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Importance of Database for Entrepreneurship or Business

Name: Rohini B. Gurav

Designation: Lecture in Information Technology

AISSMs Polytechnic, Pune

Today, Entrepreneurship or business plays the most important role to develop economic growth of the country. It is a contributor to product innovativeness and improvement.

With business growth, you will all maintain and sorts of contact from your clients. They may contact you regarding any questions about the product they bought from you, or even reach out to you give you a referral. Before database development emerged, data could only be stored as paper records. Handwritten notes kept in a file might work okay if you have less number of clients because in a small list of contacts you’re likely to still remember each individual. Once your business gets larger, though, remembering what your last discussion with a client about gets really difficult to do if you are racing to your file cabinet to read over handwritten notes every time. This problem is easily solved with a good database. Most of the database software will allow you to make note entries into a client’s online file. Some even automatically show the date and time you entered the note.

Database versus file processing system

Many small businesses are lots of users of Microsoft Excel or word or Google spreadsheets. A worksheet may look similar to a database. But a worksheet is not closely as powerful as a database for a huge amount of information.
Also, getting information into and out of worksheets can be heavy. You may have to do a lot of physical data entry, or manually spreading and bring in data to other programs. And you can’t easily use worksheet data — i.e., analyse it, move it into other applications, or outing reports with it.
Databases can make your business much well-organized and give management valuable perceptions. They help make logic of your information. They can help you make your products and services more valued.

There are some Reasons to show database need in business-

Human resource Management

Using a database to manage staff or employees records can save our money and time. It can automate routine jobs and make the processing of data fast such as, leave, benefits, staff working hour’s payroll, etc. This can take less time to focus on growing your business.

Customer data and relationships Management

If customers are the main part of your business, then a good customer relationship management should be essential in business. Database should be at the heart of growing plans. Full-featured databases are usually powerful enough to store and process all information, from interaction history, discussion, customer contact details, and accounts leads business opportunities.

Inventory tracking

Managing your inventory well can sometimes feel like a balancing act. If we are tracking inventory manually, it’s will miscount, make data entry errors or misplace file and notes. By an inventory tracking database, especially along with electronic data exchange and barcode scanning, we can avoid those risks and reduce missing sales while exploiting opportunities for progress.

Centralised systems

If business is growing or developing and you have employees to help you run it, keeping track of the increasing huge amount of data can be tricky. Database systems can help you manage all business data centrally, safely and securely – whenever you need it.

Growth Plan

Most business databases have some procedure of reporting skills – from analysing input data and throughput tracing, to future trends and customer’s requirements. If we are planning a strategy for growth, a strong database system can be business best valued resource.

Database management system is all about tracking and organizing running a business. Mainly small to medium sized businesses depend on databases for better inventory storage management. Databases help to manage a huge amount of data and help users to retrieve needed data. Many types of data are very easily managed. Stored Information is very useful to help a company to know about its present performance, estimating and making plans for future. Without a proper management, these tasks would have been manual and extremely time-consuming.

A database is less expensive and provides many benefits; it also helps to build a better relationship with the existing customers and for new ones. By using database you can make customers aware of special offers and send offers to specific groups. Also keep best result of product as evidence to show other customer for marketing purpose.

The database is an essential for focused marketing. A database helps to build up customer record profile which helps in targeted marketing. For instance, best book shop uses its database to target the best 30% of customers who are regular buyers and help in maximum sales. The main part in starting of database is to decide and make sure how you can utilize it as a useful business tool. According to this conclusion, the designing would be planned. There need to be a balance between utility and simplicity. A database is useless if you are not updating it.

Database is very essential for small business. It helps you to keep a click on your customers. We will know number of customers we have, what their pattern of buying and choice of purchase and so on. The information can help to design marketing strategies in easy way which will help entrepreneur to get more clients and customers for his business.

Without any doubt, the entrepreneurship is a data-driven process. In fact, all industries are dependent on data, and there is no chance of your business surviving without it; if there is no data, how would your company monitor sales figures or find sale gaps to further develop the business? Undoubtedly, it is data that is the centre of all IT or other businesses So, I am concluding by saying that, by using database, keep a History of data at Your Fingertips and saves lots of Time.

 

Name: Rohini B. Gurav

Designation: Lecture in Information Technology

AISSMs Polytechnic, Pune