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Chapter 3

Chapter 3 Notes

Financial Accounting
Course Code
Tim Richardson

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Chapter 3 Notes
need business intelligence (BI)—collective info about customers, competitors, business partners, competitive environment, and
own internal operations—that gives the ability to make effective, important, and often strategic business decisions
business intelligence enables an organization to extract the true meaning of information so that employees can take creative and
powerful steps to ensure a competitive advantage, such as customer relationship management
on-line transaction processing (OLTP) is the gathering of input information, processing of that information, and updating of
existing information to reflect the gathered and processed information
databases that support OLTP are most often referred to as operational databases
inside these operational databases is valuable information that forms the basis for business intelligence
on-line analytical processing (OLAP) is the manipulation of information to support decision making
a data warehouse is a special form of a database that contains information gathered from operational databases for the purpose of
supporting decision-making tasks; data warehouses only support OLAP
The Relational Database Model
any database is a collection of information that is organized and accessed according to the logical structure of that information
a relational database uses a series of logically related two-dimensional tables or files to store info in the form of a database
a relational database is actually composed of two distinct parts: (1) the information itself, stored in a series of two-dimensional
tables, files, or relations; and (2) the logical structure of that information
Database Management System Tools
a database management system (DBMS) helps to specify the logical organization for a database and use info within a database
a DBMS contains 5 important software components—(1) DBMS engine; (2) data definition subsystem; (3) data manipulation
subsystem; (4) application generation subsystem; and (5) data administration subsystem
DBMS engine accepts logical requests from the various other DBMS subsystems, converts them into their physical equivalent,
and actually accesses the database and data dictionary as they exist on a storage device
the physical view of info deals with how info is physically arranged, stored, and accessed on some type of storage device
the logical view of info focuses on how a knowledge worker need to arrange and access info to meet particular business needs
databases and DBMSs provide 2 great advantages in separating the logical from the physical view of info—(1) DBMS engine
handles the physical tasks so a database user can concentrate solely on logical info needs; and (2) although there is only one
physical view of info, there may be numerous knowledge workers who have different logical views of the info in a database
data definition subsystem of a DBMS helps create and maintain data dictionary and define structure of the files in a database
Data Manipulation Subsystem
data manipulation subsystem of a DBMS helps add, change, and delete info in a database and query it for valuable info
in most DBMSs, there will be a variety of data manipulation tools, including views, report generations, query-by-example (QBE)
tools, and structured query language (SQL)
a view allows a person to see the contents of a database file, make whatever changes needed, perform simple sorting, and query
to find the location of specific information; they essentially provide each file in the form of a spreadsheet workbook
report generators helps a person quickly define formats of reports and what information the person wants to see in a report
QBE tools helps a person graphically design the answer to a question
when a person performs a QBE, they (1) identify the files in which the needed information is located, (2) drag any necessary
fields from the identified files to the QBE grid, and (3) specify selection criteria
SQL is a standardized fourth-generation query language found in most DBMSs; SQL performs the same function as QBE, except
that a person can perform a query by creating a statement instead of pointing, clicking, and dragging
Application Generation Subsystem
application generation subsystem of a DBMS contains facilities to help a person develop transaction-intensive applications
these types of applications usually require performing a detailed series of tasks to process a transaction
facilities include tools for creating visually appealing and easy-to-use data entry screens, programming languages specific to a
particular DBMS, and interfaces to commonly used programming languages that are independent of any DBMS
Data Administration Subsystem
data administration subsystem of a DBMS helps in managing the overall database environment by providing facilities for backup
and recovery, security management, query optimization, concurrency control, and change management
the data administration subsystem is most often used by a data administrator or database administrator—someone responsible for
assuring that the database (and data warehouse) environment meets the entire information needs of an organization
all these facilities are vitally important in any DBMS and thus any database environment
Data Warehouses
What is a Data Warehouse?
a data warehouse is a logical collection of information—gathered from many different operational databases—used to create
business intelligence that supports business analysis activities and decision-making tasks
most data warehouses are multidimensional, meaning that they contain layers of columns and rows
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