Unit No 3: Database Management System: Introduction to data and information, database,

types of database models, introduction to DBMS, difference between file management systems
and DBMS, advantages and disadvantages of DBMS, data warehousing, data mining,
application of DBMS, Introduction to MS Access, Create Database, Create Table, Adding
Data, Forms in MS Access, Reports in MS Access.

INTRODUCTION TO DATA AND INFORMATION

DATA
Data refers to raw facts and figures that by themselves do not carry much meaning.
Examples:
✓ Numbers: 50, 120, 2026
✓ Text: "Ravi", "Sales"
✓ Symbols: %, ₹
In an organization, data is generated every day through transactions, forms, bills, attendance
records, customer enquiries, etc.
Example:
✓ Daily sales amounts entered by the cashier
✓ Employee attendance punch-in times
By themselves, these are just raw inputs.

INFORMATION
Information is processed data that is organized and meaningful. It helps managers understand
situations and take decisions.
Examples:
✓ Total sales for the month
✓ Average attendance percentage of employees
✓ Top 5 customers by revenue
(Note: Data becomes information only after processing.)
Simple comparison:
✓ Data: Marks of students (45, 60, 78, 82)
✓ Information: Average marks of the class is 66.25

Data vs Information
Basis Data Information
Meaning Raw facts Processed facts
Use Input Output
Role in decision Limited High
Example Individual sales bills Monthly sales report

DATABASE
A database is an organized collection of related data stored electronically so that it can be
easily accessed, updated, and managed.

In simple words: A database is a digital storage system for business data.

Examples:
✓ Student database of a college
✓ Customer database of a bank
✓ Inventory database of a retail store

Why Do Organizations Use Databases?

Before databases, data was stored in files and registers. This created many problems like
duplication, errors, and delay.
Databases help in:
✓ Reducing data duplication
✓ Improving accuracy
✓ Faster retrieval of information
✓ Better security
✓ Supporting managerial decision-making
Example:
A manager can instantly see:
• Sales trend of last 5 years
• Employee performance records
• Profit by product line

TYPES OF DATABASE MODELS

A database model defines how data is structured, stored, and related.
1. Hierarchical Database Model
Data is arranged like a tree. One parent can have many children, but each child has only one
parent.
Concept:
✓ Data is organized in a tree-like structure
✓ One parent can have many children
✓ Each child has only one parent
Structure:
• Root → Parent → Child
Example:
✓ Organization Structure: Company → Department →Employees
✓ Bank structure: Head Office → Branch → Employees
Advantages:
✓ Simple structure
✓ Fast access
Limitations:
✓ No flexibility
✓ One-to-many relationship only

2. Network Database Model

An advanced form of hierarchical model where a record can have multiple parents.
Concept:
✓ Similar to hierarchical model
✓ A child can have multiple parents
✓ Many-to-many relationships possible
Example:
✓ Employees working in multiple projects
✓ Students enrolled in multiple courses
✓ A manager supervises multiple teams
✓ A team reports to multiple project heads

Advantages:
✓ More flexible than hierarchical model
Limitations:
✓ Complex structure
✓ Difficult to maintain

3. Relational Database Model

Data is stored in tables with rows and columns. Tables are connected using keys.
Concept:
✓ Data stored in tables (rows and columns)
✓ Each table represents an entity
✓ Relationships created using keys
Example:
Student Table
| Student_ID | Name | Course |
Marks Table
| Student_ID | Subject | Marks |
Management example:
• Sales table
• Customer table
• Product table
Managers mostly interact with reports generated from relational databases.

Advantages:
✓ Easy to understand
✓ Flexible
✓ High data accuracy
✓ Widely used
Limitations:
✓ Requires technical knowledge for complex queries

4. Object-Oriented Database Model

Data is stored as objects that combine data and behaviour, similar to programming concepts.
Concept:
✓ Data stored as objects (like in programming)
✓ Includes data and behavior together
Example:
✓ Multimedia data (images, videos)
✓ Complex engineering applications
✓ CRM systems handling customer behavior and history
Advantages:
✓ Ideal for Complex data like multimedia and real time applications.
Limitations:
✓ Not as Simple or Widely not used

DATABASE MODELS: COMPARISON TABLE

Basis Hierarchical Network Relational Object-Oriented

Structure Tree-like Graph-like Tables Objects
Relationship One-to-many Many-to-many All types Complex
relationships
Flexibility Low Medium High Very high
Complexity Simple High Moderate High
Data Storage Parent-child Linked records Rows & Objects with data
columns & behavior
College Dept → Students ↔ Student & LMS with videos
Example Students Courses Marks tables
Company Dept → Employees ↔ Sales & CRM system
Example Employees Projects Customer DB
Usage Today Rare Rare Very common Limited /
specialized
SUMMARY FOR QUICK REVISION
1. Data is raw facts, information is processed data
2. Database is a structured collection of data
3. DBMS is software used to manage databases
4. Relational database model is most widely used in business
5. Databases support planning, control, and decision-making

DATABASE MANAGEMENT SYSTEM (DBMS)

DATABASE MANAGEMENT SYSTEM

A Database Management System (DBMS) is software that helps organizations store,
organize, manage, and retrieve large volumes of data efficiently.

In simple terms: DBMS is a digital system that manages business data in an organized and
secure way.

Popular DBMS software:

• MySQL
• Oracle
• SQL Server
• PostgreSQL
• MS Access

Role of DBMS:
It acts as an interface between users and the database.

Example to Understand DBMS

Without DBMS:
• Student records kept in separate Excel files
• Same student data repeated in multiple files
• High chance of error
With DBMS:
• One centralized student database
• Data updated only once
• All departments access the same correct data

Why DBMS is important for managers

Managers depend on timely and accurate information for planning, decision-making, and
control. DBMS ensures that data from different departments is stored in one place and can be
converted into meaningful reports.
Examples:
✓ Student information system in colleges
✓ Core banking system in banks
✓ Inventory and billing system in retail stores
✓ Payroll system in companies

FILE MANAGEMENT SYSTEM VS DBMS

Before DBMS, organizations used file management systems, where data was stored in
separate files.
File Management System
✓ Data stored in individual files
✓ Each department maintains its own data
✓ Mostly manual or spreadsheet-based
Example:
HR department maintains employee data in Excel, Accounts department keeps salary data in
another file.
DBMS
✓ Centralized database
✓ Data shared across departments
✓ Controlled and systematic approach
Example:
One employee database used by HR, Accounts, and Management.

Difference between File Management System and DBMS

Basis File Management System DBMS
Data storage Separate files Centralized database
Data redundancy High Low
Data consistency Poor High
Data security Low High
Data sharing Difficult Easy
Decision support Limited Strong

Advantages of DBMS Disadvantages of DBMS

1. Reduced Data Redundancy: Same data 1. High Cost: DBMS software, hardware,
is not repeated in multiple files. (Customer and maintenance are expensive.
details stored once and used for billing, 2. Complexity: Requires trained staff to
service, and marketing.) manage databases.
2. Improved Data Accuracy and 3. Data Security Risks: Centralized data
Consistency: Changes made in one place may be vulnerable to cyber attacks if not
are reflected everywhere. (If employee properly protected.
address is updated, all departments see the 4. System Failure Impact: If DBMS fails,
updated address.) entire organization may be affected.
3. Better Data Security: Access rights
control who can view or modify data. (Only
HR can modify salary data, while managers
can only view reports.)
4. Faster Data Retrieval: Managers get
reports quickly. (Monthly sales report
generated in seconds.)
5. Better Decision Making: DBMS
provides reliable information for planning
and control. (Sales trend analysis helps in
forecasting demand.)
Management perspective
Despite disadvantages, benefits outweigh costs for medium and large organizations.

APPLICATIONS OF DBMS
1. Banking
✓ Customer accounts
✓ Transactions
✓ Loan management
2. Education
✓ Student records
✓ Examination systems
✓ Attendance management
3. Business and Commerce
✓ Inventory management
✓ Sales and billing
 ✓ Customer relationship management (CRM)
4. Healthcare
✓ Patient records
✓ Appointment systems
✓ Medical history
5. Government
✓ Tax records
✓ Aadhaar databases
✓ Public service systems

DATA WAREHOUSING
A Data Warehouse is a large storage system that collects data from multiple sources and
stores historical data for analysis and reporting.

In simple words: A data warehouse stores past data for long-term analysis and strategic
decisions.

Characteristics of Data Warehouse

✓ Subject-oriented: Data is organized around key subjects like sales, customers, or
finance, not daily operations.
✓ Integrated: Data from different sources is combined in a consistent and unified
format.
✓ Time-variant: Data is stored with a time element so trends and changes can be
analyzed over years.
✓ Non-volatile: Data once stored is stable and not frequently updated or deleted.
Example
A retail chain stores 10 years of sales data from all branches to study buying patterns.
Use for Managers
✓ Long-term trend analysis
✓ Strategic planning
✓ Performance comparison

DATA MINING
Data mining is the process of analyzing large amounts of data to discover hidden patterns,
trends, and relationships.

The main goal of data mining is to extract valuable knowledge and insights from data, which
can be used for decision-making, prediction, and pattern recognition.

In simple terms: Data mining finds useful insights from huge data sets.

Data Mining Techniques:

✓ Classification: Assigning data instances to predefined classes or categories based on

their attributes.
✓ Clustering: Grouping similar data instances together based on their similarities.
✓ Association: Discovering interesting relationships or associations among data items.
✓ Prediction: Predicting numeric values based on historical data.

Application Areas:

✓ Customer Segmentation: Identifying groups of customers with similar

characteristics for targeted marketing.
✓ Fraud Detection: Detecting unusual patterns or behaviors that may indicate
fraudulent activities.
 ✓ Market Basket Analysis: Identifying product associations to optimize product
placement and sales strategies.

Examples
✓ Identifying customers likely to stop using a service
✓ Finding products frequently bought together
✓ Predicting future sales
✓ An online store uses data mining to recommend products based on customer behavior.

DATA WAREHOUSING VS DATA MINING

Basis Data Warehousing Data Mining
Meaning A Data Warehouse is a large storage Data mining is the process of
system that collects data from multiple analyzing large amounts of data to
sources and stores historical data for discover hidden patterns, trends,
analysis and reporting. and relationships.

Purpose Store historical data Analyze data

Nature Storage Analysis
Usage Strategic planning Pattern discovery
Example Sales data of last 10 years Identifying peak sales season
DATABASE MANAGEMENT SYSTEM – MS ACCESS

MS ACCESS is a user-friendly Database Management System developed by Microsoft. It is

widely used in small and medium organizations to store, manage, and analyze data.

In simple words: MS Access is a desktop database tool used to manage business data easily
without deep technical knowledge.

Why MS Access for Management Students

✓ Easy to learn and use
✓ No programming background required
✓ Ideal for small business applications
✓ Useful for reports and decision-making

Examples:
✓ Student database in colleges
✓ Customer records in small firms
✓ Inventory tracking for retail shops

CREATING A DATABASE IN MS ACCESS

A database in MS Access is a collection of related tables, forms, queries, and reports stored in
a single file.
Steps to Create a Database
1. Open MS Access
2. Click on Blank Database
3. Enter database name (example: IVBABDB)
4. Click Create

Example: Creating a database to store employee records of a company.

CREATING A TABLE
A table stores data in rows and columns.
✓ Row = Record
✓ Column = Field

Steps to Create a Table

1. Click on Create → Table Design
2. Define field names and data types
3. Set Primary Key
4. Save the table

Example: Employee Table

Field Name Data Type
EmpID AutoNumber
EmpName Short Text
Department Short Text
Salary Currency
JoiningDate Date/Time
Primary Key: EmpID (unique identifier)
ADDING DATA TO A TABLE
Methods of Adding Data
1. Datasheet View – manual entry
2. Import data from Excel or other files

Example
EmpID EmpName Department Salary
1 Ravi Sales 30000
2 Anita HR 28000
Management use:
Managers can easily update employee details when promotions or transfers happen.

FORMS IN MS ACCESS
A form is a user-friendly interface used to enter, view, and edit data in a table.

In simple words: Forms make data entry easy and reduce errors.

Why Forms are Important

• No need to work directly on tables
• Easy for non-technical users
• Improves data accuracy

Example
Employee Entry Form with fields like:
• EmpID
• EmpName
• Department
• Salary

Management example:
HR staff use forms to enter employee details instead of editing tables directly.

REPORTS IN MS ACCESS
A report presents data in a formatted and printable form.

In simple words: Reports convert data into meaningful information for managers.

Uses of Reports
✓ Performance analysis
✓ Decision-making
✓ Official documentation

Example Reports
✓ Employee salary report
✓ Department-wise employee list
✓ Monthly sales report
Management example:
A manager prints a department-wise salary report for review and budgeting.

DIFFERENCE BETWEEN TABLE, FORM, AND REPORT

Basis Table Form Report
Purpose Store data Enter/View data Present data
User friendly Low High High
Editing allowed Yes Yes No (mostly)