Data drives businesses because it captures every detail of all business scenarios that help monitor business performance and manage it more efficiently by understanding what is working for the business and what does not. Proper data management is the heart and soul of all businesses because all data generated from various business processes and during business operations remains safely stored in the database.
It is not just enough to store data safely. It is critically important to access stored data and analyze it in various ways to gather valuable insights about business activities. Therefore, efficient data management empowers business owners to make the right decisions at the right time. A lot depends on the role of companies like RemoteDBA services in data management by acting as database administrators.
Keeping a tab on business performance
More than doing business, business owners must pay more attention to running the show efficiently to earn healthy profits and plan for growing the business. It begins by analyzing data to understand the status of a business that highlights the strengths and weaknesses so that business owners can try to eliminate the weaknesses and build on the strengths to improve business performance. Against this backdrop, consistent data collection is vital for businesses to track their ongoing performance. It is possible to foresee where the business is likely to be in the near future. Utilizing the correct type of database and managing data by outsourcing data management services, it is possible to succeed in a business of all types and sizes. The database collects data from various business functions like manufacturing, supply chain, accounts, sales and marketing warehouse, human resources, etc., for ready use anytime.
Importance of data management
Data management is about storing data safely and giving access to data to people who run the business or are related to the business operations in some ways. Since most business data is sensitive, it is necessary to maintain confidentiality and have proper data management protocols to allow people to have controlled access to data. This will ensure that only authorized persons have access to the data and eliminate the chances of misuse or data falling into the wrong hands. At the same time, it is necessary to protect the database from any breaches, cyber-attacks, and other threats because hackers and cybercriminals target business databases to make clandestine use of the data and sell it on the dark web. A professional database administrator takes complete charge of the database as if it is their baby and ensures complete protection and efficient management.
Data management is becoming more complex
Technology has increased the speed and scale of business operations, thereby enlarging the scope of data generation many more times. Today, data generation happens at lightning speed and in astronomical volumes that led to the emergence of Big Data comprising of the enormous volume of data that businesses must now handle. Not only is the volume of data big, but so are the variety, speed of data generation, and the value of data. Nowadays, data is much more precious than it used to be a few decades ago. Even small businesses generate huge data because of the expanded scope of interactions resulting from the use of more technological tools for business improvement and growth. The better are the capabilities in data analytics higher are the chances of faster business growth.
Here are some real-life examples of how businesses are using data management to their advantage.
Amazon uses the dynamic pricing model
Amazon has been a pioneer in crafty data management for business betterment that provides a better user experience and improves profitability while expanding the business at an incredible pace. Taking a leaf from the playbook of Airlines companies that created a business model based on dynamic pricing, Amazon adapted the same model and keeps changing the price of items repeatedly by gauging the customer interest for that product. When customers click on a product several times in close succession within a short time, it signals the increased interest in that product which has much higher chances of buying. Seeing the opportunity, Amazon jacks up the price several times as it is sure that the urge to buy the product is so much intense that the customer would not mind paying extra.
Netflix builds customer loyalty
Netflix owes its business success to its data management capabilities that reflect the high retention rate of subscribers that touches 93%, which is simply miles ahead of the competitors. By analyzing Big Data, the company has gained complete knowledge and understanding of its users’ ways. Some say that they know their users better than what the users know about themselves. By deft analysis of data, Netflix has a strong grasp of the tastes and likes of the subscribers across broad demographics that allow them to read the minds of subscriber groups most accurately. They use the information to serve the best content to various subscriber groups who enjoy the best experience and become so addicted to Netflix that they remain loyal to the company for years.
To get a toehold in the saturated food delivery market, Uber Eats wanted to establish its identity as a food delivery company that only brings warm food just at the time when customers expect it the most. The company acquired the ability by predicting the food delivery time most accurately by analyzing various delivery-related data so that they could delight customers. They gathered data about the time it takes to prepare a certain food so that they can precisely determine the time the delivery person should come to collect it. The process allowed drivers to collect more meals on their way as it eliminated the waiting time for collecting the food item. The incentive offered to drivers to collect more meals per trip is a significant boost to the business.
More precise data analysis is now allowing companies to become more ambitious about growing the business faster.