Critically analyse the significance, both strategically and Essay

Critically analyse the significance, both strategically and operationally, of the use of databases in an area of administrative, or economic, or social activity 01292 - Essay Example A brief summary regarding the evolution of database in the commercial world has been included. Additionally, the use of databases and their contributions towards managing information has been analyzed. Modern day organizations irrespective of their type, size and nature of activities, depend heavily upon databases for managing the day to day information transmission needs. Accurate data recording and updating is crucial in achieving organizational success. Databases are largely maintained in organizations for tracking sales, movement of materials, maintaining invoices and accounting reports. Computerized networks and systems are essential for preparation and maintenance of databases (Watson and Hewett, 2006). Databases not only facilitate information storage but also assist in promoting the relationships that exists between employees, mangers and other external factors. Organizational databases are developed and maintained in a manner such that all related parties of the business can access it at any given time. Databases form an important source of information for taking managerial decision making. The manner in which an organization stores information determines how quickly they are able to perform tasks, provide information to clients and consumers and provide directions to employees. The most common types of databases which organizations use are Oracle, Microsoft Access, SQL, Paradox and DB2. The type of database an organization selects to maintain depends upon its requirements and nature of data (Hoffer, 2004). Broadly, databases can be of two types: desktop and server based database. Desktop databases are mainly related to single user applications. Server databases are based on multi user applications and are based on mechanisms which promote reliability and data consistency. Such databases require high performance servers and speedy network access. Hence