Benefits of databases

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.