The modern organization is increasingly dependent on information to operate efficiently in a competitive business environment. The collection, management, and analysis of data will grow to be the driving agent for successful organizations.
The database management system (DBMS) is the key mechanism for information storage in the modern enterprise. The DBMS is the software that manages the collection, storage, retrieval, and manipulation of the enterprise’s data. It stores key business records, including customers, employees, and financial information and when designed correctly, the DBMS is capable of converting data into knowledge. Therefore, the DBMS is the fundamental technology for driving business decisions and has become an indispensable tool for all industries.
The Meaning of Data
The Oxford English Dictionary defines data as “known facts or things used as basis for inference or reckoning.” Data represents raw facts about a business and is considered to be raw because it consists of unexamined specifics that do not have meaning on their own. Data can be stored in a structured or unstructured format. Structured data is highly organized and must be unambiguous, such as entries in an enterprise contact management system. An example of unstructured data is a system that stores resumes of individuals; each resume may be in a different format and created by a different word processor.
Data is the basic building block of information. It is the essential raw material that is processed into information. The business must drive the flow of data to encourage evolution into the knowledge that is used by all members of the enterprise. This knowledge must guide all business processes and actions, if an organization is to be effective.
Developing the Database Management System
When databases were initially developed, they were designed to simply record transactions, like product orders. This type of database is referred to as an online transaction processing (OLTP) system and is employed to automate and record basic business activities. OLTP systems support the day-to-day operations of the enterprise by recording raw data generated by a specific process.
When implementing a new database, an effective Database Administrator (DBA) will begin by documenting (on paper) a detailed data model. The data model will specify the major entities of a process, the attributes of each entity, and how each entity is related. Each entity will be stored in a table and the attributes of each entity will be structured into fields.
Generating Information
The Oxford English Dictionary defines information as “what is told; items of knowledge.” Information, within the scope of technology, is a collection of data that has been processed into a meaningful form. Most people cannot process or understand more than about 20 references of data at one time. Active organizations will rapidly gather hundreds of thousands of records, consisting of data that has no value in its raw form. Systems must be used to process data into a more comprehensible format, such as summaries or totals. Online analytical processing (OLAP) systems provide the means for business users to analyze raw data. These systems enable business users to drill down into masses of data and isolate information, such as which products or services are most profitable. I have heard many executives complain of “Information Overload.” By leveraging the abilities of an OLAP system, this problem can be eliminated. OLAP systems are designed specifically to support mission critical business decisions and therefore are classified as Decision Support Systems.
Delivering Knowledge to Determine Action
The Oxford English Dictionary defines knowledge as a “person’s range of information.” Knowledge is created when historic patterns and relationships are established to derive accurate decisions for future action. It is information taken to the next level of abstraction.
Computers will never make better decisions than people. Knowledge is a combination of structured and unstructured information. Although structured information is fairly simple to collect, unstructured information is derived from an unlimited number of sources. Unstructured information does not reside in fixed locations and cannot be processed by a computer.
Technology is entering a new era as it enhances a leader’s ability to successfully supply refined decisions. Systems are beginning to evolve and integrate structured and unstructured information sources. One example of this improved ability is seen in an Online Knowledge Management (OLKM) system. The tool enables leaders to review information that has been created by OLAP systems and integrate it with unstructured information sources. The raw data presents key indicators that can generate an alerting mechanism and trend analyzer. However, there is the requirement that this data be linked to unstructured information to offer context and meaning.
Sharing Knowledge
Portals are the best tools to deliver diverse business content to a workforce. Using web-based technologies, a portal assimilates structured and unstructured data for easy access from a single point of reference. Portals are the view that business users see when they log on to their system, and to which they regularly return. A portal acts as a central location for finding critical information and knowledge through which business decisions are derived. Portals are very attractive to users because they can be personalized to provide a single view into the enterprise that is relevant to a particular person’s role, responsibility, and interest.
As enterprises strive to improve their operations and work more closely with their business partners, a central repository of knowledge is essential for coordinating activities. The DBMS is that central repository, and the portal is increasingly the most efficient and effective way to present the information stored inside. Industry leaders are learning that success results when knowledge is easily accessible and when this knowledge is effectively shared with all business partners.
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