4.13: Summary
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In this chapter, 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 used to create and manage databases and take the form of a personal DBMS, used by one small business or person versus an enterprise DBMS that multiple users can use. 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, big data, data warehouses, and data-mining techniques to produce business intelligence and gain a competitive advantage.