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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. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 3

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. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 4

Objectives Recognize the functional divisions and business units of an organization. List the major types of information systems used in today s organizations. Describe how the retail sector is taking advantage of computer databases to increase sales and gain a competitive edge. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 5

The Levels of Data in a Database Database units (con t.) o Database One or more related data files/tables o Data file (table) Collection of related records (rows) Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 7

The Levels of Data in a Database Database units (con t.) o Record Includes a group of related fields Contained in tables or data files Has a primary key unique identifier for each record o Field Single unit of relative information Has a field name identifies content Content is data type includes items as Text, Number, Currency, Date/Time Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 8

The Levels of Data in a Database Database units o Character (Byte) o Bit A letter, number, or symbol Made of bytes groups of 8 bits Smallest useable unit of data Smallest unit of data stored by a computer Contains either a 1 or a 0 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 9

The Levels of Data in a Database Database o Organized collection of related data so it is easy to: Access Manage Update Group Summarize Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 10

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 14

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 15

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 (DBMS s) Manage multiple tables or files Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 16

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 17

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 Able to present information in reports and other formats Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 18

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 Queries can be done through SQL o Data dictionary lists all tables in database o Compared to file management program, RDBMS is: More expensive More difficult to learn Better at controlling data redundancy Better at preventing potential data errors Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 21

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 23

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 online analytical processing (OLAP) Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 24

Types of Database Programs Data warehouses o Central location capable of storing all corporate information o Data available for analysis 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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 25

Data mining Types of Database Programs o Explores and analyzes data o Determines data patterns helpful for making decisions o Managers better understand customers and market o Can help predict future trends o Variation is Web mining Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 26

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 27

Types of Database Programs Web database integration Taking database information and making it accessible via the Internet o Google, Yahoo!, Wikipedia Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 29

Information Systems: Tools for Global Competitiveness Information systems (con t.) o Perform many functions: Accepts input (data) Processes data into information Stores data Disseminates information throughout organization Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 32

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 34

Information Systems: Tools for Global Competiveness Typical functional divisions o Accounting Accounts payable, accounts receivable, cost accounting, sales information, accounting reports May use spreadsheets on a client/server network o Finance Forecasting, budgeting, cash management, budget analysis, financial reports Spreadsheets o Marketing and sales Maintaining public image and generating sales Spreadsheets, Databases Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 36

Information Systems: Tools for Global Competiveness Typical functional divisions (con t) o Human Resources Tracks employees Databases o Production/operation Plans and controls processes that produce goods and services Mainframe systems o Information Systems System of people, data records, hardware and software that process data and information Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 37

Information Systems: Tools for Global Competiveness Business units: Division of company, product line or group independent of other business units o Use of information systems: Analyze markets Provide analysis and summary of market information Review and adjust strategies Influence competition Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 38

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 39

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 41

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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 42

Information Systems in Organizations: A Survey 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 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 44

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. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 45

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. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 46

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. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 47

Summary Information systems include: transaction processing systems, management information systems, decision support systems, executive information system, knowledge management systems, and expert systems. The retail sector s use of POS terminals, when linked with inventory databases and other systems such as checkscreening systems, provides businesses with the ability to perform many business tasks effectively. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 48

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 49