Understand how and why database systems are specified, designed, implemented, tested, maintained and used.
Analyse an organisations’ requirements for data storage and information gathering and how managerial decisions are influenced.
Evaluate the concept of database management and the technical responsibilities of a database administrator.
Database management system is one of the most advanced tools of business intelligence applications which are used to turn the data into information and the information into the knowledge (Hernandez, 2013). This contributes to driving profitable action for the organization by minimizing the servicing cost to the customers.
This report strongly focuses on the uses of database management system in an organization, its benefits, and challenges to make systematic decisions. In this aspect, a software developer organization of UK known as Access group is selected to analyze their database uses and its applications. Based on that analysis, prospects of this database system can be evaluated as a business intelligence tool.
Database management system is the repository storage of data and its interrelated information. From small enterprises to large organizations, DBMS is mostly preferred to provide a convenient and reliable platform for the users to develop best business applications and services for the customers (Leromain and Orefice, 2014).
Figure 1: Database Management System
(Source: Charoute et al. 2015, pp-2445)
DBMS is used to access high rate data from a database system, and it is served to the users through application program interface platform. The database management system consists of three major components which are memory manager, query processor and transaction manager (Rubner and Tomasi, 2013). Query processor optimizes the users’ queries into instructions, memory manager obtain those data to satisfy the complied queries and the transaction manager checks whether the execution is done properly or not.
Figure 2: Database Architecture
(Source: Coronel and Morris, 2016, pp-150)
This client server database model is introduced to mitigate the drawbacks of files systems used in an organization. With this query optimizing facilities and data storage and sharing capabilities, database administrators will be able to make enhanced decisions for the betterment of the organization.
The database management system is highly recommended to support the decision making the process of the organization by optimizing the queries quickly. Some of the unique qualities possessed by database system are as follows
Redundancy Control: The database system controls the data redundancy by developing the application programs (Vo et al. 2012). As a result, employees and other users can access the system files and data. Moreover, it helps to generate more and more information from the large stored data.
Isolate Data and Program: In the database system, the data are stored in system catalog but not in the program. Therefore, change in the system structure does not alter the entire database system (Andrikopoulos et al. 2013). This isolation helps to maintain the data integrity throughout the business organization.
Backup and Recovery: This is one of the useful features of a database system that allow protecting the crucial data and information in case of system fails. In this case, database ensures that all the crucial data are its in original state and can be accessed in times of needs.
Restrict The Unauthorized Access: With a secured and authorized subsystem, the database administrators set the access rights and permission for the users (David and David, 2016). This helps to prevent unauthorized access to the internal system of the business organization.
The above mentioned capabilities of the database system can be understood in a better way by taking the example of leading IT organization IBM. The database solution provided by IBM helps to manage data across the multiple workloads by reducing the development, administration and server cost. IBM uses DB2, IMS, and Cloudant.
Figure 3: Official Logo of IBM
(Source: Ibm.com. 2016)
The IBM DB2 database system helps to provide continuous and fast availability of the data to run analytical and transactional operations with high efficiencies. With the use of IBM Cloudant which is cost effective and can enhance the security features by adding a subtract server. Moreover that, cloud based database system is very time effective and can handle huge workloads effectively (Ibm.com. 2016). IBM IMS is the cost effective database system and is used to achieve critical online transaction processing application successfully. It provides highest levels of performance, scalability, availability and security to manage and distribute data throughout the organization.
Rapid and dynamic changes in the database system pose some challenges for the database administrator as well as for the organization. While switching from one database system to another or while upgrading the existing system, the decision making the process of the organization is significantly affected (Theaccessgroup.com, 2016). Access group uses Oracle database with shared services and multiple applications which are quite complex to implement inside the organization at the initial stages. Some of these challenges are highlighted as follows
This migration from an old database system to a new database system increases the operational cost as well as the risk factors regarding data security. As the multiple homogeneous data sources are the present extraction of those data and query optimization becomes so difficult. There are many more challenges arise regarding data visualization and issues with distribution and development tools which must be handled tactfully for smooth and reliable business operations.
However, use of database system also serves several advantages to the business clients by proving an integrated solution.
Figure 4: Database Services
(Source: Rubner and Tomasi, 2013, pp-250)
By leveraging the database challenges, organizations serve the benefits of database services in the following ways:
Reduce Operational Expenditure and Capital Cost: Creation of higher density databases per server on multi-tenant platform helps to offer low operational cost through enhanced automation and management productivity (Charoute et al. 2015). Optimization of database queries helps to reduce the ownership cost and increase the ROI (Return on Investment).
Enhance Business Efficiencies: Use of systematic data collection method, complexities of data silos can be eliminated. Consolidate database system and shared resources help to streamline the business operations, improve productivity and decision making processes.
Improve Business Value: By the use of the database, the business administrator can align its applications with business strategies to earn long term benefits (Wang et al. 2012). Data can be easily moved from one node to another as per the business needs. Moreover, the recovery and back up facilities helps to keep the data and files protected in case of system failure.
Use of database system in every business sector is very crucial to provide greater concurrency control by offering accessible and secure services for reliable business operations. In addition, implementation of perfect database system helps to manage a large volume of data and workloads in a systematic fashion (Agrawal et al. 2012). In order to achieve improved business efficiencies, the database system must be used with high level of integrity, reliability and privacy features.
Information system manager helps to make proper plans for database development and installation inside the organization. However, while adopting this new system, information system manager faces technical, ethical and legal challenges which are highlighted in the following points
Technical Challenges: Installation of the proper database system is not an easy task at all. While developing a database system, information system manager must understand the business needs and necessities (Becker et al. 2012). In the development phase, the absence of data profiling tool creates a problem for the developer to analyze and measure the data quality of the source. Then, for the individual application, data acceptance criterion should be set which increase the maintenance cost of the system.
In the PEMEX organization, the information system manager faces lots of challenges while handling large arrays of data and information due to technical loopholes in database system (Pamex.in, 2016). Absence of proper data mining and proofing tools and techniques crates lots of problems to analyze the crucial information. Therefore, this organization has decided to move their database system to a reliable environment to improve data quality and efficiency.
Ethical Challenges: As multiple users can share the same resources, privacy and security is the greatest challenge faced by the information system manger. The users who can get access to the database system can misuse the power (Gray et al. 2013). As a result, crucial information of the organization is lost and can be used for unauthorized purposes. Moreover, if proper authorization is not applied, the retrieved data can be misused.
Due to the absence of proper security protocols, in the year 2014, external business groups GOP (The Guardians of Peace) have steal more than 100 terabytes data comprise of SSN (Social Security Number), movies, salaries and many other organizational information (Sony.co.in, 2016). At last, the organizational authorities gave up and told the users to update their passwords frequently.
Legal Challenges: It is the sole responsibility of the information system manager to keep the crucial data and files of the organization protected. However, due to some loopholes such as the absence of authorization protocol, important information can be lost. This is a greater problem for an organization as unauthorized users can misuse these data (Kasslin et al. 2012). As a result, the organizational authority can take legal actions against the information system manager. All these mess-ups negatively affect the business relationships.
Home depot employees are accused and arrested because of stealing employees’ confidential information from the stored database system of the organization. This kind of issues negatively affect the brand image of the organization and customer satisfaction.
The Access Group is a software developer and consultancy organization based in UK provides solutions for CRM (Customer Relationship Management), ERP (Enterprise Resource Software) and finance solution for the small organizations.
Figure 5: Official Logo of Access Group
(Source: Theaccessgroup.com, 2016)
The two major operations served by the database system of this organization are discussed as below:
CRM Management: In access group, large database system is used to store data and information to manage the interaction with existing and future customers. Customers’ information is stored in a structured way by using the groups like name, company and job title. Through these database system customers, the database administrator of this organization properly analyzes the buying patterns and needs of the customers (Group, T. 2016). Use of this information helps to sustain customers loyalty and can draw more new customers towards their organization. This stored information helps to change the organizational structure to meet these needs successfully so that greater profitability can be achieved.
ERP Solution: Almost 2000 companies depend on the ERP software provided by this organization to make intelligent and timely operation. The advanced database system used in this organization helps to generate scheduled reports by creating automatic workflows, streamline process and strong supplier chain (Group, T. 2016). The ERP solution provided by this organization helps to manage the production, sales inventory, quality management and human resource management. This ERP solution is very important to secure the data stored in the database system by proving authorization and authentication mechanism.
Recently this organization uses traditional approach of the relational database system which offers ERP, CRM, and many finance relations. However, use of cloud database system or non-relational database system can improve the existing performance of the organization. But the use of new database system can pose to some challenges which must be tactfully handled by the organization.
Advantages of NonRelational Database: designing and installation of nonrelational database is very simple and do not have to deal with impedance mismatch between object oriented approach and applications. This kind of database automatically spreads over the servers without changing the application (Charoute et al. 2015). In addition, this type of database system can store structured as well as unstructured data. It supports data replication, so higher availability and disaster recovery can be achieved.
Challenges of NonRelational Database: Non relational database is not so reliable like relational database system and compromises with the performance consistency. Security is a major concern in this kind of database due to lack of encryption facilities, authorization, and authentication protocol.
Advantages of Cloud Database: Cloud database system is very cost effective and can enhance the scalability and security of the database system at larger extent. Data stored in the cloud system can be remotely controlled and accessed (Jagadish et al. 2014). Moreover, the organization do not need additional hardware to maintain this database system. As a result, the operational cost can be reduced.
Challenges of Cloud Database: In the absence of internet, data or files cannot be accessed from the cloud database system which is a greater challenge for any organization. In addition, a specific bandwidth is required to have access to the cloud based system which increases the operational cost of the organization.
Conclusion
From this report, it can be concluded that Use of the database system as a business intelligence tool helps to store the large array of data and information for business applications. The database management system can serve several advantages to the business organization as well as its limitations can lead to the greater challenge for any organization. A case study of a software developer organization based in UK has recognized to analyze the applications of the database system for business benefits. The database system of access group provides integrated CRM, ERP, and finance solution to the small organization of UK. However, use of relational database system can be replaced by cloud database system and nonrelational database system for better and smooth operations. But installation of these new systems needs skilled personnel and expertise to enhance the business operations for the betterment of the organization. Proper use of this database management system can help to transform the crucial data into knowledge which can be used in the business applications. This knowledge management is very necessary to handle huge amount of data and information of the business organization which helps the system manager to make impactful decisions for the organization.
In order to improve the performance of the database management system, the following recommendations should be followed
Scalability: The database and web server should be separated so that database queries can be easily optimized. The organizational authorities should try to avoid the usage of swap files to store and handle large amount of data and information easily.
Hardware Configuration: The RAM size on the server should be increased, so huge amount of data can be obtained which will allow the server to handle multiple users at the same time. Instead of SATA drivers, SCSI disks should be used to backup the crucial data. Therefore, information can be obtained in case of system failure.
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