An ER diagram in DBMS (database management systems) is a lot like a storyboard for an animated TV show – it’s a collection of diagrams that show how everything fits together. Where a storyboard demonstrates the flow from one scene to the next, an ER diagram highlights the components of your databases and the relationships they share.
Understanding the ER model in DBMS is the first step to getting to grips with basic database software (like Microsoft Access) and more complex database-centric programming languages, such as SQL. This article explores ER diagrams in detail.
ER Model in DBMS
An ER diagram in DBMS is a tangible representation of the tables in a database, the relationships between each of those tables, and the attributes of each table. These diagrams feature three core components:
- Entities – Represented by rectangles in the diagram, entities are objects or concepts used throughout your database.
- Attributes – These are the properties that each entity possesses. ER diagrams use ellipses to represent attributes, with the attributes themselves tending to be the fields in a table. For example, an entity for students in a school’s internal database may have attributes for student names, birthdays, and unique identification numbers.
- Relationships – No entity in an ER diagram is an island, as each is linked to at least one other. These relationships can take multiple forms, with said relationships dictating the flow of information through the database.
Mapping out your proposed database using the ER model is essential because it gives you a visual representation of how the database works before you start coding or creating. Think of it like the blueprint you’d use to build a house, with that blueprint telling you where you need to lay every brick and fit every door.
Entities in DBMS
An Entity in DBMS tends to represent a real-life thing (like the students mentioned previously) that you can identify with certain types of data. Each entity is distinguishable from the others in your database, meaning you won’t have multiple entities listing student details.
Entities come in two flavors:
- Tangible Entities – These are physical things that exist in the real world, such as a person, vehicle, or building.
- Intangible Entities – If you can see and feel an entity, it’s intangible. Bank accounts are good examples. We know they exist (and have data attributed to them) but we can’t physically touch them.
There are also different entity strengths to consider:
- Strong Entities – A strong entity is represented using a rectangle and will have at least one key attribute attached to it that allows you to identify it uniquely. In the student example we’ve already shared, a student’s ID number could be a unique identifier, creating a key attribute that leads to the “Student” entity being strong.
- Weak Entities – Weak entities have no unique identifiers, meaning you can’t use them alone. Represented using double-outlined rectangles, these entities rely on the existence of strong entities to exist themselves. Think of it like the relationship between parent and child. A child can’t exist without a parent, in the same way that a weak entity can’t exist without a strong entity.
Once you’ve established what your entities are, you’ll gather each specific type of entity into an entity set. This set is like a table that contains the data for each entity in a uniform manner. Returning to the student example, any entity that has a student ID number, name, and birthdate, may be placed into an overarching “Student” entity set. They’re basically containers for specific entity types.
Attributes in DBMS
Every entity you establish has attributes attached to it, as you’ve already seen with the student example used previously. These attributes offer details about various aspects of the entity and come in four types:
- Simple Attributes – A simple attribute is any attribute that you can’t break down into further categories. A student ID number is a good example, as this isn’t something you can expand upon.
- Composite Attributes – Composite attributes are those that may have other attributes attached to them. If “Name” is one of your attributes, its composites could be “First Name,” “Surname,” “Maiden Name,” and “Nickname.”
- Derived Attributes – If you can derive an attribute from another attribute, it falls into this category. For instance, you can use a student’s date of birth to derive their age and grade level. These attributes have dotted ellipses surrounding them.
- Multi-valued Attributes – Represented by dual-ellipses, these attributes cover anything that can have multiple values. Phone numbers are good examples, as people can have several cell phone or landline numbers.
Attributes are important when creating an ER model in DBMS because they show you what types of data you’ll use to populate your entities.
Relationships in DBMS
As your database becomes more complex, you’ll create several entities and entity sets, with each having relationships with others. You represent these relationships using lines, creating a network of entities with line-based descriptions telling you how information flows between them.
There are three types of relationships for an ER diagram in DBMS:
- One-to-One Relationships – You’ll use this relationship when one entity can only have one of another entity. For example, if a school issues ID cards to its students, it’s likely that each student can only have one card. Thus, you have a one-to-one relationship between the student and ID card entities.
- One-to-Many Relationships – This relationship type is for when one entity can have several of another entity, but the relationship doesn’t work in reverse. Bank accounts are a good example, as a customer can have several bank accounts, but each account is only accessible to one customer.
- Many-to-Many Relationships – You use these relationships to denote when two entities can have several of each other. Returning to the student example, a student will have multiple classes, with each class containing several students, creating a many-to-many relationship.
These relationships are further broken down into “relationship sets,” which bring together all of the entities that participate in the same type of relationship. These sets have three varieties:
- Unary – Only one entity participates in the relationship.
- Binary – Two entities are in the relationship, such as the student and course example mentioned earlier.
- n-ary – Multiple entities participate in the relationship, with “n” being the number of entities.
Your ER diagram in DBMS needs relationships to show how each entity set relates to (and interacts with) the others in your diagram.
ER Diagram Notations
You’ll use various forms of notation to denote the entities, attributes, relationships, and the cardinality of those relationships in your ER diagram.
Entity Notations
Entities are denoted using rectangles around a word or phrase, with a solid rectangle meaning a strong entity and a double-outlined rectangle denoting a weak entity.
Attribute Notations
Ellipses are the shapes of choice for attributes, with the following uses for each attribute type:
- Simple and Composite Attribute – Solid line ellipses
- Derived Attribute – Dotted line ellipses
- Multi-Valued Attribute – Double-lined ellipses
Relationship Notations
Relationship notation uses diamonds, with a solid line diamond depicting a relationship between two attributes. You may also find double-lined diamonds, which signify the relationship between a weak entity and the strong entity that owns it.
Cardinality and Modality Notations
These lines show you the maximum times an instance in one entity set can relate to the instances of another set, making them crucial for denoting the relationships inside your database.
The endpoint of the line tells you everything you need to know about cardinality and ordinality. For example, a line that ends with three lines (two going diagonally) signifies a “many” cardinality, while a line that concludes with a small vertical line signifies a “one” cardinality. Modality comes into play if there’s a minimum number of instances for an entity type. For example, a person can have many phone numbers but must have at least one.
Steps to Create an ER Diagram in DBMS
With the various notations for an ER diagram in DBMS explained, you can follow these steps to draw your own diagram:
- Identify Entities – Every tangible and intangible object that relates to your database is an entity that you need to identify and define.
- Identify Attributes – Each entity has a set of attributes (students have names, ID numbers, birthdates, etc.) that you must define.
- Identify Relationships – Ask yourself how each entity set fits together to identify the relationships that exist between them.
- Assign Cardinality and Modality – If you have an instance from Entity A, how many instances does it relate to in Entity B? Is there a minimum to consider? Assign cardinalities and modalities to offer the answers.
- Finalize Your Diagram – Take a final pass over the diagram to ensure all required entities are present, they have the appropriate attributes, and that all relationships are defined.
Examples of ER Diagrams in DBMS
Once you understand the basics of the ER model in DBMS, you’ll see how they can apply to multiple scenarios:
- University Databases – A university database will have entities such as “Student,” “Teacher,” “Course,” and “Class.” Attributes depend on the entity, with the people-based entities having attributes including names, dates of birth, and ID numbers. Relationships vary (i.e., a student may only have one teacher but a single teacher may have several students).
- Hospital Management Databases – Entities for this type of database include people (“Patients,” “Doctors,” and “Nurses”), as well as other tangibles, such as different hospital buildings and inventory. These databases can get very complex, with multiple relationships linking the various people involved to different buildings, treatment areas, and inventory.
- E-Commerce Databases – People play an important role in the entities for e-commerce sites, too, because every site needs a list of customers. Those customers have payment details and order histories, which are potential entities or attributes. Product lists and available inventory are also factors.
Master the ER Model in DBMS
An ER diagram in DBMS can look like a complicated mass of shapes and lines at first, making them feel impenetrable to those new to databases. But once you get to grips with what each type of shape and line represents, they become crucial tools to help you outline your databases before you start developing them.
Application of what you’ve learned is the key to success with ER diagrams (and any other topic), so take what you’ve learned here and start experimenting. Consider real-world scenarios (such as those introduced above) and draw diagrams based on the entities you believe apply to those scenarios. Build up from there to figure out the attributes and relationships between entity sets and you’re well on your way to a good ER diagram.
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From the same author
Read the articleAs one of the world’s fastest-growing industries, with a predicted compound annual growth rate of 16.43% anticipated between 2022 and 2030, data science is the ideal choice for your career. Jobs will be plentiful. Opportunities for career advancement will come thick and fast. And even at the most junior level, you’ll enjoy a salary that comfortably sits in the mid-five figures.
Studying for a career in this field involves learning the basics (and then the complexities) of programming languages including C+, Java, and Python. The latter is particularly important, both due to its popularity among programmers and the versatility that Python brings to the table. Here, we explore the importance of Python for data science and how you’re likely to use it in the real world.
Why Python for Data Science?
We can distill the reasons for learning Python for data science into the following five benefits.
Popularity and Community Support
Statista’s survey of the most widely-used programming languages in 2022 tells us that 48.07% of programmers use Python to some degree. Leftronic digs deeper into those numbers, telling us that there are 8.2 million Python developers in the world. As a prospective developer yourself, these numbers tell you two things – Python is in demand and there’s a huge community of fellow developers who can support you as you build your skills.
Easy to Learn and Use
You can think of Python as a primer for almost any other programming language, as it takes the fundamental concepts of programming and turns them into something practical. Getting to grips with concepts like functions and variables is simpler in Python than in many other languages. Python eventually opens up from its simplistic use cases to demonstrate enough complexity for use in many areas of data science.
Extensive Libraries and Tools
Given that Python was first introduced in 1991, it has over 30 years of support behind it. That, combined with its continued popularity, means that novice programmers can access a huge number of tools and libraries for their work. Libraries are especially important, as they act like repositories of functions and modules that save time by allowing you to benefit from other people’s work.
Integration With Other Programming Languages
The entire script for Python is written in C, meaning support for C is built into the language. While that enables easy integration between these particular languages, solutions exist to link Python with the likes of C++ and Java, with Python often being capable of serving as the “glue” that binds different languages together.
Versatility and Flexibility
If you can think it, you can usually do it in Python. Its clever modular structure, which allows you to define functions, modules, and entire scripts in different files to call as needed, makes Python one of the most flexible programming languages around.
Setting Up Python for Data Science
Installing Python onto your system of choice is simple enough. You can download the language from the Python.org website, with options available for everything from major operating systems (Windows, macOS, and Linux) to more obscure devices.
However, you need an integrated development environment (IDE) installed to start coding in Python. The following are three IDEs that are popular with those who use Python for data science:
- Jupyter Notebook – As a web-based application, Jupyter easily allows you to code, configure your workflows, and even access various libraries that can enhance your Python code. Think of it like a one-stop shop for your Python needs, with extensions being available to extend its functionality. It’s also free, which is never a bad thing.
- PyCharm – Where Jupyter is an open-source IDE for several languages, PyCharm is for Python only. Beyond serving as a coding tool, it offers automated code checking and completion, allowing you to quickly catch errors and write common code.
- Visual Studio Code – Though Visual Studio Code alone isn’t compatible with Python, it has an extension that allows you to edit Python code on any operating system. Its “Linting” feature is great for catching errors in your code, and it comes with an integrated debugger that allows you to test executables without physically running them.
Setting up your Python virtual environment is as simple as downloading and installing Python itself, and then choosing an IDE in which to work. Think of Python as the materials you use to build a house, with your IDE being both the blueprint and the tools you’ll need to patch those materials together.
Essential Python Libraries for Data Science
Just as you’ll go to a real-world library to check out books, you can use Python libraries to “check out” code that you can use in your own programs. It’s actually better than that because you don’t need to return libraries when you’re done with them. You get to keep them, along with all of their built-in modules and functions, to call upon whenever you need them. In Python for data science, the following are some essential libraries:
- NumPy – We spoke about integration earlier, and NumPy is ideal for that. It brings concepts of functionality from Fortran and C into Python. By expanding Python with powerful array and numerical computing tools, it helps transform it into a data science powerhouse.
- pandas – Manipulating and analyzing data lies at the heart of data sciences, and pandas give you a library full of tools to allow both. It offers modules for cleaning data, plotting, finding correlations, and simply reading CSV and JSON files.
- Matplotlib – Some people can look at reams of data and see patterns form within the numbers. Others need visualization tools, which is where Matplotlib excels. It helps you create interactive visual representations of your data for use in presentations or if you simply prefer to “see” your data rather than read it.
- Scikit-learn – The emerging (some would say “exploding) field of machine learning is critical to the AI-driven future we’re seemingly heading toward. Scikit-learn is a library that offers tools for predictive data analysis, built on what’s available in the NumPy and Matplotlib libraries.
- TensorFlow and Keras – Much like Scikit-learn, both TensorFlow and Keras offer rich libraries of tools related to machine learning. They’re essential if your data science projects take you into the realms of neural networks and deep learning.
Data Science Workflow in Python
A Python programmer without a workflow is like a ship’s captain without a compass. You can sail blindly onward, and you may even get lucky and reach your destination, but the odds are you’re going to get lost in the vastness of the programming sea. For those who want to use Python for data science, the following workflow brings structure and direction to your efforts.
Step 1 – Data Collection and Preprocessing
You need to collect, organize, and import your data into Python (as well as clean it) before you can draw any conclusions from it. That’s why the first step in any data science workflow is to prepare the data for use (hint – the pandas library is perfect for this task).
Step 2 – Exploratory Data Analysis (EDA)
Just because you have clean data, that doesn’t mean you’re ready to investigate what that data tells you. It’s like washing ingredients before you make a dish – you need to have a “recipe” that tells you how to put everything together. Data scientists use EDA as this recipe, allowing them to combine data visualization (remember – the Matplotlib library) with descriptive statistics that show them what they’re looking at.
Step 3 – Feature Engineering
This is where you dig into the “whats” and “hows” of your Python program. You’ll select features for the code, which define what it does with the data you import and how it’ll deliver outcomes. Scaling is a key part of this process, with scope creep (i.e., constantly adding features as you get deeper into a project) being the key thing to avoid.
Step 4 – Model Selection and Training
Decision trees, linear regression, logistic regression, neural networks, and support vector machines. These are all models (with their own algorithms) you can use for your data science project. This step is all about selecting the right model for the job (your intended features are important here) and training that model so it produces accurate outputs.
Step 5 – Model Evaluation and Optimization
Like a puppy that hasn’t been house trained, an unevaluated model isn’t ready for release into the real world. Classification metrics, such as a confusion matrix and classification report, help you to evaluate your model’s predictions against real-world results. You also need to tune the hyperparameters built into your model, similar to how a mechanic may tune the nuts and bolts in a car, to get everything working as efficiently as possible.
Step 6 – Deployment and Maintenance
You’ve officially deployed your Python for data science model when you release it into the wild and let it start predicting outcomes. But the work doesn’t end at deployment, as constant monitoring of what your model does, outputs, and predicts is needed to tell you if you need to make tweaks or if the model is going off the rails.
Real-World Data Science Projects in Python
There are many examples of Python for data science in the real world, some of which are simple while others delve into some pretty complex datasets. For instance, you can use a simple Python program to scrap live stock prices from a source like Yahoo! Finance, allowing you to create a virtual ticker of stock price changes for investors.
Alternatively, why not create a chatbot that uses natural language processing to classify and respond to text? For that project, you’ll tokenize sentences, essentially breaking them down into constituent words called “tokens,” and tag those tokens with meanings that you could use to prompt your program toward specific responses.
There are plenty of ideas to play around with, and Python is versatile enough to enable most, so consider what you’d like to do with your program and then go on the hunt for datasets. Great (and free) resources include The Boston House Price Dataset, ImageNet, and IMDB’s movie review database.
Try Python for Data Science Projects
By combining its own versatility with integrations and an ease of use that makes it welcoming to beginners, Python has become one of the world’s most popular programming languages. In this introduction to data science in Python, you’ve discovered some of the libraries that can help you to apply Python for data science. Plus, you have a workflow that lends structure to your efforts, as well as some ideas for projects to try. Experiment, play, and tweak models. Every minute you spend applying Python to data science is a minute spent learning a popular programming language in the context of a rapidly-growing industry.
Read the articleToday’s tech-driven world is governed by data – so much so that nearly 98% of all organizations are increasing investment in data.
However, company owners can’t put their feet up after improving their data capabilities. They also need a database management system (DBMS) – a program specifically designed for storing and organizing information efficiently.
When analyzing a DBMS, you need to be thorough like a detective investigating a crime. One of the elements you want to consider is DBMS architecture. It describes the structure of your database and how individual bits of information are related to each other. The importance of DBMS architecture is enormous, as it helps IT experts design and maintain fully functional databases.
But what exactly does a DBMS architecture involve? You’ll find out in this entry. Coming up is an in-depth discussion of database system concepts and architecture.
Overview of DBMS Architecture
Suppose you’re assembling your PC. You can opt for several configurations, such as those with three RAM slots and dual-fan coolers. The same principle applies to DBMS architectures.
Two of the most common architectures are three-level and two-level architectures.
Three-Level Architecture
Three-level architecture is like teacher-parent communication. More often than not, a teacher communicates with parents through children, asking them to convey certain information. In other words, there are layers between the two that don’t allow direct communication.
The same holds for three-level architecture. But instead of just one layer, there are two layers between the database and user: application client and application server.
And as the name suggests, a three-level DBMS architecture has three levels:
- External level – Also known as the view level, this section concerns the part of your database that’s relevant to the user. Everything else is hidden.
- Conceptual level – Put yourself in the position of a scuba diver exploring the ocean layer by layer. Once you reach the external level, you go one segment lower and find the conceptual level. It describes information conceptually and tells you how data segments interact with one another.
- Internal level – Another name for the internal level is the physical level. But what does it deal with? It mainly focuses on how data is stored in your system (e.g., using folders and files).
Two-Level Architecture
When you insert a USB into your PC, you can see the information on your interface. However, the source of the data is on the USB, meaning they’re separated.
Two-level architecture takes the same approach to separating data interface and data structure. Here are the two levels in this DBMS architecture:
- User level – Any application and interface in your database are stored on the user level in a two-level DBMS architecture.
- System level – The system level (aka server level) performs transaction management and other essential processes.
Comparison of the Two Architectures
Determining which architecture works best for your database is like buying a car. You need to consider how easy it is to use and the level of performance you can expect.
On the one hand, the biggest advantage of two-level architectures is that they’re relatively easy to set up. There’s just one layer between the database and the user, resulting in easier database management.
On the other hand, developing a three-level DBMS architecture may take a while since you need to include two layers between the database and the user. That said, three-level architectures are normally superior to two-level architectures due to higher flexibility and the ability to incorporate information from various sources.
Components of DBMS Architecture
You’ve scratched the surface of database system concepts and architecture, but don’t stop there. It’s time to move on to the basics to the most important elements of a DBMS architecture:
Data Storage
The fact that DBMS architectures have data storage solutions is carved in stone. What exactly are those solutions? The most common ones are as follows:
- Data files – How many files do you have on your PC? If it’s a lot, you’re doing exactly what administrators of DBMS architectures are doing. A large number of them store data in files, and each file is categorized into blocks.
- Indexes – You want your database operations to be like lightning bolts, i.e. super-fast. You can incorporate indexes to accomplish this goal. They point to data columns for quick retrieval.
- Data dictionary – Also known as system logs, data dictionaries contain metadata – information about your data.
Data Manipulation
A large number of companies still utilize manual data management methods. But using this format is like shooting yourself in the foot when there are advanced data manipulation methods are available. These allow you to process and retrieve data within seconds through different techniques:
- Query processor – Query processing refers to extracting data from your DBMS architecture. It operates like any other multi-stage process. It involves parsing, translation, optimization, and evaluation.
- Query optimizer – A DBMS architecture administrator can perform various query optimization tasks to achieve desired results faster.
- Execution engine – Whenever you want your architecture to do something, you send requests. But something needs to process the requests – that something is the execution engine.
Data Control
We’re continuing our journey through an average DBMS architecture. Our next stop is data control, which is comprised of these key elements:
- Transaction management – When carrying out multiple transactions, how does the system prioritize one over another? The answer lies in transaction management, which is also about processing multiple transactions side by side.
- Concurrency control – Database architecture is like an ocean teeming with life. Countless operations take place simultaneously. As a result, the system needs concurrency control to manage these concurrent tasks.
- Recovery management – What if your DBMS architecture fails? Do you give up on your project? No – the system has robust recovery management tools to retrieve your information and reduce downtime.
Database System Concepts
To give you a better understanding of a DBMS architecture, let’s describe the most important concepts regarding this topic.
Data Models
Data models do to information what your folders do to files – organize them. There are four major types of data models:
- Hierarchical model – Top-down and bottom-up storage solutions are known as hierarchical models. They’re characterized by tree-like structures.
- Network model – Hierarchical models are generally used for basic data relationships. If you want to analyze complex relationships, you need to kick things up a notch with network models. They enable you to represent huge quantities of complex information without a hitch.
- Relational model – Relations are merely tables with values. A relational model is a collection of these relations, indicating how data is connected to other data.
- Object-oriented model – Programming languages regularly use objects. An object-oriented model stores information as models and is usually more complex than other models.
Database Schema and Instances
Another concept you should familiarize yourself with is schemas and instances.
- Definition of schema and instance – Schemas are like summaries, providing a basic description of databases. Instances tell you what information is stored in a database.
- Importance of schema in DBMS architecture – Schemas are essential because they help organize data by providing a clear outline.
Data Independence
The ability of other pieces of information to remain unaffected after you change one bit of data is known as data independence. What are the different types of data independence, and what makes them so important?
- Logical data independence – If you can modify logical schemas without altering the rest of the system, your logical data is independent.
- Physical data independence – Physical data is independent if it remains unaffected when changing your hardware, such as SSD disks.
- Significance of data independence in DBMS architecture – Independent data is crucial for saving time in database management because it reduces the amount of information that needs to be processed.
Efficient Database Management Systems
Database management systems have a lot in common with other tech-based systems. For example, you won’t ignore problems that arise on your PC, be they CPU or graphics card issues. You’ll take action to optimize the performance of the device and solve those issues.
That’s exactly what 75% of developers and administrators of database management systems do. They go the extra mile to enhance the performance, scalability, flexibility, security, and integrity of their architecture.
Performance Optimization Techniques
- Indexing – By pointing to certain data in tables, indexes speed up database management.
- Query optimization – This process is about finding the most efficient method of executing queries.
- Caching – Frequently accessed information is cached to accelerate retrieval.
Scalability and Flexibility
- Horizontal scaling – Horizontal scaling involves increasing the number of servers.
- Vertical scaling – An administrator can boost the performance of the server to make the system more scalable.
- Distributed databases – Databases are like smartphones in that they can easily overload. Pressure can be alleviated with distributed databases, which store information in multiple locations.
Security and Integrity
- Access control – Restricting access is key to preventing cyber security attacks.
- Data encryption – Administrators often encrypt their DBMS architecture to protect sensitive information.
- Backup and recovery – A robust backup plan helps IT experts recover from shutdowns and other unforeseen problems.
Preparing for the Future Is Critical
DBMS architecture is the underlying structure of a database management system. It consists of several elements, all of which work together to create a fully functional data infrastructure.
Understanding the basic elements of DBMS architecture is vital for IT professionals who want to be well-prepared for future changes, such as hybrid environments. As the old saying goes – success depends upon preparation.
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The world is rapidly changing. New technologies such as artificial intelligence (AI) are transforming our lives and work, redefining the definition of “essential office skills.”
So what essential skills do today’s workers need to thrive in a business world undergoing a major digital transformation? It’s a question that Alan Lerner, director at Toptal and lecturer at the Open Institute of Technology (OPIT), addressed in his recent online masterclass.
In a broad overview of the new office landscape, Lerner shares the essential skills leaders need to manage – including artificial intelligence – to keep abreast of trends.
Here are eight essential capabilities business leaders in the AI era need, according to Lerner, which he also detailed in OPIT’s recent Master’s in Digital Business and Innovation webinar.
An Adapting Professional Environment
Lerner started his discussion by quoting naturalist Charles Darwin.
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”
The quote serves to highlight the level of change that we are currently seeing in the professional world, said Lerner.
According to the World Economic Forum’s The Future of Jobs Report 2025, over the next five years 22% of the labor market will be affected by structural change – including job creation and destruction – and much of that change will be enabled by new technologies such as AI and robotics. They expect the displacement of 92 million existing jobs and the creation of 170 million new jobs by 2030.
While there will be significant growth in frontline jobs – such as delivery drivers, construction workers, and care workers – the fastest-growing jobs will be tech-related roles, including big data specialists, FinTech engineers, and AI and machine learning specialists, while the greatest decline will be in clerical and secretarial roles. The report also predicts that most workers can anticipate that 39% of their existing skill set will be transformed or outdated in five years.
Lerner also highlighted key findings in the Accenture Life Trends 2025 Report, which explores behaviors and attitudes related to business, technology, and social shifts. The report noted five key trends:
- Cost of Hesitation – People are becoming more wary of the information they receive online.
- The Parent Trap – Parents and governments are increasingly concerned with helping the younger generation shape a safe relationship with digital technology.
- Impatience Economy – People are looking for quick solutions over traditional methods to achieve their health and financial goals.
- The Dignity of Work – Employees desire to feel inspired, to be entrusted with agency, and to achieve a work-life balance.
- Social Rewilding – People seek to disconnect and focus on satisfying activities and meaningful interactions.
These are consumer and employee demands representing opportunities for change in the modern business landscape.
Key Capabilities for the AI Era
Businesses are using a variety of strategies to adapt, though not always strategically. According to McClean & Company’s HR Trends Report 2025, 42% of respondents said they are currently implementing AI solutions, but only 7% have a documented AI implementation strategy.
This approach reflects the newness of the technology, with many still unsure of the best way to leverage AI, but also feeling the pressure to adopt and adapt, experiment, and fail forward.
So, what skills do leaders need to lead in an environment with both transformation and uncertainty? Lerner highlighted eight essential capabilities, independent of technology.
Capability 1: Manage Complexity
Leaders need to be able to solve problems and make decisions under fast-changing conditions. This requires:
- Being able to look at and understand organizations as complex social-technical systems
- Keeping a continuous eye on change and adopting an “outside-in” vision of their organization
- Moving fast and fixing things faster
- Embracing digital literacy and technological capabilities
Capability 2: Leverage Networks
Leaders need to develop networks systematically to achieve organizational goals because it is no longer possible to work within silos. Leaders should:
- Use networks to gain insights into complex problems
- Create networks to enhance influence
- Treat networks as mutually rewarding relationships
- Develop a robust profile that can be adapted for different networks
Capability 3: Think and Act “Global”
Leaders should benchmark using global best practices but adapt them to local challenges and the needs of their organization. This requires:
- Identifying what great companies are achieving and seeking data to understand underlying patterns
- Developing perspectives to craft global strategies that incorporate regional and local tactics
- Learning how to navigate culturally complex and nuanced business solutions
Capability 4: Inspire Engagement
Leaders must foster a culture that creates meaningful connections between employees and organizational values. This means:
- Understanding individual values and needs
- Shaping projects and assignments to meet different values and needs
- Fostering an inclusive work environment with plenty of psychological safety
- Developing meaningful conversations and both providing and receiving feedback
- Sharing advice and asking for help when needed
Capability 5: Communicate Strategically
Leaders should develop crisp, clear messaging adaptable to various audiences and focus on active listening. Achieving this involves:
- Creating their communication style and finding their unique voice
- Developing storytelling skills
- Utilizing a data-centric and fact-based approach to communication
- Continual practice and asking for feedback
Capability 6: Foster Innovation
Leaders should collaborate with experts to build a reliable innovation process and a creative environment where new ideas thrive. Essential steps include:
- Developing or enhancing structures that best support innovation
- Documenting and refreshing innovation systems, processes, and practices
- Encouraging people to discover new ways of working
- Aiming to think outside the box and develop a growth mindset
- Trying to be as “tech-savvy” as possible
Capability 7: Cultivate Learning Agility
Leaders should always seek out and learn new things and not be afraid to ask questions. This involves:
- Adopting a lifelong learning mindset
- Seeking opportunities to discover new approaches and skills
- Enhancing problem-solving skills
- Reviewing both successful and unsuccessful case studies
Capability 8: Develop Personal Adaptability
Leaders should be focused on being effective when facing uncertainty and adapting to change with vigor. Therefore, leaders should:
- Be flexible about their approach to facing challenging situations
- Build resilience by effectively managing stress, time, and energy
- Recognize when past approaches do not work in current situations
- Learn from and capitalize on mistakes
Curiosity and Adaptability
With the eight key capabilities in mind, Lerner suggests that curiosity and adaptability are the key skills that everyone needs to thrive in the current environment.
He also advocates for lifelong learning and teaches several key courses at OPIT which can lead to a Bachelor’s Degree in Digital Business.
Many people treat cyber threats and digital fraud as a new phenomenon that only appeared with the development of the internet. But fraud – intentional deceit to manipulate a victim – has always existed; it is just the tools that have changed.
In a recent online course for the Open Institute of Technology (OPIT), AI & Cybersecurity Strategist Tom Vazdar, chair of OPIT’s Master’s Degree in Enterprise Cybersecurity, demonstrated the striking parallels between some of the famous fraud cases of the 18th century and modern cyber fraud.
Why does the history of fraud matter?
Primarily because the psychology and fraud tactics have remained consistent over the centuries. While cybersecurity is a tool that can combat modern digital fraud threats, no defense strategy will be successful without addressing the underlying psychology and tactics.
These historical fraud cases Vazdar addresses offer valuable lessons for current and future cybersecurity approaches.
The South Sea Bubble (1720)
The South Sea Bubble was one of the first stock market crashes in history. While it may not have had the same far-reaching consequences as the Black Thursday crash of 1929 or the 2008 crash, it shows how fraud can lead to stock market bubbles and advantages for insider traders.
The South Sea Company was a British company that emerged to monopolize trade with the Spanish colonies in South America. The company promised investors significant returns but provided no evidence of its activities. This saw the stock prices grow from £100 to £1,000 in a matter of months, then crash when the company’s weakness was revealed.
Many people lost a significant amount of money, including Sir Isaac Newton, prompting the statement, “I can calculate the movement of the stars, but not the madness of men.“
Investors often have no way to verify a company’s claim, making stock markets a fertile ground for manipulation and fraud since their inception. When one party has more information than another, it creates the opportunity for fraud. This can be seen today in Ponzi schemes, tech stock bubbles driven by manipulative media coverage, and initial cryptocurrency offerings.
The Diamond Necklace Affair (1784-1785)
The Diamond Necklace Affair is an infamous incident of fraud linked to the French Revolution. An early example of identity theft, it also demonstrates that the harm caused by such a crime can go far beyond financial.
A French aristocrat named Jeanne de la Mont convinced Cardinal Louis-René-Édouard, Prince de Rohan into thinking that he was buying a valuable diamond necklace on behalf of Queen Marie Antoinette. De la Mont forged letters from the queen and even had someone impersonate her for a meeting, all while convincing the cardinal of the need for secrecy. The cardinal overlooked several questionable issues because he believed he would gain political benefit from the transaction.
When the scheme finally exposed, it damaged Marie Antoinette’s reputation, despite her lack of involvement in the deception. The story reinforced the public perception of her as a frivolous aristocrat living off the labor of the people. This contributed to the overall resentment of the aristocracy that erupted in the French Revolution and likely played a role in Marie Antoinette’s death. Had she not been seen as frivolous, she might have been allowed to live after her husband’s death.
Today, impersonation scams work in similar ways. For example, a fraudster might forge communication from a CEO to convince employees to release funds or take some other action. The risk of this is only increasing with improved technology such as deepfakes.
Spanish Prisoner Scam (Late 1700s)
The Spanish Prisoner Scam will probably sound very familiar to anyone who received a “Nigerian prince” email in the early 2000s.
Victims received letters from a “wealthy Spanish prisoner” who needed their help to access his fortune. If they sent money to facilitate his escape and travel, he would reward them with greater riches when he regained his fortune. This was only one of many similar scams in the 1700s, often involving follow-up requests for additional payments before the scammer disappeared.
While the “Nigerian prince” scam received enough publicity that it became almost unbelievable that people could fall for it, if done well, these can be psychologically sophisticated scams. The stories play on people’s emotions, get them invested in the person, and enamor them with the idea of being someone helpful and important. A compelling narrative can diminish someone’s critical thinking and cause them to ignore red flags.
Today, these scams are more likely to take the form of inheritance fraud or a lottery scam, where, again, a person has to pay an advance fee to unlock a much bigger reward, playing on the common desire for easy money.
Evolution of Fraud
These examples make it clear that fraud is nothing new and that effective tactics have thrived over the centuries. Technology simply opens up new opportunities for fraud.
While 18th-century scammers had to rely on face-to-face contact and fraudulent letters, in the 19th century they could leverage the telegraph for “urgent” communication and newspaper ads to reach broader audiences. In the 20th century, there were telephones and television ads. Today, there are email, social media, and deepfakes, with new technologies emerging daily.
Rather than quack doctors offering miracle cures, we see online health scams selling diet pills and antiaging products. Rather than impersonating real people, we see fake social media accounts and catfishing. Fraudulent sites convince people to enter their bank details rather than asking them to send money. The anonymity of the digital world protects perpetrators.
But despite the technology changing, the underlying psychology that makes scams successful remains the same:
- Greed and the desire for easy money
- Fear of missing out and the belief that a response is urgent
- Social pressure to “keep up with the Joneses” and the “Bandwagon Effect”
- Trust in authority without verification
Therefore, the best protection against scams remains the same: critical thinking and skepticism, not technology.
Responding to Fraud
In conclusion, Vazdar shared a series of steps that people should take to protect themselves against fraud:
- Think before you click.
- Beware of secrecy and urgency.
- Verify identities.
- If it seems too good to be true, be skeptical.
- Use available security tools.
Those security tools have changed over time and will continue to change, but the underlying steps for identifying and preventing fraud remain the same.
For more insights from Vazdar and other experts in the field, consider enrolling in highly specialized and comprehensive programs like OPIT’s Enterprise Security Master’s program.
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