wasted by employees
reformatting data as they move among applications.
IS433 Information Management

Data Life Cycle

19
Data Sources
and Databases

Data Storage

Internal
Data

Data Marts

Data Analytics

OLAP,
Queries,
EIS, DSS

Data
Warehouse
External
Data

Results

Data
Visualization

SCM

CRM

Decision
Support
Data Marts

E-Commerse

Data
Mining
Knowledge and
its Management

Personal
expertise &
Judgement

Business
Applications

Strategy
Others

IS433 Information Management

General Data Principles

20

3 General Data Principles relate to data life cycle

perspective and help to guide IT investment

decisions;
1.
2.

3.

Principal of data diminishing value of data as they age

Principal of 90/90 data use 90 % of data stored is hardly
accessed after 90 days. Data lose much of their value after 3
months.
Principal of data in context ability to capture, process,
format, and distribute data in real time or faster requires
huge investment in data architecture

IS433 Information Management

Data Visualization
21

To format data into meaningful

contexts for users, businesses

employ data visualization and
decision support tools.
Present data in ways that are
faster and easier for users for
users to understand.
Data visualization tools are less
expensive and easier to
Table provides more precise
manipulate.
data, whereas the graph
takes much less time to
understand.
IS433 Information Management

22

IS433 Information Management

Data Management: Problems and

Challenges
23

Remember that dirty data result in poor business decisions,

poor customer service, poor product design, wasteful

situations.
Even if data are accurate, timely, and clean, they might not
be usable.
Organizations with >1000 workers lose $5.7 millions
annually in time wasted by employees reformatting data as
they move among applications.
Problems about managing, searching for, retrieving data
located throughout the enterprise is a major challenge for
various reasons

IS433 Information Management

Data Management: Problems and

Challenges
24
The volume of data increases exponentially with

time. New data are added rapidly.

Business records must be kept for a long time for
auditing or legal reasons, even though the
organization may no longer access them.

IS433 Information Management

Data Management: Problems and

Challenges
25
Data are scattered throughout organizations and are

collected and created by many individuals using different

methods and devices. Data are frequently stored in
multiple servers and locations and also in different
computing systems, databases, formats, and human and
computer languages.
Data security, quality, and integrity Legal
requirements relating to data differ among countries.
Data are created and used offline without going through
QC Validity of data is questionable.
Data throughout and organization may be redundant and
out-of-date, creating a huge maintenance problem.
IS433 Information Management

Data Management: Problems and

Challenges
26
To deal with these difficulties, organizations invest in

data management solutions.

It is inefficient or even impossible for queries to use
traditional data management methods. Eg. Applebees
case
Data management support transaction processing by
organizing data in one location.

IS433 Information Management

Master Data Management

27

is a process whereby companies integrate data from various

sources or enterprise applications to provide a more unified

view of the data.
In reality, MDM cant create a single unified version of data.
Realistically MDM consolidates data from various sources
into a master reference file, which then feeds data back to the
applications.
A master data reference file is based on data entity.
A data entity is anything real or abstract about which a
company wants to collect and store data. Common data
entities in business include customer, vendor, product, and
employee.
Master data entities are the main entities of a company such
as customers, products, suppliers, employees, and assets.
Each department has distinct master data needs.
Eg. Marketing pricing, brand, packaging, whereas
Production costs and schedules
IS433 Information Management

Benefits of a unified view of customers

28

Better, more accurate customer data to support

marketing, sales, support and service

Better responsiveness to ensure that all employees
who deal with customers have up-to-date, reliable
information on customers
Better revenue management and more responsive
business decisions.

IS433 Information Management

Transforming data into knowledge

29

Businesses do not run on raw data, but run on

data that have been processed into information

and knowledge.

IS433 Information Management

Transforming Data into Knowledge

30

Extract, Transform and Load

IS433 Information Management

Data quality and integrity

31

Data collection process that can create problems

concerning quality of data being collected.

Regardless of how the data are collected, they need
to be validated so users know they can trust them.
Garbage in, Garbage out
Garbage in, Gospel out risker poor-quality
data are trusted and used for planning.
DQ is a measure of the datas usefulness as well as
the quality of decisions based on data.

Accuracy, Accessibility, Relevance, Timeliness and

Completeness

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32

IS433 Information Management

Data Privacy and Ethical Use

33

Businesses that collect data about employees,

customers, or anyone else have the duty to protect

data.
Data should be accessible only to authorized
people.
Securing data Difficult and Expensive
To invest in data securities, the government has
imposed enormous fines and penalties for data
breaches
IS433 Information Management

Document Management
34

Business records contracts, research, accounting

documents, memos, customer/client communications and

meeting minutes.
Document Management is the automated control of imaged
and electronic documents, spreadsheets, voice and email,
word processing documents from INITIAL creation to
FINAL archiving or destruction.
Document management system (DMS) consist of HW, SW
that manage and archive E-documents and convert paper
document to E-documents and then index and store them
according to policy. Eg. Keep emails for 7 years, Promotions
for 1 year and then discards.

IS433 Information Management

Statistics by Gartner Group

Most office workers lose up to 500 hours a year

looking for documents.

On average, professionals spend 50% of their time
looking for information.
The average organization:
Spends $20 in labor to file each document.
Spends $120 in labor finding each misfiled document.
Loses 1 out of every 20 documents.
Spends 25 hours re-creating each lost document.

The Gartner Group predicts that more than 90% of the

organizations will be using a DMS by 2007.

IS433 Information Management

3-36

Figure 3.13 Electronic records management from creation

to retention or destruction
IS433 Information Management

Unstructured business records

3-37

Businesses generate volumes of documents, messages,

and memos that, by their nature, contain unstructured

content that cannot be put into a database.
Many of these materials are business records that
must be retained and made available when requested by
auditors, investigators, the SEC, the IRS, or other
authorities.
To be retrievable, business records must be organized
and indexed.
Records are not needed for current operations or
decisions, are archivedmoved into longer-term storage.
IS433 Information Management

Business Value of E-Records Management

338

Companies need to be prepared to respond to an audit, federal

investigation, lawsuit, or other legal action against it.

Examples of lawsuits: patent violations, fraud, product safety

negligence, theft of intellectual property, breach of contract, wrongful
termination, harassment, and discrimination

E-discovery is the process of gathering electronically stored

information in preparation for trial, legal or regulatory

investigation, or administrative action as required by law.

When a company receives an e-discovery request, the company

must produce what is requestedor face charges of obstructing justice
or being in contempt of court.

IS433 Information Management

Companies have incurred huge costs for not responding to

e-discovery
3-39

Failure to save e-mails resulted in a $2.75 million fine for

Phillip Morris.
Failure to respond to e-discovery requests cost Bank of

America $10 million in fines.

Failure to produce backup tapes and deleted e-mails

resulted in a $29.3 million jury verdict against UBS

Warburg in the landmark case, Zubulake v. UBS Warburg.

IS433 Information Management

3.2 File Management System

40

Records, File
Bit, Byte

Database Primary key, Secondary key, Foreign key

IS433 Information Management

Figure 3.6
Hierarchy of data for a computer-based file.

IS433 Information Management

Limitations
42

Data Redundancy Different programmers create

different data-manipulating applications, the same data

could be duplicated in several files.
Data inconsistency Actual data values are not
synchronized across various copies of data. For example,
Customers with serveral loans, for each loan there is a file
containing customer fields (name, address, email,
phone), then a change to a customerss address in only
one file creates inconsistencies.
Data isolation File organization creates silos of data
that make it extremely difficult to access data from
different applications. For example, wants to know which
product customers bought and which customers own
more than 1000, To get results, have to filter and
integrate data manually from multiple files.
IS433 Information Management

Limitations
43

Data security Securing data is difficult in the file

environment because new applications are added to the

system. As the number of applications increases, so does the
number of people who can access data

Lack of data integrity In the file environment it is harder to

enforce data integrity rules, which include preventing data

input errors, eg. SSN (social security Number)

Data concurrency At the same time, one is updating record,

another may be accessing that record cant get the most

current update. To prevent a concurrency problem,
applications and data need to be independent of one another.
In file environment, they are dependent.
IS433 Information Management

Figure 3.8

Computer-based files of this type cause problems such as redundancy,

inconsistency, and data isolation.

IS433 Information Management

3.3 Database and DBMS

45

Database helps minimize data redundancy, data

isolation and data inconsistency.

Data can be shared among users
Security and data integrity are easier to control and
application are independent of the data they
process.
There are two basic types of databases: Centralized
and Distributed.

IS433 Information Management

Database Types
46

Figure 3.9 (a) Centralized database. (b) Distributed database with complete or
partial copies of the central database in more than one location.
IS433 Information Management

Centralized Databases
47

Stores all related files in one location More

consistent
Files are not accessible except via the centralized
host computer, where they can be protected more
easily from unauthorized access or modification.
Vulnerable to a single point of failure.
Computer fails, all users are affected.
When users are widely dispersed and must
perform data manipulations from distances, they
often experience transmission delays.

IS433 Information Management

Distributed Databases
48

A replicated database store complete copies of the entire

database in multiple location. This arrangement provides

backup in case of a failure of problems with the centralized
database.
Improve the response time (local users)
Much more expensive to set up and maintain because each
replica must be updated as records are added to, modified
in and deleted from any of the databases.
The updates may be done at the end of the day, otherwise
the various databases will contain conflicting data.

IS433 Information Management

Distributed Databases
49

A partitioned database is divided up so that each

location has a portion of the entire database

usually the portion that meets users local needs.
Provide response speed of localized files without
the need to replicate all changes in multiple
locations.
Advantage: data can be entered more quickly and
kept more accurate by the users immediately
responsible for data
IS433 Information Management

Centralized and Distributed Database

Architecture
50

Databases are optimised for transactions and queries

Data entering the databases from POS (point of sale) terminals,

scanners, online sales, and other sources are stored in a structured

data format, depending upon the type of DBMS.
Databases are optimised for extremely fast processing of queries
or ad hoc user specific data.
Databases need to strike a balance between transaction processing
efficiency and query efficiency.
Given these functions, databases cannot be optimised for data
mining, complex online analytics processing (OLAP), and decision
support.
These limitations led to the introduction of data warehouse
technology.
Data warehouses and data mart are optimised for OLAP, data
mining, BI and decision support.

IS433 Information Management

DBMS
51

A program that provide access to databases

DBMS permits an organization to centralize data,

manage them efficiently and provide access to the

stored data.
Range from simple Microsoft Access to full-featured
Oracle and DB2

IS433 Information Management

Major Functions of DBMS

52

Data filtering and profiling inspect data for errors,

inconsistency, redundancy, incomplete information

Data quality correcting, standardizing, verifying the
integrity of data
Data synchronization Integrating, matching or linking
data from disparate sources
Data enrichment Enhancing data using information from
internal and external data sources
Data maintenance Checking and controlling data
integrity over time

IS433 Information Management

Copyright 2010 John Wiley & Sons, Inc. IS433 Information Management

Data Management
3-54

Why does data management matter?

No enterprise can be effective without high quality data that
is accessible when needed.
Data thats incomplete or out of context cannot be trusted.
Organizations with at least 1,000 knowledge workers lose ~

$5.7 million annually in time wasted by employees

reformatting data as they move among applications.

What is the goal of data management?

To provide the infrastructure and tools to transform raw
data into usable information of the highest quality.

IS433 Information Management

Data Management
355

Why is data management difficult and expensive?

Volume of data is increasing exponentially.

Data is scattered throughout the organization.
Data is created and used offline without going

through quality control checks.

Data may be redundant and out-of-date,

creating a huge maintenance problem.

IS433 Information Management

Data Management Technologies

56

Data warehouses integrate data from multiple

databases and data silos and organise them for complex

analysis, knowledge discovery, and to support decision
making
Data Marts small scale data warehouses that
supports a single function or department. Organisation
that are unable to invest in data warehousing may start
with one or more data marts
Business Intelligence (BI) tools and techniques
process data and do statistical analysis for insight and
discovery-that is, to discover meaningful relationships in
the data, keep informed of real time, gain insight, detect
trends, and identify opportunities and risks.
IS433 Information Management

Data Management
3-57
Current key issues
Master data management (MDM): Processes to integrate

data from various sources and enterprise apps in order to

create a unified view of the data.
Document management system (DMS): Hardware and

software to manage, archive, and purge files and other

electronic documents (e-documents).

Most of DMS are workflow Software Green computing!

Green computing: Efforts to conserve natural resources

and reduce effects of computer usage on the environment.

IS433 Information Management

3.4 Data Warehouses, Data Marts and Data

Centers
58

Its not necessarily the biggest companies that are

the most successful, but the smartest ones.

Being a smart company means having on-demand
access to relevant data, understanding them (data
visualization), and using what you learn from them
to increase productivity and profitability.
Data warehouses support and help them make
smartest decision

IS433 Information Management

Data Warehouses
59

DW is a repository (a type of database) in which

data are organized so that they can be readily

analyzed using methods such as data mining,
decision support, querying and other applications.
Examples are revenue management, CRM, Fraud
detection, payroll-management applications
Databases are designed and optimized to store
data whereas data warehouses are designed and
optimized to respond to analysis questions that are
critical for a business.

IS433 Information Management

Data Warehouses
60

Databases are online transaction processing (OLTP) systems in

which every transaction is recorded quickly.

For example, withdraws from a bank ATM, these transactions must
be recorded and processed as they occur in real-time. Databases
systems for banking are designed to ensure that every transaction
get recorded immediately.
Database are volatile because data are constantly added, edited or
updated.
The volatility caused by transaction processes makes data analysis
too difficult.
To overcome this, data are Extracted from designated databases,
Transformed and Loaded into a data warehouse.
These data are read-only data. They remain the same until the next
scheduled ETL.
Warehouse data are not volatile so data warehouse are designed as
online analytical processing (OLAP) system
IS433 Information Management

Trend towards more real-time

support from data warehouse
61

Modern business world is experiencing a growing

trend toward real-time data warehousing and

analytics.
In the past, it did not require instant response time,
direct customer interaction.
Companies with an active data warehouse will be
able to interact appropriately with a customer to
provide superior customer service enhance
companies revenues.

IS433 Information Management

Benefits of data warehouse

62

Benefits are both business and IT-related

From business perspective, companies can make

better decisions because they have access to better

information.
From IT perspective, DWs deliver information more
effectively and efficiectly.

IS433 Information Management

Benefits of data warehouse

63

Marketing Use DW for product introductions, product

information access, marketing program effectiveness and

product line profitability. Maximize per customer
profitability
Pricing and contracts Use data to calculate costs
accurately to optimize pricing. Too low or too high.
Forecasting Visibility of end customer demand
Sales Determine sales profitability and productivity for all
territories and regions.
Financial Use daily, weekly or monthly results for
improved financial management.

IS433 Information Management

Characteristics of Data Warehouse

64

Organization : data are organized by subject (customer,

vendor, product, price level and region)

Consistency : Data in different databases may be encoded
differently. In WH, they are coded in consistent manner.
Eg. 0/1 or M/F
Time variant : The data are kept for many years so they can
be used for identifying trends, forecasting and making
comparisons over time
Nonvolatile : Once the data are entered into WH, they are
not updated.
Relational : Data DW uses relational structure.

IS433 Information Management

Characteristics of Data Warehouse

65

Client/Server : Data WH uses client/server

architecture mainly to provide the end user an easy

access to its data
Web-based : Data WH are designed to provide an
efficient computing environment for Web-based
applications
Integration : Data from various sources are
integrated. Web services are used to support
integration.
Real-time : Provide real-time capabilities
IS433 Information Management

IS433 Information Management

Building a Data Warehouse

67

Very large and expensive

Need to address a series of basic questions
Does top management support Data WH?
Do users support Data WH?
Do users want access to broad range of data? Single
repository or a set of standalone data marts?
Do users want data access and analysis tools?
Do users understand how to use the data WH to solve
business problems?
Does the unit have one or more power users who can
understand data WH technologies?
IS433 Information Management

Building a Data
Warehouse
68

11

IS433 Information Management

Suitability
69

Data WH is appropriate for organizations that have some of

following characteristics
End users need to access large amount of data
Operational data are stored in different systems
Organization employ an information-based approach to
management.
Organization serves a large, diverse customer base.
Same data are represented differently in different systems
Data are store in highly technical formats that are difficult
to decipher.
Extensive end-user computing is performed (many end
users performing many activities)

IS433 Information Management

Data marts
70

Data warehouse Too expensive for a company to

implement
As an alternative, many firms create a lower-cost,
scaled down version of a data warehouse called a
data mart.
Data marts are designed for a strategic business
unit, or a single department
Allow for local rather than central control.
Contain less information than Data WH
Respond more quickly and easier to understand

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71

Data Center
72

is the name given to the newer facilities containing

mission-critical ISs and components that deliver

data and IT services to the enterprise.
Integrate networks, computer systems and storage
devices.
Insure the availability of power and provide physical
and data security.
Newest data centers include temperature and fire
controls, physical and digital security, redundant
power supplies as uninterruptible power sources
(UPS), redundant data communications
connections.
IS433 Information Management

Enterprise Content Management

73

Become an important data management

technology, particularly for large and mediumsized organizations.

Includes electronic document management, web
content management, digital asset management
and electronic records management (ERM).
ERM infrastructures help reduce costs, easily share
content across the enterprise, minimize risk,
automate expensive time-intensive and manual
processes and consolidate multiple web sites onto
a single platform.
IS433 Information Management

4 key forces
74

4 key forces are driving organizations to adopt a strategic,

enterprise-level approach to planning and deploying content

systems (Content Systems).
Compounding growth of content generated by organizations
The need to integrate that content within business processes
The need to support increasing sophistication for business
user content access and interaction.
The need to maintain governance and control over content to
ensure regulatory compliance and preparedness for legal
discovery.

IS433 Information Management

Discovery or
the request for information
75

Nearly 90 percent of US corporations become engaged in

lawsuits
The average $1 billion company in US faces 147 lawsuits
Each lawsuit will involve discovery or the request for
information (almost always involves the request for email
and other electronic communications).

Discovery
76

Discovery is the process of gathering information in

preparation for trial, legal or regulatory investigations, or

administrative action as required by law.
Electronic information is involved; the process is called EDiscovery.
Serveral cases where a company incurred huge costs for not
responding to e-discovery are followings:

Failure to save emails results in a $2.75 million fine for Phillip

Morris
Failure to respond to e-discovery requests cost Bank of America $10
million
Failure to produce backup tapes and deleted emails results in a $29.3
million jury verdict against USB Warburg.

Managerial Issues
77

Reducing uncertainty Requires a data infrastructure

that can capture, process and report information in near

real-time.
Cost-benefit issues and justification Some solutions are
expensive and justifiable only in large corporations.
Smaller ones can make solutions cost effective if they
make use of existing databases rather than creating new
ones.
Where to store data physically Should data be
distributed close to their users? This arrangement could
speed up data entry and updating, but it could also
generate replication and security risks. Should data be
centralized for easier control, security and disaster
recovery? This offers fewer communications and singlepoint-of failure risks.

Managerial Issues
78

Legal issues Failure to manage electronic records exposes

companies to fines from the courts and regulatory agencies

such as IRS.
Internal or External Should a firm invest internally or
externally?
Disaster recovery Can an organizations business
processes (dependent on databases and data WH) recover
after an information system disaster?
Data security and ethics Are the companys customer and
other competitive data safe from snooping and sabotage ?
Are confidential data, such as personnel details safe from
improper or illegal access?

Managerial Issues
79

Privacy Storing data in a WH, and conducting data

mining may result in the invasion of individual privacy.

What will the company do to protect individuals?
The legacy data problem Data in older, perhaps obsolete,
databases still need to be available to newer database
management systems. Many of legacy application programs
used to access the older data cannot be converted into new
computing environment without expense. Two approaches
to solve this problem

Create a database front end that can act as a translator from the old
system to the new.
Integrate the older applications into the new system so that data can
be seamlessly accessed in the original format.

Managerial Issues
80

Data Delivery Moving data around an enterprise

efficiently is often a major problem.

Quiz
81

What is the goal of data management?

Explain how having detailed real-time or

near real-time data can improve

productivity and decision quality.
How are organizations using their data

warehouses to improve consumer

satisfaction and the companys
profitability?

Link Library
382

Advizor Solutions, data analytics and visualization

http://advizorsolutions.com/
Clarabridge: How Text Mining Works http://clarabridge.com/
SAS Text Miner http://sas.com/

Tableau data visualization software http://tableausoftware.com/data-

visualization-software/
EMC Corp., enterprise content management http://emc.com
Oracle DBMS http://oracle.com/

Copyright 2012 John Wiley & Sons, Inc.