Central Database System of Companies

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A system is an organization way of doing something. Different system may exist in an organization or a company. They include:

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  • Accounting system.
  • Evaluation system.
  • Database management system.

These systems can function on their own or they can interact and operate as one system in a company. A system in a company can be manually operated or it can be computerized depending on the complexity of the function and nature of the outcome expected and at what time. All the system shares all the following characteristics (Gad and J 1986). They have:

  • Input.
  • Output.
  • Process.
  • Storage.

Central Database System

Database is a collection of information related to a particular purpose. For example in a manufacturing company we can have a database for information from all the companies departments that is; supply, marketing, manufacturing or the human resource department. (Gad and J 1986).

For high production in a company there need to be an effective communication to enable these departments work in harmony. There is a need for the company to have a well-computerized system that will facilitate a smooth flow of information.

Therefore in a company like this, which still operates using the old database methods should leave them and embrace the new central database system. This is because the old systems were based upon either flat data file or the hierarchical data modes that are time consuming and highly prone to errors This is because of the errors that occurs when entering the data or in the process of consolidating the data from the varies departments to one central system in order to produce reports. This process helps to gather all the relevant information needed to create a report. The process has many errors because it involves the manual copying and pasting. It makes the reports produced not to be accurate and hence they cannot offer good bases for the management to make their decision. (Gad and J 1986).

When the company embraces the new central database system, its performance will rise up as in this system most of the operation are automated. It will enable an effective and an efficient communication within the company, which will in return boost production. This is because the system uses the Internet to communicate and allows all the departments to work in harmony for high quality and quantity production. It enables data to be entered into the central database system online. This helps to minimize time wastage, which is a major factor of production. The online entry of data eradicates the error that are made by the old system when consolidating data to one central system by copying and pasting which is a high error prone method.

This process also enhances the data security within the company. This is because all the inputted data is stored in a central place in the server and no one can alter its content unauthorized. This is ensured by installing the server with programs that ensures maximum security of the data and information stored. (Gad and J 1986).

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Installation of the central database systems in the company will guarantee directors an opportunity to be updated of the day-to-day activities of the company. This is because they can easily run the reports from the central database system to show the performance from varies departments at any given time. These reports will help them to make an informed decision of what to be done to increase performance of the company. (Gad and J 1986).


The introduction of Internet in the companies has boosted performance greatly. This is because the new technology allows companies to easily transmit invoices, statements, purchase orders and remit advice with the help of faxes and emails leading to high performance.


Gad. A and James C. (1986) New direction for database systems Pretence Hall.

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"Central Database System of Companies." Premium Papers, 20 Sept. 2021, premium-papers.com/central-database-system-of-companies/.


Premium Papers. (2021) 'Central Database System of Companies'. 20 September.


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Premium Papers. "Central Database System of Companies." September 20, 2021. https://premium-papers.com/central-database-system-of-companies/.