SIGNIFICANCE OF THE DATABASE ENVIRONMENT - Database Design and Development: An Essential Guide for IT Professionals - page 68

essential for the effectiveness and, sometimes, even for the very survival of an orga-
nization. Let us view the database environment in the context of the organization
that it serves. Where exactly does the database fit in the organization? And for what
purpose? If the database exists for the purpose of providing information to the users
within the organization, who are these users? What types of information do they
want? If the database environment enables information sharing, what benefits
accrue to the users? Is a database system indispensable for today's enterprise? If
so, why and how? Let us find answers to such questions.
ORGANIZATIONAL CONTEXT
Consider why a database environment must exist in an organization. Each organi-
zation has its goals and objectives, the very reason for its existence. People in the
organization perform various functions to achieve the goals and objectives. A
banking company exists to provide banking services to customers. A medical center
exists to provide health care services to patients. A manufacturing company exists
to make products and sell them. Primarily, in each of these companies, a database
system is there to support the core business of the company by making the neces-
sary information available.
Companies need information to run their businesses. The database system pro-
vides that information. Simplistic as this may sound, the relevance of a database
system in an organization needs to be explored and appreciated. At this stage, while
we are preparing to study the development of database systems, the contextual place
of a database system in an organization is especially critical. We need to appreciate
the reasons for the special efforts for developing database systems. First, let us
observe what happens in each organization and how the database system is tied to
what happens there.
Core Business
Notice the numerous activities in a company. For example, look at the activities in
a car rental business. Different departments are engaged in various activities.
Consider one department in this company. What are the activities in the department
that manages the fleet? This department studies the demand for different types of
cars. The department examines the usage and status at individual branches. It places
orders to replace cars that need to be retired soon. All these and many more activ-
ities within the fleet management department happen for the purpose of support-
ing the core business of the car rental company, which is renting cars to customers.
Take another department in the company. The servicing department's activities are
focused on keeping each car in top condition. Each car must be thoroughly checked
after each rental and maintained. Again, the activities of the servicing department,
although different from those of fleet management, are still happening for the
purpose of supporting the core business of the car rental company, namely, renting
cars to customers.
Consider another organization, say, a medical center. Here the core business is
treating patients—inpatients and outpatients. The pharmacy department in the
medical center keeps stock of the required drugs and dispenses them to the patients