A database [Modern technology] is a collection of data (or facts) that are
logically organized and can easily be searched or manipulated large amounts of
information, may deal with more than one database at a time.
The term "database" nearly always refers to such a collection in electronic form, which is stored on and can be searched by computer. A database is in essence one or multiple computer files that encode data in a highly structured format.
A database management system (DBMS) is the category of computer software programs used for creating, organizing, retrieving, analyzing, and sorting information in computer-based databases. Such software is often informally referred to as "database software." The database and the DBMS, however, are distinct, just as a text document is distinct from the word processing program used to create and modify it.
Companies have many uses for accurate, comprehensive databases. Firms commonly maintain databases of clients, vendors, employees, inventory, supplies, product orders, and service requests, among other things. A database system that can handle all the relevant attributes of a type of data and to provide the desired methods for analyzing the data is an essential management tool for all but the smallest of businesses.