Class 6 Data and Business MIS 2000 Updated: September 2012

Outline Business processes and data Paper and electronic data formats (pros & cons) Relationship between paper and electronic formats IS and Organizational culture Information system and electronic database Electronic Relational Database Database Management System (DBMS) Structured Query Language Information Systems for Management 2 of 16

Business Processes and Data Information Systems for Management Professional documents Business documents Communications Communications Communications Business processes Some data are supported by computer-based IS, some are still in paper format (“paper trail”). 3 of 16

Paper Trail “Paper trail” is a plain English term for all organizational data stored on paper (forms and records*; files, file holders, file cabinets; archives) Documents in paper trail can be fine in content and format (forms). Characteristics of paper trail - advantages: Important for documenting business (“Put it in writing.”) Paper form is stable, hard to falsify Paper can be preserved over long time Paper documents can be locked in a single location if needed Information Systems for Management More 4 of 16

Paper trail disadvantages: Takes time to create and even more to transfer Hard to change, inflexible Errors due to manual data entry Takes much space Limits access and sharing Fire and water hazard Expensive and ecologically damaging (produced from trees) Information Systems for Management 5 of 16

Paper and Electronic Data PAPER ELECTRONIC Paper form is stable, hard to falsifyLess stable, but solutions emerge Paper can be preserved over long timePossible, but must migrate to new technologies Paper locking in a single location Same, but easy copy and hacking Takes time to create and transferFast creation and transfer Errors likelyAutomated control of errors Takes much space Takes little space Limited access and sharingBroad access and sharing Fire and water hazardSame, plus hacking; solvable** Ecologically damagingSmaller threats Overall, the electronic format overcomes disadvantages of paper, can meet its advantages, and keeps improving. Information Systems for Management 6 of 16

Electronic vs. Paper Data Electronic format has tried to replace paper (“Paperless office”).* Paper format resists, being still preferred by older generations, government, and those deprived of electronic technology. Electronic IS today often replicate paper trail by producing paper output (sometimes massively). Overall, today electronic and paper formats exist side by side and complement each other. Habits of sustaining paper trail are part of organizational culture. Information Systems for Management Replace Replicate Resist Coexist, Complement 7 of 16

Organizational culture refers to deep, stable beliefs and accustomed practices shared by employees in an organization. Organizations have different organizational cultures. Different departments in one company can have different cultures.* Whether paper and/or electronic data are preferred is cultural belief and practice. Organizational culture impacts on data formats in a business process (BP), determining a proportion of paper and electronic. Therefore, if you look at BPs, you can judge if the organization’s culture is more paper or electronic.** Information Systems for Management IS and Organizational Culture Professional documents Business documents Communications Communications Communications Business processes 8 of 16

There is no IS without a database in the background. Database is the foundation of IS, providing a necessary storage. Information Systems for Management IS and Electronic Database Computer hardware & software System and Application Software Use Procedures User Interface DB Data stored in databases 9 of 16

Electronic Database Electronic Database: Collection of data that are organized so that they reflect business and meet technology requirements. In a way, electronic database emulates a file cabinet in the organization part. But it is much stronger on the search side. One way of organizing data is in tables, as you study it in the lab. Table usually represents a business entity. The type of database you study is called relational. It is best suited for numerical data and limited textual data. There are other types of electronic databases (library, full-text). Demo… Information Systems for Management 10 of 16

Relational Database (Our Focus) The data storage for a Transaction Processing System (TPS). Adding reports to a database creates an MIS/Reporting System. Data (text, numbers, currency, time) are organized in tables (“relations”) Table = Collection of columns and rows. Column = Attribute (e.g., customer number) Row = Set of attributes (customer number, name, …) Each row identified by an attribute that must have a unique value in each row  key attribute (primary key, key) Information Systems for Management 11 of 16

Relational Database – key & foreign key Tables linked via keys & foreign keys Information Systems for Management 12 of 16

Database Management System (DBMS) Software for creating database, storing, retrieving and overall management of data (e.g., Microsoft Access). Actually, DBMS can be used to develop entire IS. DBMS Components (some): Search engine – runs queries on the database (data search, retrieval tasks) Report writer – usually uses queries to create reports for users (system output) Access management (access privileges: read, write, change) Data dictionary - defines each data attribute (storage, text/numeric or other data type) Information Systems for Management D B M S Input forms Reports Database TPS or MIS (when Reports included) 13 of 16

Information Systems for Management Structured Query Language (SQL) Syntax and rules (commands) for searching relational databases. Can also be used for entering and changing data, and other tasks. Easier to learn than programming languages SQL Query: Select lists desired columns from desired table(s) From identifies tables/views from which to select columns Where are conditions for selecting specific records & for joining multiple tables (in older versions of SQL) Databases Information Systems for Management 14 of 16

Search Data with SQL Example SELECT Part.Part_Name, Supplier.Supplier_Name, Supplier.Supplier_Address FROM Part, Supplier WHERE Part.Supplier_Number=Supplier.Supplier_Number AND Part_Number=137 OR Part_Number=152 Output: A list with names of parts tracked under numbers 137 and 152 (keys), along with supplier names and addresses Data is stored in tables Party and Supplier, which are linked via the Supplier_Number (key in Supplier table, and foreign key in Part table) Access provides a facility for easy search without writing SQL. Information Systems for Management 15 of 16

Summary Business processes use data that are either in electronic or paper format (paper trail). Paper still has useful properties, although electronic formats is superior and keeps advancing. Proportion of electronic and paper is an aspect of organizational culture. Electronic database is the foundation of IS. Key concepts of electronic relational database are table, primary key, and foreign key. Database Management System (DBMS) is ssoftware for creating database and retrieving and overall management of data. DBMS can be used to develop entire IS. Structured Query Language is standard for data retrieval. Information Systems for Management 16 of 16