1. Chapter 13-1

2. Chapter 13-2 Accounting Information Systems, 1 st Edition Data and Databases

3. Chapter 13-3 1. 1.The need for data collection and storage 2. 2.Methods of storing data and the interrelationship between storage and processing 3. 3.The differences between batch processing and real-time processing 4. 4.The importance of databases and the historical progression from flat-file databases to relational databases 5. 5.The need for normalization of data in a relational database 6. 6.Data warehouse and the use of a data warehouse to analyze data 7. 7.The use of OLAP and data mining as analysis tools 8. 8.Distributed databases and advantages of the use of distributed data 9. 9.Controls for Data and Databases 10. 10.Ethical issues related to data collection and storage, and their use in IT systems Study Objectives

4. Chapter 13-4 SO 1 The need for data collection and storage The Need for Data Collection and Storage Data are the set of facts collected from transactions, whereas information is the interpretation of data that have been processed. Main reasons to store transaction data: 1.To complete transactions from beginning to end. 2.To follow up with customers or vendors and to expedite future transactions. 3.To create accounting reports and financial statements. 4.To provide feedback to management.

5. Chapter 13-5 SO 1 The need for data collection and storage The Need for Data Collection and Storage Typical storage and processing techniques: 1.The storage media types for data: sequential and random access 2.Methods of processing data: batch and real time 3.Databases and relational databases 4.Data warehouses, data mining, and OLAP 5.Distributed data processing and distributed databases

6. Chapter 13-6 b. Information is interpreted data. Which of the following best describes the relationship between data and information? Concept Check c. Data is more useful than information in decision making. d. Data and information are not related. a. Data is interpreted information. SO 1 The need for data collection and storage The Need for Data Collection and Storage

7. Chapter 13-7 SO 2 Methods of storing data and the interrelationship between storage and processing Storing and Accessing Data Data Storage Terminology Character Field Record File Database Exhibit 13-1 Data Hierarchy

8. Chapter 13-8 SO 2 Methods of storing data and the interrelationship between storage and processing Storing and Accessing Data Data Storage Media Magnetic tape Sequential access Random Access Early Days of Mainframe Computers Modern IT Systems

9. Chapter 13-9 b. A pool is to a swimmer. A character is to a field as Concept Check c. A pool is to water. d. A glass is to water. a. Water is to a pool. SO 2 Methods of storing data and the interrelationship between storage and processing Storing and Accessing Data

10. Chapter 13-10 b. Random access media. Magnetic tape is a form of Concept Check c. Sequential access media. d. Alphabetical access media. a. Direct access media. SO 2 Methods of storing data and the interrelationship between storage and processing Storing and Accessing Data

11. Chapter 13-11 SO 3 The differences between batch processing and real-time processing Data Processing Techniques Exhibit 13-2 Comparison of Batch and Real-Time Processing Batch Processing Real-time Processing

12. Chapter 13-12 b. Efficiency for use with large volumes of data. Which of the following is not an advantage of using real-time data processing? Concept Check c. Provides for random access of data. d. Improved accuracy due to the immediate recording of transactions. a.Quick response time to support timely record keeping and customer satisfaction SO 3 The differences between batch processing and real-time processing Data Processing Techniques

13. Chapter 13-13 SO 4 The importance of databases and the historical progression from flat-file databases to relational databases DatabasesDatabases Data stored in a form that allows the data to be easily accessed, retrieved, manipulated, and stored. Exhibit 13-3 Traditional File- Oriented Approach Data redundancy Concurrency

14. Chapter 13-14 SO 4 The importance of databases and the historical progression from flat-file databases to relational databases DatabasesDatabases Database Management System (DBMS) is software that manages the database and controls the access and use of data by individual users and applications. Exhibit 13-3 Database Approach Relationships One-to-One One-to-Many Many-to-Many

15. Chapter 13-15 SO 4 The importance of databases and the historical progression from flat-file databases to relational databases The History of Databases Relational Database Model  Developed in 1969  Stores data in two-dimensional tables  Most widely used database structure today  Examples include; IBM DB2, Oracle Database, and Microsoft Access

16. Chapter 13-16 The Need for Normalized Data Relational databases consist of several small tables. Small tables can be joined in ways that represent relationships among the data. SO 5 The need for normalization of data in a relational database Bolded field is the primary key. Exhibit 13-6 Relational Database in Microsoft Access

17. Chapter 13-17 The Need for Normalized Data Relational database has flexibility in retrieving data. Structured query language (SQL) has become the industry standard. SO 5 The need for normalization of data in a relational database Exhibit 13-7 Relational Database in Microsoft Access SELECT Customers.CustomerID, Customers.CompanyName, Orders.OrderID, Orders.ShippedDate FROM Customers INNER JOIN Orders ON Customers.CustomerID Orders.CustomerID;

18. Chapter 13-18 The Need for Normalized Data The process of converting data into tables that meet the definition of a relational database is called data normalization.  Seven rules of data normalization, additive.  Most relational databases are in third normal form.  First three rules of data normalization are: 1.Eliminate repeating groups 2.Eliminate redundant data 3.Eliminate columns not dependent on primary key. SO 5 The need for normalization of data in a relational database

19. Chapter 13-19 Trade-offs in Database Storage Relational database  Not most efficient way to store data that will be used in other ways.  Most organizations are willing to accept less transaction processing efficiency for better query opportunities. The Need for Normalized Data SO 5 The need for normalization of data in a relational database

20. Chapter 13-20 b. It stores data in tables. Which of the following statements is not true with regard to a relational database? Concept Check c. It stores data in a tree formation. d. It is maintained on direct access devices. a. It is flexible and useful for unplanned, ad hoc queries. The Need for Normalized Data SO 5 The need for normalization of data in a relational database

21. Chapter 13-21 Management often needs data from several fiscal periods from across the whole organization. Use of a Data Warehouse to Analyze Data SO 6 Data warehouse and the use of a data warehouse to analyze data Exhibit 13-8 The Data Warehouse and Operational Databases

22. Chapter 13-22 Management often needs data from several fiscal periods from across the whole organization. Build the data warehouse Identify the data Standardize the data Cleanse, or scrub, the data Upload the data Use of a Data Warehouse to Analyze Data SO 6 Data warehouse and the use of a data warehouse to analyze data

23. Chapter 13-23 b. data warehouse. A collection of several years’ nonvolatile data used to support strategic decision-making is a(n) Concept Check c. data mine. d. what-if simulation. a. operational database. Use of a Data Warehouse to Analyze Data SO 6 Data warehouse and the use of a data warehouse to analyze data

24. Chapter 13-24 Data mining is the process of searching for identifiable patterns in data that can be used to predict future behavior. OLAP is a set of software tools that allow online analysis of the data within a data warehouse. Analytical methods in OLAP usually include: Data Analysis Tools SO 7 The use of OLAP and data mining as analysis tools 1.Drill down 2.Consolidation 3.Pivoting 4.Time series analysis 5.Exception reports 6.What-if simulations

25. Chapter 13-25 b. assessing customer reactions to new products. Data mining would be useful in all of the following situations except Concept Check c. Accessing customers’ payment histories. d. determining customers’ behavior patterns. a. identifying hidden patterns in customers’ buying habits. Data Analysis Tools SO 7 The use of OLAP and data mining as analysis tools

26. Chapter 13-26 Early days Centralized processing Centralized databases Distributed Data Processing SO 8 Distributed databases and advantages of the use of distributed data Today’s IT Environment Distributed data processing (DDP) Distributed databases (DDB)

27. Chapter 13-27 Distributed Data Processing SO 8 Distributed databases and advantages of the use of distributed data Distributing the processing and data offers the following advantages: 1.Reduced hardware cost 2.Improved responsiveness 3.Easier incremental growth 4.Increased user control and user involvement 5.Automatic integrated backup The most popular type of distributed system is a client/server system.

28. Chapter 13-28 b. Flat file database. A set of small databases where data are collected, processed, and stored on multiple computers within a network is a Concept Check c. Distributed database. d. High-impact process. a. Centralized database. Distributed Data Processing SO 8 Distributed databases and advantages of the use of distributed data

29. Chapter 13-29 IT Controls for Data and Databases SO 9 Controls for data and databases To ensure integrity (completeness and accuracy) of data in the database, IT application controls should be used. These controls are  input,  processing, and  output controls  Control techniques such as data validation, control totals and reconciliation, and reports that are analyzed by managers.

30. Chapter 13-30 Copyright © 2008 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. CopyrightCopyright