Before DataBase Management Systems were created, organizations kept large numbers of databases on different punched cards. When needed, the data was searched manually and sorted by a tabulating equipment. But the word database only existed in the mid 1960s when computers stored data sequentially on magnetic tape. Computers enabled quick random access to data inside a database. The early database systems were develop for mainframe computers but the computers could only handle a single data file at a time and the computer was programmed for specific data-processing functions which meant that when a database was used for inventory, the same database could not be used for product purchases. So Information Technology researchers began to do research and develop systems that can record transactions as they occur rather then on a daily batch.
Later on in the mid 1970s, information systems were develop in such ways that they can handle multiple functions within different files. But the only negative feedback about the database was that it was hard to navigate and to relate all these different databases with multiple functions. In order to fix this problem, researchers introduced the relational database management systems which basically gave relationship between different databases in order to link all the databases together to make it more effective for organizational use.
From then on, database management systems became more and more complex and sophisticated in order to satisfy the complex needs of different firms. Today, all databases are created, stored and manipulated by computers and all the databases are related through a network.
Source: 1- http://www.referenceforbusiness.com/encyclopedia/Cos-Des/Database-Management-Systems.html#HISTORY
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