Whether large or small, a business of any size can benefit from database management, especially within the realm of finance. To reduce compliance risk, increase internal communication between departments, better serve customers and take advantage of automation, a database management system can help you achieve business goals.
Data collection and storage continues to grow at record rates. By 2020, it is expected that the digital universe will reach 44 zettabytes.
A database management system (DBMS) securely stores data information within an organisation. It allows for multi-user access, helps to enhance data quality, and can be used to assist in financial forecasts, modelling and reporting. Importantly, a DMS gives a user the freedom to create their database based on need. The DBMS acts as a conduit between applications and operating systems to provide the data of interest.
When considering the best database management system for your organisation, you will want to take into account the following:
There are various types of database organisation. Each serves a different purpose and can be the optimal choice depending on your business need.
The models include:
The collection of data without having secure storage and the ability to manipulate it to glean insights for decision makes rendering data useless. By leveraging a database management system, you can gain the ROI of collecting the data in the first place.
Data management has a multitude of benefits, especially for leaders of financial departments. Since the industry of data management is under high scrutiny and has immense compliance risk, it pays to have a system that is transparent, efficient and accessible.
Data management’s benefits include:
Many organisations forego the crucial steps it takes to put a database management system in place. That’s because it can feel overwhelming and for many, out of their area of expertise.
Some of the disadvantages of data management include:
In whichever way that you choose to store, access and utilise your data, you must consider and aim to adhere to these best practices:
Along with database management, you can maximise your time by letting automation do much of the work. Automation will help to cleanse, calculate, validate and store data safely. It will also create a more transparent system to generate analytics and modelling and to quickly and securely share these insights. For example, you can have procedures run themselves with automation to create live reports and dashboards for organisation-wide or individual focused accessibility.
Using automation for data management and reporting will decrease human error by removing low-value manual tasks. Also, to make use of data that is separated within your organisation, a database management tool can leverage automation to centralise information and map data. Furthermore, having a well-maintained database management tool will allow for automatic updates as security rollouts take place. Automation connects with all data systems, including legacy systems and is a massive piece of the puzzle for organisations optimisation, especially in the case of database management systems.
Big data is ushering in the creation of new business models that are allowing for more agility. Therefore, having a database management system in place is crucial to being able to use data wisely.
As a CFO or finance leader in your organisation, you may serve as a funnel for data within your department and others. Financial departments are transforming and expanding capabilities to serve organisation leaders with decision-making insights better.
In support, database management allows for more data access and more transparency within departments of an organisation. When departments such as marketing, sales, and finance can access dashboards and reports, they can leverage insights to optimise their functions, increase their profitability, reduce costs, and reduce their compliance risk.
Database management ties in with data automation to provide for deeper insights and more accurate forecasts and modelling. Furthermore, such systems like SolveXia can lead to better business operations, and customer service as organisations can be proactive in foreseeing issues and solving them before they harm the business.
Data management also goes hand in hand with data analytics, where diagnostic, descriptive, predictive, and prescriptive analysis can be performed.
The automation of financial reporting will save your business time, money, and many headaches. See how it can work within your organisation.
Robotic process automation in finance has become ubiquitous because it is so well-suited for finance processes. Take a look.