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When most of us design our databases we tend to think of them as related (and un-related) tables that contain data. It is common to normalize our tables in order to create a cleaner, more manageable, and intuative Database design. Normalized means separate tables via foreign key relationship, there are however things that we should consider before we normalize our system:
One of the most important is historical data. When we normalize our system we open the door for historically inaccuracy. What’s that mean? It means that we can change the data in the related table, causing us to lose the accuracy of the data thats related to it.
If you think that you will ever have to do any kind of Data Mining or Reporting on your data then avoiding over-normalization is important. Reporting on, or performing calculations on, large amounts of data requires that you denormalize your database. Anticipating this during the design phases can save you a lot of time and grief later on.
Check out this article : http://www.theukwebdesigncompany.com/articles/denormalization-normalization.php