Data Management System

(Chapter 9 James A. Hall Book)

Two general data management approaches

• flat-file model
• database model

The Flat-File Approach

Flat files are data files that contain records with no structured relationships to other files. The
flat-file approach is most often associated with so-called legacy systems. These are often large
mainframe systems that were implemented in the 1970s through the 1980s. Some
organizations today still make extensive use of such systems.

The flat-file environment promotes a single-user view approach to data management whereby
end users own their data files rather than share them with other users. Data files are therefore
structured, formatted, and arranged to suit the specific needs of the owner or primary user of
the data. Such structuring, however, may exclude data attributes that are useful to other users,
thus preventing successful integration of data across the organization. When multiple users
need the same data for different purposes, they must obtain separate data sets structured to
their specific needs.

Legacy systems - Large mainframe systems implemented in the late 1970s through the 1980s.
These are business’s older, customized computer systems that typically run on a
mainframe computer and that are often too large and expensive to replace.
Problem -
- Data redundancy – the replication of essentially the same data in multiple files. This
contributes to three (3) significant problems in flat-file environment:
1. Data storage
2. Data updating
3. Currency of information
- Task-data dependency
Data Storage
Efficient data management captures and stores data only once and makes this single source
available to all users who need it. In the flat-file environment, this is not possible. To meet
the private data needs of diverse users, organizations must incur the costs of both multiple
collection and multiple storage procedures. Some commonly used data may be duplicated
dozens, hundreds, or even thousands of times within an organization.
 Data Updating
Organizations store a great deal of data on master files and reference files that require periodic
updating to reflect changes. For example, a change to a customer’s name or address must be
reflected in the appropriate master files. When users keep separate and exclusive files, each
change must be made separately for each user. These redundant updating tasks add
significantly to the cost of data management.

Currency of Information
In contrast to the problem of performing multiple updates is the problem of failing to update
all the user files that are affected by a change in status. If update information is not properly
disseminated, the change will not be reflected in some users’ data, resulting in decisions based
on outdated information

Task-Data Dependency
Another problem with the flat-file approach is the user’s inability to obtain additional
information as his or her needs change: this is known as task-data dependency. In other words,
a user’s task is limited and decision-making ability constrained by the data that he or she
possesses and controls. Since users in a flat-file environment act independently, rather than as
members of a user community, establishing a mechanism for the formal data sharing is
difficult or impossible. Therefore, users in this environment tend to satisfy new information
needs by procuring new data files. This takes time, inhibits performance, adds to data
redundancy, and drives data management costs even higher. An organization can overcome
the problems associated with flat files by implementing the database approach.

Disadvantages
- The flat file data management system doesn’t require a relational link meaning that when
information is changed for one individual it will not automatically change for all the records
of that individual meaning that you would have to find each record of that person and
change it for all the records data collected for that person.
- The flat file data management system normally involves you repeatedly writing the same
data which can cause many issues such as human error meaning that mistakes could be
made causing records not to be presented when looking for records about a particular
person.
- When updating the flat file data management system, it can be often hard to identify any
errors contained within the flat file data management system as multiple records of data is
contained within the flat file data management system.
- The flat file model doesn’t prevent similar data being typed for two individuals which could
cause confusion as it would bring up multiple records for multiple people with similar
records making it hard to find out an information.

The Database Approach

Database - is a large collection of organized data that can be accessed by multiple users and used
by many different computer applications.

Access to the data resource is controlled by a database management system (DBMS). The
DBMS is a special software system that is programmed to know which data elements each
user is authorized to access. The user’s program sends requests for data to the DBMS, which
validates and authorizes access to the database in accordance with the user’s level of authority.
If the user requests data that he or she is not authorized to access, the request is denied. Clearly,
the organization’s procedures for assigning user authority are an important control issue for
auditors to consider. This approach centralizes the organization’s data into a common database
that is shared by other users. With the enterprise’s data in a central location, all users have
access to the data they need to achieve their respective objectives. Through data sharing, the
traditional problems associated with the flat-file approach may be overcome.

Elimination of Data Storage Problem

Each data element is stored only once, thereby eliminating data redundancy and reducing data
collection and storage costs. Since no single user or unit owns data, they must be structured
in such a way as to be useful to a broad set of users and potential users.

Elimination of Data Update Problem

Because each data element exists in only one place, it requires only a single update procedure.
This reduces the time and cost of keeping the database current.

Elimination of Currency Problem

A single change to a database attribute is automatically made available to all users of the n
reflected in the marketing and product services views.

Elimination of Task-Data Dependency Problem

The most striking difference between the database model and the flat-file model is the pooling
of data into a common database that is shared by all organizational users. With access to the
full domain of entity data, changes in user information needs can be satisfied without obtaining
additional private data sets. Users are constrained only by the limitations of the data available
to the entity and the legitimacy of their need to access them. Therefore, the database method
eliminates the limited access of flat files approach.