A database management system (DBMS) is a collection of data that provides management of databases. It allows users to store, update, retrieve, manipulate and produce information from a collection of data. Some key features of a DBMS include providing concurrent access for multiple users, maintaining data integrity, and offering security features like password protection and access rights. Common applications of DBMS include sales, accounting, human resources, banking, credit card transactions, and university administration. DBMS aims to reduce data redundancy and inconsistencies compared to conventional file processing systems.