Twelfth Edition

Chapter 12: Databases and Information Systems

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Databases and Information Systems
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Objectives
Describe the basic components of a
database.
Describe the qualities of a good
database.
Distinguish between file management
programs and relational database
management systems, and explain the
advantages and disadvantages of each.

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Objectives
Differentiate between advanced database
programs and applications, such as data
warehouses, data mining, client/server
database systems, and Web-database
integration.
List the components and main functions
of an information system.


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Objectives
Recognize the functional divisions and
business units of an organization.
List the major types of information
systems used in todays organizations.
Describe how the retail sector is taking
advantage of computer databases to
increase sales and gain a competitive
edge.

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The Levels of Data in a Database
Database
o Collection of related data organized so it is easy to:
Access
Manage
Update
Group
Summarize
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The Levels of Data in a Database
Database units
o Bit
Smallest unit of data stored by a computer
Contains either a 1 or a 0
o Character
A letter, number, or symbol
Made of bytes
o groups of 8 bits

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The Levels of Data in a Database
Database units (cont.)
o Field
Single unit of relative information
Has a field name
o identifies content
Content is data type
o includes items as Text, Number, Currency, Date/Time
o Record
Includes a group of related fields
Contained in tables or data files
Has a primary key
o unique identifier for each record

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The Levels of Data in a Database
Database units (cont.)
o Data file (table)
Collection of records
o Database
One or more data files
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The Levels of Data in a Database
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Advantages of
Database Management Systems
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Advantages of
Database Management Systems
Data integrity
o Data is valid

Data validation
o Techniques used to help
prevent errors

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Advantages of
Database Management Systems
Data independence
o Separate from applications
o Changes do not require changes in structure of forms, reports,
or programs accessing databases
Avoiding data redundancy
o Enter data only once
o Multiple entries of the same data
a sign of a poorly developed system

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Advantages of
Database Management Systems
Data security
o Prevents contents from being accessed by unauthorized users
(e.g., medical records, financial data)
o Audit trail
report of who accesses which data

Data maintenance
o Required for proper care and protection
o Add records
o Modify records
o Delete records
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Types of Database Programs
Database Programs
Software used to create databases
o File management program
Generates a flat file, meaning that there is no relationship
with fields in other files
o Database management systems (DBMSs)
Manage multiple tables or files

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Types of Database Programs
File management systems
o Useful for personal and small business needs
o Used to develop a simple computerized system for information
storage and retrieval
o Inexpensive and easy to use
o Unable to link to data stored in other files

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Types of Database Programs
DBMS (Database management systems)
o Connects several files or tables
o Manages, accesses, stores, and edits data
o Available in a variety of forms
o Not usually tied to one particular platform
o Able to present information in reports and other formats

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Types of Database Programs
Popular DBMS software

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Types of Database Programs
DBMS classifications (Data Model)
o Flat
o Relational
o Object oriented
o Multidimensional

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Types of Database Programs
RDBMS (Relational database management systems)
o Most widely used class of DBMS
o Primary key field used as index to locate records
o Foreign key to access related records in another table
o Queries can be done through SQL
o Data dictionary lists all tables in database
o Compared to a file management program, an RDBMS is:
More expensive
More difficult to learn
Better at controlling data redundancy
Better at preventing potential data errors
On a server on a network
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Types of Database Programs
Microsoft Access

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Types of Database Programs
ODBMS
(Object-oriented database management systems)
o Suits media applications
o Data represented as objects
o Incorporate sound, video, text, and graphics
o Well suited for applications such as:
Financial portfolio risk analysis
Design and manufacturing systems
Hospital patient record systems

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Types of Database Programs
Multidimensional databases
o Depicted as a data cube
o Dimensions typically categories (i.e., time,
products, sales, customers, budget, and
markets)
o Choice for On-Line Analytical Processing
(OLAP)
popular process for business analysis
that involves manipulation of data
from multiple perspectives
o MDX query language can access multiple
dimensions
created by Microsoft in 1997

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Types of Database Programs
Data warehouses
o Central location capable of storing all corporate information
o Data available for analysis
o Typically multidimensional databases
o Helps executives make decisions
Use drill-down method (start with summary level and move
down) to focus on specific data
o Data marts similar but support a department or division

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Types of Database Programs
Data mining
o Explores and analyzes data
o Determines data patterns
(trends) helpful for making
decisions
o Managers better understand
customers and market
o Can help predict future
trends
o Variation is Web mining
integrates traditional data
mining methods with
information gathered
from the web

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Types of Database Programs
Client/server database systems
o Use database server software
responds to remote users requests for information
o Use database client software
provides an interface with the user
o Use queries to request information from the database server
Examples: ATMs and online banking

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Types of Database Programs
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Types of Database Programs
Webdatabase integration
Taking database information and making it
accessible via the Internet
o Google, Yahoo!, Wikipedia, (portals)
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Types of Database Programs
Cloud computing database
o Contenders
Amazon SimpleDB
o attribute oriented key/value model
o still in beta form
o free download
Google AppEngine Datastore
o based on Google's internal storage system referred to as the
"Bigtable"
Microsoft SQL Data Services
o part of the Azure Web Service platform
o sits on top of an SQL server and supports a key/value database
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Types of Database Programs
Key/Value databases (page 519)
o item oriented
o each item contains all the relevant data for an object
o structure us ay key/value database is called a domain
like a "bucket" that contains the information about an object
each item in a domain can have a different layout!
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Information Systems:
Tools for Global Competitiveness
Information
systems
o Integrate:
People
Hardware
Software
Data
Procedures

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Information Systems:
Tools for Global Competitiveness
Information systems (cont.)
o Perform many functions:
Accepts input (data)
Processes data into information
Stores data
Disseminates information throughout organization

(similar to machine cycle)
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Information Systems:
Tools for Global Competitiveness
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Information Systems:
Tools for Global Competitiveness
Reduce information overload
o Route to appropriate users
o Summarize
o Provide information to selected people with specific
needs
o Eliminate unnecessary information

complete list on next slide
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Information Systems:
Tools for Global Competitiveness
Characteristics of valuable information
o accessible (can be found quickly and easily)
o accurate
o complete
o economical (cost-benefit analysis)
o relevant (related to task to be performed)
o reliable
o secure
o simple
o timely (up-to-date)
o verifiable
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Information Systems:
Tools for Global Competitiveness
Functional
divisions (units)
o Manage core functions
of an organization
o supporting functions
are IT and
Accounting/Finance
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Information Systems:
Tools for Global Competiveness
Typical functional divisions
o Accounting
Accounts payable, accounts receivable, cost accounting, sales
information, accounting reports
o Finance
Forecasting, budgeting, cash management, budget analysis,
financial reports
o Marketing and sales
Maintaining public image and generating sales

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Information Systems:
Tools for Global Competiveness
Typical functional divisions (cont)
o Human Resources
Tracks employees
o Production/operation
Plans and controls processes that produce goods and services
o Information Systems (IT)
System of people, data records, hardware and software that
process data and information
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Information Systems:
Tools for Global Competiveness
Business units (business processes)
o A typical business unit is a division of a company, product line,
or special focus group whose actions can be planned
independently of other busines units of the company
o information systems are used to:
Analyze market
Provide analysis and summary of market information
Review and adjust strategies
Influence competition

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Information Systems in Organizations:
A Survey
Transaction processing systems
o Handle day-to-day accounting needs
o Keeps record of every transaction involving money
o Save money by automating routine recordkeeping
o Batch online processing
Management information systems
o Provide information needed to make decisions
o Generate predefined reports
detailed report
summary report
exception report

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Information Systems in Organizations:
A Survey
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Information Systems in Organizations:
A Survey
Decision support systems
o Produce reports more specific than management information
system reports
o Enable managers to create simulations
OLAP (online analytical processing)
Executive information systems
o Help top-level managers make strategic decisions
o Filter critical information to show trends

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42
Information Systems in Organizations:
A Survey
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Information Systems in Organizations:
A Survey
Knowledge management systems
o Use information from books and experienced individuals to assist
decision making
Expert systems
o Rely on detailed and in-depth knowledge of experts in a specific
field
o Use knowledge base to generate answers
database of facts
rules
inferences

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44
Information Systems in Organizations:
A Survey
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Information Systems in Organizations:
A Survey
Computers and
Databases in the Retail
sector
o Computers and databases not only
used for traditional applications
Point-of-sale (POS)
o Credit card authorization
o Inventory system
o Check-screening system
o Signature capture system
o Photo checkout system
o Marketing devices

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Summary
A database is a collection of data stored
in an organized way. The units of a
database are: table or data file, records,
field, and bit.
A good database ensures data integrity,
promotes data independence, avoids data
redundancy, ensures data security, and
provides procedures for data
maintenance.
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Summary
File management programs, which work
with a single flat file, are easy to use and
inexpensive. A database management
system works with two or more data files
that can be related by common fields.
Data warehouses bring data together
from many smaller databases into one
massive database. Data mining and Web
mining explore data to discover unknown
patterns.

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Summary
Client-server database systems and Web
database integration are examples of
Database management systems (DBMS).
An information system includes data,
hardware, software, people, and
procedures.
Functional divisions of an organization
include: accounting, finance, marketing
and sales, human resources, production/
operations, and information systems.
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Summary
Information systems include: transaction
processing systems, management
information systems, decision support
systems, executive information system,
knowledge management systems, and
expert systems.
The retail sectors use of POS terminals,
when linked with inventory databases
and other systems such as check-
screening systems, provides businesses
with the ability to perform many business
tasks effectively.

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Publishing as Prentice Hall
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