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Data are the raw bits and pieces of information with no context. Data can be quantitative or qualitative. Quantitative data is numeric — the result of a measurement, count, or some other mathematical calculation. Qualitative data is descriptive. “Ruby Red,” the color of a 2013 Ford Focus, is an example of qualitative data. By itself, data is not that useful. To be useful, data needs to be given context. For example, if I told you, “15, 23, 14, 85,” you would not have learned anything, but I would have given you data. Conversely, if I told you that 15, 23, 14, and 85 are the numbers of students that had registered for upcoming classes, that would be information. By adding the context — that the numbers represent the count of students registering for specific classes — I have converted data into information.
The goal of many information systems is to transform data into information in order to generate knowledge that can be used for decision-making. In order to do this, the system must be able to take data, put the data into context, and provide tools for search, data manipulation, modification, and deletion. A database is designed for just such a purpose. A database is an organized collection of related information. It is considered an organized collection, because in a database, all data is described and associated with other data. All information in a database should be related as well; separate databases should be created to manage unrelated information. For example, a database that contains information about students should not also hold information about company stock prices. Everyday examples of databases include phone books, a list of songs on a hard disk with the song length, or a list of student names with their birthdates. Additionally, databases are also working behind websites and data-driven web applications, such as the number of student absences.
A database can be composed of many different elements and features. In essence, a database is one or more tables composed of records and fields that hold data.
Databases can be organized in many different ways, and can take many forms. A flat file database is a simple type of database that, at its core, contains a single table of information. A table is a set of data organized into rows and columns with the intersection of a row and column forming a cell. The flat file design places all information into one single table with no information sharing between multiple tables. Therefore, a flat file database does not give a user the ability to view, edit, or manipulate data in two separate tables simultaneously. Additionally, making edits in one table will not change the contents of another. This type of database is best used in situations in which users only need to store, edit, print, or display data. A flat file database can be created using a spreadsheet application. In fact, you can create this type of database using a simple text editor such as Notepad, using commas to separate the columns and paragraph breaks to separate the rows.
The most popular form of database today is the relational database. In a relational database, all the tables are related by one or more fields, so that it is possible to connect all the tables in the database through the field(s) they have in common. Connected tables are advantageous, because the tables and the information contained within them can be searched, edited, manipulated, and stored while working from one file. Relational databases are also able to share information between devices and over networks such as the Internet. In fact, relational databases have come to play a major role on the Internet as they are utilized frequently by web developers to design data-driven websites. Popular examples of relational databases are Microsoft Access, MySQL, and Oracle.
Source: Derived from Chapter 4 of “Information Systems for Business and Beyond” by David T. Bourgeois. Some sections removed for brevity. https://www.saylor.org/site/textbooks/Information%20Systems%20for%20Business%20and%20Beyond/Textbook.html