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Why You Need a Centralized Database for Your Business

November 9, 2023

Having a centralized database has been a game changer for many businesses today, enabling them to efficiently store, organize, and analyze data in one location. While it is most beneficial for large corporations that need to store data shared by many users, a centralized database can also offer unparalleled advantages to many flourishing small-scale businesses.

If you’re considering utilizing a centralized database but have yet to make up your mind, you’re in the right place. Keep reading as we take a closer look at why you need a centralized database for your business.

What Is a Centralized Database?

As centralization becomes a major trend in the corporate world, many businesses invest in a centralized database to improve data management and overall work efficiency. A centralized database, also referred to as a central computer database system, is a database that stores all essential files or data in one central or single location. These files can include talent profile data, development projects, business reports, and more. The data stored in a centralized database can be accessed via a Local Area Network (LAN) or a Wide Area Network (WAN). 

Benefits of a Centralized Database

With the integration of technology into business processes and a greater emphasis on data analytics, a centralized database has become more crucial than before. If you are curious about the benefits of a centralized database in particular, continue reading below. 

Here are the eight major benefits of a centralized database. 

1. Organized Data

As a company flourishes, the amount of data increases, leading to more complex and challenging storage and management. By investing in a centralized database, organizing data can be easier as all data can be located in a single location. Data managers or staff can easily see if there are any duplicates or outdated files and arrange relevant data in an organized order. 

2. Data Integrity

In case you missed it, HFS Research found that 89% of executives believe that “a high level of data quality” is a critical factor for success. This is just one of the reasons why maintaining data integrity is crucial for any thriving business. Data integrity is a concept and process that keeps data accurate, complete, consistent, and relevant to an organization. 

Despite being a primary concern for many corporations, data integrity is not always guaranteed, especially when data are stored and managed in different locations. This is where a centralized database can make a difference. 

With a centralized database, data can be easily collected, stored, and, most importantly, secured to preserve data integrity. In addition, a centralized database is easy to access on many devices at any time. This allows you to check, update, and keep your records’ validity and relevance. 

3. Real-Time Data Access and Sharing

The corporate world is competitive, and delays in processes such as data collection, access, and sharing can take a toll on a company’s decision-making process. Fortunately, for businesses in the digital age, data access and sharing have become faster than ever before. 

A centralized database can easily be accessed in real-time anywhere through various devices that are connected to the internet. They are also searchable, so users can effortlessly look for the files they need by inputting related keywords on the search bar. Additionally, the files stored in a centralized database can be shared electronically with other staff, eliminating travel time. 

4. Physical Security

Over the years, many organizations have learned that physically storing data is not just inefficient but also puts vital information under threat of loss and damage. Hence, it is not surprising that many businesses are choosing to store their data digitally and increase their cloud spending

With a reliable centralized database system and encryption in place, companies can prevent unauthorized alterations of data. In addition, securing data in a centralized database prevents data losses and leakage.

5. Enhanced Adoption of Automation Technologies

Did you know that 88% of small business owners say automation enables them to compete with larger businesses? If you haven’t started automation for your business and looking to utilize it soon, switching to a centralized database is a good starting point. 

A centralized database can help with automation more than you expect. Primarily, it keeps all the data in one place, making sure it's consistent and accurate, which is crucial for automation. It also makes data access, storage, and updating easier. This allows algorithms or machines to analyze data, identify patterns, and trigger automated actions more effectively.

6. Reduced Costs

Maintaining multiple databases for your business doesn’t just affect your workflow efficiency but also increases cost. Compared to using and maintaining a number of databases, a single system is unmistakably more practical. By having a centralized database, you don’t just save money on IT costs but also avoid inefficiency-related expenses caused by data access and sharing delays. 

7. Scalability 

A Harvard Business Review report indicates that most companies should experience a growth rate between 10% and 25% annually. Having this expected growth means companies need platforms that are scalable and can accommodate expanding data needs. A centralized database certainly fits this requirement. 

Centralized databases support growing businesses as they enable users to add computers and devices that are connected or integrated into the system. This allows multiple computers to upload, share, and download data at the same time. Furthermore, centralized databases can help teams collaborate more efficiently and manage increasing amounts of data as a business expands.

8. Improved Data and Analytics 

In the current business landscape, data and analytics play a role in staying ahead of the competition. Believe it or not, 62% of retailers have reported that information and data analytics gives them a competitive advantage. When it comes to data analysis, data and analytics tools are no doubt a must-have. However, many miss that in order to get reliable and valid findings using these tools, the raw data should be complete, unaltered, and correct as well. 

Along with having effective data and analytics tools, it is crucial to have a centralized database. This helps maintain the accuracy and consistency of raw data and secure it from outside threats, ensuring that results from data analysis are reliable and valid. Additionally, a centralized database can speed up data examination processes as it already has all the necessary files in one location.

Discover a User-Friendly Centralized Database Engineered for Your Needs

Are you considering moving to a centralized database and also looking for ways to improve your operation and staff management? Search no more, StaffConnect is an application that has it all for you.

StaffConnect is a business management software created to streamline processes and automate routine tasks, enabling you to boost productivity and save effort and time. We have a centralized database with many practical features such as search, custom attributes, photo management, internal team notes, and more. With our app, you not only have a database that helps enhance your data management but also software for managing your business processes and staff. 

If you are interested in knowing more about StaffConnect and its functionalities, feel free to book a demo here to experience our all-in-one app without any cost.