Data Models
Database Development
The first step in database development is database analysis, in which
we determine user requirements for data and develop data models to
represent those requirements.
Evolution of Database technologies
Hierarchical Database Model Network Database Model
files are organized in a top-down structure that each file can be associated with an arbitrary
resembles a tree or genealogy chart number of other files
Hierarchical Database Model
Node ID Parent ID Node Type Data
1 NULL Company "TechCorp"
2 1 Department "IT"
3 1 Department "HR"
4 2 Team "Development"
5 2 Team "Support"
6 3 Team "Recruitment"
7 4 Employee "Alice"
8 4 Employee "Bob"
9 5 Employee "Charlie"
10 6 Employee "David"
11 6 Employee "Emma"
Network Database Model
each file can be associated with an arbitrary number of other files
data was stored using a graph-like structure with records and sets
Example:
A Student can enroll in multiple Courses.
A Course can have multiple Students.
How it is stored:
Student Record → Pointer to "Enrolls In" set.
Course Record → Pointer to "Enrolls In" set.
Set → Contains the relationship between Student and Course records.
Record Physical Address Pointer to Related Set/Record
Student: John Block 001 Block 005 (Enrolls In)
Course: CS101 Block 002 Block 005 (Enrolls In)
Enrolls In Set Block 005 Block 001 Block 002
Relational Database Model Object Oriented Database Model
organizes data in the form of tables and
relationships among them.
stores data as objects rather than rows and
tables.
Multidimensional Databases
form the basis for data warehouses
allow us to view data in the form of cubes or a star schema
multidimensional cube view multidimensional star schema view
Why is Relational Model Most Commonly
Used Database model
• Tabular Structure
• SQL (Structured Query Language)
• Data Integrity
• Normalization
• ACID Properties
• Widespread Adoption
New models like NoSQL are becoming popular for specific use cases (like big data and unstructured data),
the Relational Model remains the most widely adopted and reliable database model in the industry.
Scenario:
• John owns a small retail store called "Techie Gadgets" that sells electronic products such as smartphones,
laptops, and accessories.
• John does the accounting to manage the store’s financial records, track sales, and handle payments.
• The system records transactions, generates invoices, manages inventory, and tracks employee payroll.
• John also has several suppliers who provide the products, and each supplier has a different payment
term.
• One day, a customer purchases a laptop for • John regularly reviews the financials by
$800 and pays via credit card. The sale is generating financial reports , including the
recorded, and an invoice is generated. The income statement, balance sheet, and cash
system automatically updates the inventory to flow statement. He also tracks payroll, as John
reflect the sale and deducts the laptop from has employees who are paid bi-weekly. It needs
the stock. At the same time, the system also to calculate deductions, taxes, and generates
checks the available balance for accounts paychecks accordingly.
payable, as John still owes $200 to a supplier
who provided the laptop.
• John needs to ensure that the system is updated correctly with all transactions, including the sale
to Lisa, the supplier payment, and the employee payroll.
Accounting Information System
• An Accounting Information System (AIS) is a set of
processes and technologies used to collect, store, manage,
and process financial data. Its main components are:
Example of AIS in Action
Imagine a retail business that sells electronics. The AIS would be used to:
• Record sales transactions: When a customer buys a product, the system records
the transaction, updates the sales ledger, and adjusts inventory levels.
• Generate invoices: After a sale, an invoice is automatically created and sent to
the customer.
• Track accounts receivable: The system tracks customer payments, updating the
balance in accounts receivable.
• Process payroll: The AIS calculates and processes employee salaries, taxes, and
deductions.
• Prepare reports: The system can generate monthly financial statements, showing
revenue, expenses, and profit margins.
Entities
Person Supplier Product Accounts
Individuals working for the • External entities that • Products that are Financial records used to
business, Customers, provide goods and services produced/procured categorize transactions
Owner/Mgmt Committee to the business. (Cash, Accounts Receivable,
members Accounts Payable).
Transaction Payment Inventory Document (Invoice)
A business event that affects The settlement of amounts Goods held by the company A document issued to
the financial status of the owed by the business for sale or use in its customers, detailing the
company (sales, purchases, operations. goods or services provided
payments) and the payment due.
Payroll Tax Financial Reports
Payments to be made to The amount due to the Summarized financial
employees including the government based on the information
taxes to be deducted company’s transactions or
income
