The present invention provides a new, high-performance system and method for updating databases or other data compilations with changes entered in a source database or data compilation. Updates are preprocessed to reduce system update demands while increasing update flexibility for remote processing sites. Data update records are captured or collected and extracted into one or more channel or other criterion-specific batches. Transaction boundaries within a batch are collapsed, and the records coalesced into a package comprising a sequence of updates that reflect the cumulated impact of the extracted records. In a preferred embodiment, the batched records are sorted by extracted sort key entries and the package is converted to the physical format of respective targets. The created update package is, therefore, organized and physically formatted in correspondence with the target database. The update package is then directly applied to the target database without resort to the traditional front door processing through the local database manager. The processing typically required in database update replication is, thereby, avoided and the update process significantly streamlined. The update packages may be moved to targets by a variety of methods. The packages can be conveyed across network or Internet connections or between disconnected computers. The packages may be stored in computer readable media such as disks or CD ROMs, for example, from which the packages may be accessed by target systems. The update packages may also be made available through modems to field users or clients to allow fiexible update scheduling. The invention results in a high performance, database update system and method that significantly reduces system update burdens while increasing update flexibility and minimizing impacts from failures during updating. Updates are performed in significantly less time with a system and method that requires little administrative oversight and minimal personnel training.