Same data is held by different programs and stored in several locations. This situation requires additional space and maintaining and updating data in several locations is expensive.
Data Integrity Problem
Files are stored within each application program that accesses a given data. The problem occurs if updates are not applied in every file. Changing the data in only one of the system will cause inconsistent data and result in the other system because of duplication of data.
Limited Data Sharing
Each application has it owns private files and users have little opportunity to share data outside their own application.
Lengthy Development Time
Each new application requires that the developer essentially start from scratch by designing new file formats. It takes time to manipulate the data.
Minimal Data Redundancy – because data is stored in a single database, data item do not need to be duplicated in separate files for various systems.
Sharing of data – data can be shared across the enterprise, allowing more users to access more data.
Economy in distributing database – database design allows better utilization of hardware. For example, company does not need to use expensive mainframe but using distributed databases on smaller computers.
Improved Data Consistency – by eliminating data redundancy, the data inconsistency also reduced. For example, if a customer address is stored only once, we cannot have disagreement on the stored values. Updating values is greatly simplified when each value is stored in one place only.