A database is a structured method of storing data. The structure, or data model, describes the information that is held using fieldnames, and field types. for example Organistion name is a field, and this is stored as text, a type.
By storing data in this fixed format it allows you to find the information quickly for analysis, mailshots or for contact details.
For a database to be effective it needs to hold current and accurate information and to hold the information you are trying to get out. You will have heard the phrase, Garbage In Garbage Out, this relates to databases. The effectiveness of your database is measured by simple questions, can you get meaningful reports from the data, is the data accurate, is the data up to date?
So before you purchase a database, or start to set one up on a new system the following issues need resolving.
1. What reports do I want from my database?
2. Who will be using my Database?
3. How will I keep the data current and accurate?
4. How will I implement the database?
5. What budget do I need?
6. What are the running Costs?