A database management system is important because it manages data efficiently and allows users to perform multiple tasks with ease. A database management system stores, organizes and manages a large amount of information within a single software application. Use of this system increases efficiency of business operations and reduces overall costs.Database management systems are important to businesses and organizations because they provide a highly efficient method for handling multiple types of data. Some of the data that are easily managed with this type of system include: employee records, student information, payroll, accounting, project management, inventory and library books. These systems are built to be extremely versatile.