1. What is Database Normalization?
Database normalization is a technique for creating database tables with suitable columns and
keys by decomposing a large table into smaller logical units. The process also considers the
demands of the environment in which the database resides.
Normalization is an iterative process. Commonly, normalizing a database occurs through a
series of tests. Each subsequent step decomposes tables into more manageable information,
making the overall database logical and easier to work with.
Why is Database Normalization Important?
Normalization helps a database designer optimally distribute attributes into tables. The
technique eliminates the following:
 Attributes with multiple values.
 Doubled or repeated attributes.
 Non-descriptive attributes.
 Attributes with redundant information.
 Attributes created from other features.
Although total database normalization is not necessary, it provides a well-functioning
information environment. The method systematically ensures:
 A database structure suitable for generalized queries.
 Minimized data redundancy, increasing memory efficiency on a database server.
 Maximized data integrity through the reduced insert, update, and delete anomalies.
Database normalization transforms overall database consistency, providing an efficient
environment.
Database Redundancies and Anomalies
When altering an entity in a table with redundancies, you must modify all repeated instances
of information, and any other information related to the changed data. Othrewise, the
database becomes inconsistent and anomalies happen when making changes.
For example, in the following unnormalized table:
The table contains data redundancy, which in turn causes three anomalies when making data
changes:

2. 1. Insert anomaly. When trying to insert a new employee in the finance sector, you must also
know the manager's name. Otherwise, you cannot insert data into the table.
2. Update anomaly. If an employee switches sectors, the manager's name ends up being
incorrect. For example, if Jacob changes to finance, Adam stays as his manager.
3. Delete anomaly. If Joshua decides to leave the company, deleting the row also removes the
information that a finance sector exists.
The solution to these anomalies is in database normalization concepts and steps.
Database Normalization Concepts
The elementary concepts used in database normalization are:
 Keys. Column attributes that identify a database record uniquely.
 Functional Dependencies. Constraints between two attributes in a relation.
 Normal Forms. Steps to accomplish a certain quality of a database.
Database Normal Forms
Normalizing a database is achieved through a set of rules known as normal forms. The central
concept is to help a database designer achieve the desired quality of a relational database.
All levels of normalization are cumulative. Previous normal form requirements must be
satisfied before moving on to the following form.
The stages of normalization are:

3. Stage Redundancy Anomalies Addressed
Unnormalized Form (UNF)
The state before any normalization. Redundant and complex values are
present.
First Normal Form (1NF) Repeating and complex values split up, making all instances atomic.
Second Normal Form (2NF)
Partial dependencies decompose to new tables. All rows functionally depend
on the primary key.
Third Normal Form (3NF)
Transitive dependencies decompose to new tables. Non-key attributes depend
on the primary key.
Boyce-Codd Normal Form
(BCNF)
Transitive and partial functional dependencies for all candidate keys
decompose to new tables.
Fourth Normal Form (4NF) Removal of multivalued dependencies.
Fifth Normal Form (5NF) Removal of JOIN dependencies.
A database is normalized when it fulfills the third normal form. Further steps in
normalization make the database design complicated and could compromise the functionality
of the system.
What is a KEY?
A database key is an attribute or a group of features that uniquely describes an entity in a
table. The types of keys used in normalization are:
 Super Key. A set of features that uniquely define each record in a table.
 Candidate Key. Keys selected from the set of super keys where the number of fields is
minimal.
 Primary Key. The most appropriate choice from the set of candidate keys serves as
the table's primary key.
 Foreign Key. The primary key of another table.
 Composite Key. Two or more attributes together form a unique key but are not keys
individually.
As tables decompose into multiple simpler tables, keys define a point of reference for a
database entity.
For example, in the following database structure:

4. Some examples of super keys in the table are:
 employeeID
 (employeeID, name)
 email
All super keys can serve as a unique identifier for each row. On the other hand, the
employee's name or age are not unique identifiers because two people could have the same
name or age.
The candidate keys come from the set of super keys where the number of fields is minimal.
The choice comes down to two options:
 employeeID
 email
Both options contain a minimal number of fields, making them optimal candidate keys. The
most logical choice for the primary key is the employeeID because an employee's email can
change. The primary key in the table is easy to reference as a foreign key in another table.
Functional Database Dependencies
A functional database dependency represents a relationship between two attributes in a
database table. Some types of functional dependencies are:
 Trivial Functional Dependency. A dependency between an attribute and a group of
features where the original element is in the group.
 Non-Trivial Functional Dependency. A dependency between an attribute and a group
where the feature is not in the group.
 Transitive Dependency. A functional dependency between three attributes where the
second depends on the first and the third depends on the second. Due to transitivity,
the third attribute is dependent on the first.
 Multivalued Dependency. A dependency where multiple values depend on one
attribute.
Functional dependencies are an essential step in database normalization. In the long run, the
dependencies help determine the overall quality of a database.
Database Normalization Example - How to
Normalize a Database?

5. The general steps in database normalization work for every database. The specific steps of
dividing the table as well as whether to go past 3NF depend on the use case.
Example Unnormalized Database
An unnormalized table has multiple values within a single field, as well as redundant
information in the worst case.
For example:
managerID managerName area employeeID employeeName sectorID sectorName
1 Adam A. East
1
2
David D.
Eugene E.
4
3
Finance
IT
2 Betty B. West
3
4
5
George G.
Henry H.
Ingrid I.
2
1
4
Security
Administration
Finance
3 Carl C. North
6
7
James J.
Katy K.
1
4
Administration
Finance
Inserting, updating, and removing data is a complex task. Performing any alterations to the
existing table has a high risk of losing information.
Step 1: First Normal Form 1NF
To rework the database table into the 1NF, values within a single field must be atomic. All
complex entities in the table divide into new rows or columns.
The information in the columns managerID, managerName, and area repeat for each
employee to ensure no loss of information.
managerID managerName area employeeID employeeName sectorID sectorName
1 Adam A. East 1 David D. 4 Finance
1 Adam A. East 2 Eugene E. 3 IT
2 Betty B. West 3 George G. 2 Security
2 Betty B. West 4 Henry H. 1 Administration
2 Betty B. West 5 Ingrid I. 4 Finance

6. managerID managerName area employeeID employeeName sectorID sectorName
3 Carl C. North 6 James J. 1 Administration
3 Carl C. North 7 Katy K. 4 Finance
The reworked table satisfies the first normal form.
Step 2: Second Normal Form 2NF
The second normal form in database normalization states that each row in the database table
must depend on the primary key.
The table splits into two tables to satisfy the normal form:
 Manager (managerID, managerName, area)
managerID managerName area
1 Adam A. East
2 Betty B. West
3 Carl C. North
 Employee (employeeID, employeeName, managerID, sectorID, sectorName)
employeeID employeeName managerID sectorID sectorName
1 David D. 1 4 Finance
2 Eugene E. 1 3 IT
3 George G. 2 2 Security
4 Henry H. 2 1 Administration
5 Ingrid I. 2 4 Finance
6 James J. 3 1 Administration
7 Katy K. 3 4 Finance

7. The resulting database in the second normal form is currently two tables with no partial
dependencies.
Step 3: Third Normal Form 3NF
The third normal form decomposes any transitive functional dependencies. Currently, the
table Employee has a transitive dependency which decomposes into two new tables:
 Employee (employeeID, employeeName, managerID, sectorID)
employeeID employeeName managerID sectorID
1 David D. 1 4
2 Eugene E. 1 3
3 George G. 2 2
4 Henry H. 2 1
5 Ingrid I. 2 4
6 James J. 3 1
7 Katy K. 3 4
 Sector (sectorID, sectorName)
sectorID sectorName
1 Administration
2 Security
3 IT
4 Finance
The database is currently in third normal form with three relations in total. The final structure
is:

8. At this point, the database is normalized. Any further normalization steps depend on the use
case of the data.
DATA MERGE:BRINGING TOGETHER DATA FROM MULTIPLE
TABLES
Data merging is a process where data is unified from multiple sources to represent
a single point of reference or a single point of truth. Although a seemingly simple
goal, data merging is a process as complicated as untangling a ball of knotted yarn.
The reason? An average enterprise has around 464 custom applications deployed to
handle their business processes.
In addition to that, most databases have problems with duplication, inconsistencies,
and inaccuracy. A customer’s name and address may be written in 10 different
ways by 10 different people in 10 different data repositories. Moreover, there will
be 10 different sources from where this data is obtained – websites, landing pages
forms, social media advertising reach outs, sales records, billing records, marketing
records, purchase point records and other areas where the customer may have
interacted with the company.
But when it comes to deriving useful insights from the data collected, it becomes
important to combine all these data sources and get one single point of reference.

9. OPPURTUNITY MANAGEMENT
An Opportunity is defined as a sales prospect, requested service or product, sales volume and
a sales probability. Opportunity can be a possibility of sales of service or product and can result
from a bid invitation, sales deal or from a trade fair. Opportunity management is one of the
integral part of CRM module and this allows you to control the sales process.
Opportunity management in Sales should be used in the following scenarios −
 When sales cycle in an organization spans for a longer time period.
 When there are many sales representatives working in an organization.
 When there are large sales order values and they are distributed.
Classification in Opportunity Management
You can classify opportunities and related entities in the following categories −
Sources of Opportunity − This allows you to define the source of opportunities in a sales
cycle. You can mention expected sales volume from different sources like trade fair, bid
invitation, etc.
Opportunity Group − This allows you to perform grouping of opportunities. You can define
a group for new customers or existing customers.
Priority − You can also define priority of opportunity if it has a probability to convert to a
lead.
You can set the opportunity group, classification and priority in CRM by going to SPRO →
IMG → Customer Relationship Management → Transactions → Setting for
Opportunities → Define Opportunity Group, Priority and Origin.

10. Opportunity Hierarchy
When your sales project is split into multiple subprojects and you want to keep a track of all
the subprojects and to link them to a sales project, you can use complex hierarchies. You can
connect different opportunities to each other and this allows you to connect sales projects and
subprojects with each other.
Opportunities Hierarchy can be used in the following scenarios −
 To link an opportunity to a sales project.
 To link a sub opportunity to a product.
 Combine several sales project connected with each other.
 Structure those sales projects which consists of several subprojects
What is a Lead in SAP CRM?
A lead can be defined as the first stage of sales process. It represents a person who has shown
interest in buying a service or a product.
In a sales cycle, the following order is followed − Lead → Opportunity → Quote → Order.
A Lead can be generated from various marketing lead generation processes like trade fairs,
advertisement, direct marketing or can be from other personal sales activities like tele-calling
or an email.
Leads can be classified into categories − Cold, Warm and Hot by the marketing department.
If a lead looks promising, then sales department can create an opportunity from this lead.

11. A Lead is different from an opportunity in a manner that it is a predecessor of an opportunity.
Opportunities are used for more complex and longer sales project cycles. The sales
representatives use opportunities to control the sales project and maximize the chance of
winning customers and minimizing the sales time.