DBMS Fundamental and Basic Operation 2 How and Why Companies use Database

Summary

This video explains how and why companies use database management systems (DBMS). It covers the practical uses of databases, such as real-time data updates in applications like e-wallets, business intelligence for dashboards and reports, and the creation of data solutions like machine learning models. The video highlights the limitations of traditional tools like Excel, particularly for handling large datasets, and contrasts them with the efficiency, accessibility, and structure that databases provide. Ultimately, databases enable businesses to manage and utilize data more effectively, ensuring real-time updates, data consistency, and collaborative access.

Takeaways

• 😀 Databases are crucial for businesses to handle and manage large amounts of data efficiently, especially in real-time applications like e-wallets and transaction tracking.
• 😀 Livewire systems update data instantly, ensuring real-time reflection of changes like balance updates, which would be impossible with tools like Excel.
• 😀 Dashboards and reporting are vital for business intelligence, helping analysts track performance metrics such as user demographics and sales data.
• 😀 Data scientists and engineers leverage databases to store and process massive datasets for machine learning models and data-driven products.
• 😀 Databases are designed for scalability and can handle vast amounts of data, far beyond the limitations of tools like Excel or Google Sheets.
• 😀 Unlike Excel, which is limited to a few million rows and is slow for large datasets, databases are optimized for large-scale data storage and querying.
• 😀 Databases allow multiple users to access and update data simultaneously, enabling collaboration across teams, unlike Excel, which is difficult to manage in a shared environment.
• 😀 Databases are more reliable than Excel, which can easily encounter errors like accidental deletions or data inconsistency.
• 😀 Business decisions are often based on data extracted from databases, making them a critical component in creating accurate and timely reports and forecasts.
• 😀 While Excel and Google Sheets have their place for smaller datasets and simple visualizations, databases are necessary for large-scale, mission-critical operations in modern companies.

Q & A

What is the primary focus of the video?

The primary focus of the video is explaining how and why companies use databases, with examples from live data handling, business intelligence, data solutions, and the limitations of tools like Excel.

How do companies use databases for real-time updates?

Companies use databases to manage live data, ensuring that information such as account balances or transaction statuses is updated in real time. For example, in the case of iWallet, the user's balance is immediately updated after a purchase, reflecting the change as soon as the database is queried.

What role does a database play in business intelligence and reporting?

Databases store large amounts of business data, which can then be accessed to create dashboards and reports. Business intelligence analysts and data analysts rely on these databases to generate accurate, real-time insights into key performance metrics, such as customer demographics and sales performance.

What is the importance of databases in data science and product development?

Databases are crucial for data scientists who need access to large datasets for machine learning models and other analytical tasks. These datasets are stored in databases, enabling the creation of data-driven products and solutions that rely on accurate and updated data.

What are the limitations of using Excel or Google Sheets for managing large datasets?

Excel and Google Sheets are limited in their ability to handle large datasets. For instance, Excel can only manage up to one million rows, and data manipulation can become slow and error-prone as data grows. Additionally, these tools are not optimized for simultaneous access by multiple users.

Why do companies prefer databases over Excel for large-scale data management?

Companies prefer databases because they offer scalability, reliability, and performance. Databases can handle large volumes of data, support simultaneous access by multiple users, and ensure data consistency. In contrast, Excel is prone to errors, data loss, and performance issues when dealing with large datasets.

How does the use of a database improve collaboration within a company?

Databases facilitate collaboration by allowing multiple users to access and manipulate data simultaneously. Unlike Excel, where users often need to work on separate copies of data, databases enable real-time updates and ensure that all users are working with the most current information.

What are the main advantages of databases over traditional tools like Excel or Google Sheets?

Databases offer several advantages: they can handle larger volumes of data, support faster data retrieval and updates, provide greater data integrity, and enable easier collaboration across teams. In contrast, Excel and Google Sheets are limited by file size and are less reliable for real-time collaboration.

How does the performance of databases compare to Excel when handling large datasets?

Databases are optimized to manage large datasets efficiently, providing fast data retrieval and manipulation even when dealing with billions of records. Excel, on the other hand, can become sluggish and prone to errors when working with large datasets, and it cannot handle simultaneous access from multiple users.

Why is scalability a key factor in the use of databases for large companies?

Scalability is essential for large companies because their data grows exponentially over time. Databases are designed to scale, meaning they can handle an increasing volume of data without compromising performance. This is especially important for companies that need to process millions of transactions or interactions, like ride-hailing services or e-commerce platforms.