Introduction to Information

Systems
HTM 304 - Management Information
Systems
College of Business Administration
California State University @ San Marcos

 Authors: Turban, Rainer and Potter

 Publisher: John Wiley & Sons, Inc.
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Wiley & Sons, Inc. Chapter 4 1
 Chapter 4

Data and Knowledge Management

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Wiley & Sons, Inc. Chapter 4 2
 Chapter Outline

 4.1 Managing Data

 4.2 The Database Approach
 4.3 Database Management Systems
 4.4 Data Warehousing
 4.5 Data Visualization
 4.6 Knowledge Management

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 Learning Objectives

 Recognize the importance of data, issues involved

in managing data and their lifecycle.
 Describe the sources of data and explain how data
are collected.
 Explain the advantages of the database approach.
 Explain the operation of data warehousing and its
role in decision support.

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 Learning Objectives (Continued)

 Understand the capabilities and benefits of

data mining.
 Describe data visualization.
 Explain geographic information systems and
virtual reality as decision support tools.
 Define knowledge and describe the different
types of knowledge.
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 4.1 Managing Data

 Difficulties of Managing Data.

 Amount of data increases exponentially.
 Data are scattered and collected by many
individuals using various methods and devices.
 Data come from many sources including internal
sources, personal sources and external sources.
 Data security, quality and integrity are critical.

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 Managing Data (Continued)

 Clickstream data. Data that visitors and

customers produce when they visit a Website.
 An ever-increasing amount of data needs to
be considered in making organizational
decisions.

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 Data Life Cycle

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 Data Hierarchy

 Bit (a binary digit): a circuit that is either on

or off.
 Byte: group of 8 bits, represents a single
character.
 Field: name, number, or characters that
describe an aspect of a business object or
activity.
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 Data Hierarchy (Continued)

 Record: collection of related data

fields.
 File (or table): collection of related
records.
 Database: a collection of integrated and
related files.
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 4.2 Database Approach

 Database management system (DBMS) provides all users

with access to all the data.
 DBMSs minimizes the following problems:
 Data redundancy: the same data stored in many places.

 Data isolation: applications cannot access data

associated with other applications.

 Data inconsistency: various copies of the data do not

agree.

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 Database Approach (Continued)

 DBMSs maximize the following issues:

 Data security.
 Data integrity: data meets certain constraints, no
alphabetic characters in zip code field.
 Data independence: applications and data are
independent of one another, all applications are
able to access the same data.

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 Designing the Database

 Data model. Diagram that represents the entities in

the database and their relationships.
 Entity is a person, place, thing or event.
 Attribute is a characteristic or quality of a particular
entity.
 Primary key is a field that uniquely identifies that
record.
 Secondary keys are fields that have identifying
information but may not identify with complete accuracy.

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 Entity-Relationship Modeling

 Database designers plan the database design in a

process called entity-relationship (ER) modeling.
 ER diagrams consists of entities, attributes and
relationships.
 Entity classes are a group of entities of a given
type, i.e. STUDENT.
 Instance is the representation of a particular entity,
i.e. STUDENT(John Smith, 123-45-6789, …).
 Identifiers are attributes unique to that entity
instance, i.e. StudentIDNumber.
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 4.3 Database Management
Systems
 Database management system (DBMS) is a set of
programs that provide users with tools to add,
delete, access and analyze data stored in one
location.
 Online transaction processing (OLTP) is when
transactions are processed as soon as they occur.
 Relational database model is based on the concept
of two-dimensional tables.
 Popular examples of relational databases are
Microsoft Access and Oracle.
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 Query Languages

 Structured query language (SQL) is the

most popular query language used to request
information.
 Query by example (QBE) is a grid or
template that a user fills out to construct a
sample or description of the data wanted.

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 Relational Database Management
Systems

 Normalization is a method for analyzing and

reducing a relational database to its most
streamlined form for:
 Mimimum redunancy;
 Maximum data integrity;
 Best processing performance.
 Normalized data is when attributes in the
table depend only on the primary key.
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 Virtual Databases

 Software applications that provide a way of

managing many different data sources as
though they were all one large database.
 Benefits of virtual databases include:
 Lower development costs;
 Faster development time;
 Less maintenance;
 Single point of entry into a company’s data.
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 4.4 Data Warehousing

 Data warehouse is a repository of historical

data organized by subject to support decision
makers in the organization and include:
 Online analytical processing which involves
the analysis of accumulated data by end users;
 Multidimensional data structure which allows
data to be represented in a three-dimensional
matrix (or data cube).
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 Benefits of Data Warehousing

 End users can access data quickly and easily

via Web browsers because they are located in
one place.
 End users can conduct extensive analysis
with data in ways that may not have been
possible before.
 End users have a consolidated view of
organizational data.
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 Data Marts & Data Mining

 Data mart is a small data warehouse,

designed for the end-user needs in a strategic
business unit (SBU) or a department.
 Data mining involves searching for valuable
business information in a large database, data
warehouse, or data mart.
 Used to predict trends and behaviors.
 Identify previously unknown patterns.
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 Data Mining Applications

 Retailing and sales. Predict sales, prevent theft and fraud,

determine correct inventory levels and distribution
schedules.
 Banking. Forecast levels of bad loans, fraudulent credit card
use, predict credit card spending by new customers, etc.
 Manufacturing and production. Predict machinery
failures, find key factors to help optimize manufacturing
capacity.
 Insurance. Forecast claim amounts, medical coverage costs,
predict which customers will buy new insurance policies.

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 Data Mining Applications
(Continued)
 Policework. Track crime patterns, locations,
criminal behavior; identify attributes to assist in
solving criminal cases.
 Health care. Correlate demographics of patients
with critical illnesses, develop better insight to
identify and treat symptoms and their causes.
 Marketing. Classify customer demographics to
predict how customers will respond to mailing or
buy a particular product.

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 4.5 Data Visualization
Technologies
 Geographic Information Systems (GIS) is a
computer-based system for capturing, integrating,
manipulating and displaying data using digitized
maps.
 Find locations for new restaurants.
 Emerging GIS applications integrated with global
positioning systems (GPSs).
 Virtual Reality is interactive, computer-generated,
three-dimensional graphics delivered to the user
through a head-mounted display.

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 4.6 Knowledge Management

 Knowledge management (KM) is a process that

helps organizations manipulate important
knowledge that is part of the organization’s
memory, usually in an unstructured format.
 Knowledge is information that is contextual,
relevant and actionable; information in action.
 Intellectual capital (or intellectual assets) is
another term often used for knowledge.

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 Knowledge Management
(Continued)
 Explicit knowledge deals with more objective, rational and
technical knowledge.
 Tacit knowledge is the cumulative store of subjective or
experiential learning.
 Knowledge management systems (KMSs) use modern
information technologies – Internet, intranets, extranets, data
warehouses - to systemize, enhance and expedite intrafirm
and interfirm knowledge management.
 Best practices are the most effective and efficient ways of
doing things, readily available to a wide range of employees.

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 Knowledge Management System
Cycle

 Create knowledge. Determine new ways.

 Capture knowledge. Identify as valuable.
 Refine knowledge. Make it actionable.
 Store knowledge. Store in a reasonable format.
 Manage knowledge. Verify it is relevant, accurate.
 Disseminate knowledge. Made available.

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