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Database Design: Benefits of a Database
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A database is a collection of data which has been organised so that a computer program can quickly select desired items. This could be something as straightforward as a list of names in alphabetical order or an ascending list of numeric stock codes. The secret to the successful use of database technology is the way in which data or information is structured to enable efficient processing.
Database tools and applications are designed to help you store and manage data in a controlled and structured manner. |
Introduction
The gathering, processing, and use of information relating to the operations of a business are vital components of its success. Even something as simple as a customer mailing list needs to be managed appropriately if it is to be kept up to date and accurate. Therefore, any tools or applications that can make the tasks involved easier and more efficient need to be given serious consideration. |
Types of database system
Databases generally have one of two basic forms - the single-file database or the multi-file relational database. Single-file databases are often called "flat file" systems and relational databases are frequently known as "structured" databases.
The type of database system or tool that you require depends on a number of factors, such as:
the complexity of the data involved, e.g. plain text, images, sound files
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the quantity of data to be stored and processed
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whether the data needs to be accessed and amended by more than one person simultaneously
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whether data needs to be imported from, or exported to, other IT systems
If your requirements are simple, e.g. monitoring the names and addresses of around 100 customers, you might find that standard office tools such as a spreadsheet might be all you need.
However, if your needs become more complicated you will need to look at more sophisticated and capable packages. These are specifically designed to sort and search large amounts of data of a variety of types, for instance allowing you to manage customer names, goods orders and payment histories. |
Business benefits
For most businesses, the more you know about your customers, your suppliers, and your competitors, the better. Therefore the gathering, storing and processing of information in the form of databases can provide you with a distinct advantage.
Many businesses do not have the time or resources available to gather and process large quantities of information. Therefore they may lack information about how their business is performing, how profitable their product lines are, whether customers are making repeat purchases, etc. This information can help deal with specific operational problems or make future strategy. It is not always obvious what information could be valuable in the future so you should gather as much data as possible.
Using a sophisticated relational database management system allows you to do this, and the store of data that is built up over time can become increasingly useful and valuable. For example, historical data can show you business trends, or sales records can identify valuable customers. In addition, the disciplines required to gather, enter and process such data can help to ensure that your business is run in a regulated and properly managed way.
Some of the advantages of using database technology in your business include:
reducing the amount of time spent managing data
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giving you the ability to analyse data in a variety of ways
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promoting a disciplined approach to data management
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turning disparate information into a valuable resource
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improving the quality and consistency of information
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Availability and costs
Whether your business would benefit from database technology largely depends on volume. A small business with half a dozen customers, fewer than a hundred product lines and five suppliers will not need a sophisticated database to manage its data. Many small businesses manage very well with the limited database capabilities in a standard spreadsheet package.
However, as the volumes of data begin to increase, the limitations of relying solely on a spreadsheet package for database facilities start to become apparent. The modern database is capable of handling millions of records and is designed to cope with very large processing requirements.
The other major factor affecting your decision is the number of people you need to be able to share information simultaneously. While a spreadsheet may be viewed by several people at once, generally only one person at a time can make amendments to it. With a relational database several people can access and amend different individual records at the same time. This makes the data store more of a shared resource.
Custom-made databases range in price from a few hundred pounds to several thousand pounds, often with licensing fees based on the number of simultaneous users that are able to access the data. The bigger the system, and the more users accessing it, the more you will have to pay. Most packages allow you to start off quite modestly with for example, a licence for five users which you can increase as your requirements grow. |

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