TUTORIAL: BAP 71 AIS DISCUSSION QUESTIONS

Lecture Week: 3 Chapter 3: Database Concepts

DISCUSSION QUESTIONS:
3.1 What advantages do databases offer for decision-making and reporting processes?
Databases capture, store and manage data as efficiently and effectively as possible.

This has advantages for decision making and reporting because data are the building blocks of
information.

Accurate, relevant and timely information come from quality data capture, storage and management.
This quality is obtained when the data is captured, stored and managed in an efficient and effective
manner.

This means that the data is captured, stored and managed in its lowest form so that it can be built in
a way to meet the accurate, relevant and timely information requirements.

Correct decision making and reporting require accurate, relevant and timely information. Correct
decision making and reporting are vital for organisational performance.

Databases also provide the following advantages:

• Centralised / shared data storage providing “one source of the truth”

• Immediate access to data
• Reduced conflicts and Integrity issues when compared to file systems
• Improved cost, time and resource efficiency leading to increased productivity
• Improved Security / privacy and confidentiality if deployed with a robust control environment
• Improved Backup / recovery procedures

3.2 Define the operation of a relational database. Why has it taken over as the optimal
structure to implement in organisations?
The relational database operates through a sophisticated relational database management system
(RDBMS) that is more flexible and easier to understand, implement and manipulate. Information is
derived from connecting matching data stored in a number of tables. The strength of the relational
approach is that the designer does not need to know which questions may be asked of the data. If
the data are specified and defined carefully, the database can answer virtually any question efficiently
by matching data. It has taken over as the optimal structure to implement in organisation because of
its conceptual simplicity, structural independence and can be done so using flexible client-server
systems. However, it is expensive to purchase hardware, operating systems of computing power for
the database.

1
3.3 How do the characteristics of a file system limit their usefulness for decision making
and reporting?
There are 3 characteristics of file systems that limit the usefulness of file systems for decision making
and reporting.

1. Data management
As file systems capture data on processes, the data captured is tailored toward outputs that show the
transactions undertaken in the process (eg sales order/processing).

Any other information outside this requirement that may be needed for critical decision making and
reporting requires the skill of a data process specialist.

Therefore, even the simplest information-retrieving task could take days, weeks or even months,
undermining timeliness and usefulness. It takes a long time, because new programs need to be
written for the new requirements and the writing, testing and debugging process is time consuming.

2. Structural and data dependence

Any change to a file’s data characteristics in turn requires modifications to all programs that access
that file. This is called structural dependence as data in a file may be determined by the way other
data have been characterised and stored. This makes file systems extremely unwieldy to program or
manage.

3. Data redundancy
Data redundancy occurs when the same data are stored in many different places.

This causes inconsistency because there are different and conflicting versions of the same data in
different places. It creates data anomalies. Therefore, which data is the correct version to use for
decision-making?

3.4 Describe the elements of a database system, including the DBMS.

A database is a collection of elements that allow the capture, storage, management and use of data
within a database environment.

These elements include:

• hardware,
• software,
• DBMS
• people,
• procedures and
• data.

Hardware refers to the system’s physical devices which include the computer and computer
peripherals.

The software is the collection of programs used by the computer to function and includes the
operating system, DBMS software, application programs and utilities.

The DBMS software allows the database within the database system to be managed. The DBMS
comprises a group of programs that manipulate the database and provide the interface between the
databases and the user as well as other application programs.

2
There are likely to be several people involved in the database system:

• systems administrators,
• database designers,
• systems analysts and
• programmers.

Procedures are the rules that govern the design and use of the database system for the organisation.
The determination of which data are entered into the database and how they are organised is the role
of the people within the database system.

Data are generally stored in a central location.

3.5 Explain why data modelling is performed. How is it performed?

Data modelling is used to describe and represent complex real world data structures. They provide
a logical representation, in graphical form, of the complexities of real world data entities and their
relationships with one another. At the same time, a database designer can depict the data structures,
relations, characteristics and constraints on their design using a data model. Therefore, it is a
communication tool that can provide the blueprint for developing new database structures or create
improved understanding of an organisation’s database. Data modelling is the foundation of good
applications. It should encapsulate the views of all people from managers to programmers in the
model. It is performed in an interactive process in 4 steps using ERDs:
1. Develop a general narrative of the organisation’s operations including the business process,
policies and business rules.
2. Construct the ERD by identifying the internal and external entities and the relationship among
them from the narrative in step 1. Connectivities and cardinalities can be assigned based on
the narrative as well.
3. Have the ERD reviewed by each area of the company with ownership of the operations,
policies and processes.
4. Make the necessary modifications to incorporate any newly discovered entity relationship
components.

3
PROBLEMS:

3.1 Consider the following statement: ‘My manager wants to make important strategic and
operational decisions for the company, but complains about the quality of information
from the files. I tell him or her that he or she needs to understand some database
concepts and invest in a database.’ Do you agree? Provide reasons.
Yes. File systems typically store a number of records for each of the administrative functions of the
organisation such as sales order/entry, accounts receivable, inventory and invoicing. However, such
systems have severe limitations because there is duplication of data that is captured in each of the
administrative functions. Updating is repetitive and inefficient. Sharing is limited and data is easily
inconsistent as a result of errors made by staff. As in the case above, there are also demands for
information for decision-making and managers and employees can ask questions such as:

• What products sold well during the past week, month, quarter or year?
• How do the current sales compare with last week, month, quarter or year?
• What proportions of the customers are paying on time?
• Are we taking advantage of all the purchasing discounts?

There are 3 characteristics of file systems that limit the usefulness of file systems for decision making
and reporting.

1. Data management:

As file systems capture data on processes, the data captured is tailored toward outputs that show the
transactions undertaken in the process (e.g. sales order/processing). Any other information outside
this requirement that may be needed for critical decision making and reporting requires the skill of a
data process specialist. Therefore, even the simplest information-retrieving task could take days,
weeks or even months, undermining timeliness and usefulness. It takes a long time, because new
programs need to be written for the new requirements and the writing, testing and debugging process
is time consuming.

2. Structural and data dependence:

Any change to a file’s data characteristics in turn requires modifications to all programs that access
that file. This is called structural dependence as data in a file may be determined by the way other
data have been characterised and stored. This makes file systems extremely unwieldy to program or
manage.

3. Data redundancy:

Data redundancy occurs when the same data are stored in many different places. This causes
inconsistency because there are different and conflicting versions of the same data in different places.
It creates data anomalies. Therefore, which data is the correct version to use for decision-making?

A database such as a relational database can solve these issues and is defined as a collection of
elements that allow the capture, storage, management and use of data within a database
environment. The relational database operates through a sophisticated relational database
management system (RDBMS) that is more flexible and easier to understand, implement and
manipulate. Information is derived from connecting matching data stored in a number of tables. The
strength of the relational approach is that the designer does not need to know which questions may
be asked of the data. If the data are specified and defined carefully, the database can answer virtually

4
any question efficiently by matching data. The result is information that is accurate, relevant and
timely. It has taken over as the optimal structure to implement in an organisation because of its
conceptual simplicity, structural independence and can be done so using flexible client-server
systems. However, it is expensive to purchase hardware, operating systems of computing power for
the database.

Therefore, database concepts are important in relation to decision making as:

• Correct decision making and reporting are vital for organisational performance.
• Correct decision making and reporting require accurate relevant and timely information.
• Accurate, relevant and timely information comes from quality data capture, storage and
management.
• Data are the building blocks of information.

5
3.3 Happy Feet Shoes is a large retailer of women’s footwear. The organisation runs a file
system.
Figure 3.42 is an extract of its sales file.
(a) Discuss the limitations of this file.
(b) Explain how a database would overcome these limitations.
(c) Illustrate your explanation by developing a database design.

(a) There are potentially 4 limitations of this file.

• Update anomalies – if the same customer bought more shoes, each row has to be updated
with the same information, which is duplication. This can easily lead to errors. Similarly, if the
customer details have changed, the organisation has to go back and change each of the
previous details for the same customer.
• Insertion anomalies – every sale must have details such as sales person in the column.
• Deletion anomalies – if a sales person were to leave, the details must be adjusted to reflect
the non-availability of the sales person leading to a loss of data.
• Data integrity – the file system allows spelling errors and typographical errors

(b) A database such as a relational database can solve these issues and is defined as a collection of
elements that allow the capture, storage, management and use of data within a database
environment. The relational database operates through a sophisticated relational database
management system (RDBMS) that is more flexible and easier to understand, implement and
manipulate. Information is derived from connecting matching data stored in a number of tables. The
strength of the relational approach is that the designer does not need to know which questions may
be asked of the data. If the data are specified and defined carefully, the database can answer virtually
any question efficiently by matching data. The result is information that is accurate, relevant and
timely. It has taken over as the optimal structure to implement in organisation because of its
conceptual simplicity, structural independence and can be done so using flexible client-server
systems. However, it is expensive to purchase hardware, operating systems of computing power for
the database.

There are 3 characteristics of file systems that limit the usefulness of file systems for decision making
and reporting.

6
1. Data management
As file systems capture data on processes, the data captured is tailored toward outputs that show the
transactions undertaken in the process (e.g. sales order/processing). Any other information outside
this requirement that may be needed for critical decision making and reporting requires the skill of a
data process specialist. Therefore, even the simplest information-retrieving task could take days,
weeks or even months, undermining timeliness and usefulness. It takes a long time, because new
programs need to be written for the new requirements and the writing, testing and debugging process
is time consuming.

2. Structural and data dependence

Any change to a file’s data characteristics in turn requires modifications to all programs that access
that file. This is called structural dependence as data in a file may be determined by the way other
data have been characterised and stored. This makes file systems extremely unwieldy to program or
manage.

3. Data redundancy
Data redundancy occurs when the same data are stored in many different places. This causes
inconsistency because there are different and conflicting versions of the same data in different places.
It creates data anomalies. Therefore, which data is the correct version to use for decision-making?

(c)

shoes

Shoe_model
Shoe_size
Shoe_amount
customer

sales
Customer_name
Customer_ address Customer_name
Customer_phone Salesperson_name
Shoe_model
Shoe_amount salesperson
Date

Salesperson_name
Salesperson_ address
Salesperson_phone