Chapter 7

Storing Organizational
Information - Databases

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved

 Learning Outcomes
7.1 Define the fundamental concepts of the
relational database model

7.2 Evaluate the advantages of the

relational database model

7.3 Compare relational integrity

constraints and business-critical
integrity constraints
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 Learning Outcomes
7.4 Describe the benefits of a data driven
Web site

7.5 Describe the two primary methods for

integrating information across multiple
databases

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 Relational Database
Fundamentals
• Information is everywhere in an
organization

• Information is stored in databases

– Database – maintains information about
various types of objects (inventory), events
(transactions), people (employees), and
places (warehouses)

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 Relational Database
Fundamentals
• Database models include:
– Hierarchical database model – information is
organized into a tree-like structure (using
parent/child relationships) in such a way that it
cannot have too many relationships
– Network database model – a flexible way of
representing objects and their relationships
– Relational database model – stores information
in the form of logically related two-dimensional
tables
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 Entities and Attributes

• Entity – a person, place, thing, transaction, or

event about which information is stored
– The rows in each table contain the entities
– In Figure 7.1 CUSTOMER includes Dave’s Sub Shop and
Pizza Palace entities

• Attributes (fields, columns) – characteristics or

properties of an entity class
– The columns in each table contain the attributes
– In Figure 7.1 attributes for CUSTOMER include Customer
ID, Customer Name, Contact Name
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 Keys and Relationships

• Primary keys and foreign keys identify the

various entity classes (tables) in the
database
– Primary key – a field (or group of fields) that
uniquely identifies a given entity in a table
– Foreign key – a primary key of one table that
appears an attribute in another table and acts
to provide a logical relationship among the
two tables

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 Keys and Relationships
• Potential relational database for Coca-Cola

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Relational Database Advantages
• Database advantages from a business
perspective include
– Increased flexibility
– Increased scalability and performance
– Reduced information redundancy
– Increased information integrity (quality)
– Increased information security

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 Increased Flexibility

• A well-designed database should:

– Handle changes quickly and easily
– Provide users with different views
– Have only one physical view
• Physical view – deals with the physical storage of
information on a storage device
– Have multiple logical views
• Logical view – focuses on how users logically
access information

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Increased Scalability and Performance

• A database must scale to meet increased

demand, while maintaining acceptable
performance levels
– Scalability – refers to how well a system can
adapt to increased demands
– Performance – measures how quickly a
system performs a certain process or
transaction

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Reduced Information Redundancy

• Databases reduce information

redundancy
– Redundancy – the duplication of information
or storing the same information in multiple
places

• Inconsistency is one of the primary

problems with redundant information

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Increase Information Integrity (Quality)

• Information integrity – measures the quality

of information

• Integrity constraint – rules that help ensure

the quality of information
– Relational integrity constraint
– Business-critical integrity constraint

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 Increased Information Security

• Information is an organizational asset and must

be protected

• Databases offer several security features

including:
– Password – provides authentication of the user
– Access level – determines who has access to the
different types of information
– Access control – determines types of user access,
such as read-only access
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Database Management Systems
• Database management systems (DBMS) –
software through which users and application
programs interact with a database

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 DATA-DRIVEN WEB SITES
• Data-driven Web sites – an interactive Web
site kept constantly updated and relevant to
the needs of its customers through the use of
a database

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Data-Driven Web Site Business
Advantages
• Development
• Content Management
• Future Expandability
• Minimizing Human Error
• Cutting Production and Update Costs
• More Efficient
• Improved Stability

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Data-Driven Business Intelligence
• BI in a data-driven Web site

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 Integrating Information
among Multiple Databases
• Integration – allows separate systems to
communicate directly with each other
– Forward integration – takes information
entered into a given system and sends it
automatically to all downstream systems and
processes
– Backward integration – takes information
entered into a given system and sends it
automatically to all upstream systems and
processes

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 Integrating Information
among Multiple Databases
• Forward integration

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 Integrating Information
among Multiple Databases
• Backward integration

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 Integrating Information
among Multiple Databases
• Building a central repository specifically
for integrated information

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 OPENING CASE STUDY QUESTIONS
It Takes A Village to Write an Encyclopedia
1. Identify the different types of entity classes
that might be stored in Wikipedia’s database

2. Explain why database technology is so

important to Wikipedia’s business model

3. Explain the difference between logical and

physical views and why logical views are
important to Wikipedia’s customers

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 CHAPTER SEVEN CASE
Keeper of the Keys
• Almost 90 million people had their personal
information stolen or lost by organizations
– Bank of America: 1.2 million customers
– CardSystems: 40 million customers
– Citigroup: 3.9 million customers
– DSW Shoe Warehouse: 1.4 million customers.
– TJX Companies: 45.6 million customers
– Wachovia: 676,000 customers

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Chapter Seven Case Questions
1. How many organizations have your personal
information, including your Social Security
number, bank account numbers, and credit card
numbers?

2. What information is stored at your college? Is

there any chance your information could be
hacked and stolen from your college?

3. What can you do to protect yourself from identity

theft?
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Chapter Seven Case Questions
4. Do you agree or disagree with changing laws to hold
the company where the data theft occurred
accountable? Why or why not?

5. What impact would holding the company liable

where the data theft occurred have on large
organizations?

6. What impact would holding the company liable

where the data theft occurred have on small business?

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