Using Databases to Improve Business Performance

Databases are vital tools for handling business processes. They can be used to store, organize, and analyze your company’s critical data. By using the right databases, you’re sure to see an improvement in your business’s performance.

What is a database?

Databases store an extensive collection of information in computer systems. The data is organized in a manner that allows you to quickly find and manage specific pieces of information, such as a list of numeric stock codes or a list of client names in alphabetical order. Databases enable you to streamline things like productivity reporting, financial reporting, and inventory tracking.

Information is stored in databases in different ways, depending on the type of database model you use. The most-used model is the relational database model. It uses sets and relations to store your information in highly organized tables. To access that information, you typically need to use database management system software. By using databases in conjunction with helpful things like server monitoring tools, you can widely improve your business performance. For instance, tools like SentryOne’s SQL Server Monitoring ROI Calculator allow you to discover potential returns on investments easily. You can find additional information here.

How can databases improve your business performance?

There is a considerable amount of benefits to using databases instead of spreadsheets or manual systems. So, get with the 21st century and start using databases for your company’s operations. Here are just some ways in which databases can improve your business’s performance.

Databases are Time-saving Tools

A good database system allows you to manage all your company’s critical data centrally and securely. As your business grows, it can be challenging to keep track of the increasing amount of information. So, by using a database, you will have access to all data in one place, which will save you and your employees a lot of time and make your business processes much more efficient.

Databases Are Excellent for Managing Customer Data and Relationships

If customers are at the heart of your business, you need an excellent customer relationship management database to help your company prosper. With full-featured CRM databases, you can store and process information like customer contact details, leads, and interaction history. With some CRM systems, you can even run and track marketing campaigns. It is also available to use the advanced mysql tool to increase performance.

Databases Enable You to Improve and Speed Up the Management of HR Information

Using a database for human resources information can save you both time and money. You can automate routine jobs, streamline the majority of HR tasks, and speed up the time spent on processing data like payroll and staff hours. 

Databases Improve Inventory Tracking

Managing your inventory well is essential, but it can often be tricky always to maintain the right amount of inventory. Having too much stock in a warehouse risks wastage and can waste money. On the other hand, if you have too little stock, you can risk disappointing your customers and damaging your reputation as a reliable company. When you incorporate an inventory-tracking database into your business operations, you can make sure your inventory is always at the right level. You will then minimize lost sales and maximize growth opportunities.

Databases Are Great for Planning Growth

If you are planning a strategy for growth, a high-quality database system can be your company’s most valuable resource. The majority of databases have reporting capabilities like productivity tracking and data analysis, which anticipate future trends based on the needs of your existing customer base. If you’re planning to expand and want to be one step ahead of your competition, a robust database system is a must.

What is the best database software system for your business?

A large variety of database software systems are available for businesses. But picking the right one for your company can be tricky. To find the right one, you will need to evaluate how it will be used with your business priorities. Consider factors like:

  • The type of data you intend to use, such as addresses, numeric information, and multimedia.
  • The type of querying mechanism you require.
  • The structure or model you want the data to have.

You also need to consider your specific business sector, as there are databases available for particular industries to meet their precise requirements. Ask your trading partners or trade associations for recommendations, or research sector-specific databases online.

Popular Database Software Systems

If you’re not after a database that is tailored to a specific industry, it’s best to start your search for database software systems by looking at the most popular ones. They include:


Oracle has been manufacturing database products since 1979. It’s one of the leading and most-recognized database manufacturers in the world. Oracle database software is very powerful, but new users will have to invest in training time to understand the complex system fully.


This is the best database software for e-commerce businesses. Famous technology companies like Google and Facebook use MySQL. So, you can be assured of its quality and efficiency.

Microsoft SQL Server

This is one of the most popular and enduring database software systems on the planet. Older versions like Server 2008, 2012, and 2014 are still widely used because they are so good, even though you can now get the Server 2016 version. The database software also comes with other offerings, like Word, Excel, and SharePoint.


Annika Bansal

Annika "The Chick Geek" is the founder of Small Business Sense shares small business ideas, tips and resources for independent Entrepreneurs and Small Business owners.