LESSON 1 – Database Concepts

Learning Outcomes
At the end of this lesson, the students are expected to :
1. Identify the difference between data and information;
2. Determine what a database is, the various types of databases, and why they are valuable
assets for decision making;
3. Recognize the importance of database design;
4. Distinguish between the physical and logical views of data;
5. Describe how data is organized; and
6. Define and compare batch processing and real-time processing;

Indicative Content
• Why Databases?
• Data vs. Information
• Introducing the Database
• Role and Advantage of Database
• Data Organization
• Key Field
• Batch Processing and Real-time Processing

Discussions

1. Why Databases?
Imagine trying to operate a business without knowing who your customers are, what
products you are selling, who is working for you, who owes you money, and whom you owe
money. All businesses have to keep this type of data and much more; and just as importantly,
they must have those data available to decision makers when they need them. It can be argued
that the ultimate purpose of all business information systems is to help businesses use
information as an organizational resource. At the heart of all of these systems are the collection,
storage, aggregation, manipulation, dissemination, and management of data.
Depending on the type of information system and the characteristics of the business,
these data could vary from a few megabytes on just one or two topics to terabytes covering
hundreds of topics within the business’s internal and external environment.

2. Data vs. Information

To understand what drives database design, you must understand the difference between
data and information. Data are raw facts. The word raw indicates that the facts have not yet been
processed to reveal their meaning. For example, suppose that you want to know what the users of
a computer lab think of its services. Typically, you would begin by surveying users to assess the
computer lab’s performance.
 Information is the result of processing raw data to reveal its meaning. Data processing
can be as simple as organizing data to reveal patterns or as complex as making forecasts or
drawing inferences using statistical modeling. To reveal meaning, information requires context.
For example, an average temperature reading of 105 degrees does not mean much unless you
also know its context: Is this in degrees Fahrenheit or Celsius? Is this a machine temperature, a
body temperature, or an outside air temperature? Information can be used as the foundation for
decision making. For example, the data summary for each question on the survey form can point
out the lab’s strengths and weaknesses, helping you to make informed decisions to better meet
the needs of lab customers.
In this “information age,” production of accurate, relevant, and timely information is the
key to good decision making. In turn, good decision making is the key to business survival in a
global market. We are now said to be entering the “knowledge age.” Data are the foundation of
information, which is the bedrock of knowledge—that is, the body of information and facts about
a specific subject. Knowledge implies familiarity, awareness, and understanding of information
as it applies to an environment. A key characteristic of knowledge is that “new” knowledge can
be derived from “old” knowledge.

Let’s summarize some key points:

• Data constitute the building blocks of information.
• Information is produced by processing data.
• Information is used to reveal the meaning of data.
• Accurate, relevant, and timely information is the key to good decision making.
• Good decision making is the key to organizational survival in a global
environment.
Timely and useful information requires accurate data. Such data must be properly
generated and stored in a format that is easy to access and process. And, like any basic resource,
the data environment must be managed carefully. Data management is a discipline that focuses
on the proper generation, storage, and retrieval of data. Given the crucial role that data play, it
should not surprise you that data management is a core activity for any business, government
agency, service organization, or charity.

3. Introducing the Database

Efficient data management typically requires the use of a computer database. A database
is a shared, integrated computer structure that stores a collection of:
• End-user data, that is, raw facts of interest to the end user.
• Metadata, or data about data, through which the end-user data are integrated and
managed.
The metadata provide a description of the data characteristics and the set of relationships
that links the data found within the database. For example, the metadata component stores
information such as the name of each data element, the type of values (numeric, dates, or text)
stored on each data element, whether or not the data element can be left empty, and so on. The
metadata provide information that complements and expands the value and use of the data. In
short, metadata present a more complete picture of the data in the database. Given the
characteristics of metadata, you might hear a database described as a “collection of self-
describing data.”
A database management system (DBMS) is a collection of programs that manages the
database structure and controls access to the data stored in the database. In a sense, a database
resembles a very well-organized electronic filing cabinet in which powerful software, known as a
database management system, helps manage the cabinet’s contents.

4. Role and Advantage of Database

The DBMS serves as the intermediary between the user and the database. The database
structure itself is stored as a collection of files, and the only way to access the data in those files
is through the DBMS. The DBMS receives all application requests and translates them into the
complex operations required to fulfill those requests. The DBMS hides much of the database’s
internal complexity from the application programs and users.
Having a DBMS between the end user’s applications and the database offers some
important advantages. First, the DBMS enables the data in the database to be shared among
multiple applications or users. Second, the DBMS integrates the many different users’ views of
the data into a single all-encompassing data repository.
Because data are the crucial raw material from which information is derived, you must
have a good method to manage such data. As you will discover in this book, the DBMS helps
make data management more efficient and effective. In particular, a DBMS provides advantages
such as:
• Improved data sharing. The DBMS helps create an environment in which end
users have better access to more and better-managed data. Such access makes it possible
for end users to respond quickly to changes in their environment.
• Improved data security. The more users access the data, the greater the risks of
data security breaches. Corporations invest considerable amounts of time, effort, and
money to ensure that corporate data are used properly. A DBMS provides a framework
for better enforcement of data privacy and security policies.
• Better data integration. Wider access to well-managed data promotes an
integrated view of the organization’s operations and a clearer view of the big picture. It
becomes much easier to see how actions in one segment of the company affect other
segments.
• Minimized data inconsistency. Data inconsistency exists when different versions
of the same data appear in different places. The probability of data inconsistency is
greatly reduced in a properly designed database.
• Improved data access. The DBMS makes it possible to produce quick answers to
ad hoc queries. From a database perspective, a query is a specific request issued to the
DBMS for data manipulation—for example, to read or update the data. Simply put, a
query is a question, and an ad hoc query is a spur-of-the-moment question. The DBMS
sends back an answer (called the query result set) to the application.
 • Improved decision making. Better-managed data and improved data access make
it possible to generate better-quality information, on which better decisions are based.
The quality of the information generated depends on the quality of the underlying data.
Data quality is a comprehensive approach to promoting the accuracy, validity, and
timeliness of the data. While the DBMS does not guarantee data quality, it provides a
framework to facilitate data quality initiatives.
• Increased end-user productivity. The availability of data, combined with the tools
that transform data into usable information, empowers end users to make quick, informed
decisions that can make the difference between success and failure in the global
economy.

The advantages of using a DBMS are not limited to the few just listed. In fact, you will
discover many more advantages as you learn more about the technical details of databases and
their proper design.

5. Data Organization
The first step in understanding databases is to learn how data is organized. In the logical
view, data is organized into groups or categories. Each group is more complex than the one
before.
• Character: A character is the most basic logical data element. It is a single letter,
number, or special character, such as a punctuation mark, or a symbol, such as $.
• Field: The next higher level is a field or group of related characters. In our
example, Brown is in the data field for the Last Name of an employee. It consists of the
individual letters (characters) that make up the last name. A data field represents an
attribute (description or characteristic) of some entity (person, place, thing, or object). For
example, an employee is an entity with many attributes, including his or her last name.
• Record: A record is a collection of related fields. A record represents a collection
of attributes that describe an entity. In our example, the payroll record for an employee
consists of the data fields describing the attributes for one employee. These attributes are
First Name, Last Name, Employee ID, and Salary.
• Table: A table is a collection of related records. For example, the Payroll Table
would include payroll information (records) for the employees (entities).

6. Key Field
Each record in a table has at least one distinctive field, called the key field. Also known
as the primary key, this field uniquely identifies the record. Tables can be related or connected
to other tables by common key fields.
For most employee databases, a key field is an employee identification number. Key
fields in different tables can be used to integrate the data in a database. For example, in the
Personnel Database, both the Payroll and the Benefits tables include the field Employee ID. Data
from the two tables could be related by combining all records with the same key field (Employee
ID).
7. Batch Processing and Real-time Processing
Traditionally, data is processed in one of two ways. These are batch processing, or what
we might call “later,” and real-time processing, or what we might call “now.” These two
methods have been used to handle common record-keeping activities such as payroll and sales
orders.
• Batch processing: In batch processing, data is collected over several hours, days,
or even weeks. It is then processed all at once as a “batch.” If you have a credit card, your
bill probably reflects batch processing. That is, during the month, you buy things and
charge them to your credit card. Each time you charge something, an electronic copy of
the transaction is sent to the credit card company. At some point in the month, the
company’s data processing department puts all those transactions (and those of many
other customers) together and processes them at one time. The company then sends you a
single bill totaling the amount you owe.
• Real-time processing: Real-time processing, also known as online processing,
occurs when data is processed at the same time the transaction occurs. For example,
whenever you request funds at an ATM, real-time processing occurs. After you have
provided account information and requested a specific withdrawal, the bank’s computer
verifies that you have sufficient funds in your account. If you do, then the funds are
dispensed to you, and the bank immediately updates the balance of your account.

Exercises/Drills
Perform our class activities for this lesson via our learning group using the class code
given to your section at the beginning of this semester.

Evaluation
Directions: Answer the following and submit your answer via our learning group.

1. Describe the five logical data groups or categories.

2. What is the difference between batch processing and real-time processing?

Additional Reading
1. Read the article entitled: “What is data, and why is it important?” using the following
online link: https://www.import.io/post/what-is-data-and-why-is-it-important/

References
Coronel, C, Morris S., Rob, P. (2011). Database Systems: Design, Implementation, and
Management, Ninth Edition. Cengage Learning
O’Leary, T.J., O’ Leary, L.I., O’Leary D.A. (2014). Computing Today. New York, US:
McGraw-Hill