If you're a small business owner you may be wondering how a database could add value to your organisation. Some folks aren't even sure what a database is. Every now and then we are introduced to someone, and after explaining that our company specialises in providing database and reporting solutions, we're asked what that means. For those of us in IT, it's a common term whose understanding we take for granted. Yet there are many business executives out there who aren't as techno-savvy. If you fall into this category, then read on.
Firslty, a simple definition: a database is a collection of facts from which conclusions can be drawn. But before we go into further detail, allow us to contrast our custom-built databases to a technology which you are already familiar with: spreadsheets.
Many of you have heard of and use Excel (Microsoft's spreadsheet program), to store and analyse business data. It allows you to organise your information in tables (which are made up of rows and columns) and to draw conclusions from it through the use of mathematical functions and a variety of graphs.
Now a typical business, that doesn't have it's own central database, finds itself in the situation where Excel spreadsheets are haphazardly stored across the organisation's computers. For example, Ted in Accounts has a bunch of spreadsheets on his laptop. Sonia in HR has a couple more on hers.
So lets take a step back and consider the risks inherent in this typical scenario: what would happen to that data should Ted or Sonia leave your company? What if a laptop is damaged, or worse, gets stolen? How do you maintain consistent data formatting in this decentralised data-capturing environment? And how do you get your hands on important HR data when Sonia isn't around? Having weighed up all of these risks you are now in a position to understand the value that a custom-built and centrally accessible database would add to your organisation.
By centrally accessible, we are referring to a database that can be accessed from any computer on your office network. Should the need arise, you could even host the database on the internet and access your data from home (this is the model we have adopted at Kontos Databases). It's just like doing your online banking; you navigate to your database's website address and are presented with a security login (to prevent unauthorised access). Once inside, your entire business's data is at your fingertips. This is particularly useful for businesses with regional offices. What's important to understand however is that the data is stored on a single secure computer, thus minimising the risk your business data is exposed to as a result of staff turnover or laptops getting stolen.
Another benefit to having a database that is accessible through your Internet Browser is that of horizontal scaling. Your staff count can grow and grow, all along resulting in a proportional growth in the amount of desktop computers and laptops managed by your business. The beauty of this central database is that there is no need to install any software on newly procured computers when your staff count grows. They simply open their Internet Browsers and point them to the database's website address. You only pay for the additional service that will be required as a result of the increased user-base. But this is variable; you only pay for what you use. It is as simple as that.
What's more, user-access to the underlying databases can be restricted based on the security priveleges that the user's assigned role has. For example, users that fall under the HR group only have access to HR data. These user / role groupings are fully customisable and are great for implementing a risk governance process for managing your business data formally.
Now by custom-built, we are hinting towards the fact that a database isn't an off-the-shelf product designed to cater for the generic business and its knowledge management needs. Your business is unique, and thus so should your database be. In order to leverage information as a strategic asset, you need a database that is designed around your business and its various processes. Why settle for an average system that your competition could just as easily acquire when you have the option of setting yourself apart with a system designed just for you? And if you are not too concerned about your peers using the same off-the-shelf product, consider the disadvantage of using a one-size-fits-all product, which is cluttered with a vast array of features of which you only need a few.
If you are a business owner / manager who is experiencing any of the spreadsheet-related problems described above, it may be worth your while to consider investing in a custom-built, centrally-accessible database solution. It is a low-risk procedure whose return on investment is clear.