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Innovation is about ideas and their exploitation through product and service offerings: creativity and imagination are crucial to success, as are questioning, testing and incisiveness.
An entrepreneur has talent and determination to turn an innovation into a sustainable business: they work with a risk profile ranging across people, technology, systems, the marketplace and the economic landscape. Knowledge, skills and connections with these domains must be built, hired and purchased for successful delivery of innovation.
Succeeding in the design, operation and growth of a business needs a blend of innovation and entrepreneurship, and the balance needed changes over time.
This chapter first addresses aspects of innovation:
• Innovation process – how ideas become successful business offerings
• Ecosystem – the importance of locating innovation in a market context
• Types of innovation – and the market impact of each type
• Historical context – longer-term models of development
• Innovators – parties involved and their motivations
It concludes by addressing the principal ingredients for success, and the most common reasons for failure in innovation and entrepreneurship.
We find the financial condition of states impacts bank credit supply through their municipal bond holdings. In particular, we treat sudden political and statutory actions during the 2011 union bargaining rights debates in Wisconsin and Ohio as exogenous shocks to state solvency. We show bank valuations and municipal bond spreads adjust to the announcements, and, over longer horizons, a new lending channel linked to state solvency emerges, whereby banks supply credit as municipal bond appreciations free up capital.
• understand the key steps of the analytics process model;
• identify the skill set of a data scientist;
• preprocess data for analytics using denormalization, sampling, exploratory data analysis, and dealing with missing values and outliers;
• build predictive analytical models using linear regression, logistic regression, and decision trees;
• evaluate predictive analytical models by splitting up the dataset and using various performance metrics;
• build descriptive analytical models using association rules, sequence rules, and clustering;
• understand the basic concepts of social network analytics;
• discern the key activities during post-processing of analytical models;
• identify the critical success factors of analytical models;
• understand the economic perspective on analytics by considering the total cost of ownership (TCO) and return on investment (ROI) and how they are affected by in- versus outsourcing, on-premise versus cloud solutions, and open versus commercial software;
• improve the ROI of analytics by exploring new sources of data, increasing data quality, securing management support, optimizing organizational aspects, and fostering cross-fertilization;
• understand the impact of privacy and security in a data storage, processing, and analytics context.
Opening Scenario
Now that Sober has made its first steps in business intelligence, it is eager to take this to the next level and explore what it could do with analytics. The company has witnessed extensive press and media coverage on predictive and descriptive analytics and wonders what these technologies entail and how they could be used to its advantage. It is actually thinking about analyzing its booking behavior, but is unsure how to tackle this. Given that Sober is a startup, it also wants to know the economic and privacy implications of leveraging these technologies.
In this chapter, we extensively zoom into analytics. We kick-off by providing a bird's eye overview of the analytics process model. We then give examples of analytics applications and discuss the data scientist job profile. We briefly zoom into data pre-processing. The next section elaborates on different types of analytics: predictive analytics, descriptive analytics, and social network analytics. We also discuss the post-processing of analytical models. Various critical success factors for analytical models are clarified in the following section. This is followed by a discussion on the economic perspective of analytics.
• grasp the basic concepts of physical database organization;
• identify various database access methods;
• understand how individual devices can be pooled and managed as so-called enterprise storage subsystems;
• understand the importance of business continuity.
Opening Scenario
Now that Sober knows what indexes it needs, it wants to understand how these indexes can be implemented in SQL. The company is also curious to find out how the query optimizer works and how it decides on the access path to the data for a given query. Sober wonders what type of storage hardware it should adopt. Finally, the company wants to figure out how it can guarantee its uninterrupted functioning, despite possible planned or unplanned downtime of the hard- and software.
This chapter deals with physical database organization in its broadest sense. A primary focus is on physical database design – the translation of a logical data model into an internal data model, including the design of indexes to speed up data access. In this respect, this chapter builds on the insights gained from Chapter 12 in relation to physical record and file organization. However, we also zoom out to other concerns of physical data storage, such as technological and management aspects, as well as the important area of business continuity.
First, we discuss the concepts of tablespaces and index spaces, as well as other basic building blocks of physical database organization. The principles of file organization acquired in the previous chapter are then applied in the context of database organization. Here, we deal with the role of the query optimizer and how the latter uses indexes and other techniques to determine the optimal access plan to execute a query. We also pay particular attention to different alternatives for join implementation. In the second half of this chapter, we return to storage hardware, but now from a more global perspective than in Chapter 12. We deal with RAID technology and different approaches to networked storage, such as SAN and NAS. We conclude with a discussion on how these techniques can be applied in the context of business continuity. By no means do we claim exhaustiveness with respect to the topics covered in this chapter. Rather, we aim to provide the reader with a broad perspective on the many angles and concerns of physical data storage and management.
• understand the basic concepts of the relational model;
• differentiate between different types of keys and identify their role in the relational model;
• understand how normalization can be used to make sure a relational data model has no redundancies or inconsistencies;
• map a conceptual ER model to a relational model and identify any loss of semantics;
• map a conceptual EER model to a relational model and identify any loss of semantics.
Opening Scenario
Starting from the EER conceptual data model developed in Chapter 3, Sober wants to proceed to the next step of database design. The company wants to map the EER model to a logical relational model and needs to understand what semantics gets lost in the mapping process.
Relational databases implement the relational model, which is one of the most popular logical and internal data models in use nowadays. It was first formalized by Edgar F. Codd in his seminal paper “A relational model of data for large shared data banks”, which appeared in the well-respected journal Communications of the ACM in 1970. In this chapter we first introduce the basic concepts of the relational model and then formally define them in the next section. This is followed by an overview of the different types of keys, which are an essential building block of the relational model. The relational constraints are summarized next, followed by an example of a relational data model. Normalization will also be reviewed as a procedure to remove redundancies and anomalies from a relational data model. After having introduced the need for normalization and some informal guidelines, we zoom into functional dependencies and prime attribute types and discuss how both can be used during a multi-step normalization procedure. To conclude, we discuss how to map both ER and EER conceptual data models to a logical relational data model. The next chapter then zooms into SQL, which is the DDL and DML used by relational databases.
Drill Down
Edgar F. Codd was an English computer scientist (19 August 1923–18 April 2003) who laid the foundation of the relational model while working for IBM. He received the Turing Award in 1981 and was inducted as a Fellow of the Association for Computing Machinery (ACM) in 1994.
• understand the concepts of transactions, recovery, and concurrency control;
• identify the various steps of a transaction lifecycle as well as the DBMS components involved and the role of the logfile;
• discern different types of failures and how to deal with them;
• understand different types of concurrency problems as well as the importance of schedules, serial schedules, and serializable schedules;
• discern the differences between optimistic and pessimistic schedulers;
• grasp the importance of locking and locking protocols;
• understand the responsibility of the DBMS's transaction management facilities to ensure the ACID properties of a transaction.
Opening Scenario
Since many users will interact simultaneously with Sober's database, the company wants to understand any problems that may occur. Furthermore, Sober also wants to mitigate the risks of various types of failures that may make its data incorrect.
The majority of databases in actual organizational settings are multi-user databases. This implies that many applications and users can access the data in the database in parallel. This concurrent access to the same data, if not managed properly, may induce different types of anomalies or unexpected problems. Moreover, various kinds of errors or calamities may occur in the respective DBMS components or its environment – such as the operating system, the applications interacting with the DBMS, or the storage subsystem – possibly rendering the database data into an inconsistent state. Fortunately, most database systems provide a realm of transparent, although often configurable, solutions to avoid or otherwise deal with such problems. In this way, the DBMS supports the ACID (Atomicity, Consistency, Isolation, Durability) properties already mentioned in Chapter 1. At the heart of these solutions are the concepts of transactions and transaction management, recovery, and concurrency control. In this chapter, we first introduce each of these concepts. Then, we focus in more detail on transaction management and the DBMS components involved. After that, we discuss recovery and the different techniques to deal with calamities in the DBMS or application program, as well as the storage media. Finally, we describe in detail how concurrency control techniques, in interplay with transaction management and recovery, guarantee seamless concurrent access by multiple users to shared data.
• understand the differences between operational and tactical/strategic decision-making;
• define a data warehouse in terms of its key characteristics;
• discern different types of data warehouse schemas;
• understand the key steps of the extraction, transformation, and loading process;
• define a data mart in terms of its key characteristics;
• understand the advantages and disadvantages of virtual data warehouses and virtual data marts;
• define an operational data store;
• discern the differences between data warehouses and data lakes;
• understand the applications of business intelligence by means of query and reporting, pivot tables, and on-line analytical processing.
Opening Scenario
In addition to using its data for day-to-day operational activities, Sober wants to leverage it for both tactical and strategical decision-making. More specifically, the company wants to get a thorough insight in its sales numbers and how these vary on a quarterly basis, per type of service (ride-hailing versus ride-sharing) and per type of car (Sober car or not). By doing so, Sober wants to better understand where it can grow and identify interesting opportunities. The company does not believe it can use its existing relational data model for this since turning the above questions into SQL queries might be too cumbersome. The principals think a new type of data structure is needed to more efficiently answer the above business questions. Considering the limitations of its current model, what would you recommend Sober to do?
Until this point, we have largely focused on storing data in the most optimal way, ensuring their integrity, as much as possible, at all times. A next obvious question is what can we do with these data from a business perspective? In this chapter, we discuss how to take data and extract valuable new business insights from it. We start by zooming into the various levels of corporate decisionmaking and how this relates to data requirements that support these decisions. This will bring us to the concept of a data warehouse, a massive consolidated data store that we formally define and extensively discuss in terms of data model, design, and development. We contrast data warehousing with some newer developments, such as virtualization, data lakes, and indicate synergies.
• use advanced concepts of object orientation, such as method overloading, inheritance, method overriding, polymorphism, and dynamic binding;
• identify various strategies to ensure object persistence;
• understand the key components of an OODBMS;
• understand the ODMG standard and its object model;
• use the ODMG object definition language (ODL) to define object types;
• use the ODMG object query language (OQL) to formulate queries;
• implement the ODMG standard through language bindings;
• evaluate OODBMSs against RDBMSs.
Opening Scenario
Sober has noted that many database applications are being developed using programming languages such as Java, Python, and C++. It found out that many languages are based on the object-oriented paradigm. The company wants to know what this entails and whether this could have any implications and/or potential for its database and choice of DBMS.
The object-oriented (OO) paradigm was first introduced by programming languages such as C++, Eiffel, and Smalltalk. Due to its expressive modeling power and formal semantics, the principles of OO have also been widely used in software development methodologies. However, for data storage and management, the adoption of OO proved less straightforward. In this chapter, we discuss various approaches to object persistence. First, we refresh the basic concepts of OO, many of which have been covered in Chapter 3. This will be followed by a discussion of advanced OO concepts such as method overloading, inheritance, method overriding, polymorphism, and dynamic binding. Next, we review the basic principles of object persistence. We then discuss object-oriented database management systems (OODBMSs), which is the core of this chapter. We conclude with evaluating OODBMSs and demonstrating their impact on the emergence of object-relational mapping (ORM) frameworks, which facilitate the persistence of objects into RDBMSs. Due to its popularity and ease of use, we use Java as the OO language for the examples.
Recap: Basic Concepts of OO
In object-oriented (OO) programming, an application consists of a series of objects that request services from each other. Each object is an instance of a class that contains a blueprint description of all the object's characteristics. Contrary to procedural programming, an object bundles both its variables (which determine its state) and its methods (which determine its behavior) in a coherent way.
Promotion, marketing, or demand generation, is about establishing an attractive, distinctive and accessible position within a targeted market, and doing this effectively, using affordable methods.
Sales is about enhancing the value of the venture through balanced exchange with a customer. It is also about building customer communities to seed future development.
Promotion is about opening opportunities, sales is about closing these into deliverable and value-creating contractual agreements. Synchronization of promotion and sales drives growth through a beneficial feedback relationship.
This chapter addresses generation and satisfaction of customer demand to achieve objectives:
• Scoping and analysing target market structure: defining, quantifying, understanding customers
• Scoping and analysing the target market dynamics: assessing opportunities and threats
• Promoting the business: creating visibility, building brand value and influence
• Managing sales: managing stakeholders, planning engagement, negotiating exchanges and building communities
For each topic, this chapter introduces and illustrates considerations and techniques, including through the rolling case study.
Social enterprises implement business-like approaches to address social problems. Scale-up of these enterprises beyond one geographical context can extend their impact to better match the scope of problems being addressed. Unfortunately, many social enterprises start but relatively few expand to new contexts, making scale-up one of the most important but least understood outcomes of social entrepreneurship. We explore this outcome empirically, extending existing research that is predominantly conceptual. The study adopts a multicase study research design. A dynamic capabilities framework reveals how resources are amassed and configured for expansion, a process that can be more difficult for social compared to commercial enterprises. Findings suggest scale-up may be a second act of social entrepreneurship because dissimilarities between initial and scale-up contexts necessitate product modification, different partnerships, and idiosyncratic resource configurations. We thus call into question existing literature’s focus on standardization – generic resource configurations – for scaling-up social enterprises to new geographical contexts.
There is a collection of terms that it is particularly important to consider when producing a licensing agreement to be offered to customers. This Appendix gives explanations, cautions and in some cases, optional forms of words for the principal terms. It is important to note that the specific wording adopted may need to be reviewed in the light of applicable legal jurisdictions.
Topics covered include:
• Parties to the agreement
• The IP that is licenced by the agreement
• Grant of licence
• Restrictions
• Applicable use
• IP Rights
• Licensing of any 3rd party products
• Payments and payment terms
• Liabilities
• Warranties and disclaimers
• Termination
• Jurisdiction
Business growth means increasing performance against a measure of success. Business scalability means operating and performing effectively as the business grows, able to do more at a reducing marginal cost. A venture can grow without being scalable and a venture designed to scale may not grow.
Start-ups focus on ideas and their exploitation; scale-ups focus on driving market consumption through an organization designed to operate at scale. An entrepreneurial mindset increasingly dominates over an initial innovation focus.
The structure provides a logical coverage:
• Setting strategy – ambitions, indicators, drivers, risks
• Planning for growth and scalability – financial forecasting, capability requirements, discontinuities
• Projecting financial growth – revenue, cost, margins
• Designing a team – selecting and incentivizing the right mix
• Designing capability – general drivers and capability-specific scalability
• Assessing funding requirements and options – organic growth, investment
• Raising investment
• Creating a business plan
These subjects are each addressed from the perspective of applicable considerations and techniques, illustrated by the rolling case study.