SIGNIFICANCE OF THE DATABASE ENVIRONMENT - Database Design and Development: An Essential Guide for IT Professionals - page 81

When a customer order is received, the order entry department initiates recording
of order data. The order fulfillment department adds fulfillment data. The shipping
department records shipment data. All of these data complete the information on
an order. When users share information through a database, they have complete
information about each order.
Consistent Information. When you record each data element only once and store
it in only one place in the database, you reduce data redundancy. What is the advan-
tage of eliminating data redundancy? When one department is looking for infor-
mation about a particular invoice, every other department looking for information
about that invoice will find the same information. If the total amount of the invoice
is $2000, everyone retrieving that information from the database will find the
amount to be $2000. In a database environment, all users will share consistent infor-
mation. Chances of errors in reporting and calculations are greatly reduced when
users share information that is consistent.
Better Customer Service. Sharing of complete and consistent information results
in better customer information. When a customer contacts the customer service
department, the service representative has access to complete information about
the order relating to which the customer has questions. The service representative
also has access to prior orders, the customer's buying patterns, and the customer's
outstanding balances. The service representative can help the customer with proper
responses because of information sharing.
Support for Business Processes. We come back to the business processes that
various departments perform to carry out the mission of an organization. Clearly,
each department requires information to complete its processes. Processes cannot
be performed without information. A substantial part of the information needed
for completing a particular process comes from other processes performed else-
where in the organization. Sharing of information enables users to complete all the
business processes.
Enabling Uniform Applications. Information sharing is a first step toward
uniform computer applications to support the different business processes. All infor-
mation in a database environment comes from the organization's database. Nonre-
dundant data are stored with uniform standards in the database. The formats are
uniform; the naming conventions are standardized. In a database environment, the
database feeds data to all applications. Applications are developed around the data-
base. Therefore, it is easier to develop uniform applications for various groups of
users. Inventory control and order entry applications can easily have the same input
formats, similar output reports, and standard navigation in the user interface.
Promotion of Collaboration. Information sharing promotes an atmosphere of
collaboration among the several divisions and departments. All share the same data.
Turf wars over data ownership are greatly minimized. Both information sharing and
uniform applications motivate users across departments to come together and col-
laborate. When users complete processing through collaboration, productivity
increases and shows up in improved profitability.