Computers Are

Your Future

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Computers Are Your Future

Databases and Information Systems

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What You Will Learn About

� The potential uses of a database program

� The basic components of a database

� The differences between file management and

relational database programs

�Advanced database programs and applications

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What You Will Learn About

� The basic qualities of a good database

�Components and functions of an information system

� Functional divisions of an organization

�Major types of information systems used today

�Databases in retail organizations

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Database Concepts

�Data is any unorganized text, graphics,

sounds, or videos

�A database is a collection of data

�Database programs enable people to add,

sort, group, summarize, and print data

�Information is data that has been processed in

a meaningful and useful way

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�The layers in a database are:� Bits – The lowest layer made of 1s and 0s

� Characters – Letters, numbers, and symbols

� Fields – Areas that contain data identified by field names

(Examples: First Name; Address; City)

� Records – Contain a group of fields

� Data files – Contain related records

� Databases – The top layer made of one or more data files

(Example: ABC Company Address Book Mailing list, Employee

list, Vendor list)

The Levels of Data in a Database

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Data Type

� Data usually consists of text, numbers, currency, and

dates

� Logical data – Only “yes” or “no” answers are allowed

� Objects – Non-textual data

� Binary large objects (BLOBs) – Very large objects

� Default value – Pre-defined values such as today’s date

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Data Type

�One field in a record is identified as the key field

or primary key

�The key field must be a unique entry such as a

social security number or student ID

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Types of Database Programs

� File Management Programs:

�Create flat files containing one file or table

�Files can not be linked to other files

�Are easy to use and customize

�Are not as complex as database management systems

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Types of Database Programs

�Database Management Systems (DBMS):

�Contain multiple files or tables

�Are programs that enable data to be stored, modified, and

extracted from a database

�Are more difficult to learn than file management systems

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Relational Database Management Systems

� Relational database management systems are the most

widely used type of DBMS

� Data in several files are related through the use of a

common key field

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Data Warehousing and Data Mining

� Data Warehousing:

�Supplements DBMSs by bringing together all data into one

huge database

�Organizes management’s decision-making process

�Uses a technique called drill-down to view performance

data of the entire company

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Data Warehousing and Data Mining

� Data marts support one division of an organization rather

than an entire firm

� Data Mining:

� Is a data exploration technique

� Is used to find unknown

patterns of data

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Client/Server Database Systems

�Data server – Professionally administered program

that runs on a local area network (LAN); it responds

to requests for data

�Client – A user-friendly program that accesses the

server; users can add data, maintain records, perform

queries, and generate reports�Clients request data using a query language called

Structured Query Language (SQL)

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Client/Server Database Systems

�Query �Specially phrased question used to access specific

information

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The Internet Connection: Going Public With Data

�Web-based integration is the latest trend in database

software

� Information is stored in databases that are available

through the Internet

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Advantages of Database Management Systems

�Data integrity is the validity of the

data.

�Data validation defines acceptable

input ranges for each field.

�Types of data validation are:

� Alphabetic check

� Numeric check

� Range check

� Consistency check

� Completeness check

� Data independence refers to how

data is stored so that it can be used

with different types of application

programs.

�Avoidance of data

redundancy refers to

avoiding the repetition of

data.

�Data security is the

unavailability of data to

people who would misuse

it.

�Data is also protected from

loss due to equipment

failure.

�Data maintenance refers

to the procedures for

adding, updating, and

deleting records.

� The areas of importance for building a quality

database are:

�Data integrity

�Data independence

�Avoidance of data redundancy

�Data security

�Data maintenance

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Information Systems: Tools for Global

Competitiveness

� An information system is designed to bring data,

computers, procedures, and people together to manage

information important to an organization’s mission

� To be valuable, information must be:

�Accessible

�Accurate

�Complete

�Economical

�Relevant

� Reliable

� Secure

� Simple

� Timely

� Verifiable

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Functional Divisions of an Organization

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Transaction Processing Systems (TPSs)

� TPSs handle an organization’s accounting needs

� Early TPSs used batch processing systems

�Online processing consists of entering transaction

data and viewing the results immediately

� TPSs enable managers to make operational

decisions

� TPSs can produce summary and exception reports

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Management Information Systems (MISs)

�MISs are computer-based systems that support the

information needs of different levels of management

�MISs help management make informed tactical

decisions

�MISs work with transaction processing systems

�MISs inform managers if their goals are being met

�Drawbacks of MISs:

� Reports may contain unwanted information

� Information may not be available when needed

� Reams of printouts

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Decision Support Systems (DSSs)

�DSSs enable managers to ask questions that can’t be

answered by MIS reports

�Online Analytical Processing (OLAP) enables

managers to import up-to-the-minute reports from

transaction databases

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Executive Information Systems (EISs)

� EISs are also known as executive support systems

(ESSs)

� EISs support strategic decisions made by top level

management that will affect the entire company

� EISs filter critical information so that trends are

apparent

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Strategic decisions

Tactical decisions

Operational decisions

Types of Decisions and Information Systems

for Managers

Organizational

Pyramid

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Knowledge Management Systems

�Knowledge management systems are used to capture knowledge created by employees and make it available when needed

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Expert Systems

�Expert systems are systems that deal with expert

knowledge in a particular area

� Expert systems:

�Help in making decisions

�Use artificial intelligence principles

�Provide technical support for customers

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Computers and Databases in the Retail Sector

�Computers and databases are used for the checkout

process and strategic purposes

�At the checkout stand:

�Point of sale terminals are replacing the cash register

�Optical scanners read the universal product code (UPC)

label that identifies items, their costs, and any sale prices

�Credit card authorization terminals are used to process

credit card transactions by placing a call to a call center

which provides authorization numbers

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Computers and Databases in the Retail Sector

�At the checkout stand (continued):�Check-screening systems read the check’s account

number, then compare it with delinquent accounts

�Signature capture systems capture a customer’s signature

on a pressure sensitive pad

�Photo checkout systems display a customer’s photo when

a credit card is used

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Chapter 09 Summary

• Database software transforms data into information

• Information is data that is organized to be meaningful and

useful

• A database file is made of:CharactersFieldsRecords

• File management programs work with one database file

• DBMSs can work with two or more database files at a time

• A good database system contains:Data integrityData independenceData redundancy avoidance measuresData securityData maintenance procedures

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Summary continued

• A computer information system provides essential services to an

organization

• Information systems include:

Transaction processing systems (TPS)

Management information systems (MIS)

Decision support systems (DSS)

Executive information systems (EIS)

Knowledge management systems (KMS)

Expert systems (ES)

• Computers and databases provide an indispensable resource for

the retail sector