An attempt was made to bring in a centralized collection of files of each information and data stored, processed and generated. The benefit of this concept is that information is situated in one storage medium and such access is provided to all persons who require querying the system for exact information. Though, exacting problem areas along with this type of database are given as:
(a) The centralized system administration becomes too complicated when a huge number of data is to be handled.
(b) Maintenance and Programming of such system is complicated.
(c) A huge number of information is of interest to merely a limited number of users and hence of no need to be put on that a large file.
A centralized database is of exacting value in forecasting, financial, and payroll activities. This is of prime importance also where a huge number of NC machines have to be supplied along with programs.