A better alternative to a file processing system is an integrated database approach. In this environment all data belonging to an organization is stored in a single database. Most organizations can benefit by having their data integrated into a single database.
A single source of data gives the organization the ability to combine information across all business operations. Whereas managers used to receive a separate printed monthly report from each system, they can now obtain daily, or even hourly, electronic reports that give a single view of what matters, as it happens, across their entire organization.
The data in the database is available to a large number of users who can access the data simultaneously and create reports and manipulate the data given proper authorization and rights. In a large organization it is not uncommon for the two people to be working on the same data simultaneously.
Chief executive can access a single dynamic report on screen to monitor their critical success factors and key performance indicators, such as sales, leads, liquidity, staffing, or inventory levels.
These interactive reports allow the user, not just to monitor everything that is important to the company, but also to investigate variances and get immediate answers within a few mouse clicks.
Since all the related data exists in a single database, there is a minimal need of data duplication. The duplication is needed to maintain relationships between various data items.
Single database for a large organization