The Role of Databases in Organizations

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In the contemporary technology-driven world of business, the use of information technologies is essential for the efficient and competitive implementation of business practices. The application of databases in the organizational processes allows for achieving better results in company performance due to the automation of information analysis practices. Moreover, it is more efficient to use technology from a long-term perspective in comparison to the workforce doing the same processes manually. Several pivotal aspects characterize the use of databases in organizations as beneficial. They include the following:

  • inventory tracking for the company;
  • communication inside the organization using;
  • accounting systems;
  • electronic processing of employees’ salary payout system;
  • human resource record tracks;
  • data analysis for business decision-making;
  • marketing procedures;
  • customer service analysis.

The benefits of using databases are characterized by the complexity of preserving the safety of confidential information that is processed inside the company. Therefore, it is essential to oversee the database security measures. Several reasons justify the importance of database security in an organizational setting, namely:

  • it is vital to protect intellectual property;
  • it is important to keep confidential information secret from competitors to maintain competitive advantages;
  • the database security should be prioritized to protect the privacy of employees;
  • secure databases are not at risk of cyberattacks that might hinder company credibility;
  • it is important to use secure databases to minimize online theft from the company.

Similarly, the use of GDPR is validated by such benefits for the company and employees as:

  • the availability of a position of a data protection officer for proper database security policies implementation;
  • the obtainment of trust from customers due to the technological reliability of the organization;
  • proper response to any breach of security;
  • transparent organizational setting;
  • improvement of the integration of up-to-date technologies in the company performance.
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