Database analysis is the process of extracting data from a database, cleaning it, associating it to other data and drawing conclusions based on these relationships. Data analysis requires a wide range of skills including specific knowledge of the business, statistical analysis and data-mining tools.

Businesses most commonly perform database analysis and management on their large store of data to understand customers and their behavior better. They then examine the customer data to identify the key customer groups and determine ways to increase sales to these groups.

The steps involved in db analysis are performed in distinct phases and have the following considerations:

1. Data extraction is frequently complicated by the fact that most databases develop through use rather than being designed. This step of database analysis is also made more difficult by poor documentation and missing data.

2. Cleaning the data first requires the correction of factual errors that have occurred over time. Analyze the data statistically and merge it with other data sources such as other databases or external data.

3. Analysis of the data involves the examination of data attributes like frequency and value which you use to make business conclusions.

Action Steps
The best contacts and resources to help you get it done

Select computer database analysis services for your small business

You should perform data analysis and design from a business rather a technical perspective. That is, a marketing research company is generally preferred over one that specializes in dba analysis.

I recommend: Find a consultancy like Dobney.com with expertise primarily in marketing and strategy development. They also have a good primer on the database analysis and design process. Practical Computer Applications provides consulting and desgn-built engineering services.

Get the correct database analysis and management tool for your needs.

You can generally divide database analysis tools can: those that are capable of analyzing data and those that analyze structure. Some tools are capable of both functions.

I recommend: Use the trial version from Data Assistance of the Database Analysis & Comparing Tool to see how these two functions can be combined into one application that provides graphical views and printed reports. Quest Software provides solutions for Oracle.

Maximize the return on your investment in database analysis

The key to effective database analysis lies in knowing the right questions to ask in order to identify previously undiscovered trends in your customer's behavior.

I recommend: Use a firm like Acxiom that is highly experienced in performing database analysis for the purpose of creating a more targeted marketing campaign. Look at Direct Logic Solutions, which provides advanced marketing solutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A targeted marketing campaign is more cost effective than a mass marketing campaign because it reduces the offers you make to customers who would have purchased your product or service without an incentive.
• •  It is important to establish the context when hearing the term 'database analysis.' It may describe the examination of the database's structure rather than the data it contains; a process more properly referred to as dba analysis.