Databases Reference
In-Depth Information
Data can give a company a crucial competitive advantage. We routinely speak
of data and the information derived from it as competitive weapons in hotly con-
tested industries. For example, FedEx had a significant competitive advantage when
it first provided access to its package-tracking data on its Web site. Then, once one
company in an industry develops a new application that takes advantage of its data,
the other companies in the industry are forced to match it to remain competitive.
This cycle continually moves the use of data to ever higher levels, making
it an even more important corporate resource. Examples of this abound. Banks
provide their customers with online access to their accounts. Package shipping
companies provide up-to-the-minute information on the whereabouts of a pack-
age. Retailers send manufacturers product sales data that the manufacturers use
to adjust inventories and production cycles. Manufacturers automatically send
their parts suppliers inventory data and expect the suppliers to use the data to
keep a steady stream of parts flowing.
1.1.1 A Practical Example
Let's take a look at a practical example. Airline companies need an overwhelming
amount of data to survive. This includes internal data about their own resources and
personnel, but also data about their customers' travel habits and factors that influ-
ence their business such as changes in fuel costs or actions taken by competitors.
To understand this, take a look at one small part of the airline business, the
process of ticketing and seat reservation. Examine the individual tasks involved
in the ticketing and seat reservation process. Let's say that a customer wants to
make a trip from New York to Miami on a Monday. Are there any promotional
discount plans? The ticketing agent must find and offer a suitable discount plan,
if available. Although the agent has the desk, equipment, and other resources,
he or she needs information about the available discount plans.
The next task involves checking possible routing options and connecting
flights. To perform this task, the agent needs information about the different rout-
ing options and connecting flights on Mondays. After going through the routing
options and flight times, let's say that the customer has picked a specific rout-
ing option. The next task in the process is verifying seat availability. What infor-
mation does the agent need to complete this task? The agent must have infor-
mation about seat availability in each leg of the journey. The agent needs different
types of information for every task of the process. Figure 1-1 shows information
needed for the ticketing and seat reservation process. Notice the various types
of information necessary for the process.
We have considered just one process in the airline company. Even for this
one process, various types of critical information are essential. Now, consider the
number of additional processes involved in day-to-day business activities, each
process with its own critical data set (see Figure 1-2). From this, you can start
