Chapter three: Database systems and applications

Why we learn Database systems and its applications?

Every day, a vast amount of data is generated and processed by computers. But where does all
this data go, and how is it utilized? How can it benefit you in your career? In this chapter, you
will explore database systems and applications designed to help you maximize the use of
information. For example, as a marketing manager, you can access extensive data on current and
potential customers from surveys, online behaviors, and past purchases, all of which can aid in
promoting products and services. As a corporate lawyer, you'll have access to a wealth of past
cases and legal opinions through advanced legal databases, helping you win cases and protect
your organization. As an HR manager, databases and applications allow you to assess the long-
term financial impact of raises, employee benefits, and retirement contributions on your
company. No matter your area of study, database systems and applications will likely play a
crucial role in your future job. As you progress through this chapter, you will learn how to use
databases and applications to extract and analyze valuable information to help you succeed. The
chapter begins with an introduction to the basic concepts of database management systems.

A database is a well-designed, organized, and carefully managed collection of data. Like other
components of an information system, a database should help an organization achieve its goals.
A database can contribute to organizational success by providing managers and decision makers
with timely, accurate, and relevant information built on data. Databases also help companies
analyze information to reduce costs, increase profits, add new customers, track past business
activities, and open new market opportunities.

A database management system (DBMS) consists of a group of programs that manipulate the
database and provide an interface between the database and its users and other application
programs. Usually purchased from a database company, a DBMS provides a single point of
management and control over data resources, which can be critical to maintaining the integrity
and security of the data. Oracle’s DBMS, for example, now includes a firewall to help secure the
databases of its customers. A database, a DBMS, and the application programs that use the data
make up a database environment. Databases and database management systems are becoming
even more important to organizations as they deal with rapidly increasing amounts of
information. Indeed, although many organizations today have dozens of databases, without good
data management, it is nearly impossible for anyone to find the right and related information for
accurate and business-critical decision making.

Data Management
Without data and the ability to process it, an organization cannot successfully complete most business
activities. It cannot pay employees, send out bills, order new inventory, or produce information to assist
managers in decision making. As you recall, data consists of raw facts, such as employee numbers and
sales figures. For data to be transformed into useful information, it must first be organized in a
meaningful way.

Hierarchy of Data
Data is generally organized in a hierarchy that begins with the smallest piece of data used by
computers (a bit) and progresses through the hierarchy to a database. A bit (a binary digit)
represents a circuit that is either on or off. Bits can be organized into units called bytes. A byte is
typically eight bits.

Each byte represents a character, which is the basic building block of most information. A
character can be an uppercase letter (A, B, C … Z), lowercase letter (a, b, c … z), numeric digit
(0, 1, 2 … 9), or special symbol (., !,þ, ,/,…). Characters are put together to form a field. A field
is typically a name, number, or combination of characters that describes an aspect of a business
object (such as an employee, a location, or a truck) or activity (such as a sale).

In addition to being entered into a database, fields can be computed from other fields. Computed
fields include the total, average, maximum, and minimum value. A collection of data fields all
related to one object, activity, or individual is called a record.

By combining descriptions of the characteristics of an object, activity, or individual, a record can

provide a complete description of it. For instance, an employee record is a collection of fields
about one employee. One field includes the employee’s name, another field contains the address,
and still others the phone number, pay rate, earnings made to date, and so forth.

A collection of related records is a file for example; an employee file is a collection of all
company employee records. Likewise, an inventory file is a collection of all inventory records
for a particular company or organization. Some database software refers to files as tables. At the
highest level of the data hierarchy is a database; a collection of integrated and related files.
Together, bits, characters, fields, records, files, and databases form the hierarchy of data.
Characters are combined to make a field, fields are combined to make a record, records are
combined to make a file, and files are combined to make a database. A database houses not only
all these levels of data but also the relationships among them.