Computer Application in Business Data and Information _______________________________________________________________________ _ MODULE-2

Introduction to computing and data representation Module -2 Semester III Subject CAB Complied by Anita Walia Learning outcome What is Data and information Types of Information , Types of Reports Database : Data entities, DBMS: Introduction to DBMS, Introduction to Data Warehouse , Data Mining , Data

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Computer Application in Business Data and Information _______________________________________________________________________ _

What is Data and information

Data

Data is the raw material from which useful information is derived. The word Data is the plural of Datum. Data is commonly used in both singular and plural forms. It is defined as raw facts or observations, typically about physical phenomenon or business transactions. Example: A sale of a machine tool or an automobile would generate a lot of data describing, those events. Data are objective measurements of attributes (the characteristics) of entities (such as people. place, things . and events). These measurements are usually represented by symbols such as numbers, 'words, codes, composed of a mixture of numerical, alphabetical and other characters. It takes a variety of forms, including numeric data, text, voice and' images. ' Data is the collection of facts, which is unorganized but can be organized into useful information. The term data and information come across in our daily life and are often interchanged. Example: Dates, weights, prices, costs, number of items sold, employees' names, product names etc.

Information
The data which has been converted into a useful and meaningful form is information. As already mentioned, the terms data and information are used interchangeably. Data are raw material resources that are processed into finished information products. Information can be defined as data that has been converted into a meaningful and useful context for specific end users. Data is usually not useful until subjected to a "Value added" process where (i) Its form is aggregated, manipulated and organised. (ii) Its content is analysed and evaluated. (iii) It is placed in a proper context for a human user. Information is processed data, placed in a context that gives it value for specific end users.

DATA VERSUS INFORMATION

To understand the nature of information and exactly what it is, you must first understand another term-data. Data are raw facts that describe a particular phenomenon. For example, the current temperature, price of a movie rental, and your age are all data. Information then is simply data that have a particular meaning within a specific context. For example, if you're trying to decide what to wear, the current temperature is information because it's pertinent to your decision at hand (what to wear); the price of a movie rental, however, is not. Information may be data that have been processed in some way or presented in a more meaningful fashion. In business, for instance, the price of a movie rental may be information to a checkout clerk, but it may represent only data to an accountant who is responsible for determining net revenues at the end of the month.

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Computer Application in Business Data and Information _______________________________________________________________________ _

Types of information
Information serves different purposes. In an organization context, information is used for three purposes: strategic, tactical, and operational. Based on these purposes , information put into three categories : strategic information , tactical information and operational information.

Strategic Information
In an organization strategic level is at the top of managerial hierarchy. At this level , strategic information is required to formulate organization mission, vision and long term objectives, choosing organizational strategies, and formulating long term policies to provide guidelines for organizational actions. Further information is also required for strategic control which attempts to evaluate whether the strategies chosen by an organization are being implemented effectively and the organization is progressing in right direction.

Tactical information
In an organization , tactical level as below in the figure is at the middle of managerial hierarchy. At the tactical level chosen strategies are put into action. For putting these strategies , various strategies tactics are formulated. Based on these tactics , various short term plans are formulated and implemented which bring intended results. Tactical information is required for formulating tactics and short term plans. Information for control purpose is also required. Tactical information is mostly generated from internal sources though , in some cases , information is required from external sources like competitive information, raw material supply sources, etc.

Operational information
In an organization , operational level is at the bottom of managerial hierarchy. At this level various short term plans formulated at the tactical level are implemented, for this purpose, weekly / monthly and day to day plans are prepared and put into action. Theses plan are executed by operatives. At this level, information is required for immediate actions and ensuring that these actions have been taken properly . such information is generated from internal sources in the form of data related to on-going operations.

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Computer Application in Business Data and Information _______________________________________________________________________ _

I f r ai n o dfee c l v lo mn g r n mto f r if r n e e e f a a es o

Figure : different level of management

Types of Reports
Definition: Reports are designed to convey and record information that will be of practical use to the reader. It is organized into discrete units of specific and highly visible information. Records are the significant product of an information system . Different types of reports produced are : Scheduled reports Produced periodically, or on a schedule (daily, weekly, monthly). A scheduled reports are the reports which are generated ate a predetermined period. This reports are generated by the information system on weekly, monthly or daily basis. These reports are generally used by the manager at the operational level. These reports have a regular content and format. For example daily sales report or monthly performance report of the employees. Key-indicator report Summarizes the previous days critical activities Typically available at the beginning of each day. This helps managers taking certain decision which require immediate attention. For example Private circulation, Not for sale Page 4

Computer Application in Business Data and Information _______________________________________________________________________ _ Demand report Gives certain information at a managers request. These reports are also called ad hoc reports at irregular intervals and require analysis of data whose format has not been preplanned. Exception report Automatically produced when a situation is unusual or requires management action. These reports are produced when exceptional condition occurs , or reports produced periodically which contain information only about exceptional conditions. In some cases , the reports are automatically generated. For example, a report is required to be printed in advance to state the names of the participants of a seminar and the location where a minimum of ten participants are not participating is required two week prior to the start of the seminar. A credit manager is provided with report which contains information on customers who exceed their credit limits. Such exception reporting promotes management by exception.

Database and Database Management

The concepts of databases and database management were developed to solve the problems of file processing systems. A database is an integrated collection of logically related records and files. It consolidates records previously stored in independent files so that it serves as a common pool of data to be accessed by many different application programs. The data solved in a database is independent of the computer programs using it and of the type of secondary storage devices on which it is stored. 'Database Management' involves the control of how databases are created, interrogated and maintained to provide information needed by end users and the organisation.

DEFINITION OF DATABASE
(i) A database is a collection of data organised to serve many applications efficiently by centralising the data and minimising redundant data. (ii) A database is a collection of data organised to service many applications at the same time by storing and managing data so that they appear to be in one location.

Database : Data entities

Entity: Person, place, thing, event about which information is maintained Attribute: Description of a particular entity Page 5

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Computer Application in Business Data and Information _______________________________________________________________________ _ Key field: Identifier field used to retrieve, update, sort a record Example

Data concepts
Character :the most logical smallest unit which consist of a single alphabetic, numeric or other symbol Field consist of a grouping of related characters. For example the grouping of alphabetic character in a persons name may be a form of a name field (last name, first name, middle name) Record is made up of related fields e.g student record or an employee record. File: Group of records of same type Database: Group of related files

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Computer Application in Business Data and Information _______________________________________________________________________ _

O G NZ GD T I ATA I I N LF EE VR N E T RA II N A A N R D O A I N I O MN T L

Objective of Database Approach

They provide a guide to the database requirements process and data modeling. The database objectives are: (i) Availability - Data should be available for use by applications (both current and future) and by queries. (ii) Share ability -Data items prepared by one application are available to all applications or queries. No data items are 'owned' by an application. (iii) Evolvability - The database can evolve as application usage and query needs. (iu) Data independence - The users of the database establish their view of the data and its structure without regard to the actual physical storage of the data. (u) Data integrity - The database establishes a uniform high level of accuracy and consistency. Validation rules are applied by the DBMS.

Database Management Systems DBMS

When an organisation has a centrally controlled, integrated collection of logically organised data, it has a database. If the collection of data does not respond to command and queries from a central control point, it is not single database; similarly for the part of the definition that calls for integration. The various pieces of data within the database must have some logical connections or relationships among themselves for the database to be integrated. Eg: Inventory control and production planning data are closely related and when put into one database, are a prime example of integration. And finally, logical organisation is required that is, the data elements must be in specific places and bear specific relationships to each' other for the collection of data to be a substantial database. DBMS is a collection of programs that enable users to create and - maintain a database. The DBMS is hence a general purpose software system that facilitates the processes of defining, constructing and manipulating databases for various applications. Defining database involves specifying the data type structures and constraints for the data to

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Computer Application in Business Data and Information _______________________________________________________________________ _

be stored in the database. Constructing the database is the process of storing the database itself on the storage medium that is controlled by DBMS. Manipulating includes such functions as merging the database to reflect changes in the miniworld and generating reports from the data. The concept of a database is that data needs to be managed in order to be available for processing and have appropriate quality. This data management includes both software and organisation, the software to create and manage a data base is a database management system. This system, or set of rules and methods, allows for the definition, creation, updating, reading, maintenance and protection of the database. In short, this system is a database management system (DBMS). DBMS consists of a collection of inter-related data and a set of programs to access that data. The collection data is usually referred to as database which contains information about one particular enterprise. The primary goal of a DBMS is to provide an environment that is both convenient and efficient to use in retrieving and storing database information. The DBMS is the interface between the user of application programs on one hand and the database on the other.

WHY DBMS?
A DBMS provides a secure and survivable medium for the storage and retrieval of data. If the users and applications do not share data among themselves and if the longevity of the data is only till the end of the process or application that created it, then there is not much need for a DBMS. But in real world, the data is shared and is persistent (that is, the data has a life beyond the boundaries of the programs and applications that created it). Also, the real world data have a structure. It is related to one another and has constraints. These features are well represented and can be efficiently managed using a DBMS. Also, the different users of the data need to create, access and manipulate the data. The DBMS provides mechanisms to achieve these objectives without compromising the security and integrity of the data. Therefore, if the data is shared, if it is persistent, if the users want it be secure and easy to access and manipulate, then use of a database management system is the best available alternative

Objectives of DBMS
The objectives that the management should keep in mind when they design and organize their data base management systems are: (i) Provide for mass storage of relevant data, (ii) Make access to the data easy for the user, (iii) Provide prompt response to user requests for data, (iv) Make the latest modifications to the database available immediately, (v) Eliminate redundant data, (vi) Allow for multiple users to be active at one time, (vii) Allow for growth in the database system, (viii) Protect the data from physical harm and unauthorised access. The Data Base Management System (DBMS) is a set of computer programs that control the creation, maintenance and use of the databases of an organisation and its end users. DBMS packages are available for micro, mini and mainframe computer systems.

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Computer Application in Business Data and Information _______________________________________________________________________ _ Concept of DBMS

Components of DBMS
The following are the five components of a DBMS Hardware Can range from a PC to a network of computers. Software DBMS, operating system, network software (if necessary) and also the application programs. Database It maintains , manipulate and organisethe entire database of the organisation. Procedures Instructions and rules that should be applied to the design and use of the database and DBMS. The set of rules and relationship that defines and governs the interaction among element of the database. People At least one person who owns and is responsible for the database. Includes database designers, DBAs, application programmers, and end-users

Data Warehousing
Definition of a Data Warehouse
A data warehouse is a collection of computerised data that is organised to most optimally support reporting and analysis activity.

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Computer Application in Business Data and Information _______________________________________________________________________ _ History of data warehousing
Data Warehouses became a distinct type of computer database during the late 1980's and early 1990's They developed to meet a growing demand for management information and analysis that could not be met by operational systems.

Components of a data warehouse

Components in detail: Data Sources

sources refers to any electronic repository of information that contains data of interest for management use or analytics. This definition covers mainframe databases (eg IBM DB2, ISAM,etc.), client-server databases (eg Oracle database.), PC databases (eg Microsoft Access), spreadsheets (eg Microsoft Excel) and any other electronic store of data. Data needs to be passed from these systems to the data warehouse either on a transaction-bytransaction basis for real-time data warehouses or on a regular cycle (e.g. daily or weekly) for offline data warehouses.

Data Transformation
The Data Transformation layer receives data from the data sources, cleans and standardizes it, and loads it into the data repository.

Advantages of Data Warehousing Private circulation, Not for sale Page 10

Computer Application in Business Data and Information _______________________________________________________________________ _

There are many advantages to using a data warehouse, some of them are: Enhances end-user access to a wide variety of data. Increases data consistency. Increase productivity and decrease computing costs. Is able to combine data from different sources, in one place. It provides an infrastructure that could support changes to data and replication of the changed data back into the operational systems.

Data Mining
Data Mining Definition
Mining simply means extraction. It is a computer assisted process of extraction of meaningful data from enormous sets of data to predict future trends and to do analysis. It is a process establishing hidden relationship and patterns and thereafter predicting future trends.

Need For Data Mining

Widespread Deployment of High-Volume Transactional Systems Information as a Key Corporate Asset Widespread Availability of Scalable Information Technology.

Application Areas
Banking & Insurance: Detect fraud, assist in risk assessment. Medicine :Predict effectiveness of procedure or medicine. Pharmaceutical :Guide research for new treatment (info on chemical compounds &genetic material). Retailers Assess effectiveness of product selection, direct marketing Transport Logistics Management Government Assess crime patterns, predict demographic changes, etc.

Future Of Data Mining

Short Term - The results of data mining will be in profitable. Micro-marketing campaigns will explore new niches. Advertising will target potential customers with new precision. Medium Term - data mining may be as common and easy to use as e-mail. We may use these tools to find the best airfare to New York, root out a phone number of a long-lost classmate, etc. Long Term DM scope would increase to the extent that Computers may reveal new treatments for diseases or new insights into the nature of the universe, etc.

Limitations
Although data mining can help reveal patterns and relationships, it does not tell the user the value or significance of these patterns. These types of determinations must be made by the user. While data mining can identify connections between behaviors and/or variables, it does not necessarily identify a causal relationship

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Computer Application in Business Data and Information _______________________________________________________________________ _

Dangers of Data Mining

With every move of every person being recorded the major danger of data mining will be that every person will have access to all the data about every other person.

Data Mart
A data mart is a repository of data gathered from operational data and other sources that is designed to serve a particular community of knowledge workers. In scope, the data may derive from an enterprise-wide database or data warehouse or be more specialized. The emphasis of a data mart is on meeting the specific demands of a particular group of knowledge users in terms of analysis, content, presentation, and ease-of-use. Users of a data mart can expect to have data presented in terms that are familiar. In practice, the terms data mart and data warehouse each tend to imply the presence of the other in some form. However, most writers using the term seem to agree that the design of a data mart tends to start from an analysis of user needs and that a data warehouse tends to start from an analysis of what data already exists and how it can be collected in such a way that the data can later be used. A data warehouse is a central aggregation of data (which can be distributed physically); a data mart is a data repository that may derive from a data warehouse or not and that emphasizes ease of access and usability for a particular designed purpose. In general, a data warehouse tends to be a strategic but somewhat unfinished concept; a data mart tends to be tactical and aimed at meeting an immediate need.

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