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Computers Are
Your Future
© 2008 Prentice-Hall, Inc.
Computers Are Your Future Chapter 12
Computers Are Your Future
Chapter 12
Databases and Information Systems
© 2008 Prentice-Hall, Inc.
Slide 2
Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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)
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 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).
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Client/Server Database Systems
Query:
Specially phrased question used to access specific
information
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Advantages of Database Management Systems
The areas of importance for building a quality
database are:
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© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.


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Reliable
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Computers Are Your Future Chapter 12
Functional Divisions of an Organization
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Transaction Processing System (TPS)
 A TPS handles an organization’s accounting needs.
 Early TPSs used batch processing.
 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.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Management Information System (MIS)
 An MIS is a computer-based system that supports the
information needs of different levels of management.
 MISs help managers make informed tactical
decisions.
 MISs work with transaction processing systems.
 MISs create reports that tell 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 are often produced.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Decision Support System (DSS)
 A DSS enables a manager to retrieve information
that can’t be supplied by fixed and predetermined
MIS reports.
 Online Analytical Processing (OLAP) enables
managers to import up-to-the-minute reports from
transaction databases.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Executive Information System (EIS)
 An EIS is also known as an executive support
system (ESS).
 EISs support strategic decisions made by top-level
management that will affect the entire company.
 EISs filter critical information so that trends are
apparent.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Types of Decisions and Information Systems
for Managers
Strategic decisions
Organizational
Pyramid
Tactical decisions
Operational decisions
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Knowledge Management Systems
 Knowledge management systems are used to
capture knowledge created by employees and make it
available when needed.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
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.
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Chapter 12 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:
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



Data integrity
Data independence
Data redundancy avoidance measures
Data security
Data maintenance procedures
© 2008 Prentice-Hall, Inc.
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Computers Are Your Future Chapter 12
Chapter 12 Summary (continued)
 A computer information system provides essential services
to an organization.
 Information systems include:
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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.
© 2008 Prentice-Hall, Inc.
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