Executive Summary
The modern business environment is characterized by the increased use of information technology and data comprise an essential component of the modern information systems. Database management systems are softwares that were developed with the objective of creating, storing and retrieval of data with ease. The database management systems commonly abbreviated as (DBMS) are software systems that can easily be updated with new information with ease. They have been essential in the use of information systems because they link the end applications with the end users of a database. Additionally, unlike the traditional methods of filing where data was easily lost and hard to retrieve, DTBS stores information in an organized manner. Wal-Mart is among the largest multinational outlets and it has one of the largest databases approximated as one-half of a petabyte. The organization databases are managed by NCRs Teradata division, which announced that the organization’s systems can scale upwards without a challenge. The organization has developed an effective database management system that integrates different aspects of the organization’s operations in a secure manner.
Introduction
A database management system commonly abbreviated as DBMS represents a software system that is used in the creation of databases (Dhawan, 2010). From database management system, the users and programmers are able to establish an effective system for organization, creation, reading and management of data fed into the system. Dhawan (2010) believes that it operates as a link between the essential servers that act as an interface that link users to application programs that facilitate the management of data. Wal-mart is a major global retail and it has been a major success and effective management of data is one of the major factors that have led to its success. The company has shown the benefits of leveraging massive volumes of data, especially in regard to customers’ details. The organization has developed database systems that facilitate the management of simply aspects of the business operations. For instance, the organization has developed database systems for all the stakeholders such as customers, employees, suppliers and creditors among others, which has enabled its operations effectively.
Database Management
The database management system facilitates in the essential roles of acting as an interface that links the end applications or end users to a database (Ezeoha & Amaeshi, 2010). Database Management System is used in the management of three items comprising of data, database and accessibility of data that is locked and modified in a process that has a database schema defining the logical structure of a database (Guo, 2015). Further, Pathak (2008) viewed the three components of a Database Management System to form the foundation of how concurrency, data integrity, security and patterned administration procedures are conducted within a database. For instance, in the case of Wal-Mart, it contracted NSR Corp and the organization has been a success in developing secure database that ensure integrity of the system and effective administration procedures. As a result, the organization's operations are enhanced because employees are able to use it effectively (Hellman & Cesto, 2015). Tokenova (2015) argued that database management plays an imperative role during the auditing of the activities in an organization.
Benefits and Challenges of Database Management Systems
The Database Management Systems have benefits that are associated with their use in the business set-up. However, Dhawan (2010) noted that few challenges are also associated with them considering that the benefits outweigh the challenges. Some of the common benefits associated with database management systems comprise of those represented below.
Controlling Redundancy
The DBMS is different from the file system where an application contains its own files that are not shared among multiple applications. The file system results in considerable redundancy for the data stored that results to uneconomical utilization of the storage space available (Dhawan, 2010). However, with the database system, Ezeoha & Amaeshi (2010) added that the problem is reduced by the ability to organize the data in a shared dataset which prevents repetition of similar files saving the storage space. There is a need to understand the significance of database system with respect to utilization of space and size of data being stored.
Minimizing Instances of Inconsistency
With the traditional file system, there are numerous inconsistencies that have to be addressed. This occurs in terms of the duplication of the data stored and the variations in one site that transits to other sites. In such cases, Vodák, Soviar & Lendel (2013) agreed with earlier findings that the data is considered inconsistent that can be addressed by removing cases of redundancy. The database is considered inconsistent when it presents information that is considered incorrect or conflicting. The instances of inconsistent information are noted as confusing and challenging, hence should be eliminated in the database. The success of Walmart has been enhanced with the effective management of data as compared to other organizations. The effective management of data at Walmart by NSR Corp has enabled the organization to develop consistent data, especially on customer records. Traditional models of data management adopted other organizations are not consistent, which has given Walmart a competitive edge in the market.
Waxman & Morrison (2008) highlighted that the centralized database systems prevents occurrence of inconsistencies through the organization of the data sets into a way that reduces the chances for inconsistent data formation. The data redundancy is the main cause of inconsistency considering that it influences the quality of data stored. Through reduction of redundancy, there are less chances of implementing a database that has inconsistent data. Therefore, database management system helps in preventing the occurrence of inconsistent data.
Figure 1: Benefits of Database Management System
Source: (Waxman and Morrison, 2008)
Sharing of Information and High Quality Data
Databases are important in the storage of data and management since it allows the sharing of information by multiple users in different locations. Many users can retrieve or access the information from different sources and locations, making it an effective way of managing data for an organization making the teams effective in retrieving the information required (Waxman & Morrison, 2008). In addition, applications can be developed without necessarily creating new stored files for use. Jenkinson (2006) emphasized that the standardized data in the database make it easier to upgrade the system, backup and migration or interchange of the available data for the organization.
Benefits of Effective Database Management at Walmart
The success of Walmart is significantly attributed to its effective supply chain management, which heavily depends on its database. The success of the organization’s database is associated with the massive amount of relevant data in relation to various aspects of its operations. In numerous cases, organizations fail to maintain effective system that ensures the maintenance of relevant data, which creates redundancy of the data stored in the database. Additionally, the success of the Walmart database management system is associated with the highest levels of integrity through various measures employed by SNR Corp, the organization that manages and maintains the organization’s databases. The success of the organization’s supply chain is significantly attributed to the existing channels of information sharing that have been established within the database. As a result, all decisions in the supply chain are based on solid information that forms the basis of decision making.
Challenges of Database management System
Despite the advantages or benefits cited earlier, the database management system has disadvantages that reduce the occurrence of the proposed benefits. The main challenges associated with the database system comprises of the complexity involved (Peters, 2016). The complex nature of the database may hinder teams and professionals from applying the database system in management of data. Considering its development, Peters (2016) added that it is considered that the DBMS are large in size due to the volume of data needed, security systems installed and other components that a DBMS comprise. Waxman & Morrison (2008) concluded that the challenge of cost is significant in the database management system where it is dependent on the environment, size and functionality required for desired results with an added annual maintenance cost.
Technical, Ethical and Legal Challenges of DBMS
Technical Challenges
There are many technical challenges associated with development, maintenance, implementation and running of database management systems. Much of the technical challenge is associated with the required knowledge and experience that makes it have a limited number of professionals in the line of database management system development. Cooper & James (2009) identified another crucial technical consideration that all database development specialists should be concerned with is the security of the database system. Jenkinson (2006) noted that organizational database security may affect the entire business performance considering that these organizations should safeguard its data and protect the users.
5.2 Ethical Challenges of Database
According to the views expressed by Power (2003), the large volume of data fed into the database comprises of crucial information that belongs to the users. For example, a business organization will store large volumes of their customer data, which is maybe vulnerable to third parties when not safeguarded effectively. With the database comprising of large volumes of data, Tokenova (2015) noted that the organization developing the database should be cautious regarding the data protection and privacy of the consumers.
Legal Challenges of Database Management Systems
In the wake of technology, organizations are set to abide by a given legal framework to ensure that their activities are in line with the legal requirement. For this reason, the law sets clear instructions to organizations to ensure the privacy of their customers’ data and protect the data in the protection of privacy and data regulations (Waxman & Morrison, 2008). This is a requirement that must be met by an organization that intends to develop a database. Abiding by this regulation results to extra expenses on ensuring that the database management system is properly safeguarded to prevent leakage of information to unauthorized individuals or groups.
Database and Business Intelligence
Databases are considered an important source of business intelligence, considering the large volumes of data that is stored. Business Intelligence is driven by technology and innovation that the business utilizes in building a competitive advantage in the market (Guo, 2015). It informs the business on the customer preference, their desires, challenges and weaknesses in its operations. The database comprises of high volume of user information that can act as an intelligent concept for the business.
Figure 2: Business Intelligence Model in Database
Source: (Guo, 2015)
In addition, Guo (2015) argues that businesses tend to store customers’ data in the database where they can review the consumption rate, behavior of consumers towards certain products or brand that can be integrated in the business decision making for strategic marketing formulae (Vodák, Soviar & Lendel, 2013). From both internal and external sources, the business can acquire vital information that can help in the development of strategic plans for its survival.
Challenges Facing Wal-Mart Database Management Systems
In the recent past, Wal-Mart has experienced challenges in the management of its relationship with various stakeholders. For instance, the organization has experienced significant challenges in the management of its employees. Some of the challenges are associated with increased risks associated with increased cyber crimes that can alter the content of a database, which affects the integrity of the stored data and information. Additionally, the technical challenges associated with big data have affected numerous organizations and Walmart is not an exception. However, Walmart has subcontracted SNR Corp, which oversees all the technicalities and maintenance of integrity of the organization’s database. Ethical issues are not of significant challenge to the organization due to effective management of the subcontracted organization. However, ethical issues only arise from the non-implementation of the proposals that arise from the use of data from the database, which has caused the deteriorating of the stakeholder relationship with the firm.
Conclusion
The report was aimed at examining the significance of database management system in the business setting. The majority of the organizations that seek to establish competitive advantage and high performance must devise strategies to develop effective frameworks through efficient management of their data. According to research conducted by Cooper & James (2009), organizational needs should be identified through management of data that helps in building correlational relationship in the determination of ways of enhancing differentiated performance. Waxman & Morrison (2008) concluded that database management systems ought to experience both benefits and challenges that influence its performance. For instance, in the case of Walmart, the success of the organization is significantly attributed to the effective database management systems that facilitate information sharing. However, with the increase in cyber crimes the organization needs to employe solid measures to ensure the integrity of the data in its database systems.
Recommendations
Qualified and experienced developers should develop secure and safe databases that promote security of the stored data. For instance, Walmart has subcontracted SNR Corp for the maintenance of its database management systems.
Database management systems should be used in influencing decision making for organization by utilizing the business intelligence obtained from the customers’ data on behavior in the database. As such, they have been instrumental in Walmart’s success, especially in enhancing its supply chain management.
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