A database is an organized collection of data. A relational database, more restrictively, is a collection of schemas, tables, queries, reports, views, and other elements. Database designers typically organize the data to model aspects of reality in a way that supports processes requiring information, such as (for example) modelling the availability of rooms in hotels in a way that supports finding a hotel with vacancies.
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A database-management system (DBMS) is a computer-software application that interacts with end-users, other applications, and the database itself to capture and analyze data. A general-purpose DBMS allows the definition, creation, querying, update, and administration of databases.
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A database is not generally portable across different DBMSs, but different DBMSs can interoperate by using standards such as SQL and ODBC or JDBC to allow a single application to work with more than one DBMS. Computer scientists may classify database-management systems according to the database models that they support; the most popular database systems since the 1980s have all supported the relational model - generally associated with the SQL language. Sometimes a DBMS is loosely referred to as a "database".
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Terminology and overview
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Formally, a "database" refers to a set of related data and the way it is organized. Access to this data is usually provided by a "database management system" (DBMS) consisting of an integrated set of computer software that allows users to interact with one or more databases and provides access to all of the data contained in the database (although restrictions may exist that limit access to particular data). The DBMS provides various functions that allow entry, storage and retrieval of large quantities of information and provides ways to manage how that information is organized.
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Because of the close relationship between them, the term "database" is often used casually to refer to both a database and the DBMS used to manipulate it.
Outside the world of professional information technology, the term database is often used to refer to any collection of related data (such as a spreadsheet or a card index). This article is concerned only with databases where the size and usage requirements necessitate use of a database management system.
Existing DBMSs provide various functions that allow management of a database and its data which can be classified into four main functional groups:
Data definition – Creation, modification and removal of definitions that define the organization of the data.
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Update – Insertion, modification, and deletion of the actual data.
Retrieval – Providing information in a form directly usable or for further processing by other applications. The retrieved data may be made available in a form basically the same as it is stored in the database or in a new form obtained by altering or combining existing data from the database.
Administration – Registering and monitoring users, enforcing data security, monitoring performance, maintaining data integrity, dealing with concurrency control, and recovering information that has been corrupted by some event such as an unexpected system failure.
Both a database and its DBMS conform to the principles of a particular database model. "Database system" refers collectively to the database model, database management system, and database.
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Physically, database servers are dedicated computers that hold the actual databases and run only the DBMS and related software. Database servers are usually multiprocessor computers, with generous memory and RAID disk arrays used for stable storage. RAID is used for recovery of data if any of the disks fail. Hardware database accelerators, connected to one or more servers via a high-speed channel, are also used in large volume transaction processing environments. DBMSs are found at the heart of most database applications. DBMSs may be built around a custom multitasking kernel with built-in networking support, but modern DBMSs typically rely on a standard operating system to provide these functions.
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Since DBMSs comprise a significant market, computer and storage vendors often take into account DBMS requirements in their own development plans.
Databases and DBMSs can be categorized according to the database model(s) that they support (such as relational or XML), the type(s) of computer they run on (from a server cluster to a mobile phone), the query language(s) used to access the database (such as SQL or XQuery), and their internal engineering, which affects performance, scalability, resilience, and security.
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Applications
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Databases are used to support internal operations of organizations and to underpin online interactions with customers and suppliers (see Enterprise software).
Databases are used to hold administrative information and more specialized data, such as engineering data or economic models. Examples of database applications include computerized library systems, flight reservation systems, computerized parts inventory systems, and many content management systems that store websites as collections of webpages in a database.
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Comparison with competitive intelligence
Though the term business intelligence is sometimes a synonym for competitive intelligence (because they both support decision making), BI uses technologies, processes, and applications to analyze mostly internal, structured data and business processes while competitive intelligence gathers, analyzes and disseminates information with a topical focus on company competitors. If understood broadly, business intelligence can include the subset of competitive intelligence.
Comparison with business analytics
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Business intelligence and business analytics are sometimes used interchangeably, but there are alternate definitions. One definition contrasts the two, stating that the term business intelligence refers to collecting business data to find information primarily through asking questions, reporting, and online analytical processes. Business analytics, on the other hand, uses statistical and quantitative tools for explanatory and predictive modelling.
In an alternate definition, Thomas Davenport, professor of information technology and management at Babson College argues that business intelligence should be divided into querying, reporting, Online analytical processing (OLAP), an "alerts" tool, and business analytics. In this definition, business analytics is the subset of BI focusing on statistics, prediction, and optimization, rather than the reporting functionality.
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Applications in an enterprise
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Business intelligence can be applied to the following business purposes, in order to drive business value.
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Measurement – program that creates a hierarchy of performance metrics (see also Metrics Reference Model) and benchmarking that informs business leaders about progress towards business goals (business process management).
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Analytics – program that builds quantitative processes for a business to arrive at optimal decisions and to perform business knowledge discovery. Frequently involves: data mining, process mining, statistical analysis, predictive analytics, predictive modeling, business process modeling, data lineage, complex event processing and prescriptive analytics.
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Reporting/enterprise reporting – program that builds infrastructure for strategic reporting to serve the strategic management of a business, not operational reporting. Frequently involves data visualization, executive information system and OLAP.
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Collaboration/collaboration platform – program that gets different areas (both inside and outside the business) to work together through data sharing and electronic data interchange.
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Knowledge management – program to make the company data-driven through strategies and practices to identify, create, represent, distribute, and enable adoption of insights and experiences that are true business knowledge. Knowledge management leads to learning management and regulatory compliance.
In addition to the above, business intelligence can provide a pro-active approach, such as alert functionality that immediately notifies the end-user if certain conditions are met. For example, if some business metric exceeds a pre-defined threshold, the metric will be highlighted in standard reports, and the business analyst may be alerted via e-mail or another monitoring service. This end-to-end process requires data governance, which should be handled by the expert.
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