Data isn’t just a collection of facts, it’s indeed much more than that since data connotes intricate meanings. But, to understand that, a business must have a business database at the first place over and above anything else. Having said that, we mean, a business must have a system in place to collect and analyse data and at the same time, must convert it into meaningful insights on a regular basis. This, in turn, will help the business stay ahead in the competition. The stupendous success of some companies around the world can largely be attributed to its’ strong data management system.
Key areas of a business database:
- Business intelligence: Without the business intelligence, it is hard to run a business in today’s time especially when you are doing a tech business. For instance, the cellphone manufacturers around the world are to keep a track on the number of products launched in the markets around the world and its’ market response. Simultaneously, these companies are to constantly monitor the changing trend in the market with a view to bringing the next product in the market that could palpably be positioned as an innovative product. This is possible only when a company has a strong business database that is updated on a regular basis. After all, business intelligence is a continuous process.
- Data driven marketing: When a business does data driven marketing, the success rate of the company on any product that it launches in the market goes high. It’s no longer the sellers’ market. Instead, the market is now ruled by the customers. Therefore, a comprehensive understanding of the customers through data essentially leads to a marketing success.
- CRM (customer relationship management): It is important to ensure repeat sales over new customer acquisitions. In research, it’s been proved that new customer acquisition is a costly business proposition. Besides, an existing customer, if disgruntled, will bad mouth about a company/product three times more than what he does as a satisfied customer. In other words, for a true growth and success of a business, CRM is a must that is well supported by the strong database system.
- SWOT (strengths, weaknesses, opportunities, threats) analysis: An efficient database system helps you do the SWOT analysis for your business thereby safeguards your business from many upheavals in the market. It thus helps you retain your growth both in the short-run as well as in the long-run.
- Efficient inventory management: A database management system leads you to meaningful insights such as the current sales figure and the shortfall if any. It also helps you in sales forecasting. You will thus be able to manage your capital adequacy in an efficient way. It further construes that an efficient database management system lets you invest money in some other productive pockets of your business such as the expansion and diversification.
However, the scale of a business will decisively guide the practices related to the business database and its application. Having said that, we mean, the bigger the business is, the better it should have the data management system in place.