24 Oct Why is Information Database becoming increasingly important for Businesses?
Why is Information Database becoming increasingly important for Businesses?
The pace at which competitiveness is accelerating in each industry calls for prompt analysis, quick decision, and plan implementation. All of this requires an easy and comprehensive data presentation that can be interpreted by the key decision-makers of the organisation.
This is when the information database comes into the picture. However, like every other important function of the business, it is imperative that the information database is prepared by a professional and experienced web application development agency like edirect.
Before we delve into the details of how an information database is important for business, let us understand what is an information database.
What is Information Database in Business?
In simple words, an information database is an organised collection or storage of important data of an organisation. It is done to make the data more easily distinguished and accessible. The function of data for any organisation is to be able to convey some important information to the authorities in a way that assists them in the decision-making process.
It is, however possible, only when the data is stored and presented in a way that is comprehensible. To be able to store data judiciously, it is important to understand the nature of the company and the reason for maintaining an information database. Therefore, we at edirect make sure that we totally understand your business in the present, and where you want to be heading in the future.
It helps us to tailor a comprehensive good database that gives you an easy time storing information and extracting it for analysis.
Types of Information Database in Business
The four different types of databases are:
It comprises tables within which the data is put in pre-defined categories. In each table, the columns generally have a data category, and rows have a certain data instance for the categories which are defined in the columns. It allows the viewer to control read/write access, specify report generation and analyse use.
It stores information in the form of data in several physical locations. The processing of data is also spread out and replicated across different parts of the network. It could be both homogenous and heterogeneous. In a homogenous database, all physical locations have the same underlying hardware and run the same operating systems and database applications and vice versa for the heterogeneous database.
It is specially designed for the digital platform. The cloud database has functionality similar to the other database except that it has the added flexibility of cloud computing. Users install software on a cloud infrastructure to implement the database.
It is particularly good for dealing with large collections of distributed data. They have an upper hand compared to relational databases in that they can better address big data performance issues. It is also very efficient for analysing large unstructured data sets and data on virtual servers in the cloud.
Functions of Information Database
Information database has various different functions and is used in prominent business operations such as accounting, planning, banking, manufacturing, and also marketing. It collects information on people, places and things. That information is gathered in one place so that it can be observed and analysed.
In this article, we will list out the benefits of having an Information Database.
Reasons Why Information Database is Crucial for All Business
Improved Business Process
Organised storage of data by the business for different purposes such as sales, order processing, customer service etc. helps to improve these business processes significantly. It improves business performance by simplifying your inventory management and tracking which is very crucial for the financial health and goodwill of the organisation.
It also helps the organisation in analysing the current performance of each department, finding loopholes, and assessing the areas that are doing well. This information derived from the information database aids them in deciding the future course of action as in which business process is lacking, what is lacking, if there has been a success, what led to it, how the funds have to be distributed among the various operations, etc, to improve these business processes.
Improved Data Sharing and Data Security
When the data of a company is well organised, it becomes easily accessible and even easier to share with other members of the organisation for smooth operations. Every now and then, the organisation has to keep sharing the data across the different departments and it is only possible when the data is presented in a way that can be easily deciphered by all.
End-users like people from the marketing and sales department become more empowered with enhanced access to the data. This enables a faster sales cycle and more sound decision making eventually increasing the sales volume and goodwill of the business.
The recent upgradation in information database technology has made data sharing across the organisation more hassle-free. Modern database systems are designed for multiple users which implies that many users can access the same database at the same time.
This access is achieved through features called concurrency control strategies. These strategies ensure that the data accessed are always correct and that data integrity is maintained thereby ensuring data security.
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Reduced Data Redundancy
In a professional database approach, each data item must be stored only once in the database. Duplication of the data may lead to a misleading report resulting in subservient decision making. Data duplication is generally caused due to disjointed processes and siloed data.
A proper information database keeps a check on it and eventually reduces the chance of data redundancy. It also ensures standardisation of data, i.e. all-encompassing, single, unified view of your data is shared throughout your organisation to prevent any miscommunication.
Proper Compilation with Regulations
Another benefit of an Information Database is that it ensures proper compilation with regulations. While preparing a database, the information is entered in a manner that is doubly checked by the database professionals. This provides a better framework for the enforcement of data privacy and security policies.
The clear storage and presentation of data ensure that there are no loopholes and everything is very transparent. Companies that maintain a proper database also enjoy a good reputation among the stakeholders of that particular organisation.
Better Service to Customer
In this present era of marketing, the consumer is the ultimate king. Therefore, to sustain and grow in the industry it is important for businesses to curate products and services that cater to the consumer’s needs.
Information database facilitates this through proper storage of consumer data. Analysis of the consumer data helps the marketing professionals to examine the trend, understand the consumer needs, and formulate plans accordingly.
An organisation that appears sensitive to the needs of the customer enjoy good customer relationship and brand loyalty which is the key to success.
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A topflight database weaponizes you with reporting features like data analysis to predict upcoming trends. You can improve your position in the industry by leveraging this benefit in these competitive times where trends are changing in a flash.
Effective decisions made upon the information database can help you stay ahead of your competitors by devising business plans according to the expected trends. It also helps to save a lot of time, especially for growing businesses.
It allows businesses to manage all the essential information in one place and saves plenty of time looking for vital information about your business progress as you can access it all in one place.
The time saved can be used in other important business matters. Find out more information on the significance of an information database for the growth of your business.
Facilitation of data quality initiatives
Proper database management help ease the adoption of data quality initiatives such as data cleansing, data validation, enrichment, and data protection that are significant for any business organisation for keeping the data relevant.
It is also economical for the organisation as maintaining high levels of data quality makes it possible for the organisations to reduce the cost of identifying and fixing bad data in their systems.
In addition to that, Companies are able to avoid operational errors and business process breakdowns that generally increases operating expenses thereby reducing profit margins.
Wondering where to start?
Proper storage of the official data could appear very overwhelming, to begin with, but you don’t have to worry about that. Our team of professionals have over a decade of experience that is certain to ease your database management.
Our team works hand in hand with you to ensure that you have a great and unique database processing structure that reflects the needs of your business.