Data management is one of the biggest challenges for modern businesses. The more information that enters a company, the harder it is to stay on top of all of it. However, successful owners wouldn’t be where they are if they threw in the towel. They go out of their way to find a solution to solve this problem.


Enter database management systems (DBMSs). A database management system is a program that allows you to store and organize information more easily.


The importance of a DBMS can’t be overstressed. It can be a light at the end of the tunnel for many organizations. For example, it helps optimize performance across the board, increase productivity, and reduce cybersecurity risks.


This article will take a closer look at database management systems. We’ll explore the concept of database management systems, the basic principles of database management systems, and other essential aspects.


Types of Database Management Systems


We’ve defined a “database management system.” Next, it only seems natural to kick this introduction to database systems off with an examination of the types of software that address this issue.


Hierarchical DBMS


Much of today’s world is about hierarchies. There are hierarchies in your family, in the sequence of actions when starting a car, and in many other aspects of life.


Hierarchy also permeates data in the form of hierarchical database management systems. These solutions typically use tree-like formats to organize data from top to bottom or from bottom to top. Each approach is characterized by “parent and children” information.


Regardless of the approach, one thing’s for sure – children can’t have multiple parents, but parents can have multiple children. The same rings true for data points, meaning they can’t have three or four “parents.”


Network DBMS


A network database management system is similar to the hierarchical type. However, the two aren’t carbon copies of each other. The biggest difference is that “child” data can have more “parents” in a network DBMS. It allows IT professionals to accommodate complex information clusters.


Relational DBMS


The DBMS market is expected to soar to over $150 billion by 2030. You might think that such a valuable industry is only home to advanced solutions, but that’s not quite true.


Relational database management systems have a relatively simple premise – organizing data in columns and rows. In this respect, they work like Microsoft Excel and some other basic programs.


Object-Oriented DBMS


Object-oriented models use, well, models. They store all sorts of user information in structures known as classes.


NoSQL DBMS


Google and other internet giants process billions of terabytes of data daily. They need a robust database management solution that lets them stay on top of such vast quantities.


Salvation comes in the form of NoSQL. This system is incredibly scalable and flexible because it doesn’t require data set combinations. Therefore, it’s perfect for large-scale, big-data operations.


NewSQL DBMS


Finding a perfect database management system sometimes feel like looking for a needle in a haystack. However, it becomes an easier task if you have clear priorities. If you want a platform that combines the scalability of NoSQL and ACID compliance, check out NewSQL. It offers unrivaled data integrity, which also increases security.


Components of a Database Management System


Our introduction to database management systems has covered the DBMS definition, which answers the question “What is DBMS?” We’ve also explored various types of database management systems. Now let’s delve into the components of these solutions.


Database Engine


The engine of a database is like the foundation of a house. This core element processes every information and query that enters the system.


Data Definition Language (DDL)


You can’t have a house without a foundation, and you can’t build one without a roof either. That’s how important a DDL is to a database. It ensures pieces of information can interact with each other and facilitates data retrieval. It also allows you to modify certain parts of the structure.


Data Manipulation Language (DML)


The four basic operations of a database system are create, read, update, and delete. The DML is responsible for executing these tasks.


Data Control Language (DCL)


You’ve constructed the foundation of your house, but you need to keep intruders from entering with a door. A database also needs a door, and a DCL is the best solution. It determines who can access your system.


Transaction Management


Internal transactions are common in all databases. A transaction management system controls them to ensure ACID compliance.


Database Recovery


Database failure is like a devastating house fire that destroys everything – you don’t give up and do nothing. Instead, you rebuild the structure.


Database recovery works the same. It’s a set of tools that enables you to reconstruct your database from scratch.


Applications of Database Management Systems


A DBMS, especially a DBMS full form, has a wide range of applications. The technology is as versatile as a hybrid vehicle, meaning you can use it practically anywhere. Here’s where you can regularly find database management systems:

  • Banking and finance – Financial institutions need a fully functional DBMS to process loan, account, and deposit information.
  • Healthcare – Hospitals and other healthcare organizations have numerous patient records. Managing them is much easier with a DBMS.
  • Telecommunications – Have you ever thought about how your cell phone carrier maintains your information and that of millions of others? The answer lies in a DBMS. It stores phone records and bills, among other crucial information.
  • Education – If you’re a student, your school or college needs to keep track of your attendance, marks, and assignments. The best way to do so is to set up a database management system.
  • E-commerce – How do various e-commerce platforms streamline your shopping experience? They implement a DBMS to recommend products and services, record your habits, and memorize your payment information.
  • Government and public sector – The applications of database management systems for government are virtually endless. These include national security, voter registration, and social security.

Principles of Database Management Systems


Although there are numerous database management systems, they take the same approach to storing and organizing information. Each platform needs to follow these principles:

  • Data independence – This principle is pretty self-explanatory. If you can change a piece of information in your database, your structure is independent.
  • Data consistency – You might store the same folder in different locations on your computer for backup purposes. You should be able to do the same with data in your database without altering the information. If the data appears differently in various locations, it’s inconsistent.
  • Data integrity – The last thing you want is to work with corrupt information. It can affect the rest of the database and grant unauthorized personnel access to your data. But none of this is an issue if your system has high data integrity.
  • Data security – Data security is like home security – you don’t want invaders to steal your possessions. On the same note, you don’t want cyber criminals to tap into the system and compromise sensitive information.
  • Data recovery – If your system shuts down unexpectedly, you need to be able to retrieve your information in its last saved state.
  • Concurrency control – A database management system isn’t designed to perform just one operation. It can run numerous tasks simultaneously, which is why you need concurrency control to manage the execution of those operations.

Examples of Popular Database Management Systems


Here are some of the most common database management systems:

  • Oracle database – A relational system that comes in two versions: cloud and on-premises.
  • Microsoft SQL server – Another relational program, which is built on the SQL architecture.
  • MySQL – Companies with large databases use MySQL to organize and control massive amounts of information.
  • PostgreSQL – This is an object-relational database that complies with the SQL environment.
  • MongoDB – A scalable and flexible system with optimized indexing and queries.
  • IBM Db2 – If you’re looking for a platform developed by a tech giant, IBM Db2 is a great choice. It’s perfect for real-time information analysis.

Notes and Basics of Database Management Systems


To wrap up the discussion about database systems, we’ll cover the basics of database management systems and database management system notes:

  • Importance of data modeling – Just as you tidy up your room to find clothes more easily, you want to model data to retrieve information effortlessly. The process eliminates redundant details for easier management.
  • Database normalization – Another great way to reduce errors in a DBMS is to perform database normalization. It allows for accurate modifications and helps improve your workflow.
  • Indexing and query optimization – By indexing the data in your system, you decrease the information your queries need to analyze. In turn, this leads to higher database efficiency.
  • Backup and recovery strategies – IT professionals must have sound backup and recovery strategies in place. They reduce downtime associated with information loss after shutdowns or errors.
  • Database administration and maintenance – A database administrator should formulate the overall strategy for the entire system. It simplifies maintenance and lowers the risk of errors.

The Concept of DBMS Demystified

Much of cutting-edge technology is an enigma, but hopefully, that’s no longer the case with database management systems. Hierarchical, network, relational, and other systems are instrumental in organizing information and making it more accessible. The onus is on IT professionals to master each solution applicable to their industry to improve their company’s workflows.


Future trends may put extra emphasis on this need. As most databases migrate to the cloud and organizations prioritize cyber security, IT experts will need to adapt their approach to database management.

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Sage: The ethics of AI: how to ensure your firm is fair and transparent
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Mar 7, 2025 3 min read

Source:


By Chris Torney

Artificial intelligence (AI) and machine learning have the potential to offer significant benefits and opportunities to businesses, from greater efficiency and productivity to transformational insights into customer behaviour and business performance. But it is vital that firms take into account a number of ethical considerations when incorporating this technology into their business operations. 

The adoption of AI is still in its infancy and, in many countries, there are few clear rules governing how companies should utilise the technology. However, experts say that firms of all sizes, from small and medium-sized businesses (SMBs) to international corporations, need to ensure their implementation of AI-based solutions is as fair and transparent as possible. Failure to do so can harm relationships with customers and employees, and risks causing serious reputational damage as well as loss of trust.

What are the main ethical considerations around AI?

According to Pierluigi Casale, professor in AI at the Open Institute of Technology, the adoption of AI brings serious ethical considerations that have the potential to affect employees, customers and suppliers. “Fairness, transparency, privacy, accountability, and workforce impact are at the core of these challenges,” Casale explains. “Bias remains one of AI’s biggest risks: models trained on historical data can reinforce discrimination, and this can influence hiring, lending and decision-making.”

Part of the problem, he adds, is that many AI systems operate as ‘black boxes’, which makes their decision-making process hard to understand or interpret. “Without clear explanations, customers may struggle to trust AI-driven services; for example, employees may feel unfairly assessed when AI is used for performance reviews.”

Casale points out that data privacy is another major concern. “AI relies on vast datasets, increasing the risk of breaches or misuse,” he says. “All companies operating in Europe must comply with regulations such as GDPR and the AI Act, ensuring responsible data handling to protect customers and employees.”

A third significant ethical consideration is the potential impact of AI and automation on current workforces. Businesses may need to think about their responsibilities in terms of employees who are displaced by technology, for example by introducing training programmes that will help them make the transition into new roles.

Olivia Gambelin, an AI ethicist and the founder of advisory network Ethical Intelligence, says the AI-related ethical considerations are likely to be specific to each business and the way it plans to use the technology. “It really does depend on the context,” she explains. “You’re not going to find a magical checklist of five things to consider on Google: you actually have to do the work, to understand what you are building.”

This means business leaders need to work out how their organisation’s use of AI is going to impact the people – the customers and employees – that come into contact with it, Gambelin says. “Being an AI-enabled company means nothing if your employees are unhappy and fearful of their jobs, and being an AI-enabled service provider means nothing if it’s not actually connecting with your customers.”

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Reuters: EFG Watch: DeepSeek poses deep questions about how AI will develop
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Feb 10, 2025 4 min read

Source:

  • Reuters, Published on February 10th, 2025.

By Mike Scott

Summary

  • DeepSeek challenges assumptions about AI market and raises new ESG and investment risks
  • Efficiency gains significant – similar results being achieved with less computing power
  • Disruption fuels doubts over Big Tech’s long-term AI leadership and market valuations
  • China’s lean AI model also casts doubt on costly U.S.-backed Stargate project
  • Analysts see DeepSeek as a counter to U.S. tariffs, intensifying geopolitical tensions

February 10 – The launch by Chinese company DeepSeek, opens new tab of its R1 reasoning model last month caused chaos in U.S. markets. At the same time, it shone a spotlight on a host of new risks and challenged market assumptions about how AI will develop.

The shock has since been overshadowed by President Trump’s tariff wars, opens new tab, but DeepSeek is set to have lasting and significant implications, observers say. It is also a timely reminder of why companies and investors need to consider ESG risks, and other factors such as geopolitics, in their investment strategies.

“The DeepSeek saga is a fascinating inflection point in AI’s trajectory, raising ESG questions that extend beyond energy and market concentration,” Peter Huang, co-founder of Openware AI, said in an emailed response to questions.

DeepSeek put the cat among the pigeons by announcing that it had developed its model for around $6 million, a thousandth of the cost of some other AI models, while also using far fewer chips and much less energy.

Camden Woollven, group head of AI product marketing at IT governance and compliance group GRC International, said in an email that “smaller companies and developers who couldn’t compete before can now get in the game …. It’s like we’re seeing a democratisation of AI development. And the efficiency gains are significant as they’re achieving similar results with much less computing power, which has huge implications for both costs and environmental impact.”

The impact on AI stocks and companies associated with the sector was severe. Chipmaker Nvidia lost almost $600 billion in market capitalisation after the DeepSeek announcement on fears that demand for its chips would be lower, but there was also a 20-30% drop in some energy stocks, said Stephen Deadman, UK associate partner at consultancy Sia.

As Reuters reported, power producers were among the biggest winners in the S&P 500 last year, buoyed by expectations of ballooning demand from data centres to scale artificial intelligence technologies, yet they saw the biggest-ever one-day drops after the DeepSeek announcement.

One reason for the massive sell-off was the timing – no-one was expecting such a breakthrough, nor for it to come from China. But DeepSeek also upended the prevailing narrative of how AI would develop, and who the winners would be.

Tom Vazdar, professor of cybersecurity and AI at Open Institute of Technology (OPIT), pointed out in an email that it called into question the premise behind the Stargate Project,, opens new tab a $500 billion joint venture by OpenAI, SoftBank and Oracle to build AI infrastructure in the U.S., which was announced with great fanfare by Donald Trump just days before DeepSeek’s announcement.

“Stargate has been premised on the notion that breakthroughs in AI require massive compute and expensive, proprietary infrastructure,” Vazdar said in an email.

There are also dangers in markets being dominated by such a small group of tech companies. As Abbie Llewellyn-Waters, Investment manager at Jupiter Asset Management, pointed out in a research note, the “Magnificent Seven” tech stocks had accounted for nearly 60% of the index’s gains over the previous two years. The group of mega-caps comprised more than a third of the S&P 500’s total value in December 2024.

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