The Advantage of Relational Data:

Before you understand the advantages of a modern relational database, you need to understand the shortcomings of non-relational or "flat" data.  Flat data is the type of data usually stored in formats such as Excel spreadsheets.  While this type of information storage if fine for logging things like check registers and business expenses and is ideal for financial reports such as balance sheets and income statements, it is not very well suited for data storage and retrieval.

The reason for this is that flat file data usually does not "relate".  By this, we mean that there is not a relationship between the different spreadsheets that can be used to "query" data to build complex views of information.  For instance, it is common for small business to keep a spreadsheet listing of its customers, and another spreadsheet listing of receipts from customers, and possibly another spreadsheet listing of products and prices.  But what if you need to know how many customers from a particular region purchased a specific product at a specific price in a particular month?  It is likely that if your data is all in a flat-file format such as a spreadsheet, it would take a lot of time and research to determine this information.

A relational database allows you to relate your data by use of "key fields".  By assigning a key field value to each of your customers, your products, your invoices and receipts, it is possible to easily build a report like the one mentioned above in just minutes!  This allows your organization to take raw data and turn it into a competitive market advantage.