Every company shares a common asset: information. What they do with that information sets them apart from the rest of the companies. From maintaining inventory and sales data on a piece of paper to a complete information system, every company somehow obtains, compiles, stores, and uses data. The effectiveness of the tactics used can be widely debated, but what is clear is that the Information Age we live in revolves around the generation and use of information. Regardless of the type of data, structured or unstructured, information is the central piece and the main theme in every matter. Therefore, the question that needs to be asked is: What are you doing with your information?
This asset can be compared to money. Some squander it, others save it in low-producing savings accounts, while others use it and invest it shrewdly, reaping the benefits of high returns. Powerful corporations like Walmart understand that a company's strength lies in the use of information in every possible aspect. This makes it possible to back decisions with real facts rather than weak assumptions. Small businesses do not necessarily share this understanding. However, lately, if companies want to be able to compete in the changing globalized market of the Information Age, they must show due respect to data. Smaller companies have a somewhat easier situation to handle so they can gradually build and improve their information systems as they grow. But the first step is to admit that they need help.
Once the company understood the importance of information, a strategy to capture, store, analyze, and utilize data must be developed. Although such a strategy may vary from company to company, general guidelines are constant.
Step 1: Understand what is important to capture.
This step should be almost automatic for companies that are already operating. All business owners should know what information is necessary, whether it's about customers, inventory, etc. What not all entrepreneurs have clear is which information may become important in the future. Therefore, the first step is simple: capture EVERYTHING that may be useful! Storing data is so cheap nowadays that there is no excuse not to store a lot of information. Additionally, there are open-source database systems available. If any item is missed, it can still be added at any time. But it is very important to note that it is better to capture more information than necessary and then delete it than to realize later that certain uncaptured information had value. Useless information can always be deleted, but uncaptured information initially cannot be recaptured without high effort and cost.
Step 2: Choose a storage method
As previously mentioned, hard disk space for storing information is extremely cheap compared to the past. Although sometimes complicated for people who are not technology-savvy to calculate storage requirements, they can always consult places that sell hard drives or other storage devices. One terabyte of space costs less than $40.00 USD. The next step is to choose a database system. There are many systems available such as Microsoft SQL Server, Oracle, MySQL, and PostgreSQL among others. The latter two are open-source licensed. When choosing a database system, portability, expansion and growth, and technical requirements (operating system platform, hard disk space, memory, etc.) must be considered. Information is one of the most important assets, therefore, it is essential to seek advice to avoid mistakes. Essentially, all the mentioned systems have very similar specifications, modules, and functions, and their differences are more a matter of taste and experience. In fact, many services offer database systems or cloud storage that come with their respective protections.
Step 3: PROTECT IT!
Once again, your data is one of the most important assets! All database systems offer some kind of backup or protection mechanism. Choose one (or multiple), verify it, and use it. Then check it again and verify it periodically. Backup strategies may include transaction logging, file backups, SQL Dumps, and replication, among others. Research these backups and use them. It is important not to be content with seeing them work once. Make sure you are reviewing them periodically. There are also cloud storage services like Google Drive or OneDrive that are relatively cheap.
Step 4: Analyze and utilize the data
This is where the steps can get a little complicated. But, if the above was executed successfully, help can be easily found. To analyze the data, reporting engines like Crystal Reports can be used to read different database systems. In reality, various reporting engines and information systems can be used as long as the information exists and is stored. The importance of the step lies in the information, not the analysis tool. Tools can be easily acquired, but information cannot.
Bring it All Together
This guide is made to assist the entrepreneur in opening their eyes and seeing what is available nowadays. Information systems are indispensable for operating companies in this ever-changing and fast-paced world. For companies that do not have individuals with technical expertise to execute the development and implementation of information systems, purchasing or outsourcing such systems is almost obligatory. If you have doubts or questions, do not hesitate to write to me and ask. The idea behind all this is to help small businesses become more competitive, and I am here to help.