Database Design Using the REA

Data Model
Chapter 17

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 Learning Objectives
• Discuss the steps for designing and
implementing a database system.
• Use the REA data model to design an AIS
database.
• Draw an REA diagram of an AIS database.
• Read an REA diagram and explain what it
reveals about the business activities and policies
of the organization being modeled.

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 Database Design Process

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 Data Modeling
• Process of defining a database so that it faithfully
represents all aspects of the organization,
including its interactions with the external
environment.
▫ Entity-relationship (E-R) diagrams
▫ REA data model

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 REA Modeling
• Resources
▫ Things that have economic value to the
organization (e.g., inventory, cash)
• Events
▫ Various business activities that management wants
to collect information on
• Agents
▫ People and organizations that participate in events
(both internal (e.g., employees) and external (e.g.,
customers/vendors) to the organization)
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 REA Basic Template

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 Creating an REA Model

• Identify relevant events

▫ Give-get exchange (economic duality)
• Identify resources and agents
▫ Resource reduced in give event
▫ Resource acquired in get event
• Determine cardinalities of relationships
▫ Nature of the relationship between the two
entities

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 Cardinality Notation Methods
• Graphical symbols
▫ Graphical symbols represent minimum–
maximum cardinalities
• (Min, Max) notation
▫ Pairs representing the minimum–maximum
cardinalities
• UML notation
▫ Pairs representing the minimum–maximum
cardinalities
• Maximums only (Microsoft Access)
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 Key Terms

• Data modeling • Minimum cardinality

• Entity-relationship (E-R) • Maximum cardinality
diagram • One-to-One (1:1) relationship
• REA data model • One-to-Many (1:N)
• Resources relationship
• Events • Many-Many (M:N)
• Agents relationship
• Cardinalities

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