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Concept of Database Databases are vital to many firms. Without them, some companies simply cannot function.

Poorly managed and maintained data can threaten the very existence of an organization; while well-managed data systems can provide a significant edge in the marketplace. Accurate and timely data are the backbone of good decisions, regardless of the business. A manager must decide on the price of a firms product, based on cost factors and market conditions. A stockbroker must decide, based on investment data, how and where to invest. A banker must decide, based on credit reports, whether to approve a loan. Data are the driving force behind good decisions, and therefore the ability to gather, store, process, and retrieve data in a timely manner is vital to the health of an organization. Data that are well managed can Save an organization time and money Increase market share Capture new markets Improve customer service Increase productivity, and Enhance decision making

Data Hierarchy Data and information are stored in a computer files for processing, retrieval, and dissemination. If data files are not carefully organized and managed, decision makers will not be able to find data when they need it. While many organizations are good at collecting data, only few organizations are good at manufacturing their data and making it accessible to decision makers in a timely and useful manner.

The data in a computer system is organized in a hierarchy, referred to as the data hierarchy chain. The hierarchy, in ascending order, includes: Bits Bytes Fields Records Files, and Databases i. Bits: A bit represents the smallest unit of data a computer can handle or a value that represents the presence or absence of an electronic signal. It represented as a 1 or 0 an on-off switch.
Credit Card Database
Database (A collection of interrelated files Personal Data file Last Name Phone No. File (A group of interrelated records) Adams 70455512 Jefferson 70455552 JeffersonMary 70455552 Credit History File First Name George Mary Address 123 Lancelot Dr. 179 Washington Ave Transaction Data File

Record

179 Washington Ave

Field

Jefferson (Last Name) Mary (First Name) 1776 Washington Ave (Add.) 70455552 MARY

Byte

Bit

0 or 1

Figure 6.1: The Data Hierarchy by which data organize in a computer system

ii. Byte: A group of bits, called a byte, represents a single character, which can be a letter, a number or another symbol. (Example: We need four bytes to represent the name Mary in a computer. Since each character, such as M, is represented using 8 bits, the word Mary requires 32 bits.)

iii. Field: A meaningful grouping of characters or bytes or a group of words or a complete number is referred to as a field.(Example: Marys last name, first name, and phone number are three fields.) iv. Record: A group of interrelated fields is called a record. (Example: Marys last name, first name, social security number, phone number, and home address can make up a record because they constitute relevant data about Mary.) v. File: A collection of records of the same type that are grouped together, such as the collection of employee records, is called a file. vi. Database: A collection of interrelated files is a Database. The personnel data files, the employee benefits file, and the employees salary file are a group of interrelated files that provide information about employees, and hence can be brought together as a database. On the other hand, an organizations inventory file, employee benefits file, and suppliers address file would not make a good database because these files are not interrelated. A simple definition of database given by James Martin, A database is a collection of data that is shared and used for multiple purpose. Data are organized around file arranged so that duplication and redundancy are avoided. Information concerning ongoing activities is captured once, validated and entered in to the proper location in the database. The key element in a database is that each subsystem utilizes the same database in satisfying its information needs.

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