A well-built database management system (DBMS) keeps your information organized, secure and ready to use. It helps you work faster, spot key trends like sales fluctuations or customer preferences and even predict what your customers want next.
In this guide, you’ll learn what a database management system is and why it’s a must-have for handling all kinds of business data. You’ll also discover the key features to look for when picking a DBMS that’ll work best for your company’s needs.
“Database management system” definition: a Database Management System (DBMS) is software that provides an interface for users to interact with data inside a database.
Think of it as a highly efficient librarian for your digital information. It catalogs your data, ensures it’s stored safely and helps you find exactly what you need when you need it.
A DBMS allows you to store, retrieve and manage large amounts of structured information and acts as an intermediary between your data and the applications that use it. The database engine also improves data consistency and gives you fast access to your data store.
Why do you need a database management system?
Database management systems have a domino effect on your organization’s bottom line by centralizing its data. The benefits listed below boost the organization’s financial performance by reducing costs, increasing revenues or both. Here’s how they help business owners:
Benefit | What it means for you |
Improved efficiency and productivity | Automates data retrieval and analysis tasks to reduce manual work, allowing your team to focus on high-impact strategies like innovation and market expansion |
Better decision-making | Provides accurate, consistent data across your organization in real time, enabling your team to make strategic choices aligned with business goals |
Increased data security | Employs encryption, user authentication and role-based access controls to protect sensitive data from breaches and boost customer trust |
Cost savings | Minimizes duplicate data and optimizes storage to save on hardware expenses and reduce maintenance workloads |
5 types of database management system
Each type of DBMS can handle different kinds of data and tasks. Some manage large volumes of data, others specialize in quick changes and some handle complex relationships between data.
Below is a breakdown of five common types of DBMS.
1. Relational database management systems (RDBMS)
An RDBMS organizes data into tables with rows and columns that create relationships between data sets. It uses structured query language (SQL) to query and manage data.
The table structure and standardized query language enable complex queries for better data retrieval and manipulation. The structured format makes RDBMS ideal for complex data interactions and maintaining data integrity, especially when dealing with interrelated data sets.
For example, a sales data RDBMS might link customer information to order history and product details.
The two tables are related through the shared Customer ID, so you can query the data in both to generate one report.
The setup lets you quickly retrieve comprehensive data, like a customer’s purchase patterns across product categories. The relational model is helpful for customer database software.
2. NoSQL database management systems
NoSQL systems are more flexible as they manage different types of data without needing strict formats. They store data in various non-relational formats like key-value pairs, documents, graphs or columns.
For example, here’s what a typical document in a database like MongoDB looks like:
NoSQL DBMS can handle vast amounts of data and keep things running smoothly even as the data grows. The NoSQL database model is also best for managing data warehouses and big data applications.
NoSQL databases store related data in flexible, organized documents, which makes it easy to quickly retrieve all user activity without complicated searches across different tables.
For example, a social media platform could use a NoSQL database to store and retrieve user profiles, posts and interactions.
3. Hierarchical database management systems
These databases organize data in a tree-like structure with parent-child relationships. They handle data that naturally fits into a hierarchy, like organizational charts or file systems.
While less flexible than newer systems, hierarchical DBMS still serve some specialized fields.
Take a company’s employee directory, for instance. The CEO would be at the top, followed by department heads and team leaders.
A hierarchical format makes it easy to see who reports to whom and to find everyone in a specific department.
Similarly, a company might use a hierarchical database to store data with clear parent-child relationships – such as file systems, geographical information, bill of materials and website navigation menus.
4. Network database management systems
Network databases are similar to hierarchical databases, except they allow each record to have multiple parent and child records. They’re more flexible in modeling complex relationships.
While less common, network DBMS can be useful for specific setups.
Imagine a school database where students can have multiple teachers and teachers can have multiple students. A network database would handle this web of connections smoothly, making it easy to see all of a student’s classes or a teacher’s students at once. The network model helps manage complex contact management scenarios.
5. Object-oriented database management systems (OODBMS)
These databases store data relationships and data in a single entity known as an object in the Object Oriented Model. They mainly handle complex data types and relationships.
OODBMS can be handy when working with multimedia or engineering data. Imagine a luxury car dealership where each vehicle is an object with properties like specs, pricing and available customizations.
The system offers vehicle specifications and customization options. It even integrates with target mailing lists for marketing campaigns.
Note: OODBMS are powerful but may be complex for simple data storage needs. A simpler database type might be better if you’re just keeping track of basic customer info.
Key features to look for in a database management system
When you’re looking for a database management system, your wish list will vary depending on your needs. That said, the following features are non-negotiable:
Data modeling
Data modeling is how you organize and structure your database – like creating a blueprint for your information.
A DBMS lets you easily map out your data relationships. You can define tables, set up connections between them and specify rules for how data interacts.
Look for features that help you visualize these relationships, like:
Entity-relationship (ER) diagrams
Schema designers with drag-and-drop interfaces
Interactive data flow charts
Visual query builders
The goal is to create a logical structure that reflects your business needs. The logical foundation makes it easier to store, retrieve and analyze your data later. Plus, solid data modeling helps prevent issues like data duplication or inconsistencies.
Data storage and retrieval
When it comes to data storage and retrieval, you want a DBMS that’s both fast and flexible.
Your system should be able to handle large volumes of data without lagging. Whether you’re pulling up a single customer record or running a complex query, you need quick results.
You also want options for how you store your data. Some systems are best for dealing with structured data (think neat rows and columns), while others excel at handling unstructured data like documents or images.
Look for features like indexing to speed up searches. Check out the query language – is it easy to use? Can it handle the kinds of questions you’ll be asking your data?
The easier it is to input and output data, the more value you can get from your system.
Concurrency control
Concurrency control lets multiple end users work with the same data at once. It’s like traffic control for your database.
Without concurrency control, data inconsistencies could lead to errors, duplicate work and lost updates – compromising data accuracy and efficiency.
For example, if one sales rep updates a customer’s address while another edits the same customer’s order details, their changes could overlap and cause confusion or data loss.
A reliable DBMS keeps track of who’s doing what during concurrent access and ensures changes don’t clash. Your team members can work together without interfering with each other’s processes.
Look for features like locking (which temporarily restricts access to data being changed) and versioning (which keeps track of different versions of data).
Note: Concurrency control isn’t a substitute for good communication. Encourage your team to give each other a heads-up when working on shared data.
Data integrity and security
Data integrity and security keep your information reliable and safe. They prevent your data from falling into the wrong hands and causing significant risks for your business.
Integrity means your data stays accurate and consistent. A quality DBMS enforces rules to prevent bad data from sneaking in.
It acts like a gatekeeper and blocks any input that doesn’t match the predefined format. For example, it might block a user from entering a phone number in an email field.
Security keeps the wrong eyes off your data. Look for the following features:
User authentication prevents unauthorized access by verifying identities
Access control ensures only the right people have permission to view or modify sensitive data
Encryption protects data even if it’s stolen, as only authorized users can decode it
You also want audit trails to track who’s doing what in your database. Audit trails give you visibility into actions within your databases and help you identify potential misuse or unauthorized access quickly.
Backup and recovery
Data loss can happen at any time, often without warning. Automatic backups ensure that your data is safe even in the event of human error – like forgetting to back up manually.
Look for systems that let you schedule automatic backups so team members are always covered, even if they forget.
You also need to be able to restore that data quickly when things go wrong. Check the recovery tools to determine how fast you can get back up and running.
Fast recovery tools minimize disruption during downtime, where every minute can mean lost productivity.
Some systems offer point-in-time recovery features that let you roll back to any moment, not just your last backup.
For example, if you accidentally delete important records at 2 PM, you can restore your system to 1:59 PM, right before the deletion. They’re quite useful if you need to undo a mistake.
Note: While automatic backups are highly efficient, test your recovery process regularly. You want to know it works before you really need it.
How to use Pipedrive as a DBMS
While Pipedrive is primarily a CRM tool, you can use it as a database management system for your sales data. Its features give you the flexibility to structure, analyze and secure your data in ways that drive your sales process forward.
Pipedrive’s comprehensive data management approach also maintains clean data and improves your CRM experience. Here’s how to make the most of Pipedrive’s DBMS capabilities:
Customize your data structure with pipeline stages
Pipedrive lets you tailor your sales pipeline to match your unique process, offering a flexible alternative to a one-size-fits-all approach.
A customizable CRM ensures that your pipeline stages mirror your team’s workflow, improving efficiency and keeping everyone on the same page.
Rename, create, delete and reorder pipeline stages to reflect your sales flow. Flexibility means you can organize your pipeline data in a way that makes sense for your business. Sales teams can also see where each deal stands and what actions are needed next.
For example, a real estate agency might use stages like “Property Viewing”, “Offer Made”, “Inspection Scheduled” and “Closing”. A marketing agency might have “Discovery Call”, “Proposal Drafted” and “Client Onboarded”.
Adaptability allows you to evolve your pipeline as your sales strategy grows, making it easier to scale fast and adjust to new challenges.
Download our sales pipeline course e-book
Optimize data with custom fields
Every business has unique data needs. Pipedrive’s custom fields feature lets you capture and store the exact information you require.
Custom fields ensure you collect the right data for better decision-making, leading to more targeted strategies and improved deal outcomes.
Add fields specific to your sales process, such as budget range, decision-maker role or product interest. Choose from field types like single option, multiple options or numerical to best suit your customer data.
For instance, a service-based company might add fields like “Service Level Agreement” or “Preferred Contact Time”. At the same time, a product-focused business could track “Preferred Delivery Method” or “Product Customization Options”.
Customization allows you to build a database structure that aligns perfectly with your sales strategy and reporting data needs.
Tailor your reports to reflect the metrics that matter most to your team, giving them more precise insights and more accurate sales forecasting.
Generate insights with custom reports and dashboards
Turn your sales report data into actionable insights with Pipedrive’s reporting features.
Build custom reports and dashboards to visualize your data in meaningful ways. Track key metrics, forecast sales and identify trends to drive your sales strategy.
Customizable dashboards and reports turn raw data into insights that drive smarter decisions and help your team stay aligned and proactive.
For example, you might create dashboards for pipeline health, win rates by salesperson or revenue forecasts by quarter, which would enable you to tackle various aspects of your sales process precisely.
Flexibility lets each team member view the data that matters most to them, whether it’s sales trends, customer behavior or individual performance metrics. These metrics help you refine your sales strategy to focus on high-growth areas.
Secure your data with robust security features
Pipedrive’s Trust Center ensures compliance with local and global security standards like GDPR. You know your data is safe and can focus on your sales efforts without worrying about vulnerabilities.
Use visibility groups and permission sets to control who can access and modify different data types.
A granular level of control minimizes risks by ensuring only authorized team members can access specific data and reduces the chances of accidental or malicious exposure.
Enable two-factor authentication and monitor user access logs to secure your sales database. Two-factor authentication adds an extra layer of security by requiring a second verification form, so it’s significantly more challenging for unauthorized users to gain access.
7 more database management system software solutions
Depending on your operation’s needs, industry or size, you could explore other DBMSs that offer more than sales-focused functionalities. Consider these options:
1. Oracle Database
Oracle Database is an RDBMS that handles massive amounts of data while providing robust security, scalability and performance.
Key features:
Manages multiple databases as a single unit
Supports advanced analytics for efficient data processing
Offers granular access controls to keep your data secure
Provides real-time data protection and disaster recovery
Supports distributed databases across multiple locations
Who should use Oracle Database?
Oracle Database is ideal for large enterprises, financial institutions and organizations dealing with massive datasets. It suits businesses that need advanced security, high availability and powerful analytics capabilities.
2. MySQL
MySQL is an open-source relational database management system that’s become a go-to choice for web applications and online services. It’s known for its speed, reliability and ease of use.
Key features:
Supports a wide range of SQL statements for complex queries
Uses a binary protocol for faster data transmission
Provides SSL support for secure data transmission
Supports ACID-compliant transactions to ensure data integrity
Includes stored procedures and triggers for task automation
Who should use MySQL?
MySQL best serves small to medium-sized businesses, web developers and startups. It’s an effective choice if you’re building a content management system, e-commerce platform or any data-driven website.
3. Microsoft SQL Server
Microsoft SQL Server’s RDBMS is a cornerstone of many enterprise-level data solutions. It handles everything from small departmental databases to massive, mission-critical applications.
Key features:
Advanced data protection with Always Encrypted and dynamic data masking
Built-in auditing and monitoring tools for compliance and security
Multi-platform support including Windows, Linux and containerization
Robust Analysis Services for complex data analytics and business intelligence
PolyBase integration for querying data across various sources
Who should use Microsoft SQL Server?
SQL Server is a good choice for medium to large businesses, especially if you already use Microsoft tools. It’s popular in finance, healthcare and retail industries, where accurate data and analytics are critical.
4. MongoDB
MongoDB is a NoSQL database with a flexible, document-based structure to manage diverse and rapidly changing data. It can scale horizontally, making it a go-to choice for applications handling massive data or traffic.
Key features:
Stores data in flexible BSON (Binary JSON) format
Self-describing documents simplify data handling
Allows dynamic schema changes without downtime
Supports indexing on any field for faster queries
Enables ad-hoc queries and real-time analytics
Who should use MongoDB?
MongoDB supports startups, web developers and companies dealing with large volumes of unstructured or semi-structured data. It works well for applications such as content management, mobile apps, gaming and Internet of Things (IoT) projects.
5. IBM Db2
IBM Db2 is an enterprise-level relational database management system that handles massive workloads while providing robust performance, scalability and security.
Key features:
Data partitioning for improved scalability and parallel processing
pureScale technology for continuous data access with minimal downtime
Built-in compliance tools for maintaining data integrity and security
In-database machine learning capabilities
Seamless integration with IBM Watson and other analytics tools
Who should use IBM Db2?
Db2 helps large companies, especially in finance, healthcare and telecommunications, where data is a big focus. It’s particularly useful if you require around-the-clock information access, need to handle large amounts of data instantly or want to use AI and machine learning to improve your data operations.
6. Apache Cassandra
Apache Cassandra is an open-source NoSQL database that can handle vast amounts of data across many standard servers. It’s built to stay available and reliable, even if some parts of the system fail.
Key features:
Horizontal scalability by adding nodes for easy growth without downtime
Decentralized architecture with no single point of failure
Cassandra Query Language (CQL) for SQL-like interactions
Support for atomic snapshots and incremental backups
Built-in support for data compression
Who should use Apache Cassandra?
Cassandra is intended for organizations dealing with large-scale, always-on applications that require high availability and scalability. It’s best for companies with global user bases needing low-latency data access across regions.
7. Amazon Aurora
Amazon Aurora is a cloud database service by AWS that handles all management aspects. This fast system works with MySQL and PostgreSQL.
Key features:
Serverless mode that automatically adjusts to how much you need
Encryption at rest and in transit for enhanced security
Detailed access controls using AWS Identity and Access Management (IAM)
Global database option for multi-region deployments
Integration with other AWS services for easier management and monitoring
Who should use Amazon Aurora?
Amazon Aurora is convenient for businesses already on AWS or planning to move there. It’s particularly well-suited for companies looking to move their on-premises databases to the cloud.
Final thoughts
Choosing the right DBMS is crucial for your business. It can mean the difference between seamless operations and costly data chaos.
See how Pipedrive’s database features, like customizable pipelines and powerful reporting tools, can keep your sales data organized, fully secure and ready to fuel data-driven decisions.
Start your free 14-day trial to discover how the CRM can double up as a powerful sales database.
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