chapter 13-1. chapter 13-2 accounting information systems, 1 st edition data and databases

Chapter 13-1

Chapter 13-2 Accounting Information Systems, 1st Edition

Data and Databases

Chapter 13-3

1. The need for data collection and storage

2. Methods of storing data and the interrelationship between storage and processing

3. The differences between batch processing and real-time processing

4. The importance of databases and the historical progression from flat-file databases to relational databases

5. The need for normalization of data in a relational database

6. Data warehouse and the use of a data warehouse to analyze data

7. The use of OLAP and data mining as analysis tools

8. Distributed databases and advantages of the use of distributed data

9. Controls for Data and Databases

10. Ethical issues related to data collection and storage, and their use in IT systems

Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives

Chapter 13-4 SO 1 The need for data collection and storageSO 1 The need for data collection and storage

The Need for Data Collection and The Need for Data Collection and StorageStorageThe Need for Data Collection and The Need for Data Collection and StorageStorageData are the set of facts collected from transactions, whereas information is the interpretation of data that have been processed.

Main reasons to store transaction data:

1. To complete transactions from beginning to end.

2. To follow up with customers or vendors and to expedite future transactions.

3. To create accounting reports and financial statements.

4. To provide feedback to management.

Chapter 13-5 SO 1 The need for data collection and storageSO 1 The need for data collection and storage

The Need for Data Collection and The Need for Data Collection and StorageStorageThe Need for Data Collection and The Need for Data Collection and StorageStorage

Typical storage and processing techniques:

1. The storage media types for data: sequential and random access

2. Methods of processing data: batch and real time

3. Databases and relational databases

4. Data warehouses, data mining, and OLAP

5. Distributed data processing and distributed databases

Chapter 13-6

b. Information is interpreted data.

Which of the following best describes the relationship between data and information?

Concept CheckConcept Check

c. Data is more useful than information in decision making.

d. Data and information are not related.

a. Data is interpreted information.

SO 1 The need for data collection and storageSO 1 The need for data collection and storage

The Need for Data Collection and The Need for Data Collection and StorageStorageThe Need for Data Collection and The Need for Data Collection and StorageStorage

Chapter 13-7

SO 2 Methods of storing data and the SO 2 Methods of storing data and the interrelationship between storage and interrelationship between storage and processingprocessing

Storing and Accessing DataStoring and Accessing DataStoring and Accessing DataStoring and Accessing Data

Data Storage Terminology

Character

Field

Record

File

Database

Exhibit 13-1 Data Hierarchy

Chapter 13-8



Data Storage Media

Magnetic tape

Sequential access

Random Access

Early Days of Mainframe Computers

Modern IT Systems

Chapter 13-9

b. A pool is to a swimmer.

A character is to a field as


c. A pool is to water.

d. A glass is to water.

a. Water is to a pool.



Chapter 13-10

b. Random access media.

Magnetic tape is a form of


c. Sequential access media.

d. Alphabetical access media.

a. Direct access media.



Chapter 13-11 SO 3 The differences between batch processing and real-time SO 3 The differences between batch processing and real-time

processingprocessing

Data Processing TechniquesData Processing TechniquesData Processing TechniquesData Processing Techniques

Exhibit 13-2Comparison of Batch and Real-Time Processing

Batch Processing

Real-time Processing

Chapter 13-12

b. Efficiency for use with large volumes of data.

Which of the following is not an advantage of using real-time data processing?


c. Provides for random access of data.

d. Improved accuracy due to the immediate recording of transactions.

a. Quick response time to support timely record keeping and customer satisfaction

SO 3 The differences between batch processing and real-time SO 3 The differences between batch processing and real-time processingprocessing

Data Processing TechniquesData Processing TechniquesData Processing TechniquesData Processing Techniques

Chapter 13-13

SO 4 The importance of databases and the historical SO 4 The importance of databases and the historical progression from flat-file databases to relational progression from flat-file databases to relational databasesdatabases

DatabasesDatabasesDatabasesDatabases

Data stored in a form that allows the data to be easily accessed, retrieved, manipulated, and stored.

Exhibit 13-3Traditional File-Oriented Approach

Data redundancy

Concurrency

Chapter 13-14


DatabasesDatabasesDatabasesDatabases

Database Management System (DBMS) is software that manages the database and controls the access and use of data by individual users and applications.

Exhibit 13-3Database Approach

Relationships

One-to-One

One-to-Many

Many-to-Many

Chapter 13-15


The History of DatabasesThe History of DatabasesThe History of DatabasesThe History of Databases

Relational Database Model

Developed in 1969

Stores data in two-dimensional tables

Most widely used database structure today

Examples include; IBM DB2, Oracle Database, and Microsoft Access

Chapter 13-16

The Need for Normalized DataThe Need for Normalized DataThe Need for Normalized DataThe Need for Normalized Data

Relational databases consist of several small tables. Small tables can be joined in ways that represent relationships among the data.

SO 5 The need for normalization of data in a relational databaseSO 5 The need for normalization of data in a relational database

Bolded field is the primary key.

Exhibit 13-6Relational Database in Microsoft Access

Chapter 13-17


Relational database has flexibility in retrieving data. Structured query language (SQL) has become the industry standard.


Exhibit 13-7Relational Database in Microsoft AccessSELECT Customers.CustomerID, Customers.CompanyName,

Orders.OrderID, Orders.ShippedDate FROM Customers INNERJOIN Orders ON Customers.CustomerID Orders.CustomerID;

Chapter 13-18


The process of converting data into tables that meet the definition of a relational database is called data normalization.

Seven rules of data normalization, additive.

Most relational databases are in third normal form.

First three rules of data normalization are:

1. Eliminate repeating groups

2. Eliminate redundant data

3. Eliminate columns not dependent on primary key.SO 5 The need for normalization of data in a relational databaseSO 5 The need for normalization of data in a relational database

Chapter 13-19

Trade-offs in Database Storage

Relational database

Not most efficient way to store data that will be used in other ways.

Most organizations are willing to accept less transaction processing efficiency for better query opportunities.



Chapter 13-20

b. It stores data in tables.

Which of the following statements is not true with regard to a relational database?


c. It stores data in a tree formation.

d. It is maintained on direct access devices.

a. It is flexible and useful for unplanned, ad hoc queries.



Chapter 13-21

Management often needs data from several fiscal periods from across the whole organization.

Use of a Data Warehouse to Analyze Use of a Data Warehouse to Analyze DataDataUse of a Data Warehouse to Analyze Use of a Data Warehouse to Analyze DataData

SO 6 Data warehouse and the use of a data warehouse to SO 6 Data warehouse and the use of a data warehouse to analyze dataanalyze data

Exhibit 13-8The Data Warehouse and Operational Databases

Chapter 13-22

Management often needs data from several fiscal periods from across the whole organization.

Build the data warehouse

Identify the data

Standardize the data

Cleanse, or scrub, the data

Upload the data



Chapter 13-23

b. data warehouse.

A collection of several years’ nonvolatile data used to support strategic decision-making is a(n)


c. data mine.

d. what-if simulation.

a. operational database.



Chapter 13-24

Data mining is the process of searching for identifiable patterns in data that can be used to predict future behavior.

OLAP is a set of software tools that allow online analysis of the data within a data warehouse. Analytical methods in OLAP usually include:

Data Analysis ToolsData Analysis ToolsData Analysis ToolsData Analysis Tools

SO 7 The use of OLAP and data mining as analysis toolsSO 7 The use of OLAP and data mining as analysis tools

1. Drill down

2. Consolidation

3. Pivoting

4. Time series analysis

5. Exception reports

6. What-if simulations

Chapter 13-25

b. assessing customer reactions to new products.

Data mining would be useful in all of the following situations except


c. Accessing customers’ payment histories.

d. determining customers’ behavior patterns.

a. identifying hidden patterns in customers’ buying habits.

Data Analysis ToolsData Analysis ToolsData Analysis ToolsData Analysis Tools

SO 7 The use of OLAP and data mining as analysis toolsSO 7 The use of OLAP and data mining as analysis tools

Chapter 13-26

Early days

Centralized processing

Centralized databases

Distributed Data ProcessingDistributed Data ProcessingDistributed Data ProcessingDistributed Data Processing

SO 8 Distributed databases and advantages of the use of SO 8 Distributed databases and advantages of the use of distributed datadistributed data

Today’s IT Environment

Distributed data processing (DDP)

Distributed databases (DDB)

Chapter 13-27



Distributing the processing and data offers the following advantages:

1. Reduced hardware cost

2. Improved responsiveness

3. Easier incremental growth

4. Increased user control and user involvement

5. Automatic integrated backup

The most popular type of distributed system is a client/server system.

Chapter 13-28

b. Flat file database.

A set of small databases where data are collected, processed, and stored on multiple computers within a network is a


c. Distributed database.

d. High-impact process.

a. Centralized database.



Chapter 13-29

IT Controls for Data and DatabasesIT Controls for Data and DatabasesIT Controls for Data and DatabasesIT Controls for Data and Databases

SO 9 Controls for data and databasesSO 9 Controls for data and databases

To ensure integrity (completeness and accuracy) of data in the database, IT application controls should be used. These controls are

input,

processing, and

output controls Control techniques such as

data validation,

control totals and reconciliation, and

reports that are analyzed by managers.

Chapter 13-30

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chapter 13-1. chapter 13-2 accounting information systems, 1 st edition data and databases

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