Infrastructure for E-Business DIS 302: E-Business Laudon & Laudon.

Infrastructure for E-Infrastructure for E-BusinessBusiness

DIS 302: E-BusinessDIS 302: E-Business

Laudon & LaudonLaudon & Laudon

Infrastructure for E-BusinessInfrastructure for E-Business

• IT InfrastructureIT Infrastructure

• Databases and Information Databases and Information ManagementManagement

IT INFRASTRUCTUREIT INFRASTRUCTUREInfrastructure for E-BusinessInfrastructure for E-Business

IT Infrastructure Eras IT Infrastructure Eras

• 1. Electronic accounting machine 1. Electronic accounting machine era (1930-1950):era (1930-1950): The use of large, The use of large, cumbersome machines with cumbersome machines with hardwired software for sorting, hardwired software for sorting, adding, and reporting dataadding, and reporting data

IT Infrastructure Eras IT Infrastructure Eras

• 2. General-Purpose Mainframe and 2. General-Purpose Mainframe and minicomputer era (1959-present):minicomputer era (1959-present): The The introduction and continued use of mainframes. introduction and continued use of mainframes. MainframesMainframes were the first powerful computers were the first powerful computers that could provide time sharing, multi tasking, that could provide time sharing, multi tasking, and virtual memory, and became powerful and virtual memory, and became powerful enough to support thousands of remote enough to support thousands of remote terminals. The mainframe era was a period of terminals. The mainframe era was a period of highly centralized computing controlled by highly centralized computing controlled by programmers and system operators. programmers and system operators. MinicomputersMinicomputers, powerful yet less expensive , powerful yet less expensive computers, began to change this pattern, computers, began to change this pattern, allowing decentralized computing customizable allowing decentralized computing customizable to individual departments or business units.to individual departments or business units.

IT InfrastructureIT Infrastructure

• 3. Personal computer era (1981-3. Personal computer era (1981-present):present): The appearance of the IBM PC in The appearance of the IBM PC in 1981 is usually considered the beginning of 1981 is usually considered the beginning of the PC era because this machine was the the PC era because this machine was the first to be widely adopted by American first to be widely adopted by American businesses. 95 percent of today's 1 billion businesses. 95 percent of today's 1 billion computers are computers are Wintel PCsWintel PCs, using , using WindowsWindows software and Intel software and Intel microprocessors. PCs were standalone microprocessors. PCs were standalone systems until PC operating system software systems until PC operating system software in the 1990s made it possible to link them in the 1990s made it possible to link them into networks.into networks.


• 4. Client server era (1983-4. Client server era (1983-present):present): In In client/server client/server computingcomputing, desktop or laptop , desktop or laptop computers called computers called clientsclients are are networked to networked to serverserver computers that computers that provide the clients with services and provide the clients with services and capabilities. Computer processing work capabilities. Computer processing work is split between these two types of is split between these two types of machines. machines.


• The client is the user point of entry, The client is the user point of entry, whereas the server typically processes whereas the server typically processes and stores shared data, serves up Web and stores shared data, serves up Web pages, or manages network activities. pages, or manages network activities.

• The term server refers to both the The term server refers to both the software application and the physical software application and the physical computer on which the network computer on which the network software runs. The server could be a software runs. The server could be a mainframe, but today server computers mainframe, but today server computers typically are more powerful versions of typically are more powerful versions of personal computers.personal computers.

A MULTITIERED CLIENT/SERVER NETWORK

In a multitiered client/server network, client requests for service are handled by different levels of servers.


• 5. Enterprise Internet (1992-present):5. Enterprise Internet (1992-present): The Internet networking technology The Internet networking technology Transmission Control Protocol/Internet Transmission Control Protocol/Internet Protocol (TCP/IP) suite enables enterprises Protocol (TCP/IP) suite enables enterprises to link disparate devices and local area to link disparate devices and local area networks (LANs) into single enterprise-wide networks (LANs) into single enterprise-wide networks. Integrated computing networks. Integrated computing environments allows for much faster and environments allows for much faster and seamless gathering and distribution of seamless gathering and distribution of data.data.

Infrastructure ComponentsInfrastructure Components

• IT infrastructure is composed of seven major IT infrastructure is composed of seven major components: components: – Computer hardware platformsComputer hardware platforms include client include client

machines and server machines, as well as modern machines and server machines, as well as modern mainframes produced by IBM. mainframes produced by IBM.

– Operating system platformsOperating system platforms include platforms include platforms for client computers, dominated by Windows for client computers, dominated by Windows operating systems, and servers, dominated by the operating systems, and servers, dominated by the various forms of the various forms of the UNIXUNIX operating system or operating system or Linux. Linux. Operating systemsOperating systems are software that are software that manage the resources and activities of the manage the resources and activities of the computer and act as an interface for the user.computer and act as an interface for the user.

– Enterprise and other software applicationsEnterprise and other software applications include SAP, Oracle, and PeopleSoft, and include SAP, Oracle, and PeopleSoft, and middlewaremiddleware software that are used to link a firm's software that are used to link a firm's existing application systems.existing application systems.


– Data management and storageData management and storage is handled by is handled by database management software and storage database management software and storage devices include traditional storage methods, such devices include traditional storage methods, such as disk arrays and tape libraries, and newer as disk arrays and tape libraries, and newer network-based storage technologies such as network-based storage technologies such as storage area networks (SANs)storage area networks (SANs). SANs connect . SANs connect multiple storage devices on dedicated high-speed multiple storage devices on dedicated high-speed networks.networks.

– Networking and telecommunications Networking and telecommunications platformsplatforms include Windows server operating include Windows server operating systems, Novell, Linux, and UNIX. Nearly all LAN systems, Novell, Linux, and UNIX. Nearly all LAN and many wide area networks (WANs) use the and many wide area networks (WANs) use the TCP/IP standards for networking.TCP/IP standards for networking.


– Internet platformsInternet platforms overlap with, and must overlap with, and must relate to, the firm's general networking relate to, the firm's general networking infrastructure and hardware and software infrastructure and hardware and software platforms. Internet-related infrastructure platforms. Internet-related infrastructure includes the hardware, software and services includes the hardware, software and services to maintain corporate Web sites, intranets, to maintain corporate Web sites, intranets, and extranets, including Web hosting services and extranets, including Web hosting services and Web software application development and Web software application development tools. A tools. A Web hosting serviceWeb hosting service maintains a maintains a large Web server, or series of servers, and large Web server, or series of servers, and provides fee-paying subscribers with space to provides fee-paying subscribers with space to maintain their Web sites.maintain their Web sites.


– Consulting and system integration Consulting and system integration servicesservices are relied on for integrating a firm's are relied on for integrating a firm's legacy systemslegacy systems with new technology and with new technology and infrastructure and providing expertise in infrastructure and providing expertise in implementing new infrastructure along with implementing new infrastructure along with relevant changes in business processes, relevant changes in business processes, training, and software integration. Legacy training, and software integration. Legacy systems are generally older transaction systems are generally older transaction processing systems created for mainframe processing systems created for mainframe computers that continue to be used to avoid computers that continue to be used to avoid the high cost of replacing or redesigning the high cost of replacing or redesigning them.them.

THE IT INFRASTRUCTURE ECOSYSTEMTHE IT INFRASTRUCTURE ECOSYSTEM

Moore's Law and Moore's Law and Microprocessing PowerMicroprocessing Power• There are several features or characteristics There are several features or characteristics

of information technology today that act as of information technology today that act as drivers toward the expansion and further drivers toward the expansion and further development of technology. An important development of technology. An important one is Moore’s Lawone is Moore’s Law

• Moore's lawMoore's law stated in 1965 that stated in 1965 that microprocessing power doubles every two microprocessing power doubles every two years. Variations of this law assert that:years. Variations of this law assert that:– Microprocessing power doubles every 18 monthsMicroprocessing power doubles every 18 months– Computer power doubles every 18 monthsComputer power doubles every 18 months– The price of computing halves every 18 months.The price of computing halves every 18 months.

FALLING COST OF FALLING COST OF CHIPSCHIPS

Packing more Packing more transistors into less transistors into less space has driven space has driven down transistor down transistor cost dramatically as cost dramatically as well as the cost of well as the cost of the products in the products in which they are which they are used. An Intel® used. An Intel® processor today can processor today can contain as many as contain as many as 1 billion transistors, 1 billion transistors, run at 3.2 GHz and run at 3.2 GHz and higher, deliver over higher, deliver over 10,000 MIPS, and 10,000 MIPS, and can be can be manufactured in manufactured in high volumes with high volumes with transistors that cost transistors that cost less than less than 1/10,000th of a 1/10,000th of a cent. That’s a little cent. That’s a little less than the cost of less than the cost of one printed one printed character in a book.character in a book.

FOUNDATIONS OF BUSINESS FOUNDATIONS OF BUSINESS INTELLIGENCE: DATABASES AND INTELLIGENCE: DATABASES AND INFORMATION MANAGEMENTINFORMATION MANAGEMENT

Infrastructure for E-BusinessInfrastructure for E-Business

Data in a Traditional File Data in a Traditional File Environment Environment • Computer systems organize data in a hierarchy Computer systems organize data in a hierarchy

that begins with that begins with bitsbits and and bytesbytes and progresses and progresses to more complex groupings of data: to more complex groupings of data:

• FieldsFields: Group of characters, words, or a : Group of characters, words, or a complete numbercomplete number

• RecordsRecords: Group of related fields, describes an : Group of related fields, describes an entityentity (a person, place or thing about which (a person, place or thing about which information must be kept - each characteristic information must be kept - each characteristic of an entity is an of an entity is an attributeattribute

• FileFile: Group of records of the same type: Group of records of the same type• DatabaseDatabase: Group of related files: Group of related files

THE DATA THE DATA HIERARCHYHIERARCHY

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

Data in a Traditional File Data in a Traditional File Environment Environment

• In most organizations, the traditional In most organizations, the traditional approach to information processing approach to information processing meant that databases and other meant that databases and other systems tended to grow independently systems tended to grow independently without a company-wide plan. without a company-wide plan. Accounting, finance, manufacturing, Accounting, finance, manufacturing, human resources, and sales and human resources, and sales and marketing all developed their own marketing all developed their own systems and data files.systems and data files.

TRADITIONAL FILE TRADITIONAL FILE PROCESSINGPROCESSING

Problems resulting from the Problems resulting from the traditional file environmenttraditional file environment

• Data redundancyData redundancy: duplicate data in : duplicate data in multiple files, leading to multiple files, leading to data data inconsistencyinconsistency, different values used for , different values used for the same attributethe same attribute

• Program-data dependencyProgram-data dependency: Changes in : Changes in programs requiring changes to the dataprograms requiring changes to the data

• Lack of flexibilityLack of flexibility

• Poor securityPoor security

• Lack of data sharingLack of data sharing

Database Approach to Data Database Approach to Data Management Management • Database technology eliminates many of the Database technology eliminates many of the

problems of traditional file organization by problems of traditional file organization by organizing data: centralizing data and controlling organizing data: centralizing data and controlling redundant data, and serve many applications and redundant data, and serve many applications and different groups at the same time.different groups at the same time.

• A A database management system (DBMS)database management system (DBMS) is is software that: software that: – Acts as an interface between application programs and Acts as an interface between application programs and

the data filesthe data files– Separates the logical view of the database (how the Separates the logical view of the database (how the

data is perceived by end users) and the physical view data is perceived by end users) and the physical view (how the data is actually organized on storage media). (how the data is actually organized on storage media). It also allows different logical views for different users.It also allows different logical views for different users.

– Helps to reduce data redundancy and eliminate data Helps to reduce data redundancy and eliminate data inconsistency by allowing a central, shared data sourceinconsistency by allowing a central, shared data source

HUMAN RESOURCES DATABASE WITH HUMAN RESOURCES DATABASE WITH MULTIPLE VIEWSMULTIPLE VIEWS

A single human resources database provides many different A single human resources database provides many different views of data, depending on the information requirements of the views of data, depending on the information requirements of the user. Illustrated here are two possible views, one of interest to a user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the benefits specialist and one of interest to a member of the company’s payroll departmentcompany’s payroll department..

Relational DBMSRelational DBMS

• E.g. Microsoft Sequel Server or MYSQLE.g. Microsoft Sequel Server or MYSQL

• Represents data as two-dimensional Represents data as two-dimensional tables called relations. Each table tables called relations. Each table consists of a grid of columns and rows consists of a grid of columns and rows of data. of data.

• Each row is a Each row is a recordrecord, or , or tupletuple, , divided by columns into separate divided by columns into separate fields for that record. fields for that record.


• One column in each table acts as a One column in each table acts as a primary primary keykey, defining for each record a , defining for each record a key fieldkey field that that is used to uniquely identify each record. is used to uniquely identify each record.

• Relational databases use primary keys to Relational databases use primary keys to connect records from one table to other connect records from one table to other tables. When a primary key from one table is tables. When a primary key from one table is used in second table to locate, or look-up, used in second table to locate, or look-up, records from the first table, it is called a records from the first table, it is called a foreign keyforeign key..

RELATIONAL DATABASE TABLES

Illustrated here are tables for the entities SUPPLIER and PART showing how they represent each entity and its attributes. Supplier_Number is a primary key for the SUPPLIER table and a foreign key for the PART table.


• In a relational database, three In a relational database, three operations are used to develop sets of operations are used to develop sets of data: data: – Select:Select: Creates a subset of data of Creates a subset of data of

records that meet stated criteriarecords that meet stated criteria– Join:Join: Combines relational data from Combines relational data from

different tablesdifferent tables– Project:Project: Creates a subset of a table using Creates a subset of a table using

only specified columnsonly specified columns

THE THREE BASIC OPERATIONS OF A RELATIONAL DBMS

The select, project, and join operations enable data from two different tables to be combined and only selected attributes to be displayed.

DBMSDBMS

• Older, less flexible types of database systems Older, less flexible types of database systems include hierarchical DBMS, which model one-to-include hierarchical DBMS, which model one-to-many relationships, and network DBMS, which many relationships, and network DBMS, which model many-to-many relationships.model many-to-many relationships.

• Relational DBMS are suited for handling data, Relational DBMS are suited for handling data, not graphics or multimedia. An not graphics or multimedia. An object-object-oriented DBMS (OODBMS)oriented DBMS (OODBMS) stores the data stores the data and procedures that act on those data as and procedures that act on those data as objects that can be automatically retrieved and objects that can be automatically retrieved and shared, and can manage multimedia and java shared, and can manage multimedia and java applets. However, OODBMS are slower in applets. However, OODBMS are slower in handling large numbers of transactions. handling large numbers of transactions.

• Hybrid Hybrid object-relational DBMSobject-relational DBMS systems are systems are now available to provide capabilities of both now available to provide capabilities of both object-oriented and relational DBMS.object-oriented and relational DBMS.

DBMSDBMS

• A DBMS includes capabilities and tools for A DBMS includes capabilities and tools for accessing and managing data in a database, accessing and managing data in a database, including: including: – Data definitionData definition language or capability: Used to language or capability: Used to

specify the structure of the database content, specify the structure of the database content, creating and defining tables and fieldscreating and defining tables and fields

– Data dictionaryData dictionary: An automated or manual file that : An automated or manual file that stores definitions of data elements and their stores definitions of data elements and their characteristicscharacteristics

– Data manipulation languageData manipulation language: a specialized : a specialized language, such as Structured Query Language, or language, such as Structured Query Language, or SQL, that is used to add, change, delete, and retrieve SQL, that is used to add, change, delete, and retrieve the data in the databasethe data in the database

SAMPLE DATA SAMPLE DATA DICTIONARY DICTIONARY REPORTREPORT

The sample data The sample data dictionary report for a dictionary report for a human resources human resources database provides database provides helpful information, helpful information, such as the size of such as the size of the data element, the data element, which programs and which programs and reports use it, and reports use it, and which group in the which group in the organization is the organization is the owner responsible for owner responsible for maintaining it.maintaining it.

EXAMPLE OF AN SQL EXAMPLE OF AN SQL QUERYQUERY

Illustrated here are the SQL statements for a query Illustrated here are the SQL statements for a query to select suppliers for parts 137 or 150. They to select suppliers for parts 137 or 150. They produce a list with the same results as the diagram produce a list with the same results as the diagram showing the three basic operations of RDBMS.showing the three basic operations of RDBMS.

AN ACCESS QUERYAN ACCESS QUERY

Illustrated here is how the same query would be constructed Illustrated here is how the same query would be constructed using query-building tools in the Access Query Design View. using query-building tools in the Access Query Design View. It shows the tables, fields, and selection criteria used for the It shows the tables, fields, and selection criteria used for the query.query.

DBMSDBMS

• A DBMS may also include capabilities for A DBMS may also include capabilities for generating customized reports and generating customized reports and developing desktop system applications.developing desktop system applications.

• Considerations in designing a database Considerations in designing a database include its: include its: – Physical design:Physical design: How the database is How the database is

arranged on storage devicesarranged on storage devices– Conceptual, or logical design:Conceptual, or logical design: How the data How the data

elements are organized for efficiency, meeting elements are organized for efficiency, meeting information requirements, and minimizing information requirements, and minimizing redundancyredundancy

• dxwdxdxwdx

Using Databases to Improve Using Databases to Improve Business Performance and Business Performance and Decision-MakingDecision-Making• Businesses use their databases to: Businesses use their databases to:

– Keep track of basic transactionsKeep track of basic transactions– Provide information that will help the Provide information that will help the

company run the business more company run the business more efficientlyefficiently

– Help managers and employees make Help managers and employees make better decisionsbetter decisions

DBMS UsesDBMS Uses

• In a large company, special capabilities In a large company, special capabilities and tools are required for analyzing vast and tools are required for analyzing vast quantities of data and for accessing quantities of data and for accessing data from multiple systems, such as: data from multiple systems, such as: – Data warehouseData warehouse: a database that stores : a database that stores

current and historical data from core current and historical data from core operational transactional systems for use in operational transactional systems for use in management analysis, but this data cannot management analysis, but this data cannot be altered.be altered.

DBMS UsesDBMS Uses

– Data martData mart: A subset of a data warehouse in : A subset of a data warehouse in which a summarized or highly focused portion of which a summarized or highly focused portion of the organization's data is placed in a separate the organization's data is placed in a separate database for a specific population of users.database for a specific population of users.

– Business intelligence (BI)Business intelligence (BI) tools: Data analysis tools: Data analysis tools used for consolidating, analyzing, and tools used for consolidating, analyzing, and accessing vast stores of data to help in decision accessing vast stores of data to help in decision making, such as software for database query and making, such as software for database query and reporting, tools for multidimensional data analysis reporting, tools for multidimensional data analysis (online analytical processing), and data mining.(online analytical processing), and data mining.

COMPONENTS OF A COMPONENTS OF A DATA WAREHOUSEDATA WAREHOUSE

The data warehouse extracts current The data warehouse extracts current and historical data from multiple and historical data from multiple operational systems inside the operational systems inside the organization. These data are combined organization. These data are combined with data from external sources and with data from external sources and reorganized into a central database reorganized into a central database designed for management reporting designed for management reporting and analysis. The information directory and analysis. The information directory provides users with information about provides users with information about the data available in the warehouse.the data available in the warehouse.

BUSINESS BUSINESS INTELLIGENCEINTELLIGENCE A series of analytical tools works with A series of analytical tools works with

data stored in databases to find data stored in databases to find patterns and insights for helping patterns and insights for helping managers and employees make managers and employees make better decisions to improve better decisions to improve organizational performance.organizational performance.

OLAPOLAP

• Online Analytical Processing Online Analytical Processing (OLAP)(OLAP) supports multidimensional supports multidimensional data analysis, enabling users to view data analysis, enabling users to view the same data in different ways the same data in different ways using multiple dimensions, for using multiple dimensions, for example: How many dishwashers example: How many dishwashers were sold in the East in June.were sold in the East in June.

MULTIDIMENSIONAL DATA MULTIDIMENSIONAL DATA MODELMODEL

The view that is The view that is showing is product showing is product versus region. If you versus region. If you rotate the cube 90 rotate the cube 90 degrees, the face degrees, the face that will show is that will show is product versus actual product versus actual and projected sales. If and projected sales. If you rotate the cube you rotate the cube 90 degrees again, 90 degrees again, you will see region you will see region versus actual and versus actual and projected sales. Other projected sales. Other views are possible.views are possible.

Data miningData mining

• Data miningData mining finds hidden patterns and finds hidden patterns and relationships and infers rules from these to relationships and infers rules from these to predict future behavior. The types of predict future behavior. The types of information obtainable from data mining information obtainable from data mining include include – AssociationsAssociations– SequencesSequences– ClassificationsClassifications– ClusteringClustering– ForecastingForecasting

Predictive analysisPredictive analysis

• Predictive analysisPredictive analysis uses data uses data mining techniques, historical data, mining techniques, historical data, and assumptions about future and assumptions about future conditions to predict outcomes of conditions to predict outcomes of events, such as the probability a events, such as the probability a customer will respond to an offer or customer will respond to an offer or purchase a specific product.purchase a specific product.

Managing Data Resources Managing Data Resources

• An An information policyinformation policy specifies the specifies the organization's rules for sharing, disseminating, organization's rules for sharing, disseminating, acquiring, standardizing, classifying, and acquiring, standardizing, classifying, and inventorying information, and includes inventorying information, and includes procedures and accountabilities and roles.procedures and accountabilities and roles.

• Data administrationData administration is responsible for the is responsible for the specific policies and procedures through which specific policies and procedures through which data can be managed as an organizational data can be managed as an organizational resource. Responsibilities include developing resource. Responsibilities include developing information policy, planning for data, information policy, planning for data, overseeing logical database design and data overseeing logical database design and data dictionary development, and monitoring how dictionary development, and monitoring how information systems specialists and end-user information systems specialists and end-user groups use data. Large organizations often groups use data. Large organizations often require a formal data administration function.require a formal data administration function.


• Data governanceData governance deals with the policies and deals with the policies and processes for managing the availability, usability, processes for managing the availability, usability, integrity, and security of the data employed in an integrity, and security of the data employed in an enterprise, with special emphasis on promoting enterprise, with special emphasis on promoting privacy, security, data quality, and compliance with privacy, security, data quality, and compliance with government regulations.government regulations.

• A large organization will also have a database design A large organization will also have a database design and management group that is responsible for and management group that is responsible for defining and organizing the structure and content of defining and organizing the structure and content of the database, and maintaining the database. The the database, and maintaining the database. The functions it performs are called functions it performs are called database database administrationadministration..


• In managing data, steps must be taken to ensure In managing data, steps must be taken to ensure that the data in organizational databases are that the data in organizational databases are accurate and remain reliable. Data that are accurate and remain reliable. Data that are inaccurate, untimely, or inconsistent with other inaccurate, untimely, or inconsistent with other sources of information lead to incorrect decisions, sources of information lead to incorrect decisions, product recalls, and even financial losses.product recalls, and even financial losses.

• A good database design also includes efforts to A good database design also includes efforts to maximize data quality and eliminate error. Some maximize data quality and eliminate error. Some data quality problems result from redundant and data quality problems result from redundant and inconsistent data, but most stem from errors in inconsistent data, but most stem from errors in data input. Organizations need to identify and data input. Organizations need to identify and correct faulty data and establish better routines correct faulty data and establish better routines for input and editing.for input and editing.


• A A data quality auditdata quality audit can be can be performed by surveying entire data performed by surveying entire data files, sample data, and surveying end-files, sample data, and surveying end-users impressions of data quality. users impressions of data quality.

• Data cleansingData cleansing (or data scrubbing) (or data scrubbing) techniques can be used to correct techniques can be used to correct data and enforce consistency among data and enforce consistency among different sets of data. different sets of data.

Q & AQ & A

Infrastructure for E-Business DIS 302: E-Business Laudon & Laudon.

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