How the DBMS helps to improve business performance and decision making of companies?

Businesses, whether large or small, have always relied on having accurate and actionable information to gain a competitive advantage. Such information influences decisions on which products to produce, target market, and ideal prices.

Thanks to advancements in technology, collecting data is far easier than before. This has given rise to the era of big data, and now companies have access to more data than ever. Indeed, organizations that capitalize on the wealth of information available today outgrow their competitors. This is why one of the main priorities of many organizations today is to adopt a data-driven-decision-making strategy.

However, accessing large amounts of data is not sufficient to propel the growth of an organization. Once data is collected, it must be stored and processed to gain any useful insight from it. And, the entire ecosystem supporting the collection and analysis of this data must be stable, secure, and scalable to ensure the business’ needs are always met.

This is why database administration (DBA) is an integral component of any data-driven organization. In this article, you will learn all about database administration and how it can benefit your organization.

For data to have any value to an organization’s processes and decision making, it must be stored in a manner that makes it accessible when needed and prevents accidental disorganization. This is achieved by the use of database management systems that enable the strategic use of data. With a database, it becomes easy to access and sort data to perform functions such as:

• Draft management reports
• Create mailing lists
• Identify the needs clients have

For a database to be effective and allow efficient access and use of data, it must possess sufficient processing power to sort, link, match, aggregate, calculate, skip fields, and arrange data. Databases are usually storage centers for closely related data. As such, an organization can have different databases categorized as relational, document, and graph.

A document database is one in which data is stored in the form of documents, whereas information is stored in the form of graphs in graph databases. A relational database shows the existing relationships between the different sets of data in the system.

As a business grows, its data needs will also increase and evolve, necessitating the collection of new sets of data and the creation of new databases. Database administration refers to all the functions and processes involved in managing and updating databases as well as creating new ones. All this is done in line with the data needs of the company. These functions are carried out by a database administrator who ensures that the database is always accessible for use.

Benefits of Database Administration

Database administration allows businesses to make sense of available data while ensuring the data needed for future processes is collected and availed beforehand.

1. Speeds up Decision Making

Management teams carry the responsibility of making tough decisions that propel the organization towards its objectives. Therefore, the decisions they make must be accurate and timely to ensure relevant actions are carried out on time. However, decision-making processes are often time-consuming and, at times, do not yield desired results.

According to a McKinsey report, companies that make decisions quickly make better decisions and also outperform their competitors financially. This is precisely what database administration offers organizations. With a system in place where data is well stored, managed, and availed, it is easy to draw the necessary insight that helps speed up decision making.

In the manufacturing sector, such data can be used to automate processes, which speeds up production, which is facilitating the rise of smart factories. 

2. Boosts Data Security and Integrity

Much of the ease of doing business and big data can be attributed to the internet. However, the internet has also come with a significant challenge and threat to companies. A lot of the data organizations use is highly sensitive. It may be information that gives an organization a competitive advantage or the personal information of clients and employees.

If such data is exposed, the organization, its employees, and customers are exposed to risk, which also exposes the company to liability. As such, a vital component of running a data program is security. With data administration, data is regulated, and access is only granted to authorized persons. 

In addition, data administration safeguards the integrity of data. Data integrity refers to the accuracy and consistency of data in multiple databases, thus ensuring insight is drawn from accurate data.

3. Enhances Collaboration in the Company

As a company grows, more departments are formed to carry out different functions. However, even as the departments carry out various functions, there must be a certain level of collaboration. This ensures all the processes are in line with organizational objectives. Unfortunately, many processes and ultimately, corporate growth is often slowed down by a lack of departmental collaboration attributed to slow data sharing mechanisms.

However, data administration is the perfect solution to a lack of synchrony between departments. This is because database management systems keep data in a central location which is accessible to different end-users and across multiple applications. 

4. Increase Sales By Predicting Customer Behavior

Arguably, the biggest benefit of data administration is predictive analysis. By analyzing existing customer data and collecting new data sets, companies can predict individual and collective customer preferences and behavior. This makes it possible for businesses to offer and tailor products according to their clients’ interests, which results in increased sales.

Database Administration Is All About Finding the Right Technology Partner

Undoubtedly, database administration offers organizations many benefits that help streamline processes that facilitate growth. However, setting and managing databases effectively and efficiently is no mean feat. Thus, it is crucial to find a reliable technology partner to handle your database administration needs to allow your team to focus on core business functions.

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