1. Computers Are Your Future © 2008 Prentice-Hall, Inc.

2. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 2 Computers Are Your Future Chapter 12 Databases and Information Systems

3. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 3 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

4. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 4 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

5. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 5 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.

6. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 6 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

7. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 7 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

8. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 8 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.

9. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 9 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

10. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 10 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

11. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 11 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.

12. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 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

13. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 13 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

14. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 14 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).

15. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 15 Client/Server Database Systems Query:  Specially phrased question used to access specific information

16. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 16 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.

17. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 17 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

18. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 18 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

19. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 19 Functional Divisions of an Organization

20. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 20 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.

21. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 21 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.

22. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 22 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.

23. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 23 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.

24. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 24 Strategic decisions Tactical decisions Operational decisions Types of Decisions and Information Systems for Managers Organizational Pyramid

25. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 25 Knowledge Management Systems  Knowledge management systems are used to capture knowledge created by employees and make it available when needed.

26. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 26 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

27. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 27 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.

28. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 28 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.

29. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 29 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:  Data integrity  Data independence  Data redundancy avoidance measures  Data security  Data maintenance procedures

30. Computers Are Your Future Chapter 12 © 2008 Prentice-Hall, Inc.Slide 30 Chapter 12 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.