Data Management in Contemporary Business - Coursework Example

Name Professor Subject Date Abstract In this digital life, data management is very important. Companies have access to large amount of data due to advances in technology and this data should be used properly in order to come up with innovations that will enable the company to do its business in a better, smarter and faster way. It therefore does not matter the amount of data that a company has access to, but the management of the available data. Data management refers to the execution and development of policies, procedures, practices and architectures to use information effectively. Information technology has changed the way organizations do business especially in terms of marketing and communication. This paper will focus on analyzing data management in the operation of contemporary businesses and provide examples of companies that use it. Introduction The main principle covered in the class work is the principle of applying the concept of information systems in companies. As far as this concept is concerned, some of the areas that were covered in class include the information system’s technology dimension, which brings together data management technology, computer software and hardware, telecommunications and networking technology. As far as information systems are concerned, it is also argued that the information systems go beyond computers. With respect to this, it is claimed that utilizing information systems in an effective manner needs an understanding of information technology, management and organization shaping the systems. The value that an informational system brings or crates in a firm is that of offering an organizational as well as a management solution to the problems and challenges that the environment poses. Companies have used information systems as an instrument for creating value. This is because investment in information system will lead to superior results, which include revenue increase, productivity increase as well as superior strategic positioning in the long run. In business perspective, information systems results in business value chain where the raw data is not only acquired but also transformed via stages aimed at adding value to the data. This value addition leads to higher profits, greater efficiency and better decisions. The competition in the current market is very high and for the business to survive there has to be dependable and effective services to the clients. This will help in building customers loyalty and prevent them from going to other organizations to for the required services. In big organization, managing the customer’s data is a big challenge given the large customer base the organization has. If not well handled, lack of well information management can cause an issue to both parties. Management information system involves all the inner control of the organizations services and production plan. The system covers the information, accounting process, individual and technologies in an organization (Oz, 2009). A well management information system provides an organization with a well and dependable platform for decision-making and helps in the analysis of various department in an organization. Importance of Data management in business Every company recognizes data as its most precious asset and therefore companies that do not manage this valuable asset well are likely to fail in the modern economy and business market. Companies use data to make the right decisions, set goals and create strategies. The current business environment is very competitive and therefore managing data effectively is important in ensuring the company does well compared to the competitors. One of the main uses of data is to predict the future of the companies(In Singh, In Kumar & IGI Global, 2016). Company managers in the current business environment want to know what is expected in terms of production, sales and profit. This can only be achieved through effective management of data that helps to show the patterns and current as well as expected growth of the company. Data management is also being used to determine the growth of the company. This is possible because through data, managers are able to know what hinders the company’s growth and hence work on improving it. The improvements made increase workers efficiency, quality of products and increase customer satisfaction thereby increasing the sales and the revenue collected. Data management also involves securing important company data. Companies secure data to avoid losing data from data related risks and problems. In this digital life the main problem that companies are facing in terms of information technology is hacking. Hacking involves wrongful intrusion of restricted persons in a company’s database. Hackers intrude a database by installing a virus or breaking through a firewall. Data management helps companies to avoid intrusion of restricted persons by installing strong password, authentication, antivirus or creating a strong firewall. Data management is also used for business intelligence(Kurtz & Boone, 2009). Decision makers currently, use information to make insightful decisions. Company data is stored in different software applicationsand databases. Business intelligence tools are used to gather and process the information stored in the different applications and databases. The business intelligence tools usually produce reports that assist in increasing the decision makers’ knowledge. This report is understood well when presented in dashboards and scoreboards. Business intelligence tools help companies in identifying growth opportunities, increasing competitiveness and understanding the customer’s preference. Amazon Amazon is an example of a company that is always at the forefront of leveraging big data analytics. Amazon has a large amount of data on customers that help the company to be able to know the purchasing behavior of their customers. Using the data that it gathers from its 152 million customer account, amazon has built a recommender system that suggests products to clients who shop at amazon.com. This has led to an increase in the sale of products and hence its revenue. One of the things that other ecommerce businesses should learn from amazon is superb customer service. Amazon is able to offer superb service to its clients due to proper management of the information that they get from clients and improving in order to deal with client’s complaints. It has been able to improve its marketing trends and its ability to attract more clients. In addition, the company monitors, tracks and secures its items in its retail stores in 200 centers across the globe. It also stores its product catalogue data in s3 which is a service interface that stores any kind of information at any time and any location. Amazon has changed over the years from being an ecommerce player to a big online player because of focusing on the management of big data. Other companies that have used big data analytics successfully include Netflix, American Express and Starbucks. Conclusion In order for a company to be able to stand out in the current competitive business environment it must leverage big data analytics. Data management assists a company to improve its intelligence. It is hence able to create strategies and set goals that the company can achieve and improve on the quality of products and customer satisfaction.In order for companies to be able to improve on their production and sale of goods it is important to know the clients purchasing behavior which is possible through big data analytics (Lamb, Hair & McDaniel, 2017). Proper data management can assist a company to increase its growth and its revenues and make it the best in a specific line of business. This is a clear indication that data is a company’s most valuable asset. References Top of Form Top of Form In Singh, M. K., In Kumar, G. D., & IGI Global,.(2016). Effective big data management and opportunities for implementation. Bottom of Form Top of Form Kurtz, D. L., & Boone, L. E. (2009). Contemporary business. Mason, OH: South-Western Cengage LearningTop of Form Lamb, C. W., Hair, J. F., & McDaniel, C. (2017).MKTG 10. Oz, E. (2009). Management information systems. 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