What is internal data?
Internal data is obtained by the HR department and includes information from employee profiles, training data, employee certificates, CVs, feedback, etc.
What are the advantages of internal data for an organization?
One of the biggest advantages of internal data is that it’s readily available for analysis. It helps business owners to make quick decisions through the instant availability and access to information. For example, internal data can show that accounting expenses are rising faster than profits and indicate what can be done to improve the underlying metrics.
What are the sources of internal data?
Sources of internal data include:
- Sales — Internal data includes information from the sales department on how much revenue a company brings in and how much profit it makes. This data shows businesses how a product is doing compared to the competition. Further, internal data helps a company know what they should improve and where.
- Finance — Internal data provides reports on cash flow and budget analysis. This data helps companies analyze cash generated, production costs, and product performance.
- Marketing — Data is collected from the marketing department and used by the company to improve its services.
- Employment recruiting and management — A company uses data provided by the human resources department to create a better workplace for employees. Data collected includes salary, compensation, and reimbursement, which assists the company in reviewing the payroll or should be concerned about turnover.