Strategy Using Databases Basic Strategy Formulation Using

¶ … Strategy Using Databases

Basic Strategy Formulation using Databases

One significant challenge that any organization faces has to be is strategizing all the aspect and conditions that it up holds. Organizations depend on past information and actions to formulate on the steps that they may take to improve on their situation. For any strategy formulation, an organization depends on the information they have collected from the past. However, the main challenge is obtaining the most precise information to use. This is because of the unreliable sources that are available to the organization. With recent advancements, the organizations are shifting towards new methods. Databases have become common mainly due to their reliability and user-friendly attributes. Organizations are now intent on using decision support systems (DSS) to set a basis for their formulation process (Vriens 2004). Consequently, this software turns the databases into suitable information for those who make decisions. With a perfect analysis of the databases, the organization acquires information that is reliable. This information is then particularly beneficial in the formulation of any strategy. Therefore, organizations should use these IT advancements as they are beneficial towards the future.

This software presents data in a manner that is already exceptionally easy for using to the organization. This is mainly due to the analytical feature that the software has. This information is no longer basic data but is an analysis of the information. This creates a shortcut to the people involved in making strategies because there is no need for analyzing the information manually. Also, there is a reduction of the time that the organization takes to formulate any strategies. The software that the user accesses the database with has report-writing features (Botten 2009). This means that the decision makers are able to have access to information that has excellent organization. This also reduces the time and resources that an organization is likely to use if the process was manual. It is beneficial to an organization to prefer this method to the manual one.

Complex data in the organization is likely to pose a problem to the handlers. It is essential that the simplest form of information is available to the people who formulate the decisions. DSS has one outstanding feature that is tremendously useful to the simplifying of the information. Analytic Hierarchy Process (AHP) is a technique which reduces the complex problems to pair wise comparisons (Vriens 2004). This combination is between the different options and criteria that are available for analysis. With the available simpler comparisons, the decision making is relatively shorter. This is much easier than when the larger sets of options are available. The software divides the problem to smaller parts that are of utility to the users. The large options waste plenty of and resources for the organization during this process. The organization then uses the information to create a strategy because the different aspects of information are more comparable. This mainly happens because of the disparity between the information is explicitly discernible amongst the users.

The chances of making a better decision in the organization are higher on using the databases. This is due to the reduction of time wastage and the efficiency. An organization reduces the time that for the process of getting information when they use the method of accessing their databases by 70% (Grant 2009). The organization is also able to reduce the time when that is required for preparation of a report for information. A 30% increase in the user productivity is also another reason why an organization should consider this method. Some of the manual methods are immensely complicated which prompts the organization to spend a lot for the training of the users. Through this simplified method, there is little need for training because the method offers a straightforward format that is easily understandable. Therefore, the organization has the capability to craft better decisions in the fields that require more attention and in a limited time. This is because the DSS has the capability to extract sorted information that relates to each department and is not general for the whole organization. Some of the information includes category performance and the sales revenues.

In any organization, there are different parties that have involvement in the process of formulating strategies. It is extremely hard that the process gives satisfaction to all of them. The solution to this dissatisfaction in the process is to use the DSS method. This is because the process that involves accessing only some databases is extraordinarily transparent and minimizes the chances of bias from any of the members. There is also maintenance of consistency within the organization when utilizing one method constantly. The organization has databases that are common to all the decision makers. Therefore, there are limited chances of any extra manipulation of the information. This is because the information in the databases is likely to have more accuracy than the manual one (Grant 2009). This is a definite improvement than using other manual sources. The people formulating any strategies for the organization are able to use one reliable source. This enhances the consistency amongst them and increases the efficiency of the decision making.

Another key reason why any organization should depend on checking of the databases is because of the alternatives that it offers. The software that derives the information produces it in a report format. The organization then determines the problem and the areas where improvement is essential. From the information, it is highly possible to determine different alternatives that are of high utility to the organization. The analyzers are able to trace different trends in the information and are able to make different conclusions. This leads to the users having different opinions to handle the problems. Therefore, an organization has the capability to come up with different alternatives for the problems. Through this process, the organization chooses the best strategy that to follow. The time with which an organization comes up with as many alternatives as possible is also substantially reduced with this method. Many alternatives are better because the organization requires saving on all aspects to keep making profits and keep up with the competition.