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CHAPTER 7

Storing Organizational Information—Databases

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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

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LEARNING OUTCOMES

7.4 Describe the benefits of a data driven website

7.5 Describe the two primary methods for integrating information across multiple databases

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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)

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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

– 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

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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 Dave’s 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

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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

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Keys and Relationships

• Potential relational database for Coca-Cola

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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

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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

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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

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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

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Increase Information Integrity (Quality)

• Information integrity – measures the quality of information

• Integrity constraint – rules that help ensure the quality of information– Relational integrity constraint– Business-critical integrity constraint

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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

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DATABASE MANAGEMENT SYSTEMS

• Database management systems (DBMS) – software through which users and application programs interact with a database

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Data-Driven Websites

• Data-driven websites – an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database

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Data-Driven Website Business Advantages

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Data-Driven Business Intelligence

• BI in a data-driven website

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Integrating Information among Multiple Databases

• Integration – allows separate systems to communicate directly with each other– 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

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Integrating Information among Multiple Databases

• Forward integration and backward integration

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Integrating Information among Multiple Databases

• Building a central repository specifically for integrated information

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OPENING CASE STUDY QUESTIONSIt Takes A Village to Write an Encyclopedia

1. Identify the different types of entity classes that might be stored in Wikipedia’s database

2. Explain why database technology is so important to Wikipedia’s business model

3. Explain the difference between logical and physical views and why logical views are important to Wikipedia’s customers

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CHAPTER SEVEN CASEKeeper 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

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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?

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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?