The Importance of Databases for Your Business: What You Need to Know

March 30, 2022

Using a database, you can track each item in your inventory and access this information at any time. This helps make it easier to locate each item if there are problems with your computer systems or office location. In this post, we’ll take a look at why database is important and how they’re so essential for businesses and other organizations. A database stores and manages a large amount of data on a daily basis. This would not be possible using any other tool such as a spreadsheet as they would simply not work.

One way you could try and do this is by making a separate spreadsheet devoted specifically to collecting customer contact information. If you do this, however, you’ll have the same customer contact information living in multiple places. And once you understand what databases are, you might even want to build your own databases, which will work just the way you need them to. This is a person who can sit down with pen and paper and sketch out diagrams showing the ideal flow of data and the best ways to input, capture, analyze and report information.

why databases are important

Database security is a complex and challenging endeavor that involves all aspects of information security technologies and practices. The more accessible and usable the database, the more vulnerable it is to security threats; the more invulnerable the database is to threats, the more difficult it is to access and use. Learn the complexities of database security and some of the practices, policies, and technologies that protect the confidentiality, integrity, and availability of your data. Database Hosting Redundant servers and data replication to keep critical databases online.

What is a Database?

But databases aren’t just for massive websites that serve millions of users per day—they can also be used by small businesses, or by a small group of people. We should all be happy for ways that database management systems can improve our lives and our work. But so much of corporate activity is concerned with making more money or reducing excessive work hours in pursuit of particular objectives. A database is a single software application that may use many tables, forms and reports, rather than a plethora of spreadsheets owned and managed by people throughout the organization. Secure all access points to the database with strong passwords, including PCs with access.

When using the relational model, all data is in a familiar tabular format. A relatively simple programming language retrieves the data from the database. Returning to our clothing brand example—as your company grows, you find that you need to bring more staff on to scale up production.

  • Identify and troubleshoot performance issues before collaborators are impacted to prevent the spread of misinformation, which could negatively affect patient care.
  • Returning to our clothing brand example—as your company grows, you find that you need to bring more staff on to scale up production.
  • A good system tells you everything you need to know with a couple of mouse clicks.
  • You may wonder why I reference philosophy and biology in an article about databases for technical professionals.

Or you might need a very precise knowledge your team lacks, either to fix and prevent unwanted incidents, detect bottlenecks, or work within dynamic cloud environments in constant evolution. Licensing can be tricky sometimes for cloud-based or hybrid data platforms. In situations like these, outsourced expertise can be helpful to save money and optimize performance. Enable security measures to ensure protection from data breaches, unauthorized changes, and similar risks. Organizations are now gaining more data from their environment and leveraging it towards actionable business insights. They need professionals to help them organize, model, and process this never-ending cascade of information.


Unlike spreadsheets, multiple users and applications access the storage at once. Although you probably store data and interact with databases every day, using databases to make real-world decisions can still seem pretty daunting. You don’t need experience with programming languages in order to understand the basics of databases and start reaping their benefits. And a low-code approach to solving business problems lets you move faster, scale more quickly, and build a data management system that will grow as your business grows. When you query a database to try and answer a specific question, you can store the results of that query as a view, which, in the database world, is a defined subset of the database you can reference later.

why databases are important

Sometimes you need all the help you can get to find the right approach to the data that faces you every day. The efficiencies produced by your DBMS will likely be well worth the time, money and effort spent to bring the database to completion. No one wants to be bogged down with unnecessary requirements or additional busywork. But a good database generally has a simple front end that is intuitively understood by the user.

People are often worried that hackers will be able to break into their database and steal data or alter it. In order to keep your database secure, it is important to have a backup plan. This includes making sure that your database is backed Open Banking API Integration: Examples of Fintech APIs up on a regular basis. Many databases have what is called a “backup log,” which is a record that shows all of the recent database changes. This provides you with a “snapshot” of what your database looked like at a certain point in time.

Data integrity

Database systems are capable of storing and handling truly massive, complex data sets, or big data. This is why websites like Google that have to deal with terabytes of data every day need databases in order to function. Within a database management system, you’ll find different database applications that help you retrieve and manipulate the information that lives in your database.

To query data based upon multiple criteria, you need a database management system. In this new pandemic world where so much of our lives are online, data security and data management has become more important than ever, especially with malicious acts on the rise. When proper database security is in place, businesses can have peace of mind that they are doing everything they can to protect their customer data and the vault of their business. Talk to the database experts at Everconnect to find out more about how they can help to secure your database.

why databases are important

The punched cards system was used throughout the 20th century, especially for voting and clocking in for work. The finance sector tracks the sales and purchases of financial instruments such as bonds and shares. No matter how good you might be at your job, mistakes can and do happen. Fortunately, with a database, any new data or changes to existing data have to abide by certain rules, so you can prevent mistakes from happening in the first place. David Scott Brown has more than 15 years experience as a freelance network engineer.

Even though it is possible to store information without a database, it is often much easier with one. This is because a database is a tool designed to efficiently store data and make it available to its users as quickly as possible. For example, a company might use an Excel spreadsheet to keep track of inventory. While this may be an acceptable method for smaller companies, it is inefficient when dealing with a large database. It simply is not equipped to handle the task in the same way that a database would be.

Automating access and identity management with strong rules enforces strong passwords and the changing of passwords after a set period of time. PINs and biometrics can also be added to further enhance access management security. A number of common issues make databases vulnerable to security breaches.

These platforms are designed to automatically monitor your healthcare databases and help ensure clarity, accuracy, and immediacy throughout database systems in healthcare. Because the systems that work in this sector must be well tested, I recommend a solution you can try for 14 or 30 days with access to all the functions to configure them for your environment. Download a 14-day free trial of DPA and DPM, or a 30-day free trial of SAM.

Databases in healthcare gather information from many different sources—hospitals, health departments, state and regional enterprises, and federal agencies, to name a few. This helps experts use healthcare databases for assessing general healthcare quality throughout a region. If you’re running a growing business, one of the most important things you can do is ensure your database management system is running as efficiently as possible.

They should be able to manage databases on different operating systems and have knowledge of programming and coding languages, frameworks, and development environments. Often, companies work with a preferred DBMS and may require specific certifications or previous relevant professional experience from a DBA. The technology with the most potential impact for the future of databases is autonomous databases. Machine learning helps fully automate provisioning, management, tuning, and upgrades to a database.

The role of the database is to store business data, including the sensitive data of customers or clients. Insecure databases were at the core of several prominent breaches in 2019, resulting in stolen sensitive customer information for millions of users, and huge fines. Get cross-stack data correlation on common timelines with drag-and-drop capabilities, which can help you easily spot and identify root sources of database performance issues. SAM is designed to take these cross-correlations and establish thresholds, enabling you to get alerts for network latency, packet loss, and other healthcare metrics. Thresholds can also be used to set warnings, trigger alarms, and check maps for real-time statistics.

Why database security is so important

The 1990s gave rise to internet application and data storage systems. Massive amounts of both structured and unstructured data were standard. Due to data complexity rising, relational database systems turned to the object-oriented approach. You might not be dealing with terabytes of data on a day-to-day basis—yet. But the fact that databases are capable of handling large amounts of data means that a well-designed database can last you for many years as you accumulate more data over time.

Database Helps You Save Time

Specific internal and external users operate the database, and each person or group has specialized views of the data. Separating metadata from applications that use data is a key attribute. The main database characteristic is the ability to change and transfer an organization’s data to a different computer system without changing the programs that process the information. Likewise, a database helps build an archive about the business, making a company more robust and aware of where it’s headed when making choices. Storing data about an interaction helps provide insight into information to help the company develop further and increase profits.