We learned about the role that data and databases play in the context of information systems.
Data is made up of small facts and information without context. If you give data context, then you have
information. Knowledge is gained when information is consumed and used for decision making. A database
is an organized collection of related information. Relational databases are the most widely used type of
database, where data is structured into tables and all tables must be related to each other through unique
identifiers. A database management system (DBMS) is a software application that is used to create and
manage databases, and can take the form of a personal DBMS, used by one person, or an enterprise DBMS
that can be used by multiple users. A data warehouse is a special form of database that takes data from
other databases in an enterprise and organizes it for analysis. Data mining is the process of looking for
patterns and relationships in large data sets. Many businesses use databases, data warehouses, and data-
mining techniques in order to produce business intelligence and gain a competitive advantage.
Study Questions
1. What is the difference between data, information, and knowledge?
2. Explain in your own words how the data component relates to the hardware and software
components of information systems.
3. What is the difference between quantitative data and qualitative data? In what situations could
the number 42 be considered qualitative data?
4. What are the characteristics of a relational database?
5. When would using a personal DBMS make sense?
6. What is the difference between a spreadsheet and a database? List three differences between
them.
7. Describe what the term normalization means.
8. Why is it important to define the data type of a field when designing a relational database?
9. Name a database you interact with frequently. What would some of the field names be?
10. What is metadata?
11. Name three advantages of using a data warehouse.
12. What is data mining?
