What is a Database?

4 min to read

Databases are collections of information where you can access them when needed. Businesses also utilize databases so they can manage their collected data and update it whenever required.

You should use your databases to centralize information. It’s also vital that you choose a solution with the features required to retrieve specific data; businesses/organizations of all sizes utilize this kind of data collection.

Pro Tips:
• Know what data you will be storing before you choose a format and design your database.
• Many businesses use customer relationship management systems (CMS’s) to store lead/customer data.
Key Takeaways:
  • Use databases for managing and retrieving information
  • The database you pick must be compatible with your business needs
  • Consider utilizing a database management system (DBMS) as part of your strategy
Hocoos small logo Answers Hosting

How is data organized in a database?

In most databases, you will find information presented within tables. Each of these has rows and columns, which are often customized depending on the team or business’s requirements. You can organize your data in this way if you wish to achieve efficient data management, but other options also exist. 

Users may prioritize which data they want to view. For example, a team member could potentially choose to see the most recent additions first. They might also want to view data in alphabetical order or by location. 

Pro Tip:
Know how your different data aspects will react with each other before creating your database. 
Deep Dive:
• Choose how you want to organize your database information. While many businesses and teams use tables, you may also want to consider utilizing graphs.

• Think about the columns you should add. For example, if you’re an online store, you may want to add a customer ID, their name, email address, etc.

What are the different types of databases?

You will find numerous types of databases when researching. Some of the most common ones are: 

  • NoSQL: Data is stored outside of a table and is mainly used for flexibility. 

  • Graphs: Information is stored in graphs rather than tables. 

  • Object-Oriented: You’ll see your data presented as objects. 

Regardless of the database you use, you will encounter various pros and cons. For this reason, it’s important that you understand these before building one. If needed, experiment with different data types; then, determine what works and does not work. 

Deep Dive:
• In addition to the databases described above, you should consider others. Documented-oriented data is one example, and in some cases, you may want to use time series and geographic information.

• You may also encounter relational databases. These are usually used for business apps. On the other hand, you will typically use NoSQL bases when you have a lot of data without any particular structure.

What is a database management system (DBMS)?

A database management system, also known as a DBMS, is software used in conjunction with databases. You will use this so that users can change the information within a database. It’s also used for database management and querying different elements of data. 

You should use a DBMS if you want to manage data but don’t want to use something complex. 

Deep Dive:
• Look to see if your DMBS is open-source or closed-source. You will find options in both categories, so it’s important that you understand which would work better for your specific needs.

• Some DBMS’s you’ll probably encounter at some point include Oracle and PostgreSQL.

How do you interact with a database?

The way that you interact with databases will depend on your preferences and needs. The main ways to do so are: 

  • SQL

  • Database Management 

  • Programming Languages 

You can access and change data differently, depending on what you use, and you should consider your level of technical expertise. 

Deep Dive:
• The database you choose will determine which methods are supported (e.g. command-line interfaces). Therefore, it’s important that you consider this when setting everything up.

• If you’re going to use a relational database, consider starting with SQL. You can choose an option later if you feel like doing so is necessary. 

What are some common database examples?

You will see databases used in multiple environments. These include: 

  • Social Media: Collecting user information based on their interests and other aspects. 

  • eCommerce: Organizing customer information based on their user ID, purchase history, and other related elements. 

  • Banking: Using databases to organize customers based on metrics such as their transaction history. 

  • Healthcare: Organizing patient information based on their care plan, medical history, etc. 

Databases are crucial in all of these industries, and they will become particularly necessary when you have a large number of customers/users. 

Deep Dive:
• Educational institutions and government agencies also use databases to organize information. You will often see them used for scientific research purposes.

• Besides transaction history, banks may store bank account balances and other forms of information within their databases. 

Conclusion

The utilization of databases is prevalent across diverse industries and company sizes; examining the feasibility of establishing your own could be worthwhile. Consider using software (e.g. CRMs) where possible.

Besides understanding the importance of databases, it’s also crucial that you know the different ways to organize information in databases. 

Table of Contents

READY TO KICK-START YOUR SMALL BUSINESS JOURNEY?

Important Consideration: The information provided by our expert team is designed to give you a general understanding of the website creation process and the features available to you. It's important to note that this information is not a substitute for professional advice tailored to your specific needs and goals.
Read our editorial standards for Answers content.
Our goal is to empower you to create an amazing website. If you have questions or need guidance during the building process, don’t hesitate to Contact us. We're happy to provide assistance and point you in the right direction.