CH 05

5
Data and Knowledge

Management
1. Discuss ways that common challenges in managing data can be
addressed using data governance.
2. Define Big Data, and discuss its basic characteristics.
3. Explain how to interpret the relationships depicted in an entity-
relationship diagram.
4. Discuss the advantages and disadvantages of relational
databases.
5. Explain the elements necessary to successfully implement and
maintain data warehouses.
6. Describe the benefi ts and challenges of implementing
knowledge management systems in organizations.
1. Managing Data
2. Big Data
3. The Database Approach
4. Database Management Systems
5. Data Warehouses and Data Marts
6. Knowledge Management
[ Opening Case Tapping the Power of
Big Data ]
• What We Learned from This Case

5.1 Managing Data
• The Difficulties of Managing Data

• Data Governance
Difficulties in Managing Data
• Data increases exponentially with time

• Multiple sources of data
• Data rot, or data degradation
• Data security, quality, and integrity
• Government Regulation
Multiple Sources of Data
• Internal Sources
– Corporate databases, company documents
• Personal Sources
– Personal thoughts, opinions, experiences
• External Sources
– Commercial databases, government reports, and
corporate Web sites.
Data Governance
• An approach to managing information across

an entire organization.
• Master Data
• Master Data Management
5.2 Big Data
• Defining Big Data

• Characteristics of Big Data
• Managing Big Data
• Leveraging Big Data
Defining Big Data
• Big data is difficult to define

• Two Descriptions of Big Data
From Gartner Research (Big Data
Description 1 of 2)
• Diverse, high-volume, high-velocity information
assets that require new forms of processing to enable
enhanced decision making, insight discovery, and
process optimization. (www.gartner.com)
From the Bid Data Institute (Big
Data Description 2 of 2)
• Exhibit variety
• Includes structured, unstructured, and semi-structured data
• Are generated at high velocity with an uncertain pattern
• Do not fit neatly into traditional, structured, relational
databases
• Can be captured, processed, transformed, and analyzed in
a reasonable amount of time only by sophisticated
information systems.
• (www.the-bigdatainstitute.com)
Defining Big Data
• Big Data Generally Consist of:

– Traditional enterprise data
– Machine-generated/sensor data
– Social Data
– Images captured by billions of devices located
around the world
• Digital cameras, camera phones, medical scanners, and
security cameras
Characteristics of Big Data
• Volume
• Velocity
• Variety
Managing Big Data
• When properly analyzed big data can reveal

valuable patterns and information.
• Database environment
• Traditional relational databases versus NoSQL
databases
• Open source solutions
Leveraging Big Data
• Creating Transparency
• Enabling Experimentation
• Segmenting Population to Customize Actions
• Replacing/Supporting Human Decision Making
with Automated Algorithms
• Innovating New Business Models, Products, and
Services
• Organizations Can Analyze Far More Data
5.3 The Database Approach
• The Data Hierarchy

• Designing the Database
Fig_5-1 Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
Databases Minimize Three Main
Problems
• Data Redundancy
• Data Isolation
• Data Inconsistency
Databases Maximize the Following
• Data Security
• Data Integrity
• Data Independence
Data Hierarchy
• Bit
• Byte
• Field
• Data File or Table
• Database
Designing the Database
• Key Terms
– Data Model
– Entity
– Instance
– Attribute
– Primary Key
– Secondary Keys
Designing the Database
• Entity-Relationship Modeling
• Entity-Relationship Diagram
• Cardinality
• Modality
5.4 Database Management
Systems
• The Relational Database Model
• Databases in Action
The Relational Database Model
• Based on the concept of two-dimensional

tables
• Database Management System (DBMS)
• Query Languages
• Data Dictionary
• Normalization
[about business]
Database Solution for
the German Aerospace
Center
5.5 Data Warehouses and Data
Marts
• Describing Data Warehouses and Data
Marts
• A Generic Data Warehouse
Environment
Describing Data Warehouses & Data
Marts
• Data Warehouse
– A repository of historical data that are organized by
subject to support decision makers in the
organization
• Data Mart
– A low-cost, scaled-down version of a data
warehouse designed for end-user needs in a strategic
business unit (SBU) or individual department.
Describing Data Warehouses & Data
Marts
• Basic characteristics of data warehouses and
data marts
– Organized by business dimension or subject
– Use online analytical processing (OLAP)
– Integrated
– Time variant
– Nonvolatile
– Multidimensional
A Generic Data Warehouse
Environment
• Source Systems
– Data Integration
– Storing the Data
• Metadata
• Data Quality
• Data Governance
• Users
[about business]
Hospital Improves
Patient Care with Data
Warehouse
5.6 Knowledge Management
• Concepts and Definitions

• Knowledge Management Systems
• The KMS Cycle
Concepts & Definitions
• Knowledge Management (KM)

– A process that helps manipulate important
knowledge that comprises part of the
organization’s memory, usually in an unstructured
format.
• Knowledge
• Explicit & Tacit Knowledge
• Knowledge Management System (KMS)
Knowledge Management Systems
(KMS)
• Refer to the use of modern information
technologies – the Internet, intranet, extranets,
databases – to systematize, enhance, and
expedite intrafirm and interfirm knowledge
management.
– Best practices
The KMS Cycle
• Create Knowledge
• Capture Knowledge
• Refine Knowledge
• Store Knowledge
• Manage Knowledge
• Disseminate Knowledge
[ Closing Case Can Organizations
Have Too Much Data? ]
• The Problem
• The Solution
• The Results

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5

Data and Knowledge

• What We Learned from This Case

• The Difficulties of Managing Data

• Data increases exponentially with time

• An approach to managing information across

• Defining Big Data

• Big data is difficult to define

• Big Data Generally Consist of:

• When properly analyzed big data can reveal

• The Data Hierarchy

• Based on the concept of two-dimensional

• Concepts and Definitions

• Knowledge Management (KM)

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