MGT 300

IT IN BUSINESS

Storing Organizational Information

PN. INTAN LIANA SUHAIME

Learning Outcomes

7.1 Define the fundamental concepts of the relational

database model

7.2 Evaluate the advantages of the relational database

model

7.3 Compare relational integrity constraints and business-

critical integrity constraints

7.4 Describe the benefits of a data driven Web site

7.5 Describe the two primary methods for integrating

information across multiple databases
2
 What
is

INFORMATION

3
 Relational Database Fundamentals

Information is everywhere in an organization

Information is stored in databases

Database maintains information about various
types of objects (inventory), events (transactions),
people (employees), and places (warehouses)
 Relational Database Fundamentals

Database models include:

Hierarchical database model information is
organized into a tree-like structure (using
parent/child relationships) in such a way that it
cannot have too many relationships
organizational chart
Network database model a flexible way of
representing objects and their relationships
Relational database model stores information
in the form of logically related two-dimensional
tables
Entities and Attributes

Entity a person, place, thing, transaction, or event about

which information is stored
The rows in each table contain the entities
In Figure 7.1 CUSTOMER includes Daves Sub Shop and Pizza
Palace entities

Attributes (fields, columns) characteristics or

properties of an entity class
The columns in each table contain the attributes
In Figure 7.1 attributes for CUSTOMER include Customer ID,
Customer Name, Contact Name
Keys and Relationships

Primary keys and foreign keys identify the

various entity classes (tables) in the database

Primary key a field (or group of fields) that uniquely

identifies a given entity in a table
Foreign key a primary key of one table that
appears an attribute in another table and acts to
provide a logical relationship among the two tables
Keys and Relationships
Potential relational database for Coca-Cola
Relational Database Advantages

Database advantages from a business

perspective include
Increased flexibility
Increased scalability and performance
Reduced information redundancy
Increased information integrity (quality)
Increased information security
Increased Flexibility

A well-designed database should:

Handle changes quickly and easily
Provide users with different views
Have only one physical view
Physical view deals with the physical storage of
information on a storage device
Have multiple logical views
Logical view focuses on how users logically
access information
Increased Scalability and Performance

A database must scale to meet increased

demand, while maintaining acceptable
performance levels
Scalability refers to how well a system can adapt to
increased demands
Performance measures how quickly a system
performs a certain process or transaction
Reduced Information Redundancy

Databases reduce information redundancy

Redundancy the duplication of information or
storing the same information in multiple places

Inconsistency is one of the primary problems

with redundant information
Increase Information Integrity

Information integrity measures the quality of information

Integrity constraint rules that help ensure the quality of

information
1. Relational integrity constraint - is used to ensure accuracy and
consistency of data in a relational database.
Users cannot create an order for a nonexistent customer.
An order cannot be shipped without an address.

2. Business-critical integrity constraint

In database management, business-critical integrity
constraints enforce a company's rules.
For example, a company can code a constraint that prevents a
checkout counter from giving a customer a discount greater than
25 percent or refuses returns of produce purchased more than 15
days ago.
Increased Information Security

Information is an organizational asset and must be

protected

Databases offer several security features including:

Password provides authentication of the user
Access level determines who has access to the different types
of information
Access control determines types of user access, such as
read-only access
 Database Management Systems

Database management systems (DBMS) A

computer software through which users and application
programs interact with a database

User interacts with an application (i.e., payroll The user interacts directly
application, manufacturing application, sales with the DBMS
application) The DBMS obtains the
The application interacts with the DBMS information from the
The DBMS obtains the information from the database
database
DATA-DRIVEN WEB SITES

Data-driven Web sites an interactive Web site kept

constantly updated and relevant to the needs of its customers
through the use of a database. A data-driven Web site invites
visitors to select and view what they are interested in by
inserting a query, which the Web site then analyzes and
custom builds a Web page in real-time that satisfies the
query.
Data-Driven Web Site Business
Advantages

Development
Content Management
Future Expandability
Minimizing Human Error
Cutting Production and Update Costs
More Efficient
Improved Stability
Data-Driven Business Intelligence (BI)

BI in a data-driven Web site - Web site can offer insight

into the business, such as items browsed, frequent
requests, items bought together, etc.
Integrating Information among Multiple
Databases

Integration allows separate systems to

communicate directly with each other - enter
information into the systems once and it is
automatically sent to all of the other systems
throughout the organization
Forward integration takes information
entered into a given system and sends it
automatically to all downstream systems and
processes
Backward integration takes information
entered into a given system and sends it
automatically to all upstream systems and
processes
Integrating Information among Multiple
Databases

Forward integration -, all information flows forward along

the business process

Integrating Information among Multiple

Databases

Backward integration - all information flows backward

along the business process
Integrating Information
among Multiple Databases

Building a central repository specifically for

integrated information
 OPENING CASE STUDY QUESTIONS
It Takes A Village to Write an Encyclopedia

1. Identify the different types of entity classes that

might be stored in Wikipedias database

2. Explain why database technology is so

important to Wikipedias business model

3. Explain the difference between logical and

physical views and why logical views are
important to Wikipedias customers
 CHAPTER SEVEN CASE
Keeper of the Keys

Almost 90 million people had their personal

information stolen or lost by organizations
Bank of America: 1.2 million customers
CardSystems: 40 million customers
Citigroup: 3.9 million customers
DSW Shoe Warehouse: 1.4 million customers.
TJX Companies: 45.6 million customers
Wachovia: 676,000 customers
 Chapter Seven Case Questions

1. How many organizations have your personal

information, including your Social Security
number, bank account numbers, and credit
card numbers?

2. What information is stored at your college? Is

there any chance your information could be
hacked and stolen from your college?

3. What can you do to protect yourself from

identity theft?
 Chapter Seven Case Questions

4. Do you agree or disagree with changing laws to hold

the company where the data theft occurred
accountable? Why or why not?

5. What impact would holding the company liable where

the data theft occurred have on large organizations?

6. What impact would holding the company liable where

the data theft occurred have on small business?