CHAPTER 1

INFORMATION SYSTEM

Data is a precious thing and will last longer than the systems
themselve
Tim Berners
-Lee

After completing this chapter, you will be able to:

1. identify
the six parts of the information system

2. discuss how organizations are structured according to five functions and three
management level
s

3. describe
the information flow
in an organization

4. distinguishbetween TransactionProcessing System

(TPS) , Management
Information System
( MIS) , Decision Support System
(DSS) and Executive Support
System(ESS) / Executive Information System (EIS)

5. outline two other types of information systems

1.0 Introduction

An Information System (IS) is a system composed of people, procedures,

software, hardware, data, and the internet. They all work together to provide
information essential to running an organisation. This is information that will
successfully produce a product or service and for profit-oriented enterprises,
derive a profit.
It is important for end users to know how the information flows in an organisation
as it moves through the organisations different functional areas and
management levels. They need to be aware of the different types of computer-

1
based information systems, decision support systems, management information
systems, decision support systems and executive support systems.

1.1 Parts of an Information System

An information system has several parts: people, procedures, software,

hardware, data and the internet.
People: often people are overlooked as one of the part of an information system.
Yet microcomputers are all about making people, the end-user, more productive.
Procedures: are rules or guidelines to follow when using a software, hardware
and data. Typically these procedures are documented in manuals written by
computer specialists for particular organisations. Software and hardware
manufacturers also provide manuals with their products.
Software: is another name for a program or programs. A program is the step-
by-step instructions that tell the computer how to do its work. The purpose of
software is to convert data (unprocessed fact) into information (processed fact).
Hardware: consists of equipment, such as keyboard, monitor, printer, the
computer itself and other devices that process the data to create information.
Data: consists of the raw, unprocessed facts, including text, numbers, images,
and sounds.
Internet: provides a connection between people and computers to expand the
capability and usefulness of information systems.

Discovery Learning:

Study an organisation
close to you and identify the different parts that make up its
information system.

1.2 Organisation Functions

One way to examine an organisations structure is to view it from a functional

perspective that is, by studying the different basic functional areas and the
different types of people within these functional areas.
Like many organisations, Viti Group of Companies can be viewed from a
functional perspective with various management levels. This company
manufactures a wide range of furnitures and is a major supplier in Fiji.

2
Depending on the services or products they provide, most organisations have
departments that perform five basic functions. These are accounting, production,
marketing, human resources and research(see figure 1.1).
Functional Perspective

Figure 1.1 Five functions of an organization

1. Accounting department: keeps track of all financial activities. For

example, at Viti Group of Companies the accounting department tracks all
sales, pays bills, records payments, issues paychecks and compiles
periodic financial statements.

2. Production department: makes the product. It takes in raw materials

and puts people to work to turn out finished products/goods (services). At
Viti Group of Companies this includes manufacturing a variety of
furnitures.

3. Marketing department: advertising, promotion and sales are handled by

this department. At Viti Group of Companies employees in this department
plan, price, promote, sell and distribute goods and services to customers.

4. Human resource department: this department finds and hires people

and handles matters such as sick leave and retirement benefits. In
addition, Viti Group of Companies is also concerned with evaluation,
compensation and professional development.

5. Research department: conducts two tasks (1) Product research. That is,
it does basic research and relates new discoveries to the firms current or
new products. (2) Product development. That is, it develops and tests new
products created by research people. It also monitors and troubleshoots

3
 new products as they are being produced. For example, at Viti Group of
Companies the research department identifies and creates new furniture
designs.

Review Exercise 1.1

Completion
a) Function that plans, prices, promotes, sells and distributes the organizations
goods and services are known as _____________.

b) The _____________department focuses on hiring, training, and promoting.

c) A(n) ____________________ is a collection of people, procedures, software,

hardware, data and internet.

Short Answer Questions

a) An information system has six parts which include people, data and
procedures. List the other three parts of an Information System and describe
their roles.

b) According to the Information System, most organizations have departments

performing specific functions. State one function of the following
departments:

(i) Human resource

(ii) Research
(iii)Marketing
(iv) Production

1.3 Management Levels

Most people who work in an organisation are not managers, of course. At the
base of the organisational pyramid are the secretaries, receptionists, joiners,
carpenters, messengers and drivers. These people produce goods and services.
Above them however, are various levels of managers, people with titles such as

4
supervisor, director, regional manager and vice president. They are responsible
for planning, organising and controlling, to ensure work is done. In smaller
organisations, these titles are often combined.

Management in many organisations is divided into three levels: supervisors,

middle-level managers and top-level managers as shown in figure 1.2.

Supervisors: manage and monitor the employees or workers, those who

actually produce the goods and services. Thus, these managers have the
responsibility relating to operational matters. They monitor day-to-day
events and immediately take corrective action.

Middle-level Managers (middle management): deal with control and

planning (also called tactical planning). They implement the long- term
goals of the organisation.

Top-level Managers (top management): are concerned with long-range

planning (also called strategic planning). They need information that will
help them to plan the future growth and direction of the organisation.

Managerial Levels

Top Responsible for strategic planning.

Management

Responsible for tactical planning.

Middle Management

Responsible for operational matters.

Supervisors

Figure 1.2Three levels of management

1.4 How Information Flows in an

Organisation

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Each level of management has different information needs; top-level managers
need information that is summarised in capsule form to reveal the overall
condition of the business. They also need information from outside the
organisation, because top-level managers need to forecast and plan for long-
range events. Middle-level managers need summarised information, weekly or
monthly reports. They need to develop budget projections as well as to evaluate
the performance of supervisors. Supervisors need detailed, very current day-to-
day information on their units so that they can keep operations running smoothly
(see figure 1.3).

Top managerial
-level information flowvertical,
is horizontal,
and external.

Middle a
mnagerial
-level information flow
is vertical
and horizont
al.

Figure
1.3
Supervisory The
Flow of
- level information flow is vertical.
Information withinorganisation
an

Figure 1.3 Information flow within an organistaion

Top-level managers, such as the chief executive officer (CEO), need

information not only from below but also from all departments. They also need
information from outside the organisation.
Middle-level managers, the information flow is both horizontal and vertical
across functional lines within the organisation.
Supervisors, information flow is primarily vertical. That is, they communicate
mainly with their middle managers and with the workers beneath them.

1.5 The levels of Computer-Based

Information System

The four most common types of computer based information system used in
an organisation are transaction processing system, management information
system, decision support system, and executive support system(see figure 1.4).

1. Transaction processing system (TPS): records day-to-day transactions

such as customer orders, bills, inventory levels and production output. The
transaction processing system generates the database that acts as the
foundation for other two information systems.

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2. Management information system (MIS): summarises the detailed data of
the transaction processing system in standard reports. Such reports might
include production schedules and budget summaries.

3. Decision support system (DSS): provides a flexible tool for analysis. The
DSS helps managers make decisions about unstructured problems, such as
the effect of events and trends outside the organisation. Like MIS, the DSS
draws on the detailed data of the transaction processing system.

4. Executive support system (ESS): also known as executive information

system (EIS), is an easy-touse system that presents information in a very
highly summarised form. It helps top-level managers oversee the companys
operations and develop strategic plans. The ESS combines the databases
generated from the TPS and the reports generated from the MIS with external
data.

Computer-based Information systems

ESS:use internalata
d from MIS and TPS and
ESS external data to
pport
su top
-level managers.

DSS:use data from TPS and a set of flexible analytical

DSS tools to supp
ort middle managers.

MIS
MIS: use data from TPS to support
-level
middle
mana
gers.

TPS
TPS:record day
-to-day transactions to support
supervisors.

Figure 1.4: Four kinds of computer-based information systems

Transaction Processing System

The purpose of a transaction processing system is to help an organisation keep
track of routine operations and to record these events in a database. The data
from operations make up a database that records the transactions of the
company. This database of transaction is used to support MIS and DSS.
One of the most important transaction processing systems for any organisation is
in the Accounting area. Every Accounting department handles six basic activities.
Five of these are sales order processing, accounts receivable, inventory and
purchasing, accounts payable and payroll. All these are recorded in the general
ledger, the sixth activity.

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 Accounting

Sales order Accounts I nventory and Account Payroll

processing receivable purchasing payable

General ledger

Figure 1.5: Transaction processing system for accounting

The sales order processing activity records the customers requests for the
companys product or service. When an order comes in for any product, the
warehouse is alerted to ship the product.

The accounts receivable activity records money received from or owed by

the customers.

The parts and finished goods that the company has in stock are called
inventory. An inventory control system keeps records of the number of each
kind of part or finished good in the warehouse. Purchasing is buying of
materials and services. Often a purchase order is used. This is a form that
shows the name of the company supplying the materials or service and what
is being purchased.

Accounts payable refers to money the company owes its suppliers for
materials and services it has received.

The payroll activity is concerned with calculating employee paychecks.

Amounts are generally determined by the kind of job, hours worked, and
kinds of deductions (such as taxes, social security, and medical insurance).
Paychecks may be calculated from the employee time card or in some case,
supervisors time sheets.

The general ledger keeps track of all summaries of all the foregoing
transactions. A typical general ledger system can produce income statements
and balance sheets. Income statements show a companys financial
performance, income, expenses and the difference between them for a
specific time period. Balance sheets list the overall financial condition of an
organisation. They include assets (for example, buildings and property
owned), liabilities (debts), and how much of the organisation (the equity) is
owned by the owners.
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Review Exercise 1.2

Completion

a) The accounting activity that records the customer requests for the companys
products or services is sales order ______________.
b) An information system that records day to day transactions.
__________________
c) The parts and finished goods that a company has in stock. _________________
d) The accounting activity concerned with calculating employee paychecks is
referred to as ___________________.

Short Answer Questions

a) The transaction processing system for any organisation is in the Accounting

area. Each Accounting department handles six basic activities. Study the
diagram given below and answer the questions that follow.

Accounting

Inventory &
Payroll 1 2 3
purchasing

(i) State the activities of the accounting department labeled 1, 2, 3 and 4.

(ii) Describe activity 4 and explain how it can show a financial

performance of a company.

b) (i) In which direction does the information flow at middle

management level?

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(i) Give a reason for your answer in (i) above.

Management Information System (MIS)

A management information system (MIS) is a computer-based information
system that produces standardized reports in summarized, structured form. It is
used to support middle managers. An MIS differ from transaction processing
system in a significant way. A transaction processing system creates databases
whereas an MIS uses databases. An MIS can draw from databases of several
departments. Thus, an MIS requires a database management system that
integrates the databases of the different departments. Middle managers need
summary data often drawn from across different functional areas.
An MIS produces reports that are predetermined. That is, they follow a
predetermined format and always show the same kinds of content. Although
reports may differ from industry to industry, there are three common categories
of reports:

1. Periodic reports are produced at regular intervals, weekly, monthly or

quarterly. For example sales or production reports.

2. Exception reports call attention to unusual events. An example is a sales

report that shows that certain items are selling significantly above or below
marketing department forecasts.

3. Demand report is produced on request. An example is a report on the

number of jobs held by women and minorities. Such report is not needed
periodically, but it may be required when requested.

Decision Support Systems (DSS)

Managers often must deal with unanticipated questions. For example, how would
a strike affect production schedules? A decision support system (DSS) enables
managers to get answers to unexpected and generally nonrecurring kinds of
problems. They do these using interactive terminals (microcomputers) and
software. Interactive means that there is immediate communication between the
user and the computer system. That is, when input data is entered into the
computer, it is processed immediately. The output results are promptly displayed
on the screen.
A DSS is quite different from TPS, which simply records data and different from
MIS, which summarizes data in predetermined reports. A DSS is used to analyze
data. Moreover, it produces reports that do not have fixed format. This makes the
DSS a flexible tool for analysis.
Many DSSs are designed for large computer systems. However, microcomputer,
with their increased power and sophisticated software, such as spreadsheet and
database programs, are being used for DSS. Users of a DSS are managers, not

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computer programmers. Thus, a DSS must be easy to use, or most likely it will
not be used at all. Commands need to be in language-like English: SEARCH or
FIND, for instance.
How Does A Decision Support System Works?
Essentially, it consists of four parts:

(i) User
(ii) system software
(iii)data
(iv) decision models.

(i) The user: the user could be you. In general, the user is someone who has
to make decisions; a manager, often a top-level manager.

(ii) System software: the system software is essentially the operating system
programs designed to work behind the scenes to handle detailed operating
procedures. In order to give the user a good, comfortable interface, the
software typically is menu or icon driven. That is, the screen presents easily
understood lists of commands or icons, giving the user several options.

(iii) The data: the data in a DSS is stored in a database and is of two kinds.

1. Internal data is data from within the organisation, consists principally of

transactions from the transaction processing system.

2. External data is data gathered from outside the organisation. Examples

are data provided by marketing research firms, trade associations.

(iv) The decision models: the decision models give the DSS its analytical
capabilities. There are three basic types of models:

1. Strategic models assist top-level managers in long-range planning such

as stating company objectives or planning plant locations.

2. Tactical models help middle-level managers control the work of the

organisation, such as financial planning and sales promotion planning.
Such models help middle-level managers implement top managers long-
range plans.

3. Operational model helps lower-level managers accomplish the day-to-

day activities of the organisation, such as evaluating and maintaining
quality control.

Executive Information Systems (EISs)

Also known as Executive Support Systems (ESSs) consists of sophisticated
software that, like an MIS and a DSS, can draw together data from an

11
organisations databases in meaningful patterns. However, EIS is specifically
designed to be easy to use. This is so that a top executive with little spare time
can obtain essential information without extensive training. Thus, information is
often displayed in very condensed form and in bold graphics.
EISs not only permit a firms top executive to gain more direct access to
information about the companys performance. Some of them also have
electronic mail setups that allow managers to communicate directly with other
executives. Some systems even have structured forms to help managers
streamline their thoughts before sending electronic memos. In addition, EIS may
be organized to retrieve information from database outside the company, such
as business-news services. This enables a firm to watch for stories on
competitors and stay current on relevant news events that could affect its
business.

1.6 Other Information Systems

Information workers use office automation system and knowledge work system.
Information workers create, distribute, and communicate information. They
are the organisations secretaries, clerks, engineers and scientists to name a few.
Some are involved with distribution and communication of information and are
called data workers for example, secretaries and clerks. Others involved with
the creation of information are called knowledge workers for example,
engineers and scientists.
They two systems that support information workers are:

(i) Office automation systems (OASs): are designed primarily to support

data workers. These systems focus on managing documents,
communicating and scheduling. Documents are managed using word
processing, desktop publishing and other technologies. Communications
include e-mail, voice messaging and videoconferencing.

(ii) Knowledge work systems: knowledge workers use OAS. Additionally,

they are specialized information systems called knowledge work systems
(KWSs) to create information in their areas of expertise. For example,
engineers involved in product design and manufacturing use computer-
aided design/computer-aided manufacturing (CAD/CAM) systems. These
KWSs consist of powerful microcomputers running special programs that
integrate the design and manufacture activities. CAD/CAM is widely used
in the manufacture of automobiles and other products.

Discovery Learning:

Name and discuss other types of information systems.

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Review Exercise 1.3

Completion

a) Computer-based information system that produces standardized reports in

summarized, structured form is called _______________________.
b) ________________is sophisticated software that can draw together data from an
organisations databases in meaningful patterns.

c) _______________ is a type of report generated at regular intervals.

d) Flexible tool for analysis that helps managers make decisions about
unstructured problems.
___________________

e) _______________refers to individuals involved in the creation of information.

Short Answer Questions

a) Explain the major difference between Executive Information Systems (EIS)

and Transaction Processing Systems (TPS).

b) The Decision Support System (DSS) has four parts. Two of them are decision
models and the user. Name and describe the other two parts of the DSS.

c) State two roles of middle level managers in an organisation.

d) Explain the major difference between DSS and MIS.

Summary

1. Accounting department records all financial activities from billing customers to

paying employees.

2. Marketing department advertises, promotes, and sells the product or service.

3. Production department makes the product or service using raw materials and
people to turn out finished goods.

4. Human resource department finds and hires people, handles such matters as
sick leave, retirement benefits, evaluation, compensation, and professional
development.

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5. Research department conducts product research and development, monitors
and troubleshoots new products.

6. Transaction processing system (TPS) records day-to-day transactions.

7. Management information system (MIS) produces predetermined periodic,

exception, and demand reports.

8. Decision support systems (DSS) enable managers to get answers for

unanticipated questions.

9. Executive support systems (ESS) presents summary information in a flexible,

easy to use, graphical format designed for top executives.

10.Office automation system (OAS) supports data workers who are involved with
distribution and communication of information.

11.Knowledge work systems (KWS) support knowledge workers, who create

information.

Key Terms

accounting accounts payable

accounts receivable computer aided design
computer aided manufacturing data worker
decision support system demand report
exception report executive support system
expert system general ledger
information worker inventory
knowledge-based system operational model
management information system strategic model
tactical model user

Review Questions Multiple Choice

1) The primary role of top - level managers in many large organisations is to

A. prepare a tactical plan for the organisation.

B. monitor daily operations of the organisation.
C. plan for the future growth and direction of the organisation.
D. implement long term goals through short term tactics and monitoring.

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2) Within an organisation, the flow of information in the supervisory level is
mainly

A. vertical.
B. diagonal.
C. horizontal.
D. horizontal and vertical.

3) The role of the production department in any organisation is to

A. keep track of all financial activities.

B. to research and relate new discoveries on the current or new product.
C. find and hire people as well as handle matters like sick leave and
retirement benefits.
D. take the raw material and put people to work to turn out finished goods
and services.

4) A structured computerized system performing the tasks on a routine basis

with few decisions made by the workers is most applicable in the

A. top management level.

B. tactical management level.
C. strategic management level.
D. operational management level.

Review Questions Short Answers

1) List and discuss the five common departments in an organisation.

2) What is an information flow?
3) List and explain the four kinds of computer-based information systems.
4) What is the difference between an office automation system and a knowledge
work system?

Additional Readings

OLeary, T. J, OLeary, L. I. Computing Essentials 2012 Complete Edition.

McGraw Hill, New York, 2011.

Bidgoli, H. MIS2. Course Technology, Cengage Learning, Boston USA, 2010.

15
 CHAPTER 2

SYSTEM ANALYSIS AND

DESIGN

It is always easier to destroy a complex system than to selectively alter it.

Roby James

After completing this chapter, you will be able to:

1. d
escribe the 6 phases of thelife
systems
cycle

2. discuss
the two alternatives to the systems life cycle

2.0 Introduction

16
 The last chapter described different types of information system. What exactly is
a system? It can be defined as a collection of activities and elements organised
to accomplish a task. As discussed in chapter 1, an information system is a
collection of hardware, software, people, procedures, data and the internet.
These works together to provide information essential to running an
organisation. This information helps produce a product or service and, for profit
oriented businesses to derive a profit.

From time to time organisations need to change their information systems due to
organisational growth, mergers and acquisitions, new marketing opportunities,
revision in government regulations and availability of new technology.

Chapter 2 will look at the different phases that need to be followed in order to
create or improve an information system.

2. 1 Systems Life Cycle

System analysis and design is a six phase problem- solving procedure for
examining and improving an information
system. The six phases make up the
Phase 1
systems life cycle. (See figure 2.1) Preliminary
investigation

The six phases are as follows: Phase 6

Phase 2
System
System analysis
1.Preliminary investigation: The maintenace
organisation's problems or needs are Systems
Life cycle
identified and summarized in a short
report. Phase 5 Phase 3
System System
2.System analysis: The present system design
implementation
is studied in depth. New requirements
are specified and documented.
Phase 4
System
3.System design: A new or alternative development
system is designed and a design report
is created.
Figure 2.1 Systems life cycle
4.System development: New hardware
and software are acquired, developed and tested.
5.System implementation: The new information system is installed, and
people are trained to use it.
6.System maintenance: In this on-going process, the system is periodically
evaluated and updated as needed.

In organisations, the six-phase systems life cycle is used by computer

professionals known as systems analysts. These people study an organisations
17
system to determine what actions to take and how to use computer technology
to assist them.

Systems analyst
s

Viti Bank is used as an example of an organisation in this chapter. The six phases
of the systems life cycle are as follows:

2.2 Phase 1: Preliminary Investigation

The first phase of the systems life cycle is a

preliminary investigation of a proposed project to
determine the need for a new information system.
This is usually requested by an end user or a
manager who wants somethingthat is not presently
done.

In pha se 1, the system analystor end user is

concerned with three (see
tasksfigure
2.2):

(1) briefly defining the problem Figure 2.2 Phase 1

(2) suggesting alternative solutions
(3) preparing a short report.

1. Defining the Problem

Defining the problem means examining whatever current information system is

in use. Determining what information is needed, by whom, when and why is
accomplished by interviewing and making observations. If the information
system is large, this survey is done by systems analyst. If the system is small,
the survey is done by the end user.

As the system analyst of Viti Bank, you have been tasked to examine the current
information system. Viti Bank is a fast growing bank in Fiji. Customers in remote
rural areas are finding difficulty to access the bank services. It takes them days
or even weeks to travel to a location to access the bank services. With the vision
of meeting customers needs, the bank has requested your services to examine
the current system and to come up with solutions or recommendations of how
the current system can be improved to meet its customers needs.

18
2. Suggesting Alternative Solutions

This step is simply to suggest some possible plans as alternatives to the present
arrangement. For example hire more workers, improve on the existing system or
purchase off-the-shelf packaged software.

After examining Viti Bank current system, we have come up with the solution to
have mobile rural banking. The banking services is to be taken to their door
steps, making the service readily available to the customers and banking
services is increased since customers do not have to wait for long to bank.
Therefore the current information system needs to be improved to meet for this
new service. At times there would be no need to design a new system but to
improve the existing system.

3. Preparing a Short Report

For large projects, the systems analyst would write a short report summarizing
the results of the preliminary investigation and suggesting alternative systems.
The report may also include schedules for further development of the project.
This document is presented to higher management, along with a
recommendation to continue or discontinue the project. Management then
decides whether to finance the second phase, the system analysis.

After conducting the preliminary investigation and suggesting alternative

solutions, a report on the findings and recommendations is presented to higher
management of Viti bank to make a decision on whether to continue the project.

Review Exercise 2.1

Completion

a) The computer professional who uses the systems life cycle is called a
___________ _________.

b) Phase 1 of the systems life cycle is called __________ ________________.

c) From time to time organisations need to change their _____________________

____________.

Short Answer Questions

a) List two reasons why organisations need to change their information system.

19
b) State the three tasks carried out in phase 1.

c) Name the report prepared at the end of phase 1.

2.3 Phase 2: Systems Analysis

In Phase 2, systemsanalysis, data is collected about the

present system
(see figure
2.3). This data is then analyzed
and new requirements are determined. We are not
concerned with a new design here, only with determining
the requirements for the new system. Systems analysis is
concerned with
:

(1) gathering data

(2) analyzing the
data
(3) documenting the analysis in a report. Figure 2.3 Phase 2

1. Gathering Data

Here the system analyst or end user is doing systems analysis, expands on data
gathered during Phase 1. He or she adds details how the current system works.
Data is obtained from observation, review of current system documentations and
interviews. Observe the current system in operation. In addition data may be
obtained from questionnaires given to people using the system. Data can also be
obtained from studying documents that describe the formal lines of authority and
standard operating procedures. For example, an organisational chart shows
levels of management formal lines of authority.

For Viti Bank , questionnaires are given out to customers from rural areas and
employees of the bank. The IT department, employees who use the system and
customers were also interviewed on the current system and how it can be
improved. Documentations and organizational chart of the bank were also
studied to give in depth idea of the banks operations. Observations were also
carried out on the daily operations of the bank. The target customers in this case
are the ones from rural remote areas. Their organizational chart as shown in
figure 2.4 was also studied to give in depth information regarding their
organisation.

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 CEO

Chief
Chief Operating Communications
Development
officer Director
Officer

Traning Quality
Agency services Operations
Assurance

Inventory

Figure 2.4 Viti bank organisational chart

2. Analysing the Data

In this step, data is analyzed to learn how information currently flows and to
pinpoint why it is not flowing appropriately. The main focus of this step is to
apply logic to the existing arrangement to see how workable it is. Many times the
current system is not operating correctly because prescribed procedures are not
being followed. That is, the system may not really need to be redesigned. Rather,
the people in it may need to be shown how to follow correct procedures.

Many different tools are available to assist systems analyst and end users in the
analysis phase. Some of the principal ones are the top -down analysis method,
grid charts, system flow charts, data flow diagrams, and automated design tools.

Checklist: is a list of questions. It is helpful in guiding the systems analyst

and end user through key issues for the present system. For example Can
reports be easily prepared from the files and documents currently in use?

Top-down analysis methodology: is used to identify the top-level

components of a complex system. Each component is then broken down into
smaller and smaller components. This approach makes each component
easier to analyze and deal with.

Grid charts: shows the relationship between

input and output documents. On a grid
Reports (Output)
sheet, rows represent inputs, columns
represents output Forms Customer Loan offer documents. A check
(Input) Bank letter
mark at the intersection of a row and column
statement
means that the input documents are used
to create the output Salary documents as shown
in figure 2.5. slip
Deposit
slip
ATM
21
records
 Systems flowcharts: show the flow or input of data, processing and output,
or distribution of
information(see figure 2.6). Figure 2.5 Grid chart
System flowchart describes the present manual, or non-computerized system.
A system flowchart is not the same as a program flowchart, which is very
detailed.

22
 Data flow diagrams (DFD): show the data or information flow within an
information system. The data is traced from its origination through
processing, storage and output as shown in figure 2.7.

23
 Standard data flow diagram symbols

Entities Process File Data flow

Automated design tools: are software packages that evaluate hardware

and software alternatives according to requirements given by the systems
analyst. They are also called computer-aided software engineering
tools, or CASE tools. They relieve systems analyst of many repetitive tasks,
develop clear documentation and for larger projects, coordinate team
member activities.

3. Documenting Systems Analysis

The systems analysis stage is typically documented in a report for higher

management. The systems analysis report describes the current
information system, the requirements for a new system, and possible
development schedule. Management studies the report and decides
whether to continue with the project.

Viti Bank used various tools for analyzing it data gathered in task 1. Checklist
was prepared where a list of questions was asked to customers and employees of
the bank. The system flow and data flow diagrams were drawn to see how data
and information was flowing in the organisation. A system analysis report was
than compiled on the results of the data gathered and analysed for higher
management of the bank.

Discovery learning:
What are the uses of PERT and Gantt charts?

24
2.4 Phase 3: System Design

In the systems design phase, a new or

alternative information system is
designed. It consists of three(see
tasks
figure 2.8
):

(1) designing alternative systems,

(2) selecting the best system, and
(3) writing asystems design report.

Figure 2.8 Phase3

1. Designing Alternative Systems:

In almost all instances, more than one design can be developed to meet
the information needs. Systems designers evaluate each alternative
system for feasibility (see figure 2.9). The three feasibilities are:

i. Economic feasibility: Will the

costs of the new system be justified
by the benefits it promises? How Technical
long will it take for the new system feasibility
to pay for itself?

ii. Technical feasibility: Are

reliable hardware, software and
trained people available to make the
system work? If not, can they be Economical Operational
obtained? feasibility feasibility

iii. Operational feasibility: Can the

system actually be made to operate
in the organization, or will Figure 2.9 Three feasibilities
people employees,
managers, clients resist it?

2. Selecting the best system

When choosing the best design, managers must consider these four questions :
Will the system fit in with the organization's overall information system?
Will the system be flexible enough so it can be modified in the future?
Can it be made secure against unauthorized use?
Are the benefits worth the cost?

3. Writing the Systems Design Report

25
The report is prepared for higher management and describes the alternative
designs. It presents the costs versus the benefits and outlines the effects of
alternative designs on the organization. It usually concludes by recommending
one of the alternatives.

While designing the alternative system which is having a computerized rural

banking system, the three feasibilities were considered. The four questions were
considered in the selection of the best system and a system design report was
prepared for higher management.

Review Exercise 2.2

Completion

a) Selecting the best system is done in phase ____________.

b) The three types of feasibilities are technical, operational and

__________________.

c) __________ _______________ shows the relationship between input and output

documents.

d) ____________________ _______________ shows the formal lines of authority.

Short Answer

a) State one method of gathering data in an organisation.

b) Differentiate between the three types of feasibilities.

c) Differentiate between system flowchart and data flow diagram.

d) List the four questions that managers must consider when selecting the
best system.

e) State the three tasks carried out in phase 2.

26
2.5 Phase 4: System Development

In the systems develop

ment phase, new hardware and
software are developed, acquired and tested. It has three
steps(figure2.10)
:

(1) acquiring software

(2) acquiring hardware
(3) testing the new system
.

1. Acquiring software Figure 2.

10 Phase 4

Application software for the new information system can be obtained in two
ways. It can be purchased as off-the-shelf packaged software and possibly
modified, or it can be custom designed. If any of the software is to be specially
created, six steps in software development are carried out.

2. Acquiring hardware

Some new systems may not require new computer equipment, but others will.
The kinds needed and the places they are to be installed must be determined.
This is a very critical area. Switching or upgrading equipment can be an
immensely expensive proposition.
Questions that may arise when acquiring hardware are:
Will a personal computer system be sufficient as the company grows?
Are networks expandable?
Will people have to undergo costly training?

3. Testing the new system

After the software and equipment have been installed, the system should be
tested. Sample data is fed into the system. The processed information is then
evaluated to see whether results are correct. Testing may take several months if
the new system is complex.

Viti bank custom made its software for its new system , More laptops were
bought to cater for the mobility of the system. Other required hardware were
also obtained to allow for the operation of the new system. Sample data was fed
into the system to see if it works.

27
 Discovery learning:
What are the six steps in software development?

2.6 Phase 5: Systems Implementation

Another name for phase 5 systems implementation is conversion. It is

the process of: (1) changing, converting from old system to the new
one
(2) training people to use the system.

1. Conversions

There are four approaches to conversion: direct,

parallel, pilot and phased(see figure 2.11).

ii. In the direct approach the conversion is

done simply by abandoning the old and
starting up the new. This can be risky. If
anything is still wrong with the new system,
the old system is no longer available to fall
back on. The direct approach is not
recommended because it is too risky.
Problems, big or small, invariably crop up in a
new system. In a large system, a problem
might just mean disaster.

Figure 2.11 Four conversions

iii. In the parallel approach the old and new
systems are operated side by side until the
new one has shown it is reliable. This approach is low-risk. If the new system
fails, the organization can just switch to the old system to keep going.
However, keeping enough equipment and people active to manage two
systems at the same time can be very expensive. Thus, the parallel approach
is used only in cases in which the cost of failure or interrupted operation is
great.

iv. In the pilot approach the new system is tried out in only one part of the
organization. Once the system is working smoothly in that part, it is
implemented throughout the rest of the organization. The pilot approach is
certainly less expensive than parallel approach and is also somewhat riskier.
However, the risks can be controlled because problems will be confirmed to
only certain areas of the organization. Difficulties will not affect the entire
organization.

28
v. In the phased approach, the new system is implemented gradually over a
period of time. The entire implementation process is broken down into parts
or phases. Implementation begins with the first phase and once it is
successfully implemented, the second phase begins. This process continues
until all phases are operating smoothly. This is an expensive proposition
because the implementation is done slowly. However, it is certainly one of the
least risky approaches.

In general, the pilot and phased approaches are the most favored methods. Pilot
is preferred when there are many people in an organization performing similar
operations, for instance, all sales clerks in a department store. Phased is more
appropriate for organisations in which people are performing different
operations. Figure 2.12shows that each conversion method has risks and cost
factors.

Figure 2.12 Cost and risk analysis

Discovery learning:
What are some other names for direct approach?

For more information on the four approaches log on to:

http://secure.com.sg/courses/PIS/Grab/Ass_03_Final_Exam_Stu
ff/Student_Pr
esentations_to_Study_PDF/Group_09_Member_01_Data_Conver
sion.pdf

2. Training

Training people is of course important. It is also one of the most commonly

overlooked activities. Some may begin training early, even before the equipment

29
is delivered so that they can adjust more easily. In some cases, a professional
software trainer may be brought in to show people how to operate the system.

Viti bank chose to have a phased conversion. The new system was implemented
in a small part of Naitasiri, where customers were introduced into the rural
banking system while the rest of the customers continued with the old system.
The new system was than gradually introduced in other rural areas. Customers
and employees was also trained on how to use the new system.

2.7 Phase 6: Systems Maintenance

After implementation is systems maintenance, the last step in the systems life
cycle. This phase is very important, an ongoing activity. Most organisations
spend more time and money on this phase than in any other. Maintenance has
two parts:
(1) systems audit
(2) periodic
evaluation.

1. In the systems audit, the systems performance is compared to the original

design specifications. This is to determine whether the new procedures are
actually furthering productivity. If they are not, some further redesigning may
be necessary.

2. After systems audit, the new information system is further modified, if

necessary. All systems should be evaluated from time to time to determine
whether they are meeting the goals and providing the service they are
supposed to.

The six phases of the systems life cycle is summarized in the table
below.

Phase Activity

1.Preliminary Define problem, suggest alternative, prepare short

investigation report.
2. Systems analysis Gather data, analyse data, document.
3. Systems design Design alternatives, select best alternative, write
report.
4. Systems Develop software, acquire hardware, test system.
development
5. Systems Convert, train.
implementation
6. Systems Perform system audit, evaluate periodically.
maintenance

30
 Discovery learning:
In Fijis secondary schools, what is the most common method of conversion used when
something new is introduced into schools e.g. bus fare vouchers and why.

2.8 Prototyping and RAD

It is often necessary to follow every phase of the systems life cycle but often
there is no time to do so. For example, hardware may change so fast that there is
no opportunity for evaluation, design and testing. Two alternative approaches
that require less time are prototyping and rapid applications development (RAD).

Prototyping

Prototyping means to build a model or prototype that can be modified before

the actual system is installed. Prototyping is considered a quickie way of
building a system. It allows users to find out right away how a change in the
system can help their work. However, relying on prototyping alone can be risky. It
might lead to a system being changed or installed without all costs and other
matters being considered.

Rapid Application Development (RAD)

RAD involves the use of powerful development software, small specialized

teams, and highly trained personnel. For example, the systems analyst uses
specialized development software like CASE (Computer-Aided Software
Engineering), form small teams consisting of selected users and managers and
obtain highly qualified analyst to produce applications much faster and with
higherquality results than traditional methods do.

Discovery learning:
What are some advantages and disadvantages of prototype?

Review Exercise 2.2

Completion

a) Another name for conversion is __________________.

31
b) In _________________ conversion the old and the new system is operated side
by side.

c) The two tasks carried out in phase 6 are systems _______________ and ________
____________.

d) ______________ is building a model that can be modified.

Summary

1. A system is a collection of activities and elements organized to accomplish a

goal.

2. Systems analysis and design is a six phase procedure for examining and
improving an information system. The phases are :

3. Preliminary investigation: The organisation's problems or needs are identified

and summarized in a short report.

4. Systems analysis: The present system is studied in depth. New requirements

are specified and documented.

5. Systems design: A new or alternative system is designed and a design report

is created.

6. Systems development: New hardware and software are acquired, developed

and tested.

7. Systems implementation: The new information system is installed, and people

are trained to use it.

8. Systems maintenance: In this on-going process, the system is periodically

evaluated and updated as needed.

9. System analysts are the computer professionals who typically follow the six
phase systems life cycle.

10.Two alternatives to system analysis life cycle that requires less time are
prototyping and RAD.

11.Prototyping means to build a model or prototype that can be modified before

the actual system is installed.

32
12.RAD uses powerful development software, small specialized teams and highly
trained personnel.

Key Terms:

automated design tools

computer aided software
engineering CASE tools
checklist conversion data
flow diagrams direct
approach economic feasibility
grid chart operational
feasibility organization chart
parallel approach phased
approach pilot approach
periodic evaluation
preliminary investigation
prototyping
rapid applications
development (RAD) system
system flowchart system
analysis system analysis and
design system analysis report
systems analyst systems
audit systems design systems
design report systems
development systems
implementation systems life
cycle systems maintenance
technical feasibility top down
analysis method

Review Exercise Multiple Choice

1. What is the first phase in the systems life cycle?

B. Systems analysis

33
 C. Systems design
D. Systems maintenance
E. Preliminary investigation

2. The evaluation of an alternative system for feasibilities is done in phase

A. one . B. two.
C. three.
D. four.

3. Which conversion method begins by trying out a new system in only one part
of the organisation?

A. Pilot
B. Direct
C. Parallel
D. Phased

4. Cost benefit analysis is done in

A. design phase.
B. analysis phase.
C. development phase.
D. implementation phase.

5. Which of the following tools show information flow within an information

system?

A. CASE
B. Data flow
C. Grid chart
D. System flowchart

6. Which of the following symbols is used to represent a manual input in the

systems flowchart?

A. C.

B. D.

34
Review Exercise Short Answer

1. What is a system?
2. Who is a system analyst?
3. What is an organizational chart?
4. List and explain the six phases of the systems life cycle.
5. Due to time constraints , what are two alternatives to the systems life cycle?
6. Describe each type of system conversion. Which is the most commonly used?
7. Explain the two tasks carried out in systems maintenance.
8. Differentiate between prototyping and RAD.

9. Study the diagram given below and answer the questions that follow.

Old

New

i)Identify the conversion method shown above.

ii) Discuss one advantage of the conversion in (i) as compared to direct
approach.

Review Exercise Essay Questions

1. Pasifika High school is using a manual filling system to keep record of

students who borrow textbooks from the school under the book hire scheme.
You have been hired as a system analyst to develop a computerized database
system to replace the current manual system.
Use the first three phases of the systems life cycle to design a computerized
database for the school. Use diagrams where applicable.

35
 2. You have been hired by the University of Southern Paradise to be the Systems
Analyst. After successfully completing the first three phases of the Systems
Analysis and Design, the University decided to develop and convert to the
new computerised student registration system.
Give a detailed explanation of how you will assist the University in the
Systems Development and Implementation phases.
Provide examples to clarify your points.
Recommend which conversion method the University should implement
and state the reason for your recommendation.

3. Once the new system is tested, the next phase is to implement that system.
There are four different conversions used to install the new system in an
organisation.
(i) List and describe the four conversions.
(ii) For each conversion, discuss one advantage and one disadvantage.
(iii) From your discussion in part (ii), arrange the four conversions from
most risky to least risky.

Review Exercise Case Study

1. Select an Information system of an organisation close to you and use

the systems life cycle to design a new or improve on their current
information system.

Additional Readings

OLeary, T. J, OLeary, L. I. Computing Essentials 2012 Complete Edition.

McGraw Hill, New York,
2011
CHAPTER 3
DATABASES

36
 So, what you can do in Microsoft Word is what Bill Gates has decided. What y
do in Oracle Database is what Larry Ellison and his crew have decided.
Ted Nelson

After completing
this chapter, you will be able to:

1. describe how data is sed

organi
and processed

2. d
iscuss the three types of file
sation
organi

3. explain
the five common database models

4. distinguish between
the four kinds
of databases

5. discuss strategic
database uses and security concerns.

6. create relational databases

3.0 Introduction

As discussed in the earlier chapter, information system consists of people,

procedures, software, hardware, data and the internet. This unit looks at data
which can be defined as facts or observations about people, places, things and
events. It focuses on how databases store, organize and use data.

Today data is much richer and includes audio, music, photographs and videos.
There are two ways to view data: physical and logical view. The physical view
focuses on the actual format and location of the data. Specialized computer
professionals are concerned with the physical view. The logical view focuses on

37
meaning, content and context of the data. End users and most computer
professionals are concerned with this view.

Chapter 3 presents the logical view of data and how data is stored in databases.

3.1 Data Organisation

In the logical view, data is organised into groups or categories as given below.
Each group is more complex than the one before.

Character: is the most basic logical data element. It is a single letter,

number or special character, such as punctuation mark or a symbol such as $.
Field: a group of related characters. For example Amelia is the data field for
First Name of a student. It consists of the individual letters (characters) that
make up the First Name. A data field represents an attribute (description or
characteristics) of some entity (person, place, thing or object). For example,
an employee is an entity with many attributes, including his or her last name.
Record: is a collection of related fields. A record represents a collection of
attributes that describe an entity. In our example, the student record for a
student consists of the data fields describing the attributes for one student.
These attributes are First Name, Last Name, Student Id and Date of Birth.
Table: a collection of related records. For example the Student detail table
would include student detail information (records) for the students (entities).
Database: is an integrated collection of logically related tables. For example
the Students Database would include all related students tables including the
Subject table and the House table.

Character Field Record Table Database

Key field also known as a primary key which is a unique field that identifies a
record in a database. Tables can be related or connected to other tables by
common key fields. In figure 3.1, employee id is the key field.

For most students database, the key field is a student identification number. Key
fields in different tables can be used to integrate the data in a database.

38
 Figure 3.1 Design view or employees
recordtable

Batch versus Real Time Processing

Traditionally data is processed in one of the two ways. These are:

i. batch processing or what is referred to as later .

ii. real-time processing or what is referred to as now.

Batch processing: transactions are accumulated over a period of time and

processed as a single unit, or batch. For example, a store may update its
sales records every day after the store closes. Or a payroll system may
process all the time cards every two weeks to determine employee earnings
and produce pay checks. Whatever the time period in a batch system, there is
some time delay between the actual event and the processing of the
transaction to update the records of the organization. Other examples of
batch processing are producing bills for electricity, and telephone companies
and producing monthly bank and credit card statements.

Real-time processing: transactions are processed immediately as they

occur without any delay to accumulate transactions. Real-time processing is
also referred to as online transaction processing, or OLTP. In this case,
the records in the system always reflect the current status. While real-time
processing is often more efficient and in some cases necessary, batch
processing may be more effective. A good example of a real-time processing
system would be airline ticket reservations. When you book a ticket and select
a seat, that booking is made right away and nobody else can get that same
seat even a second later. Any changes you make to your reservation are also
updated in real time.

Discovery learning:
Give other examples of batch processing and real time processing in your
community.

Master versus Transaction Files

39
 Two types of files which are commonly used to update data are transaction file
and master file.

The transaction file contains recent changes to records that will be used to
update the master file. An example could be a temporary holding file that
accumulates electricity charges or credit card charges through the present
month. At the end of the month, the transaction file containing all the new
charges is used to update the master file. The result is a new master file that
is current up to the end of the month.

The master file is a complete file containing all records current up to the last
update. An example is the data file used to prepare your last months
electricity bill or credit card bill.

3.2 File organisation

File organisation may be of three types: sequential, direct and index sequential.

i. Sequential file organisation is the simplest organisation in which records

are stored physically one after another in predetermined order as shown in
figure 3.2. This order is determined by the key field on each record such as
student identification number.

This organisation is very efficient whenever all or a large portion of the records
need to be accessed for example when final grades are to be mailed out. There is
also an equipment cost advantage because magnetic tapes and tape drives can
be used. Both are less expensive than disks and disk drives. One disadvantage is
that the records must be ordered in a specific way which can be time consuming.

The major disadvantage is that access to a particular record can be very slow.
For example to find the record of a particular student, you would sequentially
search through the records. It would search them one at a time until the
students number is found. If the number is 4205, the computer will start with
record number 0000, 0001, 0002 until it reaches the students number.

40
 Figure 3.2 Sequential file organisation

ii. Direct file organisation is where records are not stored physically one after
the other but are stored on a disk in a particular address or location which
can be determined by their key field. This address is calculated by a
technique known as hashing. Hashing programs use mathematical
operations to convert the key fields numeric value to a particular storage
address. These programs are used to initially store records and later to
relocate them. Figure 3.3 shows direct file organisation.

Unlike sequential access files, which are stored on magnetic tape or disk, direct
files can only be stored on disk. The primary advantage is that direct file
organisation can locate specific records very quickly. If your grades were stored
in a direct file organisation, the registrar could access them quickly using only
your student identification number.

The disadvantage of direct file organisation is that it is more expensive than

sequential file organisation. It is also not as good as sequential file organisation
for large numbers of updates or for listing large numbers of records.

Key field
Hashing
program

R4

Figure 3.3 direct file organisation

41
iii. Index sequential file organisation is a compromise between sequential
and direct file organisations. It stores records in a file in sequential order and
also contains index. The index lists the key to each group of records stored
and the corresponding disk address for that group. When the user seeks a
particular record, the computer starts searching sequentially by looking at
the beginning of the record group.

For example the college registrar could index certain ranges of student
identification numbers, 000199, 200-299 and so on. For the computer to find
student number 415 it would first go to the index. The index would give the
location of the range in which the number appears on the disk ( for example
400-499). The computer would then search that range (A4) sequentially to find it.

Index sequential file organisation requires disks or other direct access storage
devices. It is faster than sequential but not as fast as direct access. It is best
used when large batches of transactions must occasionally be updated, yet users
also want frequent, quick access to data. For example, every month a bank will
update bank statements to send to its customers. However customers and bank
tellers need to be able to have up-to-the-minute information about checking
accounts.

Need for Databases

For an organization, there are many advantages to having databases:

Sharing: in organizations, information from one department can be readily

shared with others. Billing could let marketing know which customers ordered
large quantities of merchandise.

Security: users are given passwords or access only to the kind of information
they need. Thus, the payroll department may have access to employees pay
rates, but other departments would not.

Less data redundancy: without a common database, individual departments

have to create and maintain their own data, and data redundancy results. For
example, an employees home address would likely appear in several files.
Redundant data causes inefficient use of storage space and data maintenance
problem.

Data integrity: when there are multiple sources of data, each source may have
variations. A customers address may be listed as Main Street in one system
and Main st in another. With discrepancies like these, it is probable that the
customer would be treated as two separate people.

42
 Discovery learning:
Name other application software that can be used to create database.

Database Management

A database management system (DBMS) is a collection of programs that

enables you to store, modify, and extract information from a database. There are
many different types of database management systems, ranging from small
systems that run on personal computers to huge systems that run on
mainframes.

Some DBMS such as Microsoft Access are designed specifically for personal
computers. Other DBMS are designed for specialized database servers. DBMS
software is made up of five parts or subsystems: DBMS engine, data definition,
data manipulation, application generation and data administration.
DBMS engine provides a bridge between the logical view of the data and the
physical view of the data.

Data definition subsystem defines the logical structure of the database by

using a data dictionary or schema. Dictionary contains a description of the
structure of data in the database, figure 3.4 shows the data dictionary of the
table employees record .

Figure 3.4 An example of a data dictionary

Data manipulation subsystem provides tools for maintaining and analyzing

data. Maintaining data is also known as data maintenance. It involves
adding new data, deleting old data and editing existing data.

Application generation subsystem provides tools to create data entry forms

and specialized programming languages that interface or work with common
used programming languages such as C++ or Visual Basic.

43
 The data administration subsystem helps manage the overall database
including maintaining security, providing disaster recovery support and
monitoring the overall performance of database operations. Larger
organizations normally employ highly trained computer specialists called
database administrators (DBAs) to interact with the data administration
subsystem. They also determine processing rights or determine which people
have access to what kinds of data in the database.

Database administrator

Review Exercise 3.1

Completion

a) A collection of related fields is known as _____________________.

b) The file organisation that uses hashing is _______________ _________________.

c) Adding and deleting of data is known as data ___________________.

Short Answer Questions

a) Define data integrity.

b) List two advantages of using a database.

c) Differentiate between batch processing and real time processing.

d) Briefly describe index sequential file organisation .

e) Who is a database administrator?

f) Distinguish between transaction file and master file.

44
3.3 DBMS Structure

DBMS programs are designed to work with data that is logically structured or
arranged in a particular way. This arrangement is known as the database model.
These models define the rules and standards for all the data in a database. Five
common database models are hierarchal, network, relational, multidimensional
and object-oriented.

1. Hierarchical database

Fields or records are structured in nodes. Nodes are points connected like
branches of an upsidedown tree. Each entry has one parent node, although a
parent node may have several child nodes. This is described as one-to-many
relationships. To find a particular field, you have to start at the top with a parent
and trace down the tree to a child.

The nodes further down the system are subordinates to the ones above, like the
hierarchy of managers in a corporation. An example of a hierarchical database is
shown below (see figure 3.5).

VITI college
School

Commerce
Computer dept Maths
Departments dept dept

Mr
Mrs Mia
Kumar
Teachers

Figure 3.5 Hierarchical database

The problem with hierarchical database is that if one parent node is deleted, so
are all the subordinate child nodes. Moreover, a child node cannot be added
unless a parent node is added first. The most significant limitation is the rigid
structure: one parent only per child, and no relationships or connections between
the child nodes themselves.

45
2. Network database

Also has a hierarchical arrangement of nodes. However each child node may
have more than one parent node. It has a many-to-many relationship. There are
additional connections called pointers between parent nodes and child nodes. A
node may be reached through more than one path and may be traced down
through different branches as shown below (see figure 3.6) .

English Maths Fijian s

Subject

Teachers
Mr Yee Mrs Singh Mr Isoa

Students
Pritika Jese Mary Kunal

Figure 3.6 Network structure

If you trace through the logic of this organization, you can see that each student
can have more than one teacher. Each teacher also can teach more than one
course. Students may take more than a single course. This shows how the
network arrangement is more flexible and in many cases more efficient that the
hierarchical arrangement.
3. Relational database

In this structure, there are no access paths down hierarchy. Data elements are
stored in different tables, each of which consists of rows and columns. A table
and its data are called a relation. Tables are connected through a common key
field. An example of a relational database is shown in figure 3.7

Figure 3.7 Example

of ar elational database

4. Multidimensional database

Is a variation and an extension of the relational data model. While relational

database use tables consisting of rows and columns, multidimensional database
extend this two dimensional data model to include additional or multiple
dimensions, sometimes called a data cube. Data can be viewed as a cube having

46
three or mode sides and consisting of cells. Each side of the cube is considered a
dimension of the data. In this way, complex relationships between data can be
represented and efficiently analyzed.

Multidimensional databases provide several advantages over relational

databases. Two of the advantages are:

Conceptualization: multidimensional databases and data cubes provide users

with an intuitive model in which complex data and relationships can be
conceptualized.
Processing speed: analyzing and querying a large multidimensional database
can be much faster. For example, a query requiring just a few seconds on a
multidimensional database could take minutes or hours to perform on a
relational database.

Figure 3.8 Multidimensional

5. Object-oriented database

This structure stores data as well as instructions to manipulate the data. It is

designed to provide input for object oriented software development. Object
oriented databases organize data using classes, objects, attributes and methods.

Classes are general definitions.

Objects are specific instances of a class that can contain both data and
instructions to manipulate the data.
Attributes are the data fields which an object possesses.
Methods are instructions for retrieving or manipulating attributes values.

For example a Video shop might use an object-oriented video database. (See
figure 3.9). The database uses a class, Video, to define video objects that are
stored in the database. This definition includes the attributes Screen shot,
Director, Title and the method to play. TV format, DVD and QuickTime are objects
each with specific attribute values.

47
 Classes
Video

Objects
TV format DVD QuickTime
Screen shot Movie poster Promo photos
Director Director Director Attributes
Title Title Title

QuickTime Method to
Decoder play

Figure 3.9 Object oriented

While hierarchical and network database are still widely used, the relational,
multidimensional and object oriented data models are more popular today.

Summary of DBMS organisation

Organization Description
Hierarchical Data structured in nodes organized like an upside down tree,
each parent node can have several children; each child node
can have only one parent.
Network Like hierarchical except that each child can have several
parents.
Relational Data stored in tables consisting of rows and columns.
Multidimensio Data stored in data cubes with three or more dimensions.
nal
Object- Organizes data using classes, objects , attributes and methods.
oriented

Review Exercise 3.2

a) List and discuss the five database models.

b) Differentiate between a relational database and network database?

3.4 Types of database

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Databases may be classified into four types: individual, company, distributed and
commercial.

Individual

Is also called a personal computer database. It is a collection of integrated files

primarily used by just one person. The data and the DBMS are under the direct
control of the user. They are stored either on the users hard-disk drive or on a
LAN file server.

Example a personal computer database can be used to keep track of your

customers. If you are a sales manager, you can keep track of your sales people
and their performance.

Company

Companies create database for their own use. The company database may be
stored on a central database server and managed by a database administrator.
Users throughout the company have access to the database through their
personal computers linked to local or wide area networks.

Company database are the foundation for management information system. For
example a department store can record all sales transactions in the database. A
sales manager can use this information to see which sales people are selling the
most products. The manager can then determine year-end sales bonuses or the
stores buyer can learn which products are selling well or not selling and make
adjustments when recording.

Distributed

A distributed database is a database in which portions of the database are stored

on multiple computers within a network. Users have access to the portion of the
database at their location so that they can access the data relevant to their tasks
without interfering with the work of others. A centralized distributed database
management system (DDBMS) manages the database as if it were all stored on
the same computer. The DDBMS synchronizes all the data periodically and, in
cases where multiple users must access the same data, ensures that updates
and deletes performed on the data at one location will be automatically reflected
in the data stored elsewhere.

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 Figure 3.10 Distributed database

Commercial database

An enormous database that an organization develops to cover particular

subjects. It offers access to this database to the public or selected outside
individuals for a fee. Sometimes they are also called information utilities or data
banks.

Most of the commercial databases are designed for organizations as well as

individual use. Organizations typically pay a membership fee plus hourly use
fees. Often individuals are able to search the database to obtain a summary of
available information without charge. They pay only for those items selected for
further investigation.

Summary of the four types of databases

Type Description
Individual Integrated files used by just one person
Company Files shared in an organization
Distributed Database spread geographically and accessed using
database server
Commercia Information utilities or data banks available to users on a
l wide range of topics.

Review Exercise 3.3

a) List and describe the four types of database.

b) What is a difference between an individual database and a company

database?
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3.5 Database uses and issues

Strategic uses

Database helps users to keep up to date and to plan for the future. To support
the needs of managers and other business professionals, many organizations
collect data from a variety of internal and external databases. This data is then
stored in a special type of database called a data warehouse. A technique
called data mining is often used to search these databases to look for related
information and patterns.

There are hundreds of databases available to help users with both general and
specific business purposes.

Security

One concern is that personal and private information about people stored in
databases may be used for wrong purposes. For example, a persons credit
history is used to make hiring or promotion decision. Another concern is
unauthorized users gaining access to a database, for example, launching of virus
into a network or database.

Security may require putting guards in company computer rooms and checking
the identification of everyone admitted. Some security systems electronically
check finger prints, iris scan. Security is particularly important to organizations
using WANs. Violation scans can occur without actually entering secured areas.
Today most organizations use special hardware and software called firewalls to
control access to their internal networks.

Discovery learning:
Identify other security measures that organisations can use to protect their dat

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3.6 Creating a Relational Database

In this exercise, an employee database will be developed to keep records of

employees in Lako Mai Company.
1. Create a database and name it Lako Mai Company.
2. Create a table with the name Employee Records with the following fields and
data type:
Field name Data type
Employee id ( key field Text
)

Start date Date /Time

Last name Text

First name Text

Address Text

Phone number Text

Birth date Date /Time

3. Enter details of 15 employees.

4. Create a second table and name it Job with the following field names and data
type:
Field name Data type
Employee id ( key field Text
)
Start date Date /Time

Location Text

Job title Text

5. Enter details of the 15 employees with employee id and start date the same
as the first table.
6. Now the database contains two tables, a relationship needs to be created
between the tables to link the data together. Note: Relationship
Relationship type Description

52
 One-to one
An association between two
tables in which each record
in the first table contains a
field value of one record in
the other table.

One to-many
An association between two
tables in which the primary
key field value in each
record in the primary table
(the one side of the
relationship) corresponds to
the value in the matching
field or fields of many
records in the related table.

An association between two

Many-to-many
tables in which one record
in either table can relate to
many records in the other
table. In this type of
relationship , a third table
called a junction table, is
used to hold the primary
key fields from the other
two tables and serves as a
bridge between them.

Once relationships are established, rules can be enforced, called the rules of
referential integrity , to ensure that relationships between tables are valid
and related data is not accidentally changed or deleted/ The rules ensure
that a record in a primary table cannot be deleted if matching records exist
in a related table and a primary key value cannot be changed in the primary
table if that record has related records.
See that both tables are closed and work area is empty.
7. Select Database Tools tab.
8. Select relationships

9. The show table dialog box appears automatically the first time you open the
Relationships window for a database. It displays the names of both tables in

53
 the database and is used to select the tables you want displayed in the
Relationships window.

10.As you select each table, a field list box displaying the field names from the
table is added to the Relationships window. Next, you need to establish the
relationship between the tables.

The Edit Relationships dialog box appears and shows how the table will be
related. You also want to enforce referential integrity between the tables.
Selecting this option will make the Cascade Update and Cascade Delete options
available. You will select these options to ensure that if you change a primary key
or delete a record , all fields that reference the primary key of that record are
likewise updated or deleted in both tables. This prevents inconsistent and
orphaned records that do not have a matching primary key record in the
associated table.

11.The two tables now display a relationship line that shows the tables are
related on the Employee id field. They have a one to one relationship as you
can tell from the 1 above each end of the relationship line.

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12.The relationship and layout are saved. Open the Employee Records table .
There are also expand indicators at the beginning of each row. This
+
indicates there is a sub datasheet linked to + the records in this table.

Summary

1. Character is the most basic logical element, consisting of individual numbers,

letters and special characters.
2. Field consist of a set of related characters example a persons last name .
3. Record is a collection of related fields.
4. Table is a collection of related records.
5. Database an integrated collection of related tables.
6. Key field (primary key) is the field in a record that uniquely identifies each
record.
7. Two types of data processing are: batch and real time processing.
8. Two types of files are master file and transaction files.
9. Advantages of databases are sharing data, improved security, reduced data
redundancy and higher data integrity.
10.A DBMS is the software for creating, modifying and gaining access to the
database.
11.DBMS engine provides a bridge between logical and physical data views.
12.Data definition subsystem defines the logical structure of a database using a
data dictionary or schema.
13.Data manipulation subsystem provides tools for data maintenance and data
analysis; tools include query-by-example and structured query language
(SQL).
14.Application generation subsystem provides tools for creating data entry forms
with specialized programming languages.
15.Data administration subsystem manages the database; database
administrators (DBAs) are computer professionals who help define processing
rights.
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16.The five database structures are hierarchical, relational, network, object
oriented and multidimensional.
17.Types of databases are Individual (personal computer) database , Company
database, distributed database and commercial databases (information
utilities and data banks)- enormous, for particular subjects.
18.Data mining is a technique for searching and exploring databases for related
information and patterns.
19.Two important security concerns are illegal use of data and unauthorized
access. Most organizations use firewalls to protect their internal networks.

Key Terms

data multidimensional
mainatenace database node
data object
attribute manipulation object oriented
batch data mining database onlinbe
processing data processing parent
character reducdancy node real time
child node data processing record
class warehouse relational database
commercial dbms sql
database entity field pointers
company firewall
database data hierarchical
administrators database
data bank data individual
cube data database
dictionary data key field
integrity logical view

Review Questions Multiple Choice

56
 1. ___________ is a collection of related fields.

A. character
B. record
C. table
D. file

2.SQL stands for ________.

A. Structured Query Language

B. Sequential Query language
C. Structured Question language
D. Sequential Question Language

3. Which of the following elements represents a relationship among a set of values in a

database?

A. Character
B. Column
C.Record
D.Field

4. The database organisation that is considered to be the most flexible is the

A. hybrid database.
B. network database.
C.relational database.
D.hierarchical database.

6. In database design, a column header can also be known as

A. a table.
B. a domain.
C.a relation.
D.an attribute.

7. Which of the following fields would be a suitable key field?

A. First name
B. Last name
C. Date of birth
D. Birth registration number

7.Identify the database relationship shown below.

57
A. One to-one
B. One-to-many
C. Many-to-one
D. Many to-many

8.What is the database organisation shown below?

A. Network
B. Relational
C. Hierarchical
D. Multidimensional

Review Questions Short Answers

1. Study the database given below and answer the questions that follow.

(a) Identify the following:

I. table name

II. Unique identifier

(b) Name the data type that should be entered in each of the following fields:

I. LastName

II. BirthDate

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2. Explain the purpose of creating a data dictionary when designing a database.

3. Give a description of the two types of files commonly used in an organisation to

update data.

4. Briefly explain with the aid of a diagram how data is organised using the sequential
file method.

5. Name and describe the two types of company databases.

6. As a database administrator of your school, you have been tasked to develop a

database to keep records of students in the school. Name the database Students
Details. Create two tables with the name Exams Information and Students Data. For
the Exams Information the fields and data types are:
Exams Information
Field names Data type

Student id Text

Exam date Date/Time

Year Text
Name of Exam Text

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For Students Data the fields and data type are:
Personnel Data
Field names Data type

Student id Text

Last name Text

First name Text

Address Text

Home Number Text

Gender Text

Date of birth Date /Time

Allocate a key field. Fill in details of 25 students from years 9 -13. Create a one
to one relationship. Create queries to show:
all fields for female students
Student id , last name , first name and year of students in year 10.

Additional Readings

OLeary, T. J, OLeary, L. I. Computing Essentials 2012 Complete

Edition. McGraw Hill, New York, 2011

OLeary, T. J, OLeary, L. I. Microsoft office 2013. McGraw Hill, New

York, 2011

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