Week 4 Lecture 1 - Databases and Data WarehousesManagement of .docx

Week 4 Lecture 1 - Databases and Data Warehouses
Management of Information Systems
Databases and Data Warehouses
The impact of database technology on how business is
conducted today cannot be overemphasized. This technology has
enabled an information industry with comprehensive influences
on businesses and individuals. Databases store data that
populate web pages and other interactive networked
technologies. Search engines, e-commerce, and social media
would not exist without databases. With database support,
larger tasks can be accomplished by fewer people.
Effective data management is the principal benefit of IT.
Database management systems (DBMSs) enable the fast creation
of databases and manipulation of data on an aggregate basis or
down to the smallest detail for business purposes. Databases
support most web pages and other interactive networked
technology. DBMSs support target marketing, financial
management, decision-making, distribution of goods and
services, customer service, and other activities. It is imperative,
in the age of data mining, and “big data,” for knowledge
workers to understand how databases work and how data are
used operationally and strategically in business management.
Database analysis and management skills are mandatory in the
marketplace. IT professionals develop and implement databases.
However, data is essential to the non-technical professional who
uses the data for decision making regarding accounting,
marketing, logistics, senior management, and other functional
areas.
The relational database model is common. However, data can be
organized in other ways. “Big Data” prompted the use of other
database models. “NoSQL” database models are non-relational
and do not require SQL to retrieve data. NoSQL databases can
be structured by object, document, key-value, graph, column,

and other possibilities
In relational databases, a primary key is a field in a table that
contains a unique value used to differentiate between rows of
data. The primary key is usually a number, or a computer
generated globally unique identifier (GUID). Sometimes a
composite key is used differentiate between table rows. A
composite key is a combination of the values in two or more
fields in a table that when combined are unique in the table and
serve as a primary key. A foreign key is used to link data
between two tables. A foreign key in a table is the primary key
of a related table.
Databases contain different types of fields. Some types are,
number, text, image, video, audio, geographical coordinates,
and others. If a number is not used for mathematical
calculations, it is best to assign a text type to it in a database to
avoid the need to convert it from a number to a string after
retrieval.
SQL is a popular query language used to retrieve data from
relational databases. SQL can be used to retrieve data from
more than one table by use of a “join.” A join query retrieves
data from rows in two or more tables, where the value of the
foreign key in one table is equal to the value of the primary key
in another table.
Storage of large quantities of data can be achieved through data
warehousing. Large organization use data warehouses for
management decision making and data mining. Data marts are
smaller segments of data warehouses set-up to support different
functional business areas.
Week 4 Lecture 2 - The Web-enabled Enterprise
Management of Information Systems
The Web-enabled Enterprise
Today, the Internet has developed into an ordinary resource.
However, novel Web technologies are appearing every day. New
business technologies, services, models, designs, and
functionality are visible on the Web as competition and business

needs change. A company’s public view is displayed on the
Web. A website’s design, functionality, and contents represent a
company’s personality and style of doing business. In dollar
terms, a substantially larger amount of business-to-business
transactions takes place over the Internet than business-to-
consumer transactions.
The Web provides a richness of information, entertainment, and
the ability to chat and network. However, the Web as an asset to
business entities is one of its greatest potentials. As disruptive
as the Web has been, the sweeping adoption of mobile services
and devices has made the fast pace of web growth look like a
crawl in comparison.
View the video clip about the history of the Internet. The
foremost reason any one organization can not totally control the
Internet is that the U.S. Department of Defense, which funded
the network’s development, required that the destruction of any
individual computer could not take down the entire network.
The internet consists of over 500 million servers in different
countries. Far-reaching influence would be required by an entity
to control the Internet. Many telecommunications companies in
different countries would have to be swayed for a single entity
to control the Internet.
permits running applications on the Web in the same manner as
if the applications were installed on local computers. Software
defines intranets and extranets, not hardware. LANs can become
intranets. HTML can be used as an authoring tool for presenting
a presentation on a local Web browser. None technical people
can now use Web authoring tools to create websites using
hosting services. Businesses are now moving their websites to
host services. Web 2.0
WAL_SOCW6051_09_A_EN-CC.mp4

Week 4 Objectives
Explain the difference between traditional file organization and
the database approach to managing digital data
Explain how relational and object-oriented database
management systems are used to construct databases, populate
them with data, and manipulate the data to produce information
Enumerate the most important features and operations of a
relational database, the most popular database model
© Cengage Learning 2015
1
1
Explain the difference between traditional file organization and
the database approach to managing digital data
Explain how relational and object-oriented database
management systems are used to construct databases, populate
them with data, and manipulate the data to produce information
Enumerate the most important features and operations of a
relational database, the most popular database model
Understand how data modeling and design creates a conceptual
blueprint of a database
Discuss how databases are used on the web
List the operations involved in transferring data from
transactional databases to data warehouses
Describe how the web and high-speed Internet connections, and
mobile technologies have changed business operations
Explain the functionality of various web technologies
Compare and contrast options for web servers
Explain basic business-to-business and business-to-consumer
practices on the web
Explain the relationship between web technologies and supply
chain management

Give examples of features and services that successful business
web sites offer
Explain how businesses use social media as part of their web
strategies
Learn about online annoyances such as spam and adware, and
how to protect against online identity theft
2
Figure 7.2 The hierarchy of data © Cengage Learning 2015
Businesses collect and dissect data for many purposes
Data stored in a database format are easy to access and
manipulate
Databases have had a profound impact on business and the
creation of a information industry
Database technology integrated with the Internet has
significantly contributed to commerce
In the traditional file approach there was no mechanism for
tagging, retrieving, or manipulating data
A Database approach provided powerful mechanism for
managing and manipulating data
The traditional approach had shortcomings such as,
Program-data dependency,
High data redundancy,
And, Low data integrity
Data redundancy pertains to duplication of data
Data integrity pertains to the accuracy of data
The database approach organizes Data as entities
An entity is an object about which an organization chooses to

collect data, such as:
People,
Events,
or Products
A character is the smallest piece of data
A single letter or a digit
A field is a single piece of information about entity
A record is a collection of related fields
A file or table is a collection of related records
Database fields can hold images, sounds, video clips, etc.
A field name allows easy access to the data
Database management system (DBMS) is a program used to:
Build databases,
Populate a database with data,
And manipulate data in a database
Some data sources are:
Transaction processing systems (TPSs),
Source data input devices, such as scanners and RFID,
Web and mobile activities,
Purchased external data,
And Nonoperational transaction data from social media
A query is a message to the database requesting data from
specific records and/or fields
A database must be properly secured
Not everyone should have access to all data
Users should have different views of the database, based on the
data they are allowed to see
A database administrator (DBA) is the person responsible for
managing the database and setting user limits for access to data
in the database
Businesses strive to maintain continuous and uninterrupted
operations to serve their stakeholders, and preserve their
financial well-being

Backup and redundant storage helps ensure continuity of
technology infrastructures
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3
Figure 7.5 (cont’d.) A structural representation of a relational
database
3
A database model is a general logical structure of how records
are stored in the database and relationships between records
Database models differ in how records are linked to each other,
and how users can navigate the database, retrieve records, and
create records
A relational database model consists of tables
I is based on relational algebra
An attribute is field (or column in the row)
A tuple is a record a row that contains attributes of fields
A relation is a table of records or rows
To design a relational database, you must understand the
entities to be stored in the database and how they are related
Tables are independent of each other, but can be related to each
other
A key a field whose values identify records
Keys are used to retrieve records
A primary key is a field by which records are uniquely
identified
Each record in the table must have a unique key value
Composite key: combination of fields that serve as a primary

key
Foreign key: a field that matches to a primary key in another
table
Used to link the tables
Types of table relationships
One-to-many relationship: one item in a table is linked to many
items in the other table
Many-to-many relationship: many items in a table are linked to
many items of the other table
A Table join uses primary and foreign keys in tables to combine
data from two or more tables
Relational Operations
Relational operation: creates a temporary subset of a table or
tables
Used to create a limited list or a joined table list
Three most important relational operations
Select: a selection of records based on conditions
Project: a selection of certain columns from a table
Join: combines data from multiple tables to create a temporary
table
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SQL (called Sequel by many) is the query language of choice
for DBMSs
Advantages of SQL are:
It is an international standard
It is provided with most relational DBMSs
And It has easy-to-remember, and has intuitive commands

A relational database operation creates a temporary subset of a
data from a table or tables
Operations are used to select and retrieve data from data tables
Three of the most important relational database operations are
Select, which selects records based on conditions
Project, which selects certain columns from a table
And, join, which combines data from multiple tables into a
temporary dataset
A Schema describes the structure of the database, including:
The names of tables and fields,
Identification of primary keys,
And Relationships between tables
A Data dictionary is a repository of that stores the meanings of
fields in the tables of databases. Members of organization can
view a data dictionary to understand the purpose of a field.
Metadata is additional details about the data
Metadata can include the source of the data,
Tables related to the data,
Field and index information,
Programs and processes that use the data,
And data population rules, such as what is inserted, or updated,
and how often
An entity relationship diagram (ERD) is a graphical
representation of all entity relationships
Databases must be carefully planned and designed to meet
business goals
Data modeling is analyzing an organization business entities,
processes, and relationships and modeling them into tables and
fields of a database.
Data modeling is proactive process that develops a conceptual
blueprint of the database

Databases on the Web
Web is dependent on databases
Organizations must link their databases to the web
Interface between web and database required
Interface may be programmed in one of several web
programming languages, such as:
Java servlets
Active server pages (ASP) and ASP.NET
PHP (Hypertext Preprocessor)
Web APIs (application program interfaces)
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5
The Web is dependent on databases
Organizations must link their databases to the web
Interfaces between the web and databases are required
Interfaces may be programmed in one of several web
programming languages, such as:
Java servlets
Active server pages (ASP) and ASP.NET
PHP (Hypertext Preprocessor)
And Web APIs (application program interfaces)
Data collections are used for daily transactions, An
accumulation of transaction data is useful
A Data warehouse is a large repository database that supports
management decision making
Data warehouses are typically relational
Data in warehouse are collected from transactional databases
A Data mart is a smaller collection of data focusing on a
particular subject or department

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Figure 7.12 Phases in preparing and using a data warehouse ©
Cengage Learning 2015
Transactional databases are not suitable for business analysis
They contain only current, not historical, data
A data warehouse requires a large storage capacity
Mainframe computers are often used
Scalability is an issue
Data warehouses grow continually
ETL Extraction, Transformation and Loading phases are
involved in transferring data from a transactional database to a
data warehouse
During the Extraction phase, data is extracted from
transactional databases and saved on the data warehouse server
During the Transformation, phase the data is “cleansed” and the
data format may be modified
During the Loading phase, the data is transferred into a
warehouse (database)
A properly built data warehouse becomes a single source for all
data required for analysis
Data mining and online analytical processing (OLAP) use data
in data warehouses
Managers extract business intelligence for decision making
6

7
Figure 8.1 HTML and XML code: XML provides a method for
describing or classifying data in a webpage
Web business is growing and changing.
Ford Motor Company is a world leader in automobile
manufacturing
It employs 197,000 people, in 67 plants around the world
In 2010, Ford targeted a younger, tech-savvy audience in its
social marketing strategy of the Ford Fiesta
Response was a positive online attitude An anonymous authors
stated that with social media, if you aren’t using, you’re losing.
Let’s discuss a few Web technologies.
Several standards and technologies enable the Web to deliver
rich information
HTTP, HTML, XML
File Transfer
Blogs
Wikis
Podcasting
IM
Cookies
Hypertext Transfer Protocol (HTTP) is used to transfer and
download web information
HTTPS (HTTP Secure) is used for confidential data exchange
A Uniform Resource Locator (URL) is a unique address given to
each web site
An IP address is a special numeric address
A Domain name is a unique name for a web site, constructed
with letters
A Top-level domain (TLD) is the last part of URL
Hypertext Markup Language (HTML) helps developers create

Web page. It determines look and location of content on a
webpage.
Extensible Markup Language (XML) enables creation of various
data types. It conveys the meaning or content of data
XHTML is a combination of XML and HTML. It uses opening
and closing tags to control the format
HTML5 is the newest version of HTML/XML
File Transfer Protocol (FTP) transmits whole digital files
FTP facilitates downloads from websites
Can transfer most types of files,
And can be used to place files on a server for shared use,
Blog is the contraction of “web log”
Blogs invite visitors to post opinions and art
Blogs focus on a topic or set of topics
Trackback is a tool that notifies bloggers when their posts have
been mentioned elsewhere on the web
Blogs are often used by businesses
The importance of blogs to commercial organizations is to find
out what blog participants think and say about the organization
Wiki is derived from Hawaiian, meaning “quick.” It is a web
application that enables users to add to and edit the contents of
web pages
All the software required to edit the web pages is embedded in
the pages themselves
Wikipedia is a popular online encyclopedia
Wiki technology is a popular ingredient in groupware , software
used for collaboration
A Podcast is a published audio or video recording on the web
for download
Podcast are usually on a subscription basis
Some uses of podcast are:
“Time-shifted” broadcast of radio station programs for later
listening,

Audio tours in museums,
Lectures in distance learning courses,
Apple’s iTunes products and services,
Variety of content,
And many podcast media files are free
A Massively open online course, a (MOOC), is a new education
delivery approach that combines traditional course materials
with Web-enabled interactive forums for educators and students.
Instant messaging (IM) is “real-time” messaging that enables
chatting online through mobile and traditional devices. IM
enable chat room communication within a group
Examples of software applications with expanded
communication tools are
Skype,
ooVoo,
, and Wiggio
Some free applications for IM are
AIM: AOL instant Messenger,
Yahoo! Messenger,
MSN Messenger,
And ICQ,
Business uses include sales and support.
A Cookie is a small file that stores information about a web site
visitor on the visitor’s computer
Cookies can records the surfer’s ID,
Store a surfer’s preferences,
provide convenience to consumers,
Can be temporary (single session) or permanent,
And have potential for intrusion into surfer privacy
Clickstream tracking tracks a surfer’s clicking activities
Spyware traces and reports online behavior
Proprietary technology is intellectual property of the

developer; not free for all to use
Examples are
Local search engines,
Shopping cart applications,
Wish lists,
Video streaming tools,
and tools to analyze and predict web visitor behavior,
especially shopper behavior
7
Web-Enabled Business
Web-enabled business are classified according to the interacting
parties
Business-to-business (B2B)
Business-to-consumer (B2C)
Business-to-government (B2G)
Additional classifications
Government-to-consumer
Government-to-business
Consumer-to-consumer (C2C): a form of B2C
8
8
Web-enabled businesses are classified according to the
interacting parties
Business-to-business (B2B)
Business-to-consumer (B2C)
Business-to-government (B2G)
Additional classifications are
Government-to-consumer
Government-to-business
And Consumer-to-consumer (C2C): a form of B2C

Business-to-business (B2B) is trading between businesses only
B2B forms include advertising such as
Search advertising when advertisements placed on a search site
results page
And Banners where images are placed on web sites that link to a
site selling a product or service
An Impression occurs when a banner is displayed
Reach percentage is the percentage of web users who visited a
site in the past month
Search engine optimization (SEO) influences the major search
engines to rank an online search entry higher
An Intranet is a network used only by employees of an
organization
An Extranet: network shared by employees of different
organizations, for example, business partners
An exchange is an extranet for organizations that deal in
products and services of a particular type
The exchange operator profits from transaction fees
Exchanges are limited to subscribers
Auctions sell a great variety of items
The sellers post items for sale and buyers view and respond
through bidding
Electronic marketplaces bring markets closer to perfect markets
No single buyer or seller affects the price
Online business alliances are companies, in the same industry,
that collaborate in establishing a website for one or several
purposes
Online business alliances create buying power by consolidating
purchases,
And create a single place for customers,
9
Figure 8.4 Online shopping benefits © Cengage Learning 2015

Business-to-consumer (B2C) is trading with the general public
E-tailing is online retailing to consumers, it extends brick-and-
mortar businesses’ “storefront”
Pure play is retailers that operate only online
Fulfillment activities are picking, packing, shipping
Consumer profiling is knowing customers better by gathering
information about their online activities. Some consider this a
violation of privacy
Many online businesses offer affiliate programs to website
owners. A Link to the e-tailer is placed on the website
Affiliate compensation can be Pay per sale, pay per click, or
pay per lead
Coopetition is a step beyond affiliates when competitors are
featured at the same site for example, Amazon.com
Coopetition attracts more shoppers to the site
Fees are obtained from affiliated companies
Mobile advertising is growing due to smartphone and network
adoption
Auction sites are a hub for consumers to buy and sell, for
example eBay
Reverse auction is a name-your-own-price auction for example,
Priceline
Content providers offer information such as news, research
results, statistics, etc., or artistic work (music, pictures, and
video clips)
Electronic bill presentment and payment (EBPP) provides
online bills and payment options for customers
Phishing is a type of fraud involving a fake web site
Extra-organizational workforce is labor from a larger pool that
companies utilize.
Crowdsourcing is a process for outsourcing a variety of tasks to
a distributed group of people, both online or offline
Mobile commerce (or m-commerce) is business conducted on
mobile devices

A key mobile application is delivery context-specific
information
Mobile commerce allows mobile device users to experience an
event and react immediately
M-commerce also raises privacy concerns with GPS
provided location tracking and Identity theft is a threat
Social media on the Web has widespread influence on
consumers and business organizations
Popular social media companies are Facebook, Twitter,
Instagram, and Foursquare
Social media can be leveraged for:
Additional advertising,
Brand and product exposure,
And Immediate communication with consumers,
Social media strategies must be well-organized and coordinated
9
10
Figure 8.6 Online supply chain management © Cengage
Learning 2015
Supply chain management (SCM) systems may be connected to
the Web to allow suppliers to participate directly
XML allows companies to set standards for data exchange
Electronic Data Interchange (EDI) is a system used for
electronic document exchange initially implemented through
exchange value-added network (VAN) companies
Can be executed on the Internet
10

Options in Establishing a Website
Website: web pages that make up information and links to the
site provider’s web technologies
Internet server: a computer connected to the Internet backbone
Businesses’ choices for a website
Install and maintain their own web servers
Contract with a web hosting service
11
11
A website contains web pages that display information and link
to the site provider’s web technologies
An Internet server is a computer connected to the Internet that
handles requests for hosted websites
Businesses’ choices for a website
Are Install and maintain their own web servers
Or Contract with a web hosting service
Considerations for owning and maintaining a server are,
It can be Costly,
It provides the greatest degree of control,
It requires expertise to set up and maintain,
You must obtain a high-speed connection to the Web,
Load balancing transfers data requests from a busy server to a
less busy server,
Mirror servers are servers with duplicated content and
applications that speed up and back up the process,
Using a hosting service is another option
Web hosting is a web server managing service
Types of web hosting are,
Shared hosting which stores the client’s Web site on the same
physical server as other clients

Virtual private server hosting simulates a single server,
allowing a client to have its own domain name
Dedicated hosting gives the client can fully control the content
on a rented dedicated server’s disks
A Co-location service allows a server owned and managed by a
client to be co-located with other clients’ servers in a secure
physical location
12
Figure 8.7 Factors to consider when evaluating a web hosting
service © Cengage Learning 2015
Dynamic webpages enable communication between visitors and
a site’s database
Content management systems (CMSs) can be used for building
and maintaining content rich websites
Compare host vendors using a point system
Factors to consider when selecting web host
Is the use of database management system allowed?
Storage space capacity
Technical and web site design support
Scalability
Security, physical and virtual
Availability, the minimize downtime
And Setup and monthly fees
12
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Figure 8.8 The components of a web-based retailing operation

Several elements are essential to conducting business on the
Web, some of them are
An Inquiry interface that connects to database to allow a user to
search a catalog of products or services
An order processing application that includes credit-card
verification
and an order-fulfillment system that picks, packs, and ships
Business success depends on availability and use of proper
software
Elements needed to support B2C commerce
A method of targeting customers
Capture of the customer’s complete experience
Personalizing the service
Shortening the business cycle
Letting customers help themselves
Being proactive and preventing a product from becoming a
commodity
Target the customers needing your products and services
The most important effort of marketing is identifying the sites
that your audience frequently visits
Consider blogs and podcasting sites for advertisement
placement
Capture the Customer’s Total Experience by using cookies to
record shopper’s movements within the site
Use CRM software to create consumer profiles
Shopper experience becomes an asset of business, allowing for:
Fine-tuning of the product portfolio
Tailoring of web pages to individual customers
Individual e-mails to shopper offering products of interest

Personalize the service. CRM software and web page
customization software can be combined to:
Personalize web pages shown to a customer
Allow the customer to select the type of e-mail content desired
Respect visitor privacy by offering opt-in rather than opt-out
Allow the customer to tailor products to be purchased
Shorten the business cycle. Customers like saving time via web
business
Fulfillment is a major challenge for businesses
Activities after a customer places order are important.
Fast shipping is desired because:
It produces higher customer satisfaction
And, the business will collect payments faster
The entire fulfillment process can be outsourced to fulfillment
organizations such as:
UPS’s e-Logistics
FedEx’s Supply Chain Services
Let customers help themselves. Self-service is a concept that
uses the customer’s ability to determine the timing and services
of their consumer needs through a website
Self-service saves labor, and encourages customer loyalty
E-mail messages sent to customers with information about
orders and how to track them
Online FAQs allow customers to find answers to common
questions
Be proactive and De-commoditize. Prompt e-mail replies
expected
Proactive alerts are expected for changes in orders or services,
or product recalls
Automatic reordering features are desirable
Businesses must take initiatives to de-commoditize products
A commodity is a product sold at roughly the same price by
many vendors (no differentiation)

Addition of features or services prevents a product from
becoming a commodity by creating differentiation
E-commerce is every commerce. Web technologies have been
highly integrated into the business world
It is difficult to identify which business activities are on the
Internet and which are not
The Web has been highly integrated into daily activities of
customers.
Commerce and e-commerce generally have the same meaning
today
13
Summary
Organizations collect vast amounts of data
Database approach has several advantages over traditional file
approach
Character: smallest piece of data
Field: made up of multiple characters
Record: collection of related fields
File: collection of related records
Database management system (DBMS): tool to construct
databases
14
14
Databases organize and collect vast amounts of data
A database approach has several advantages over the traditional
file approach
A character is the smallest piece of data
A field is made up of multiple characters
A record is collection of related fields
A table is a collection of related records

A database management system (DBMS) is a tool used to
construct databases
Relational and object-oriented database models have different
advantages
Keys are used to form links among entities
Primary keys are used to uniquely identify records in a table
Structured Query Language (SQL) is an international standard
for querying databases
Database designer must design a schema to construct a database
Database designers conduct data modeling and create entity
relationship diagrams to plan databases
Many databases are linked to Web
Data warehouses contain huge collections of historical
transaction data
Data stored in warehouses require extraction, transformation,
and loading (ETL)
Invasion of privacy is exacerbated by database technology
Big Data is the collection and storage of ever-more detailed
quantities of data
Some industries have changed drastically due to web
technologies
HTTP is an Internet standard controlling web server addresses
HTTPS is a secure version of HTTP
XML is a standard for description of data
Blogs enable people to create discussion Web pages
Cookies help websites personalize the visitor’s experience
Many web technologies are proprietary
A business can maintain its own web server or use a web
hosting service
Organizations should consider several factors when selecting a
web host

Web-enabled commerce is classified into B2B and B2C
B2B trading relies on electronic data interchange (EDI) and
XML
Mobile commerce needs to be considered in any online business
strategy
Online businesses must adhere to several factors to be
successful
Spam and spyware are online annoyances
Phishing is a pervasive fraud crime

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