THE DATABASE APPROACH - Database Design and Development: An Essential Guide for IT Professionals - page 7

Data Systems What is the effect of the technology explosion on the way data is
organized? Over the years, how were businesses organizing data? We just looked at
the way applications have progressed from simpler types toward increasing sophis-
tication. What about data systems?
Manual-Type Records. Very early computer applications worked with data stored
on punched cards and paper tapes. Keypunch operators prepared data on these
primitive media from manual files and records. Computer applications read data
from cards and tapes to prepare reports.
Sequential Files. Improved storage media such as magnetic tapes and early disk
drives enabled application developers to organize data as sequential (or flat) files.
Each file contained data records of the same type arranged sequentially one after
the other, usually in the order in which they were created. Sorting techniques
allowed data records to be resorted in a different sequence.
Databases. Increased sophistication in data storage techniques on hard disk drives
and enhancements to operating systems enabled random and quick access of data.
Data systems moved to a wholly new level. Applications were able to store data in
databases and retrieve data sequentially and randomly.
Demand for Information
Of the two major factors that mutually contributed to the database approach to
computing, so far we have considered the explosive growth of technology. Let us
now turn our attention to the other factor, namely, the escalating demand for infor-
mation. It is not just more information that organizations need. The demand for
information includes several dimensions.
Consider how billing requirements and sales analysis have changed. In the early
years of computing, organizations were happy if they could bill their customers once
a month and review total sales by product quarterly. Now it is completely different.
Organizations must bill every sale right away to keep up the cash flow. They need
up-to-date customer balance and daily and cumulative sales totals by products. What
about inventory reconciliation? Earlier systems provided reports to reconcile inven-
tory or to determine profitability only at the end of each month. Now organizations
need daily inventory reconciliation to manage inventory better, daily profitability
analysis to plan sales campaigns, and daily customer information to improve cus-
tomer service.
In the earlier period of computing, organizations were satisfied with information
showing only current activity. They could use the information to manage day-to-day
business and make operational decisions. In the changed business climate of
globalization and fierce competition, this type of information alone is no longer
adequate. Companies need information to plan and shape their future. They need
information, not just to run day-to-day operations, but to make strategic decisions
as well.
What about the delivery of information now compared to the early days of com-
puting? Today, online information is the norm for most companies. Fast response
times and access to large volumes of data have become essential. Earlier computer