Managing Business Information - Assignment Example

Management Executive Summary Database and spreadsheets are regarded as key elements for an organisation. Both of them help an organisation in daily business operation as well as to maintain an uninterrupted business schedule. A spreadsheet can be defined as a computer program, which transforms the computer screen into a piece of paper, where the user can make calculations with ease. It reduces effort of the human being and also, the complexity of repetitive calculation. With the assistance of a spreadsheet, raw data can be entered into a computer system; so that easy and precise analysis can be carried out. Manipulation as well as plotting of data is also possible with the help of few simple commands. Even so, while defining database, it can be outlined as the prime technique for developing an information system in the modern business process. The databases are used in e-commerce and internet based marketing systems. It is very important for information system developers to have detailed knowledge and understanding regarding data structure and data analysis. The spreadsheets and database are highly used by organisations for proper running of their business. However, it is noticed that the use of database is preferred against that of spreadsheets, in present business scenario. The report details the difference between use of database and spreadsheets, along with differences between the two. It also highlights the database and spreadsheets models, which are used in the recent years for development of the informative system in an organisation. The strength and weakness of both the processes are elaborated in the report; so as to determine the best tool used in the present world of management (Baxter, 2006). Table of Contents Executive Summary 2 3 Introduction 4 Spreadsheets 4 Database 4 Part 1 - Types of modelling allowed 4 Database Modelling 4 Part 2 – Type of analysis allowed 6 Part 3 – Strength and weakness 7 Conclusion 7 Recommendations 8 Reference List 9 Introduction Spreadsheets Spreadsheets are used traditionally by accountants to prepare financial budgets and had helped them to identify the financial position of companies. It is the main software for companies, which assist them to track the basis of numerical information and evaluate the same quickly and easily, compared to paper calculations. It is used widely for accounting and financing purposes and also, to record transactions made by the companies. Spreadsheets have helped accountants to replace the manual pages in ledgers, where the income and expenditure are detailed in columns and rows. The users of spreadsheets can build different functionalities, which assist them in understanding data without the need of any mathematical skill. One of the main advantage of the spreadsheet software is that it is customised with macros and buttons and thus, makes it easy for users to understand the process easily (Teorey, Lightston and Nadeau, 2011). Database A database consists of all the information of a record. For example, name, phone number, address, publications ordered, meeting attendance, committee membership and other information, provided in a single database. A database is easy to manage, since all the information is stored in one single source. The limits of a database are not marked by the number of records, but are regarded as the amount of information that is tracked per record. With growth of an organisation, more information is needed to be handled and tracked regarding one record. If any changes are to be made to the database, one can do so through relational database. Thus, database is very important for companies as they play a vital role in accumulating all the information regarding the different entities (Siverstone, 2001). Part 1 - Types of modelling allowed The types of models, which are used in case of spreadsheets and databases, are elaborated in this section of the report. Database Modelling Database models are those types of data models, which are used for determining logical structure of database. The fundamental of database models is that it can store, organize and manipulate the data. The most popular example of a database model is the relational model; this uses a table-based format. The most common data base models are the following: 1) Hierarchical model: The model organises the data in a tree structure. There exist hierarchy in child data and parent data segment. The model, thus, implies that a single record can repeat information, generally in the child data segment. Data given in a series of records requires a set of values, which are attached to the fields. So, the data collects the entire information specific to records, which are depicted in the columns and rows. For creating link between record types, the hierarchical model employs parent-child relationships. These are regarded as the 1: N mapping between the record types. This is executed by using trees, like, the set theory, which is done by employing relational models that is a borrowed version of mathematics (Monahan, 2000). 2) Network Model: The popularity of this type of model overlaps with that of the hierarchical model. The data are naturally modelled with more than one child or parent. The network model permits modelling of many-to-many relationships in the database (Wit and Simson, 2005). The network model consists of sets. A set comprise owner record type: set name, member record type and many more. 3) Relational Model: This database structure is based on relational model, developed by E.F. Codd. It defines the data structures, retrieval operation, storage and integrity constraints. Such a structure constitutes data as well as the relationship that exists between them. The data are organised in the table according to their relationships. The basic feature of the model is the following: a) Each row is different. b) The values that are included are atomic. c) The sequences of rows and columns are insignificant. d) The columns have unique names. (Ragsdale, 2011). 4) Object-Orientated Model: This model adds functionality to the object programming languages. It gives persistent storage for programming languages. The main benefit of the model is that amalgamation of database application and database development into the data model and language environment are done with much ease (Wit and Simson, 2005). Part 2 – Type of analysis allowed The analysis of both database and spreadsheets are done in specific ways, which enrich the information system of companies employing it. Database is safer for analysis than spreadsheets, since the former protects data against any kind of interruption in the system and saves it in the hard drive. The spreadsheet loses each data that is entered, if it is not saved or in case, the computer crashes. Database helps users by easily linking tables that are related together. In this case, relational database rises to prominence and plays a pivotal role in processing of the data entered into the database. Figure 1: Database Life cycle (Source: Ambysoft Inc., 2003) The diagram above indicates the database analysis lifecycle. In the first step of the life cycle, the designer creates specific words for the system, which are needed to be built. Then, a database is designed that is logical, conceptual and consists of physical steps. The following step is implementation and loading. It is possible that database runs on a machine, which does not have the database management system. Thus, the system needs to be installed. The database, after implementation, needs to be evaluated and tested against the specifications that are supplied by the clients. Following is the operation stage, where the company uses the system. The maintenance and evaluation of the data are done by designers and not necessarily do they get the desired result at the first time. Therefore, the company requires changes and fixes problems that are emerging out of the system. The fixture of the system recommends enhancement of the same as well as new requirements. Part 3 – Strength and weakness Both databases and spreadsheets play a vital role in day-to-day functioning of an organisation. They are often tailored for different types of works and thus, are not chosen randomly. The strength and weakness of both are elaborated below: Spreadsheet Database Strength Provides users with a number of automated functions, which can be easily accessible by people without thorough technical knowledge. Strength Involves higher degree of technical processing. Stores data values in tables. Can be written in programming languages. Managed by software programmers. Weakness Stores data value in cells, which is quite cumbersome, when they are used in robust decision making. Weakness It offers a lot of complexity as data is written in SQL codes, which are highly specialized for understanding of technically competent people. Conclusion It can be concluded that use of spreadsheets and database is very important for companies. They not only assist the company in building adequate information, but also enable them to edit, manipulate and construct new data sets. If strengths and weaknesses of both of these are evaluated, it can be inferred that databases are more easily accessible. The technologies used in databases are easily accessible than that in spreadsheets, since the latter needs expertise knowledge to understand the functionality involved (Howe, 2001). Recommendations It is recommended for companies to focus on employing databases, since they work with huge numbers of data, which are, at times, quite cumbersome to manage. Reference List Ambysoft Inc., 2003. Data Modelling. [online] Available at: [Accessed 17 February 2014]. Baxter, R., 2006. The Role of Spreadsheets in Todays Corporate Climate. [online] Available at: [Accessed 17 February 2014]. Howe, D., 2001. Data analysis for database design. California: Elsevier. Monahan, G., 2000. Management decision making: spreadsheet modelling, analysis, and application. New York: Cambridge University Press. Ragsdale, C., 2011. Spreadsheet modelling & decision analysis. Connecticut: Cengage Learning. Siverstone, L., 2001. The data model resource book: a library of universal data models. Canada: John Wiley & Sons. Teorey, T., Lightstone, S, Nadeau, H.V., 2011. Database Modeling and Design: Logical Design. California: Elsevier. Wit, G. and Simson, G., 2005. Data modelling essentials. California: Elsevier. Read More