Which is the best database for your business?
What is a database?
Learn what databases are, how they work, and their benefits for effective data management in business.
A database is a collection of electronic records organised in a way that makes it possible to quickly find and manage information. A simple example of a database is:
- a list of names and phone numbers that can be sorted alphabetically
- an ascending list of stock codes with current levels or item details
How databases work
You can store data in various formats, known as database models. The most common model is the relational database model, which uses relations and sets to store the data. In practice, this looks like data is organised in tables. To access information from a database, you typically need a database management system.
What is a database management system (DBMS)?
A database management system (DBMS) is software designed to create, update, analyse, retrieve and store data in computer systems. There are several types of database systems available, each suited to different needs.
Database use in business
Businesses use databases to organise and manage essential information, including customer records, inventory data and employee information. Databases can manage:
- customer records
- inventory tracking
- order processing
- employee details
- productivity reporting
- financial reporting
- data analysis
It is important to structure data well to get the most from database technology.
Manual vs computerised database systems
Manual filing, like card indexes, can be inefficient and prone to errors. For example, customer cards work if everyone lists customers' surnames in the same spot for easy sorting. But if details vary, for example, some cards feature postcodes in this place instead, finding information becomes much harder. Cross-referencing information across multiple files is even trickier.
A relational database management system uses common identifiers - or 'keys' - to connect related information. For example, a customer ID number can link a specific customer to all their orders, making it easier to retrieve and manage data. Find out which database solution may be best for your business.
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Types of database system
Understand the different types of database systems and database relationships, how they work and how your business can use them.
A database management system (DBMS) is software designed to create and manage databases. Many different types of database systems exist, each categorised by how they structure and manage data.
Two main types of database structure
Databases typically have one of two basic forms:
- single-file or flat file database
- multi-file relational or structured database
A flat file database stores data in a plain text file, typically with one record per line. Fields are separated by delimiters such as commas or tabs. Flat file databases have a simple structure and, unlike relational databases, do not support multiple tables and relationships. They are best for basic, single-user tasks.
A relational database contains multiple tables of data organised in rows and columns that relate to each other through special key fields. These databases are more flexible than flat file structures, and allow for reading, creating, updating, and deleting data. They use Structured Query Language (SQL), a standard programming interface for database interaction. They are suitable for more complex data needs.
Types of relationships in a database
In relational database design, there are four types of relationships:
- one to one - one record in a table links to one other record in another table
- one to many - one record in a table links to multiple records in another table
- many to one - multiple records in one table relate to a single record in another table
- many to many - multiple records in one table relate to multiple records in another table
These relations create functional dependencies within the database. Common examples of relational databases include MySQL, Microsoft SQL Server, and Oracle.
Four types of database management systems
A relational database management is one of four common types of systems you can use to manage your business data. The other three include:
- hierarchical database systems
- network database systems
- object-oriented database systems
A hierarchical database model uses a tree-like structure where each 'parent' record has a one-to-many relationship with multiple 'child' records, but each 'child' has only one 'parent'. Users navigate fixed paths to access data, which suits structured data like file directories, and limits flexibility for many-to-many links or changes.
Network database models also have a hierarchical structure but allow many-to-many relationships. 'Child' records can link to multiple 'parent' records, forming a graph-like web rather than a tree. This allows more complex connections and navigation across linked data, but requires detailed mapping of relationships to avoid errors.
Finally, an object-oriented database stores data as 'objects' that can connect in flexible ways, with different types of relationships possible between objects. Such databases use an object-oriented programming language for development, often requiring developer skills to set up.
NoSQL or non-relational databases
NoSQL databases offer a popular alternative to relational databases. They handle different forms of unstructured and semi-structured data, including key-value stores, document stores, and graph databases. These suit businesses with rapidly growing or varied data from apps, IoT devices, social media, real-time analytics and more, where fixed tables may limit speed and scale.
Which database is right for you?
Businesses with simple database needs often use standard office tools like spreadsheets. However, if you handle large amounts of data or have complex requirements, consider more robust database systems that offer better functionality. Find tips on choosing the right database for your business.
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Database systems development
Understand how to use database technology to develop bespoke database systems for your business.
Databases can benefit any business that handles large volumes of information. You can use many database products as tools to build specific applications, such as:
- sales ordering systems
- ticket reservation systems
- inventory management solutions
Database development tools
Database development tools make it easier to manage structured data files than traditional programming languages. They set strict design rules to keep data accurate and complete.
Most database development systems use a ‘commit’ process. This means that changes made during a transaction only save permanently after a check to avoid data corruption if the system fails. Uncommitted changes roll back automatically. Professional database development tools also support multiple users accessing and using data simultaneously, which greatly improves the efficiency of these systems for shared records.
Advantages of database development
One of the main benefits of using a database development system is the ability to customise applications to meet your specific business requirements. This avoids compromises often associated with 'off-the-shelf' software. However, defining your requirements can be complex, and you may need to consult a professional system developer.
Read more about the benefits of database development.
Accessing and using your database
Modern database systems primarily use Structured Query Language (SQL) for data processing. SQL allows you to analyse data and generate reports in various formats. For example, you can create a report that lists all customers who ordered products on a Friday afternoon, helping you gauge demand for weekend deliveries.
If you're new to SQL, expert guidance can help you use it more effectively. Consider consulting a professional developer or asking your database supplier for additional support. Find out how to choose a database supplier.
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Benefits of database development
Key benefits of database management systems, and the importance of developing a database for your business.
Using database technology helps you gather, store, and process information about your customers, suppliers and competitors. This can give your business a real advantage. A well-designed database can help you:
- save time on data management tasks
- analyse data in different ways for better insights
- organise your data processes effectively
- turn scattered information into a valuable resource
- improve the quality and consistency of information
Many businesses struggle to handle large volumes of information. They often lack time and resources to understand:
- how well the business is performing
- the profitability of different products
- customer buying habits
A good database can help across all these challenges. If you're not sure how, see 5 reasons why your business needs a good database.
The value of data in your business
A strong relational database management system lets you store large amounts of data securely. Over time, this data becomes increasingly valuable. For example:
- historical data can show trends in your business
- sales records can identify valuable customers
Data protection and compliance in database development
When you gather, store and process personal data, you must follow UK data protection laws, including the UK General Data Protection Regulation. The data you hold or process must be:
- adequate - enough to fulfil your stated purpose
- relevant - directly linked to that purpose
- limited - restricted to only what is necessary for that purpose
Set up clear processes to gather, enter, and manage data to stay organised and keep your business running efficiently and lawfully. It's not always clear what information is potentially valuable, so try to gather as much data as possible while keeping data protection responsibilities in mind.
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Disadvantages of database development
Understand the downsides of custom database development, including high costs, long timelines, skill shortages, operational risks, and security challenges.
Custom database development can bring benefits, but it also has significant drawbacks. Consider these before committing resources.
1. High initial costs
You will likely need to pay for skilled developers, specialist software, and possibly hardware upgrades. These costs often exceed the price of off-the-shelf solutions that may offer similar features at a lower price. Small businesses especially may find this investment hard to justify. Check the benefits of database development before deciding.
2. Time-consuming process
The development of a database involves design, testing, and implementation. Each stage needs careful attention, and any delays can extend the timeline. Your business might wait months before seeing any return on investment.
3. Skill requirements
Database development requires expertise in database design and programming. If your team lacks these skills, you will need to hire or contract professionals. This adds to costs and can cause further delays with implementing your database solution.
4. Operational risks
Custom databases can carry operational risks. A poor fit with your business needs or processes can disrupt daily operations, such as order processing or customer service. Investing in a system that looks good on paper, but is untested in practice, can lead to challenges and possibly costly downtime, especially if it affects essential functions. Plan thorough testing and staff training to avoid these issues.
5. Maintenance and upkeep
Custom databases need regular updates, backups, and fixes to stay reliable. These tasks and associated costs add up over time and may cost more than the initial build. Changes to custom databases to match business growth may also require considerable effort and resources.
6. Data security and compliance concerns
Custom systems can be vulnerable if security is not built in properly. Data breaches could harm your reputation and lead to fines under the data protection laws. Always follow guidance on IT risk management.
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Which is the best database for your business?
Find the best database for your business by evaluating data types, access, costs, and future adaptability.
Choosing the right database for your business depends on your specific needs. Consider these factors to make the right decision:
- the type of data you will use, eg text, images or numbers
- the data structure or model you need
- where you will store it
- how you plan to access and manage it
- what you will use it for
- how consistent your data needs to be
- the querying and reporting features you need
Many sectors, like manufacturing, publishing, or finance, have databases tailored to their needs. Explore options for databases that match your industry requirements, and speak to your trade association or business peers for recommendations. Research popular options online.
Choosing the right database system - key questions to ask
To select the best system for your business, ask yourself the following questions:
How will you use the data?
If you have small amounts of data and only need occasional filtering or updates, a standard spreadsheet may work well.
Who will need access to the data?
If multiple people need simultaneous access to view and update information, a relational database management system (RDBMS) is more suitable than a standard spreadsheet, which typically only allows one user to edit at a time. Learn more about the different types of database system.
What is your budget?
Flat-file databases are often inexpensive but limited in capabilities. They also often have single-user access. Larger relational database packages allow multi-user access and advanced processing but may cost more. Some RDBMS software is available as open source software, providing free access with scalability through additional licenses as your needs grow.
Will your needs change over time?
Open source databases let you access the source code, allowing you to adapt the database as your business evolves. This often requires specialist IT skills, so you may need to hire help. Review the software license carefully to understand any legal obligations.
If you are considering a custom database for your business, see more on database systems development and how to choose a database supplier.
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How to choose a database supplier
Key questions to ask when selecting a database supplier to ensure you choose the right system for your business.
Selecting a reliable database supplier is important, especially when investing in a relational database management system (RDBMS). A well-chosen supplier will not only meet your current needs but also support your business as it grows. The wrong supplier, however, could bring unexpected costs, disruptions, and even put your business at risk.
Questions to ask potential database suppliers
Before making your choice, consider the following.
How established is the supplier?
Experience matters. A supplier with many years of experience is more likely to provide stable, well-supported products and reliable support.
What are the specific costs?
Request a clear breakdown of all costs, including one-time purchase fees, annual licensing fees, and per-user charges. Knowing the full cost upfront helps you avoid surprises.
What is the cost and availability of technical support?
Reliable technical support is vital for maintaining your database. Ask about support hours, service levels, and additional charges for support outside normal working hours.
Does the supplier offer consultancy services? If so, what are the rates?
Consultancy services can help you assess your needs and set up custom features or integrations with your existing tools, like accounting software or CRM systems. They can also help you test them to fit your workflows seamlessly.
Is the database system scalable?
Your business may grow, and may need to handle more data or users in the future. You will want a system that can scale efficiently. Ask how the system may cope with growth and if any costs apply for scaling.
Are there third-party developers experienced with this RDBMS?
Third-party developers can provide additional services or customisations, making the system more flexible and adaptable to your needs. Check if the supplier has partnerships with these developers.
Is there an active independent user community?
An independent user community can be a valuable resource for troubleshooting, sharing insights, and connecting with other businesses using the same system.
Can the supplier provide references from similar businesses?
References from businesses in your industry can show how well the system performs in a comparable setting. Real-world testimonials are an effective way to validate the supplier's claims.
Does the supplier offer training, and what is the cost?
Effective training can make implementation smoother and increase user confidence. Ask about training options, formats, and costs, especially if your team will need upskilling.
You should also assess the database's security features and compliance capacity, as well as system reliability and performance. Ask about system uptime, and check if the provider offers a service level agreement (SLA) to guarantee performance.
For more on setting up database systems, see our guide on database systems development.
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