Managing Data to Improve Business Performance. Information Technology for Management Improving Performance in the Digital Economy.

Size: px

Start display at page:

Download "Managing Data to Improve Business Performance. Information Technology for Management Improving Performance in the Digital Economy."

Naomi Mitchell
5 years ago
Views:

1 Chapter 3 Managing Data to Improve Business Performance Information Technology for Management Improving Performance in the Digital Economy Copyright 2010 John Wiley & Sons, Inc. 3-1 Chapter Outline 3.1 Data, Master Data, and Data Management 3.2 File Management Systems 3.3 Database Management Systems 3.4 Data Warehouses, Data Marts, and Data Centers 3.5 Enterprise Content Management 3.6 Managerial Issues Copyright 2010 John Wiley & Sons, Inc

2 Learning Objectives 1.Describe how data and document management impact profits and performance. 2.Understand how managers are supported or constrained by data quality. 3.Discuss the functions of databases and database management systems. 4.Understand how logical views of data provide a customized support and improve data security. 5.Describe the tactical and strategic benefits of data warehouses, data marts, and data centers. Copyright 2010 John Wiley & Sons, Inc. 3-3 Learning Objectives cont d 6. Describe transaction and analytic processing systems. 1.Explain how enterprise content management and electronic records management reduce cost, support business operations, and help companies meet their regulatory and legal requirements. Copyright 2010 John Wiley & Sons, Inc

3 Figure IT 7eU The Business Performance Management Cycle and IT Model Copyright 2010 John Wiley & Sons, Inc. 3-5 Applebee s International Learns & Earns Problem: Huge quantities of data in many databases. Solution: Enterprise data warehouse implemented. Results: Improved profitability. Copyright 2010 John Wiley & Sons, Inc

5 Importance of data management Helps companies to improve productivity. Ensuring that people can find what they need without a long and difficult search. Transforms raw data into usable corporate information. Opportunity to earn revenues. Ability to cut expenses. Copyright 2010 John Wiley & Sons, Inc. 3-9 Uncertainty: A Constraint on Managers Examples of damages due to data analysis failures: TransAlta: data error cost the firm US$24M Healthcare industry: increased costs by billions of and maybe of thousands of lives. Copyright 2010 John Wiley & Sons, Inc

Data Management: Data Management Structured approach for capturing, storing, processing, integrating, distributing and archiving data effectively throughout their life cycle Life cycle: The way data

6 Data Management: Data Management Structured approach for capturing, storing, processing, integrating, distributing and archiving data effectively throughout their life cycle Life cycle: The way data travels through an organization from their capture or creation to their use and final disposal Copyright 2010 John Wiley & Sons, Inc Figure 3.2 Data life cycle. Copyright 2010 John Wiley & Sons, Inc

7 Data Management Principle of diminishing data value: value of data diminishes as the data ages. Principle of 90/90 data use: as high as 90 percent of data is seldom accessed after 90 days. Principle of data in context: end users need to see data in a meaningful format and context. Copyright 2010 John Wiley & Sons, Inc Data Visualization Dow Jones industrial average (DJIA) for a single day in tabular display and graphical display. Copyright 2010 John Wiley & Sons, Inc

8 Data Management: Problems and Challenges Data management is a major challenge because: Volume of data increases exponentially, only a small amount of data is relevant Data is collected and created by many individuals using different methods and devices Data security, quality and integrity are critical Copyright 2010 John Wiley & Sons, Inc MDM Master Data Management: Process whereby companies integrate data from various sources or enterprise applications to provide a more unified view of it MDM consolidates data into a master reference file Demystifying Master Data Management Copyright 2010 John Wiley & Sons, Inc

9 MDM Data entity: Anything real or abstract about which a company wants to collect and store data Main entities: customers, products, suppliers, employees and assets Copyright 2010 John Wiley & Sons, Inc MDM Benefits of a unified view of customers: Better, more accurate customer data Ensure that all employees have reliable information on customers More responsive business decisions Copyright 2010 John Wiley & Sons, Inc

10 Figure 3.4. Model of an enterprise data warehouse. (Source: From Syncsort, synchsort.com. Used with permission.) Copyright 2010 John Wiley & Sons, Inc Data quality and integrity Data quality: Measure of the data's usefulness as well as the quality of the decisions based on it. Five dimensions: accuracy, accessibility, relevance, timeliness and completeness Captaris Alchemy : Document Management Software Copyright 2010 John Wiley & Sons, Inc

12 Document Management Companies create business records Document management: DMS: Automated control of these records from initial creation to final archiving or destruction Software + Hardware that manages documents. PAPER DOCUMENTS E -DOCS Copyright 2010 John Wiley & Sons, Inc Document Management Medical records Customer satisfaction service Emergency services Legal cases Copyright 2010 John Wiley & Sons, Inc

13 Figure 3.6 Hierarchy of data for a computer-based file. Copyright 2010 John Wiley & Sons, Inc Limitations of data file environment In the past the applications functioned independently of one another. Problems: o Redundancy o Inconsistency o Isolation o Security o Integrity o Concurrency In the present: DBMS Copyright 2010 John Wiley & Sons, Inc

14 Figure 3.8 Computer-based files of this type cause problems such as redundancy, inconsistency, and data isolation. Copyright 2010 John Wiley & Sons, Inc Databases and Database Management Systems (DBMS) Copyright 2010 John Wiley & Sons, Inc

15 Databases Databases: Optimal way to store and access organizational data OTLP: Online transaction processing DBMS (Database Management System): Permits an organization to centralize data, manage it efficiently, and provide access to the stored data by application programs. Figure 3.9 (a) Centralized database. (b) Distributed database with complete or partial copies of the central database in more than one location. Copyright 2010 John Wiley & Sons, Inc

17 3.4 Data Warehouses, Data Marts, and Data Centers Copyright 2010 John Wiley & Sons, Inc Data Warehouse Data warehouse: Is a regular database. The main difference is that data warehouse is designed and optimized to respond to analysis questions that are critical for a business. OLAP: Online analytical processing 17

Figure 3.11 Data warehouse framework and views. Copyright 2010 John Wiley & Sons, Inc. 3-34 Figure 3.12 Teradata Corp.

18 Figure 3.11 Data warehouse framework and views. Copyright 2010 John Wiley & Sons, Inc Figure 3.12 Teradata Corp. s enterprise data warehouse. (Source: Teradata Corporation [teradata.com], with permission.) Copyright 2010 John Wiley & Sons, Inc

Table 3.4 Copyright 2010 John Wiley & Sons, Inc.

20 Data Mart and Data Center Data Mart: Lower-cost, scaled-down version of data warehouse Data Center: Facilities containing mission-critical information and components that deliver data and IT services to the enterprise. 3.5 Enterprise Content Management Copyright 2010 John Wiley & Sons, Inc

21 ECM Enterprise Content Management: Includes electronic document, web content, digital asset and electronic records management (ERM) Copyright 2010 John Wiley & Sons, Inc ERM Creating backups is not a form of ERM, content must be organized so it can be easily retrieved by the enterprise or the government IT personnel needs to establish ERM policies: retaining and destroying records Copyright 2010 John Wiley & Sons, Inc

23 Managerial Issues 1. Reducing uncertainty. 2. Cost-benefit issues & justification. 3. Where to store data physically. 4. Legal issues. 5. Internal or external collection, storage, maintenance, & purging of databases of information. 6. Disaster recovery. 7. Data security & ethics. 8. Privacy. 9. Legacy systems. 10.Data delivery. Copyright 2010 John Wiley & Sons, Inc National Security depends on Intelligence and Data Mining 9/11 Blackberry banned in Arabia Privacy 23

24 More information Data management's top eight stories of 2008 Operational vs. Analytical MDM Copyright 2010 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these Copyright 2010 John Wiley & Sons, Inc programs or from the use of the Information 24