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FOUNDATIONS OF BUSINESS INTELLIGENCE:

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Text Preview ManagementInformationSystems
MANAGINGTHEDIGITALFIRM,12TH EDITION

Chapter6
FOUNDATIONS OF BUSINESS
INTELLIGENCE: DATABASES AND
INFORMATION MANAGEMENT

ManagementInformationSystems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT

RRDonnelleyTriestoMasterItsData

• Problem: Explosive growth created information 
management challenges.
• Solutions: Use MDM to create an enterprise‐wide set of  data, preventing unnecessary data duplication.
• Master data management (MDM) enables companies like  R.R. Donnelley to eliminate outdated, incomplete or 
incorrectly formatted data.
• Demonstrates IT’s role in successful data management. • Illustrates digital technology’s role in storing and organizing  data.
2

© Prentice Hall 2011

1

ManagementInformationSystems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT

OrganizingDatainaTraditionalFileEnvironment

• File organization concepts





Database: Group of related files
File: Group of records of same type 
Record: Group of related fields
Field: Group of characters as word(s) or number
• Describes an entity (person, place, thing on which we  store information)
• Attribute: Each characteristic, or quality, describing  entity
– E.g., Attributes Date or Grade belong to entity COURSE

3

© Prentice Hall 2011

ManagementInformationSystems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT

OrganizingDatainaTraditionalFileEnvironment
THE DATA 
HIERARCHY
A computer system organizes 
data in a hierarchy that starts 
with the bit, which represents 
either a 0 or a 1. Bits can be 
grouped to form a byte to 
represent one character,  
number, or symbol. Bytes can 
be  grouped to form a field, 
and related fields can be 
grouped to form a record. 
Related records can be 
collected to form a file, and 
related files can be organized 
into a database.
FIGURE 6‐1

4

© Prentice Hall 2011

2

ManagementInformationSystems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT

OrganizingDatainaTraditionalFileEnvironment

• Problems with the traditional file environment (files  maintained separately by different departments)
– Data redundancy: 
• Presence of duplicate data in multiple files

– Data inconsistency: 
• Same attribute has different values

– Program‐data dependence:
• When changes in program requires changes to data  accessed by program

– Lack of flexibility
– Poor security
– Lack of data sharing and availability
5

© Prentice Hall 2011

ManagementInformationSystems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT

OrganizingDatainaTraditionalFileEnvironment
TRADITIONAL FILE PROCESSING

FIGURE 6‐2

6

The use of a traditional approach to file processing encourages each functional area in a corporation to  develop specialized applications. Each application requires a unique data file that is likely to be a subset of  the master file. These subsets of the master file lead to data redundancy and inconsistency, processing  inflexibility, and wasted storage resources.

© Prentice Hall 2011

3

ManagementInformationSystems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT

TheDatabaseApproachtoDataManagement

• Database
– Serves many applications by centralizing data and  controlling redundant data

• Database management system (DBMS)
– Interfaces between applications and physical data files – Separates logical and physical views of data
– Solves problems of traditional file environment




7

Controls redundancy
Eliminates inconsistency
Uncouples programs and data
Enables organization to centrally manage data and data security © Prentice Hall 2011

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