Data and Databases
Data is a valuable resource. Therefore, data management has become an important administrative function. An effective data management plan should govern how to acquire, store, and secure organizational data. Remember, reliable data management plans depend on your ability to identify the value added to operational and strategic planning.
Read this chapter. Focus on the differences between data, information, and knowledge; why database technology for data resource management is important; and the role of database management systems. Answer the study questions at the end of the chapter. Why is data management valuable to the success of an organization? What are some common weaknesses in data resource management? How can they be mitigated?
Summary
In this chapter, we learned about the role that data and databases play in the context of information systems. Data is made up of facts of the world. If you process data in a particular context, then you have information. Knowledge is gained when information is consumed and used for decision making. A database is an organized collection of related data. Relational databases are the most widely used type of database, where data is structured into tables and all tables must be related to each other through unique identifiers. A database management system (DBMS) is a software application that is used to create and manage databases, and can take the form of a personal DBMS, used by one person, or an enterprise DBMS that can be used by multiple users. A data warehouse is a special form of database that takes data from other databases in an enterprise and organizes it for analysis. Data mining is the process of looking for patterns and relationships in large data sets. Many businesses use databases, data warehouses, and data-mining techniques in order to produce business intelligence and gain a competitive advantage.