Chapter 17

Database Design Using the REA Data Model

17-1
Copyright © 2012 Pearson Education
 Learning Objectives

 Discuss the steps for designing and implementing a database system.

 Use the REA data model to design an AIS database.

 Draw an REA diagram of an AIS database.

 Read an REA diagram and explain what it reveals about the business
activities and policies of the organization being modeled.

Copyright © 2012 Pearson Education 17-2

 Database Design Process

System Conceptua
Analysis l Design

Physical
Design

Implementation Operation &

& Conversion Maintenance

Copyright © 2012 Pearson Education 17-3

 The System Analysis Process
 Systems Analysis
 Initial planning to determine the need for and feasibility of developing a new system
 Judgments about the proposal’s technological and economic feasibility
 Identify user information needs
 Define the scope of the proposed new system
 Gather information about the expected number of users and transaction volumes to make
preliminary decisions about hardware and software requirements

 Conceptual Design
 Developing the different schemas for the new system at the conceptual, external, and internal
levels

Copyright © 2012 Pearson Education 17-4

 The System Analysis Process (cont’d)

 Physical Design
 Translating the internal-level schema into the actual database structures that will be
implemented in the new system
 New applications are developed

 Implementation and Conversion

 Includes all the activities associated with transferring data from existing systems to the new
database AIS
 Testing the new system
 Training employees

 Maintaining the New System

Copyright © 2012 Pearson Education

 Data Modeling

 Process of defining an information system so it represents an

organizations requirements

 Occurs at two stages of the design process:

 System analysis
 Conceptual design

 Data models:
 Data flow diagrams (Chapter 3)
 Flow charts (Chapter 3)
 Entity-relationship diagrams (Chapter 17)

Copyright © 2012 Pearson Education 17-6

 Entity-Relationship Diagrams

 Used to graphically represent a database schema

 Depicts entities
 Anything an organization wants to collect information about

 Relationships between entities

Copyright © 2012 Pearson Education 17-7

 E-R Diagram Variations

Copyright © 2012 Pearson Education 17-8

 Resources-Events-Agents Diagram

 Developed for designing AIS

 Categorizing entities into:

 Resources
 Things that have economic value

 Events
 Business activities
 Management wants to manage and control

 Agents
 People and organizations that participate in events

Copyright © 2012 Pearson Education 17-9

 REA Diagram Rules

1. Each event is linked to at least one resource that it affects.

2. Each event is linked to at least one other event.

 Types of links (relationships):
 Get events
 Give events
 Participation events

3. Each event is linked to at least two participating agents.

Copyright © 2012 Pearson Education 17-10

 Business Cycle Give–Get Relationships

Copyright © 2012 Pearson Education 17-11

 Revenue Cycle REA Diagram

Copyright © 2012 Pearson Education 17-11

 Developing an REA Diagram

1. Identify the events about which management wants to collect

information.

2. Identify the resources affected by each event and the agents who
participate in those events.
 What economic resource is reduced by the “Give” event?
 What economic resource is acquired by the “Get” event?
 What economic resource is affected by a commitment event?

3. Determine the cardinalities of each relationship.

Copyright © 2012 Pearson Education 17-13

 Cardinalities
 Describe the nature of relationships between entities
 How many instances of one entity can be linked to each specific instance of another entity
 Minimum can be: 0 or 1
 Maximum can be: 1 or Many

Copyright © 2012 Pearson Education 17-14

 Three Types of Relationships

 Relationship type is based on maximum cardinality:

 One-to-One:

 One-to-Many:

 Many-to-Many:

Copyright © 2012 Pearson Education 17-15