Web/database technology in companies. A wider access to stored data and a one-to-one relationship with the customer base

Table of Contents

Introduction

Wider Access to Stored Data
Using the Web to make Databases accessible
Improving Web/Database Use with a Data Warehouse

One-To-One Relationship with the Customer Base
The Need for Customer “Lock On”
Ford’s One-To-One Relationship
Other Benefits From One-To-One Relationships

Conclusion

Indicative Bibliography

Introduction

The Internet is a network that combines many smaller networks and that was first set up in 1969 by the ministry of defence of the United States of America. In the beginning it was primarily used to do experimental and theoretical research in the area of computer networks as described in Duden (1993). Back then it was called ARPANET (Advanced Research Projects Agency Network) and over the time it became what is now know as the Internet, including services like e-mail (electronic mail) or the web (World Wide Web).

Some years later in 1970 Dr. E. F. Codd created the idea of a relational database management system (RDBMS) that was also first a theoretical work and handled data like rows and columns in a table instead of hierarchies as it was done before. 1972 IBM developed the query language SEQUEL, which finally became what is now known as SQL (Structured Query Language), a commonly accepted language to define and manipulate relational databases.

Both technologies are now more than 30 years old and the knowledge and handling of these technologies improved enormous. So far that in recent years the Internet as well as database technology are so much used in the business world that companies that are not using them probably won’t be able to compete successfully in an increasingly international marketplace.

This development is affecting all areas of business, even companies of the “Old Economy” and non-profit organisations.

Wider Access to Stored Data

Web/database technology provides new ways of helping those making decisions by allowing appropriate access to information by employees at all levels. The sole use of Web/database technology however does not solve all problems because many of the old problems of information management can still occur with the new technology. Mason’s serpents (see Haines 2001) are a good example of problems that can also apply when information is managed with Web/database technology. The serpents show what can go wrong when data is kept in an inappropriate place:

- Data redundancy
- Vulnerability
- Uncertainty
- Inconsistency
- Slow access
- Data interchange problems

Especially data redundancy, uncertainty and inconsistency can occur when information is widely and easily available in an uncontrolled way.

Although the Internet still doesn’t solve all problems when providing those making decisions with access to stored data there are many problems that are solved or at least improved with the use of the internet.

There are many organisations that successfully introduced Web/database technology to provide those making decisions with wider access to stored data. One example is the Texas State Comptroller’s Office.

John Wheat (see Hutchins and Greenfield 1997) from the Information Processing Area at the University of Texas names ten reasons for using the Internet at the Comptroller’s Office.

1. Eliminates (or reduces) x-platform differences
2. Delivers single user interface for diverse services
3. Integrates different types of multi-media
4. Shifts cycles off mainframe (presentation services)
5. Preserves investment in legacy software
6. Minimises distribution of new software
7. Offers secure access over open networks
8. Provides elegant version control
9. Uses tools available today
10. Represents the best bet for future industry support

Most of these reasons are also valid for other organisations.

In this example not only the employees of the State Office have to make decisions according to the information but also the customers (i.e. any state agency’s property manager). Hutchins and Greenfield (1997) describe that although computers (mainly mainframes) were used in the past the distribution of information was slow, staff-intensive and time-consuming with hard copy reports being the primary distribution medium and Inter- agency mail, US mail and the telephone being the primary distribution channels. Requests for access to the data far exceeded the ability to service that need.

A so called “Proof of Concept” team was established that developed a prototype application together with IBM. The prototype was a big success and made even new uses for this technology apparent.

Improving Web/Database Use with a Data Warehouse

Hutchins and Greenfield (1997) write that after the big success of the prototype and the introduction of this new technology in the end even the concept of a data warehouse was investigated. This will create a massive decision support system and the web promises to extend access to all levels of web customers: to internal employees through the intranet, to employees from other agencies with legitimate need to access data through the extranet and even to the tax paying public through the internet.

The following definition for a data warehouse is used by Johnson (1999):

A data warehouse is a database that collects business information from many sources in the enterprise, covering all aspects of the company’s processes, products and customers. The warehouse provides business users with a multidimensional view of the data they need to analyse business conditions.