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Management Systems
Maximizing Return on Your Database Efforts
June 15, 2001
by
Vitus Chak

Database is ubiquitous in any modern city. As front-end users,
however, we are not often aware of its presence. We are so well
shielded from the back-end database and the middle-tier application
logic that the whole system appears to us as a service, such as
transferring fund between bank accounts using an ATM. This is
of course good for the users.
We don't often think of database also because of a lack of such
perceived needs on a personal level. Most of our personal database
needs are essentially simple storage and retrieval, and they can
often be served very well by a spreadsheet, text file, paper and
pen, and better still a PDA with its embedded applications (though
most of which are in fact dedicated databases). Setting up a database
simply to keep a bunch of interesting data is possibly a waste
of time.
When then is a database called for? And how can we best use it?
1. |
Gain in Data
Storage, Maintenance, or Retrieval Efficiency |
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A database is immediately useful if a large
volume of data is involved. In those cases, efficiency gains
in data storage, maintenance and retrieval are already significant
and obvious benefits.
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2. |
Data Access
Flexibility |
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Great value is returned if the data can
be accessed by many users with different access devices
regardless of location. One example is serving dynamic web
content taken from a database to web browsers on both PCs
and wireless devices.
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3. |
Workflow Automation
or Productivity Boost |
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Any series of repetitive or time-consuming
tasks is a prime target for automation. Besides direct productivity
boosts, databases may also enable users to do things not
quite possible otherwise, such as searching for individuals
meeting certain conditions and printing out address labels
for special mailings or exporting email addresses for mass
emailing.
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4. |
Structuring
and Relating Data |
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When RDBMS (Relational Database Management
Systems) were not as pervasive as it is today, we used 'flat
files' to keep data. Such files often result in duplicated
efforts in order to use the data for different purposes
or adapt them to other needs. They also make it very hard
to relate associated information together. This shows that
raw data without structure and application logic is often
not very useful. A good structure makes possible the interpretation
of seemingly meaningless data, and it brings to the surface
patterns, trends, and tendencies in the data. RDBMS makes
it a lot easier to structure data and build application
logic to extract valuable information. One obvious benefit
of an RDBMS is that you only need to enter the same information
once and related tables can all use it.
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5. |
Decision Support
and Data Warehousing |
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A relational database system can be critically
important to the success of an organization if tools and
facilities are available to extract information essential
for formulating strategies and making important decisions.
Such strategic analysis of the data typically focuses on
trends, factors driving those trends, and insights gained
by different perspectives in looking at the data.
At the enterprise level, decision support systems often
have very different design requirements from OLTP (online
transaction processing). Design for the latter centers on
analyzing and automating business processes to provide consistent
performance for a known set of transactions and users. The
typical solution then is to separate OLTP servers and the
associated operational data store from 'data warehouse'
servers which form the decision support system.
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6. |
Data Mining |
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It is the use of mathematical algorithms
and techniques to discover relationships in the data that
wouldn't be made apparent by other tools. This needs to
be done only when analysts believe there are still undiscovered
relationships that may affect the business, and all current
data warehousing tools have been used.
Areas in which data mining has been most successfully used
include fraud detection and micro-opportunity marketing.
Discovering clusters of unusual buying patterns within certain
small groups might drive marketing campaigns aimed at small
audiences with a high probability of purchasing products
or services. |

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