ELECTRONIC DATA INTERCHANGE -When we group together the data attributes that logically

- To coordinate sales and production operations and to define an entity, they form a record type.
maintain an uninterrupted flow of raw materials, many • Database
organizations enter into a trading partner agreement with -Set of record types that an organization needs to support
their suppliers and customers its business processes
Enterprise Resource Planning • Association
- An example of EDI -Record types that constitute a database exist in relation to
- Use to help managing and integrate the core other record types.
of the business operation. -One-to-one association, one-to-many association, and
Functional Group many-to-many association
- is a collection of transaction sets (electronic documents)
for a particular business application, such as a group of • One-to-one association
sales invoices or purchase orders. The transaction set is -For every occurrence in one Record Type, there is one (or
composed of data segments and data elements. possibly zero) occurrence in other Record Type.
Important features of EDI • One-to-many association
• EDI is an inter-organization endeavor. -For every occurrence in one Record Type, there are zero,
• The information systems of the trading one, or many occurrences in other record type Record
partners automatically process the Type.
transaction.
• Transaction information is transmitted in a • Many-to-many association
standardized format. -For each occurrence of both Record Types, there are zero,
one, or many occurrences in the other Record Type.
EDI STANDARDS • Hierarchical Model
• EDI success is the use of a standard format -Constructed of sets that describe the relationship between
for messaging between dissimilar systems two linked files.
• Example, (ANSI) X.12 format. In US and -Each set contains a parent and a child.
EDIFACT in UK -Files at the same level with the same parent are called
Benefits of EDI siblings.
• Data keying -The highest level in the tree is the root segment, and the
• Error reduction lowest file in a particular branch is called a leaf.
• Reduction of paper -This model is called navigational database.
• Postage -One-to-many association
• Automated procedures
• Inventory reduction Limitations of the Hierarchical Model:
Electronic Fund Transfer A parent record may have one or more child records.
• EFT requires intermediary banks between No child record can have more than one parent.
trading partners.
• EFT requires intermediary banks between Network Model
trading partners. - Like the hierarchical model, the network model is a
navigational database with explicit linkages between
EDI CONTROL records and files. The distinction is that the network model
- The absence of human intervention in the EDI permits a child record to have multiple parents.
process presents a unique twist to traditional control -Many-to-many association.
problems, including ensuring that transactions are • Relational Model
authorized and valid, preventing unauthorized -Portrays data in a two-dimensional table.
access to data files, and maintaining an audit trail of -Across the top of the table are attributes (data fields)
transactions. forming columns.
• Transaction Authorization and Validation -Intersecting the columns to form rows in the table are
• Access Control tuples.
• EDI Audit Trail
Audit Objectives Relating to EDI Databases in a Distributed Environment
• All EDI transactions are authorized, validated, • Centralized
and in compliance with the trading partner • Distributed
agreement Partitioned
• No unauthorized organizations gain access to Replicated
database records
• Authorized trading partners have access only Centralized Database
to approved data -The data is retained in a central location.
• Adequate controls are in place to ensure a -Remote information processing units (IPU) send requests
complete audit for data.
Audit Procedures Relating to EDI -Central site services the needs of the remote IPU.
• Tests of Authorization and Validation
Controls. • Temporary Inconsistency
• Tests of Access Controls. -Values are incorrectly stated.
• Tests of Audit Trail Controls. • Database lockout
-A software control that prevents multiple simultaneous
access to data.
Database and database system
What is database? Distributed Database
is a collection of information that is organized so that it can • Partitioned Database
be easily accessed, managed and updated. -Splits the central database into segments that are
distributed to their primary users.
Database management system • Advantages
special software system that is programmed to know which -Storing data at local sites increases users’ control.
data elements each user is authorized to access. -Improves transaction processing response time.
2 types Database System -Reduce the potential effects of disaster.
 Flat-file Model • Deadlock Phenomenon
 Database Model -Occurs when there is mutual execution to data and the
transactions are in a wait state.
Flat file model • Deadlock Resolution
 Legacy systems (traditional) -Terminating one or more transactions.
 Flat files are data files that contain records Factors:
with no structured relationships to other files. – Resources currently invested in the transaction
 The flat-file environment promotes a single- – The transaction’s stage of completion.
user view approach to data management – The number of deadlocks associated with the
whereby end users own their data files rather transaction.
than share them with other users. – Replicated database
-Duplication of entire database for multiple
DBMS Models IPUs.
• Data model -Effective for situations with high degree of
-An abstract representation of the data about entities, data sharing but no primary users.
including resources (assets), events (transactions), and -The problem with this approach is
agents (personnel or customers, etc.) and their maintaining current versions of the database
relationships in an organization. at each site.

Database Terminology
• Entity
-A database representation of an individual resource, event,
or agent about which we choose to collect data.
-May be physical or conceptual.
• Data Attribute/Field
-A single item of data, such as customer’s name, account
balance, or address.
• Record Type (Table or File)