When storing and analyzing data, firms
tend to use various forms of software. Two prominent but completely
interlinked types of software for capturing and storing data are database
programs and spreadsheet programs.
Databases typically store data in a way that allows you to deal with
each observation (e.g. one employee) at a time. For example, they
can have a screen that displays all the data for one employee. The
actual data tends to be saved in a table-based spreadsheet program
as seen above, where each observation is a row. There are several
specialist database programs, such as VIP and PeopleSoft for HR.
Larger companies often
have special Enterprise Resource Programs (ERPs), where all the data
for the whole company (HR, Finance, Purchasing etc.) is linked in
one database program with various modules. Some common examples of
ERPs are SAP and Oracle. These again save the data in a background
data table.
Special data analysis programs
like SAS then take the raw data organized by any of the above programs
and do complex analyses of the data. Chapter 5 introduces SAS and
Chapters 6 and beyond show you how to implement a variety of data
analyses.