1. Computers Are Your Future © 2005 Prentice-Hall, Inc.

2. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 2 Computers Are Your Future Chapter 10 Databases and Information Systems

3. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 3 What You Will Learn About The potential uses of a database program The basic components of a database The basic qualities of a good database The differences between file management and relational database programs

4. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 4 What You Will Learn About The basic characteristics of a computerized information system The characteristics of valuable information The types of computerized information systems The retail sector and computer databases

5. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 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 10 © 2005 Prentice-Hall, IncSlide 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 10 © 2005 Prentice-Hall, IncSlide 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 10 © 2005 Prentice-Hall, IncSlide 8 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 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

9. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 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.

10. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 10 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 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

11. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 11 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).

12. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 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.

13. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 13 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

14. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 14 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

15. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 15 Functional Divisions of an Organization

16. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 16 Computerized Information Systems A computerized information system (CIS):  Includes data, hardware, software, trained personnel, and procedures  Collects critical data, processes the data, stores the data, and disseminates information throughout the organization  Provides essential services to organizations, including processing transactions and keeping exact records

17. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 17 Techniques of Information Reduction Controlling information is important to keep people from being overwhelmed by it. Control methods in an information system include:  Routing information  Summarizing information  Enabling selectivity  Eliminating unnecessary information

18. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 18 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.

19. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 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

20. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 20 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.

21. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 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.

22. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 22 Strategic decisions Tactical decisions Operational decisions Types of Decisions and Information Systems for Managers Organizational Pyramid

23. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 23 Knowledge Management Systems Knowledge management systems are used to capture knowledge created by employees and make it available when needed.

24. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 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

25. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 25 Computers and Databases in the Retail Sector Computers and databases are used for the checkout process and strategic purposes. At the checkout counter:  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.

26. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 26 Computers and Databases in the Retail Sector At the checkout counter (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.

27. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 27 Chapter 10 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

28. Computers Are Your Future Chapter 10 © 2005 Prentice-Hall, IncSlide 28 Chapter 10 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.