The world of data is constantly changing and evolving every second. This in turn has created a completely new dimension of growth and challenges for companies around the globe. By accurately recording data, storing, updating and tracking them on an efficient and regular basis, companies can address their challenges on one hand and make use of the immense potentials offered by this sector on the other hand.

By collecting minute and updated data, companies are using the said information to achieve their goals in a systematic way on one hand and empower their business in a strategic manner on the other hand. Database management systems are therefore crucial and important links in the creation as well as management of data.

A database management system stores, organizes and manages a large amount of information within a single software application. The use of this system increases efficiency of business operations and reduces overall costs.

Database management systems are important in businesses and organisations because they provide a highly efficient method for handling multiple types of data. Some of the data that are easily managed with this type of system include: employee records, student information, payroll, accounting, project management and inventory. These systems are built to be extremely versatile.

Without database management, tasks have to be done manually and take more time. Data can be categorized and structured to suit the needs of the company or organization. Data is entered into the system and accessed on a routine basis by assigned users. Each user may have an assigned password to gain access to their part of the system. Multiple users can use the system at the same time in different ways.

For instance, a company’s human resources department uses the database to manage employee records, distribute legal information to employees and create updated hiring reports. A manufacturer might use this type of system to keep track of production, inventory and distribution. In both scenarios, the database management system operates to create a smoother and more organized working environment.

There are five major components in a database environment: data, hardware, software, people and procedures. The data is a collection of facts, typically related. The hardware consists of the physical devices in the database environment. Operating systems, database management systems and applications make up the software. Examples of people in the database environment are the system administrator, programmers and end users. Procedures are the written instructions and rules for the database to function by.