How have relational database systems enabled changes in the ways firms compete for the customers their strategies focus upon, and how they implement their choice between cost leadership and differentiation strategies?
Relational database systems enabled changes in the ways firms compete
How have relational database systems enabled changes in the ways firms compete for the customers their strategies focus upon. How they implement their choice between cost leadership and differentiation strategies?
More details on the work;
This is another classic big data debate. Think about what databases we had before – a simple table with rows and columns. Now we have sophisticated databases with multiple tables linked to each other, hence the name relational database. And since these tables are linked, you can write sophisticated code (using SQL, etc.) to mine and infer data. As more and more business is being conducted online, there is a ton of data that is being captured by companies. Why? Because data gives you a lot of insight about trends, customer behavior, gaps in processes, etc. This knowledge in turn would enable you to either increase your revenue or decrease your cost; it’s all about the bottom line (P&L impact) in the end.
Now the second part of question – how do you choose between cost cutting and value creation (same thing as differentiation; differentiation leads to value creation). Well, you use data for both depending on what kind of business you are in and where you are struggling. For example, if you are a business that sells commodities (where there isn’t much scope for differentiating your product), then you are gonna focus relentlessly on cost cutting. E.g.: You will capture data at each point in your supply chain to improve forecasting (so you can order just the right amount of material to lower your inventory cost), to monitor your trucks (so you can tell what the optimal path is so you spend less money on fuel), etc.
So do some research on big data and you will find a ton of material that talks about how to harness it for achieving corporate objectives. Hope this helps.