What You Will Learn

1. Databases and Information Systems What You Will Learn • Uses of a database program • Basic components of a database • Capabilities of a database program • Differences between flat file and relational database programs • Characteristics of a computerized information system • Functions of managers • Characteristics of valuable information • Types of computerized information systems found in today’s organizations

2. What are database programs and information systems? Information systems Database programs • Used to make information available to employees, managers, executives and customers • Data warehouses- Store all the information a corporation possesses • Store information so that it can be located, organized and displayed • Keeps unwanted information out of the way • Found on all types of computers

3. What are the essential database concepts? Data Information • Any unorganized text, graphics, sounds or videos • Not processed • Data that has been processed • Organized in a meaningful and useful way Database management systems Database • A collection of data • Stored to enable people to add, sort, group, summarize and print the data • Makes tasks of collecting, organizing and viewing data easy to perform

4. How is a database constructed? • Databases are built in layers • The layers in a database are: • Bit- Lowest layer • Characters- Letters, numbers and symbols • Fields- Contain a certain type of data; Identified by field names; Examples: First Name; Address; City • Record- Contains a group of fields • Data file- Contains related records • Database- Top layer; Consists of one or more data files; Example: ABC Company Address Book (Mailing list, Employee list, Vendor list)

5. What types of data are entered into fields? • 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

6. What are database management systems (DBMS) designed to do? The basic purpose of a DBMS is to help people work with all aspects of managing data Data independence Data integrity • Refers to 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 • Refers to how data is stored so that it can be used with different types of application programs Data redundancy • Refers to avoiding repetition of data Data maintenance • Refers to procedures for adding, updating and deleting records Data security • Data shouldn’t be available to people who would misuse it • Protecting data from loss due to equipment failure

7. What are the types of database programs? File management programs Database management systems • Create flat files • Can not link data with other files • Easy to use and customize • Not as complex as DBMS • Relational database • Can link data from two or more files • More difficult to learn than file management programs • Uses a key field to link data • Object-oriented database • Uses an object that contains mini-programs that perform tasks Relational database

8. What are examples of Relational Databases?

9. What are examples of Relational Databases?

10. What are data warehousing and data mining? Data warehousing Data mining • Supplements DBMS by bringing together all data into one huge database • Organizes management decision-making process • Uses a technique called drill-down to view performance data of entire company • Data exploration technique • Used to find unknown patterns • Data marts- Support one division of an organization rather than entire firm

11. What are client/server database systems? • Data server- Professionally administered program that runs on a local area network; 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)

12. Organizational Structures

13. What are computerized information systems? • Provides essential services to organizations, including processing transactions and keeping exact records • Collects critical data, processes the data, stores the data and disseminates information throughout the organization • Includes data, hardware, software, trained personnel and procedures

14. What is a traditional organization structure? Specialized divisions that handle the organization’s core functions • Finance- Works with getting, spending, tracking, and accounting money • Marketing and sales- Promotes products or services and arranges sales with customers • Human resources- Hires and trains employees, deals with pay and benefits and tracks employee performance • Operations- Performs the organization’s primary function, manufacturing a product or providing services • Information systems- Manages the organization’s computerized information system

15. An organization’s specialized divisions

16. What is the chain of command? • Method used by organizations to delegate responsibility throughout the organization • Each level is responsible to the levels above it and all are responsible to the top level • Few people at the top; More people at the bottom; Called a pyramid Organizational pyramid

17. What is the manager’s job? • Managers decide how best to use the organization’s resources to achieve its goals efficiently • Management functions: • Planning • Organizing • Leading • Controlling Strategic decisions Tactical decisions Operational decisions

18. Characteristics of valuable information To be valuable, information must be: Accessible Accurate Complete Economical Relevant Reliable Secure Simple Timely Verifiable

19. Information Systems in Organizations

20. Transaction Processing System (TPS) • Handles an organization’s daily accounting needs • Keeps a record of every transaction • Early systems used batch processing • Online processing began in the 1970’s • Saves money by automating record keeping • Produce summary and exception reports

21. Management Information System (MIS) • A computer-based system that supports the information needs of different levels of management • Helps management make informed decisions • Work with transaction processing systems • Informs managers if their goals are being met • Drawbacks are: • Reports may contain unwanted information • Information may not be available when needed • Reams of printouts

22. Decision Support System (DSS) • Enables 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

23. Executive Information System (EIS) • Known as executivesupport system (ESS) • Supports decisions made by top level management that will affect the entire company • Filters critical information so that trends are apparent

24. Expert System • Asoftware package that deals with knowledge rather than information • Helps in making decisions • Uses artificial intelligence principles • Provides technical support for customers

25. Knowledge Management System • Capture knowledge created by employees and make it available when needed

26. Workflow Automation • Automatically sends documents to the people that need to see and approve them

27. Business Process Reengineering (BPR) • Refers to the use of information technology (IT) to bring about changes and cost savings to an organization’s structure • Using IT to change existing processes • Used as a means of downsizing

28. Computers in the Retail Sector

29. How are computers used in retail stores? • Point of sale terminals- Computers are replacing the cash register at the check out counter • Universal product code (UPC)- Identifies items, their cost and sales price; Optical scanners read the UPC label • Credit card authorization- Terminals that process credit card transactions; Places a call to a call center which provide an authorization number • Check-screening systems- Reads the check’s account number then compares it with delinquent accounts • Signature capture- Captures a customer’s signature on a pressure sensitive pad • Photo checkout systems- Display a customer’s photo when credit card is used

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