For companies to survive the intense competition, the only way is to make better use of information gathered from the business process. The information that is gathered is what we refer to as data, and many data are generating every moment in business. Each set of data carries business related information of varying importance and collectively taken, data forms the lifeblood of business. Any business owner who dares to ignore the importance of data for business will do it at his peril. Every data has its significance for business. For the betterment of business efficiencies and streamlining business operations, business owners must use data to their advantage. Therefore, business owners must pay attention to proper data management and not just accumulate data. Putting a robust database management system in place is, therefore, a necessity for business today.
Data accumulation has no meaning unless you can use it to meet business needs. To make data useful for business, you must have the ability to sort and segregate data to figure out its underlying meaning and use it for improving business. Database systems provide the foundation for data management as it enables the business to become more efficient by using data for enhanced marketing and attaining broad reach among target customers. Through proper database applications, it is possible to figure out ways of improving the quality of products and services. It is also feasible to understand the high and low points of marketing by analysing data. However, to achieve proper results by using data, you must deploy the right kind of data management software that allows manipulating data for business needs so that the accurate picture of business reflects in it.
The importance of database management system
A database management system is most welcome for business today because users can perform multiple tasks with ease by managing data efficiently. By using a single software application, the database management system is capable of storing, organizing and managing the massive amount of information generated from the business process. The information covers all aspects of the business from employees to customers and from inventory to sales.
Databases are the backbone of the firm, as owners are empowered to handle multiple types of data with ease. The systems are extremely versatile and created for serving the purpose of business. It can be in the simplest form of a table with data arranged in columns and rows and can be quite complicated too like databases that define relationships between several tables by using the data elements and a schema. In this method, it is possible to merge data elements and records according to the query and display it. Often, routinely used queries convert into reports.
The database environment
Data together with hardware, software and people and procedures constitute the database environment. Data is inter-related facts, and the hardware consists of the devices used to run the system in that environment. The software is the heart of the system formed by the database management systems, operating systems and software applications. Another essential component of the environment is people who act as programmers and system administrators better known as DBA Consultant and the end users.
For better understanding about applications of the database in different business areas and processes, we have discussed below how it helps in customer management, inventory tracking, personnel databases and analysis.
How well companies perform depends largely on how well it manages its clients. Since customers have the last word in business, it is imperative that you must pay much attention to what customers like and dislike and how they receive or reject products and services. The better you can feel their pulse, better it will be for you to position the business correctly for earning their confidence.
For keeping customers happy, businesses must not only have adequate inventory of finished goods but must know every detail about it. If inventory remains unused for a long time, it is harmful to business. Therefore, churning inventory regularly to flush out old stocks is a priority for any business. An inventory-tracking database not only reflects the total inventory in the warehouse but it helps to track its location, stock levels, identify not moving and slow moving stocks and track movement of inventory as it moves from one place to another. By configuring the database, you can even obtain alerts about falling stock levels so that you can arrange re-ordering of the items to maintain optimal stocks.
Managing personnel database
Employee databases reduce the manual task of preparing payrolls, and these completely error free. Besides containing all personal details of employees, the database contains wage related details such as hourly wage, commission or salary, year to date income, tax withholding rates and vacation time accrued. Also, you can include other benefits like retirement account contributions and health insurance in the database. By interlinking CRM database with personal database, it is possible to link specific customer accounts to individual sales staff.
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