Why database management is important for your business

A robust database management system enables organizations to make quick and effective decisions. What exactly is a database management system? We explain in this article.

Data forms the indispensable basis for many important decisions in companies. For this to work, it must be accessible and properly managed. But what does good data management look like and what is needed to ensure that all processes in the company run smoothly? Database management systems provide the answer.

What is a database management system? Database management systems facilitate the storage, organization and sharing of data in companies. They capture data from the various tools, platforms and applications in use and store it centrally for easy search and retrieval. It also reduces the risk of data loss that could delay or hinder operations.

If you work with data on a regular basis or deal with the day-to-day challenges of database management, this article is for you. We provide answers to the questions: What is a database management system and how can I use it to ensure data integrity and streamline data management processes?

What is a database management system?

By definition, a database management system (DBMS) is a software platform used to store and organize data. The system creates a single centralized data source that can be used by all stakeholders and departments. With data manipulation, analytics and reporting capabilities, it enables organizations to better leverage data points.

The DBMS serves as an interface between your databases and your teams. Depending on the permissions granted, employees can add, update, delete or access data in the databases. Database management software is suitable for the following purposes:
  • Data management: store, manage, categorize and update business data.
  • Data retrieval: Using search functions to find specific data points
  • Queries: Use queries to perform specific actions such as calculations
  • Data replication: Create duplicate instances of data and use as a distributed database for collaborators
  • Data security: Ensure that data is protected from hacking, unauthorized access, and errors such as accidental deletion of data.
  • Data conversion: transfer data from one database to another (also called data migration)
Why do you need a database management system?

If data is a central part of your job, a database management system offers you several advantages. It helps with structured data management and ensures that data can be used and shared easily. It also frees you from time-consuming manual data processing tasks, such as searching for specific data points and sharing them with teams.

In addition, database management software ensures that business data is shared only with relevant internal and external stakeholders. This reduces the risk of information loss or unauthorized access.

Implementing a database system into your workflows offers several benefits:
  • Increased productivity thanks to fewer data-related errors
  • Faster decision making due to quick and uninterrupted access to data
  • Improved data sharing and security by limiting access to authorized individuals
Whether your organization needs database management software depends on how your teams use data. Some use it for everyday research processes (normal priority), others for software tool development (high priority). Keep such usage scenarios in mind when deciding whether to use this type of software.

1. relational database management system

A relational database is a collection of data that is related to each other so that different data points can be combined for better usability. The connection points can be times, dates or logics and the relationship can be categorized as follows:
  • One to One: A data point in one table is connected to a data point in another table.
  • One to many: One data point in one table is connected to multiple data points in another table.
  • Many to One: Multiple data points in one table are connected to one data point in another table.
  • Many to many: Multiple data points in one table are connected to multiple data points in another table.
A relational database management system is software for storing and sharing relational databases. It organizes the data in a relational database by creating functional dependencies between multiple data points. It also stores data in an organized manner, making it easier for employees to find the data they need for their daily tasks.

Relational data structures use SQL (Structured Query Language) to allow employees to run queries and find the information they need. The following is typically true of relational database management systems:
  • They store large amounts of data
  • They enable fast data retrieval
  • They allow simultaneous access to multiple data elements
2. object-oriented database management system

An object-oriented database is a collection of data represented in the form of an object. Multiple data points are combined into a single entity or object, making it easier to find and use. This type of database is used for high-performance tasks that require faster decision making, such as software development and programming.

An object-oriented database management system stores and manages databases as objects. This allows you to search for entire objects instead of individual data points, and searches are faster. The following is usually true of an object-oriented database structure:
  • There is a direct relationship between database objects and real-world scenarios, so the objects do not lose their purpose
  • Objects can be found and used quickly with the help of unique object identifiers
  • Different data types such as images, texts and graphics are processed
3. hierarchical database management system

A hierarchical database is a collection of data organized in a tree-like structure that is connected by links. They are arranged from top to bottom: The primary data point is at the top and the secondary data points follow in the hierarchy according to their relevance. A good example of a hierarchical database is the organizational structure of a company.

A hierarchical database management system stores and manages hierarchical databases. In doing so, it ensures accurate data hierarchies and flows based on their use in work processes. The following is usually true of data in hierarchical systems:
  • It can be easily added and deleted
  • It can be easily searched and retrieved
  • They follow a one-to-many relational data model
4. network database management system

A network database is a collection of data where each data point is linked to multiple primary and secondary data points. The interconnected data points make this data model more flexible in its use.

A network database management system stores and manages the interconnected data points in a network database. This software was developed to compensate for the disadvantages of hierarchical database models: These do not allow interconnection between data points apart from top-down flow. The following is typically true of network database systems:
  • They allow fast data access
  • They support many-to-many relational database models
  • They enable the creation and management of complex database structures
Who uses database management systems?

In the table below you will find a few examples of which professions use database management systems. Of course, there are many other occupations where data is a high priority.

Occupational field: Application programming

Usage: In this field, databases are used in the development of software applications and tools. Most often, teams use object-oriented database management systems to write code and then convert it into objects for better usability. Converting large codes into smaller objects makes them easier to use, especially when it comes to testing the performance of the developed applications.

Occupation: Data analytics

Usage: Analytics teams collect raw business data and organize it into databases. Most often, they use SQL in a relational database management system to identify raw data, extract useful insights from it, and turn it into information for business decision making.

DBMS software applications are also used in the following areas, for example:
  • Railroad reservation systems: database management systems are used to manage information such as ticket bookings, departure times, and arrival/departure status.
  • Library management: In libraries, DBMSs are used to manage the books available, as well as, for example, issue data, customer information and author names.
  • Banking and Finance: Banking transactions, payment methods, account information and more are stored in DBMS.
  • Educational institutions: Database management systems are used to manage students, courses, event times and attendance.
Improve business decision making with database management systems.

Data is the key to better decision making. Make sure your business data is accessible, secure, and usable effectively so that your data assets provide you with real benefits.