Lecture 5

Databases and Information Systems

Slide 1

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

Slide 2

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

Slide 3

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

Slide 4

The Levels of Data in a Database

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)
Slide 5

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 todays date
Slide 6

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

Slide 7

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

Slide 8

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

Slide 9

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

Slide 10

Data Warehousing and Data Mining

Data Warehousing:
Supplements DBMSs by bringing together all data into one
huge database
Organizes managements decision-making process
Uses a technique called drill-down to view performance
data of the entire company

Slide 11

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

Slide 12

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)

Slide 13

Client/Server Database Systems

Query
Specially phrased question used to access specific
information

Slide 14

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

Slide 15

Advantages of Database Management Systems

The areas of importance for building a quality
database are:

Data
Dataintegrity
independence
Data
Data
Avoidance
security
is
maintenance
the refers
validity
ofisdata
the
toof
refers
how
the
Data integrity
data.
to
redundancy
the
refers
forto
data is stored
unavailability
soprocedures
that it can
of
data
be
used
to
Data
validation
adding,
avoiding
defines
updating,
the
repetition
acceptable
and
of
with different
people
types
who
ofwould
application
misuse
Data independence
input
ranges
deleting
data.
for each
records.
field.
programs.
it.
Avoidance of data redundancy
Types of data
Datavalidation
is also protected
are: from
Data security
Alphabetic
loss due to
check
equipment
Numeric
failure.check
Data maintenance
Range check
Consistency check
Completeness check

Slide 16

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 organizations mission
To be valuable, information must be:
Accessible
Accurate
Complete
Economical
Relevant

Reliable
Secure
Simple
Timely
Verifiable

Slide 17

Functional Divisions of an Organization

Slide 18

Transaction Processing Systems (TPSs)

TPSs handle an organizations 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

Slide 19

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
Slide 20

Decision Support Systems (DSSs)

DSSs enable managers to ask questions that cant be
answered by MIS reports
Online Analytical Processing (OLAP) enables
managers to import up-to-the-minute reports from
transaction databases

Slide 21

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

Slide 22

Types of Decisions and Information Systems

for Managers
Strategic decisions
Organizational
Pyramid

Tactical decisions
Operational decisions

Slide 23

Knowledge Management Systems

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

Slide 24

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

Slide 25

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

Slide 26

Computers and Databases in the Retail Sector

At the checkout stand (continued):
Check-screening systems read the checks account
number, then compare it with delinquent accounts
Signature capture systems capture a customers signature
on a pressure sensitive pad
Photo checkout systems display a customers photo when
a credit card is used

Slide 27

Lecture 5 Summary

Database software transforms data into information

Information is data that is organized to be meaningful and
useful
A database file is made of:
Characters
Fields
Records
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 integrity
Data independence
Data redundancy avoidance measures
Data security
Data maintenance procedures

Slide 28

Lecture 5 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

Slide 29