The Database Environment

Data form the basis of everything an organization that deals with money does. Databases have always been part of businesses. There is a fundamental concept behind all databases. Until the mid-twentieth century, data were processed manually. Because they were stored on paper, retrieving data was difficult, especially if the volume of data was large. In addition, paper documents tended to deteriorate with age. Computers changed that picture significantly, making it possible to store data in much less space, to retrieve data more easily, and, usually, to store it more permanently. The downside to the change to automated data storage and retrieval was the need for specialized knowledge on the part of those who set up the computer systems. It costs more to purchase the equipment needed for electronic data manipulation than it does to purchase file folders and file cabinets. Nonetheless, the ease of data access and manipulation that computing has brought to business has outweighed most other considerations.