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When a computer user wants to store data electronically they must do so by placing data in files. Files are stored in specific locations on the hard disk (directories). The user can create new files to place data in, delete a file that contains data, rename the file, etc -- all known as file management; a function provided by the Operating System (OS).

If the user wishes to perform some operation on the data he has placed in the file, such as viewing a list of his friends that celebrate their birthday in June, he has to scroll through all the data by himself in order to see the data he is interested in. Moreover, he has to know where he put the files that contain the data, and if there are multiple files he has to remember to go through each one of them.

A Database Management System is intended to remove this burden of manually locating data, and having to scroll through it by allowing the user to create a logical structure for the data beforehand, and then allowing the user to place the data in the database that the DBMS is managing. In this way the DBMS abstracts away the physical concerns of organising files, and provides the user with a logical view of the data.

Note, that the DBMS will still -- Behind the Scenes though -- place the data in files on the hard-disk.

Database is multiuser and provides utilization of resources whereas in file management there is no utilization of resources.

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