ACC 214/L: IT Application Tools in Business

Relational
Databases
OBJECTIVES:
• Importance and advantage of databases
• Difference between database systems and file-based legacy
systems
• Fundamental concepts of database systems
• Definition of relational database and how it organizes data

AUBREY P. LANDERO
 Database
• A set of interrelated, centrally
coordinated data files stored
with as little data redundancy
as possible.

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• Consolidates records
previously stored in separate
files into a common pool and
serves a variety of users and
data processing applications
• An organized collection of
structured information, or data,
typically stored electronically in
a computer system
 Flat File System vs Database System

• The users have exclusive ownership of • The database technology is used by almost all
their data files mainframes and servers.
• The same data, used in slightly different • Most accountants use databases to enter
ways by different users, may need to be data, process data, querying, or auditing.
restructured and reproduced in physically • 4 primary elements: Users, DBMS, Database
different files. Administrator, and Physical Database

Problems: Benefits
⚬ Data Storage ⚬ Data Integration
⚬ Data Updating ⚬ Data Sharing
⚬ Currency of Information ⚬ Minimal Data Redundancy and Data
⚬ Task Data Dependency Inconsistencies
⚬ Data Independence
⚬ Cross-functional Analysis
First Element

USERS
can access the Database in two different ways.
1st: via User Application Programs
￭ send data access requests (calls) to the data
management system (DBMS), which validates the
requests and retrieves the data for processing.
￭ ERP, spreadsheet, or an accounting application
2nd: via Direct Query
￭ requires no formal user programs
￭ only for those users who are knowledgeable in a
query language such as SQL.
 Second Element

Database Management
System (DBMS)
The program that manages and controls the data and the
interfaces between the data and the application programs
that use the data stored in the database.

Database system - The database, the

DBMS, and the application programs that access the
database through the DBMS.
Other Elements

Database
Administrator(DBA)
the person responsible for coordinating,
controlling, and managing the database.

Physical Database
the physical location of the data. It can
be a hard drive, optical disk, or flash
drive.
Using Data Warehouses for Business Intelligence
2 main techniques used in Business Intelligence

Data Warehouse = one or more very large

Online Analytical
databases containing both detailed and Data Mining
Processing (OLAP)
summarized data for a number of years
that is used for analysis rather than • Using queries to • Using sophisticated
transaction processing. Complements the investigate statistical analysis,
transaction processing databases by hypothesized including artificial
providing support for strategic decision relationships among intelligence techniques
making data. such as neural networks,
Business Intelligence - Analyzing large to “discover”
amounts of data for strategic decision-making. unhypothesized
relationships in the data.
Benefits or Advantages of Database Systems:

Data

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Integration Master files are combined into
Example: employee database large “pools” of data that many
that consolidates payroll, application programs access
personnel, and job skills master
files
Benefits or Advantages of Database Systems:

02
Integrated data are more easily
shared with authorized users.

Data sharing Databases are easily browsed to

research a problem or obtain
detailed information underlying a
report.
Benefits or Advantages of Database Systems:

03
Minimal Data Because data items are usually

Redundancy stored only once, data

redundancy and data
and Data inconsistencies are minimized

Inconsistencies
Benefits or Advantages of Database Systems:

04
Because data and the programs
Data that use them are independent of

Independence each other, each can be changed

without changing the other.
Benefits or Advantages of Database Systems:

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In a database system, relationships,
such as the association between
Cross-functional selling costs and promotional
campaigns, can be explicitly defined
Analysis and used in the preparation of
management reports
Database Systems
• Record Layout - A document
that shows the items stored in a

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file, including the order and
length of the data fields and the
type of data stored.
• Logical View - is how people
conceptually organize and
understand the relationships
among data items.
• Physical View - the way data
are physically arranged and
stored in the computer system
Database Systems
• Schema - A description of the data
elements in a database, the relationships
among them, and the logical model used

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to organize and describe the data.
• 3 levels:
⚬ Conceptual-level schema - the
organization-wide view of the entire
database that lists all data elements
and their relationships.
⚬ External-level schema - An individual
user’s view of portions of a database
or subschema.
⚬ Internal-level schema - A low-level
view of the entire database
describing how the data are stored
and accessed.
 Database Systems
⚬ Data Dictionary contains information ⚬ DBMS Languages:
about the structure of the database, ￭ Data Manipulation Language
including a description of each data (DML) - changes database

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element. content, including data element
⚬ DBMS -> maintains the data creations, updates, insertions,
dictionary and deletions
￭ inputs = new or deleted data ￭ Data Query Language (DQl) -
elements and changes in data High-level, English-like language
element names, descriptions, or containing powerful, easy-to-use
uses commands that enable users to
￭ Outputs = reports used for retrieve, sort, order, and display
system documentation, database data.
design, and implementation, and ￭ Report Writer - simplifies report
as part of the audit trail. creation.