Question

How important is it that a company's systems be based on a database? What advantages does it provide? Include in your answer an example from a company.

Answer 1

Database and Importance

This is a technique through which the organizations keeps its data which consist of all valuable information like organizational progress, flow pattern and organizational history which plays a vital role in running the organization effectively and efficiently for a longer period of time and these data are kept in electronic format can be accessed by the authorized person from any electronic device which is connected to the organizational database system.

Now let us discuss the advantages of a company's system based on the database.

• Company systems based on databases can easily transfer data to each and every part of the organization which allows each member of the organization to view all the performance measurements of the organization which makes it easier to make sudden and accurate changes for the organization which can push the progress on another level.
• Company system based on the database can keep a track record on the organizational and employee's performance and this allows the organizational management to analyze and make corrective decisions which improve the quality and quantity of the organization and its employee's performance which is beneficial for the organization for a longer period of time.

To further explain this lets just take an example of amazon and its database company this company has a wide variety of consumers and suppliers which need to be kept in records for analysing and tracking the services which are being provided to its customers. Company keeps all the data related to consumers percentage and organizational performance in their database which allows them to identify the market which not performing well as compared to others market and then according to the performance database of the organization in that particular market they can find the valuable resources of data which will help them to understand and make corrective decisions for the organization even sitting away from that market.