product data
9 min
Transaction data: Definition & Explanation
Transaction data plays a central role in modern business life. It helps companies to optimize their processes and make well-founded decisions. But what exactly is behind this data? How does it differ from master data and why is it so important?
Table of Contents
Key Takeaways
- Dynamic data arises from operational processes and provides valuable insights into a company’s daily activities.
- The Internet and modern technologies have greatly simplified the collection and analysis of this information.
- The right choice of software solutions, such as Esri, enables efficient use of this data.
Definition: What is transaction data?
This term refers to all data generated by operational processes in a company. They reflect the daily activities that take place in a company. Examples of this are orders, deliveries, invoices or stock movements.
This information provides valuable insights that help companies to better understand and optimize their processes.
The difference between transaction data and master data
To understand the difference to master data, you need to look at the properties of these two types of data. Master data is static and rarely changes. This includes information such as customer names, addresses or product numbers. Dynamic data, on the other hand, is constantly changing.
They document the interactions and transactions that take place in a company on a daily basis. Analyzing this data makes it possible to track developments and patterns within a company.
Why is such data so important for companies?
This data is so valuable because it provides dynamic insights into business processes. Companies can use this information to make decisions based on current developments. This leads to better results and greater efficiency. They therefore help companies to remain flexible and adapt to changes.
Examples of transaction data
In contrast to master data, there are numerous examples of this operational data. We have listed a few of the most common ones for you for the sake of clarity:
- Orders from customers
- Outgoing goods from the warehouse
- Deliveries from suppliers
- Invoices to customers
- Incoming payments to business accounts
- Returns of goods
- Bookings of services
- Use of machines or production facilities
- Stock changes in the warehouse
- Logistics and transportation data
- Interactions in online stores (e.g. shopping cart activities)
- Time recording data from employees
- Sales data in the retail trade
- Transaction data from cash register systems
- Customer support inquiries and processing
The main differences to master data
In order to use this dynamic data effectively, it is important to understand the differences to master data. Master data is long-term, unchangeable information, such as the address of a customer or the article number of a product.
Transaction data, on the other hand, constantly documents changes in day-to-day business. They provide insights into operational processes and enable companies to react flexibly to changes and make well-founded decisions.
Storage of transaction data in the ERP
Dynamic data is usually stored in an ERP system or master data management, as it is essential for day-to-day operations and the mapping of business processes. However, their storage differs in some aspects from that of master data:
- Kurzfristige Relevanz: Sie haben in der Regel nur eine begrenzte zeitliche Relevanz und werden daher nicht langfristig im System vorgehalten.
- Dynamischer Charakter: Im Gegensatz zu den relativ statischen Stammdaten ändern sie sich häufig und bilden die laufenden Geschäftsvorgänge ab.
- Volumen: Das Datenvolumen wächst kontinuierlich mit jedem Geschäftsvorgang, was bei der Systemplanung berücksichtigt werden muss.
How transaction data influences the internet and digital transformation
The internet has significantly changed the way in which this type of information is collected and used. Today, data can often be collected online and analyzed in real time. Companies use modern technologies to collect and analyze it.
This enables faster and more precise decision-making based on up-to-date information. This type of data therefore forms the basis for many digital processes and business models.
Transaction data in business: what role does it play?
The right data management strategy is crucial in order to use this information effectively. Companies that use their data dynamically and in a targeted manner can make processes more efficient and make well-founded decisions.
It is important to consider the selection of suitable tools and technologies. Software solutions, such as the 4ALLPORTAL, help to analyze all information relating to products, customers and suppliers and integrate it into day-to-day business. This enables companies to remain competitive in the long term.
Selection of the best software solutions for management
There are numerous data management software solutions that support companies in managing and analyzing data. Esri is an example of software that analyzes location-based data.
These tools offer valuable insights into movement patterns and make it possible to better understand dynamic changes. The right choice of software is crucial in order to make targeted use of the data and create added value for the company.
Conclusion
Dynamic data is an essential part of the modern business world. It provides insights into operational processes and helps companies to make better decisions. With the right tools and technologies, this data can be used efficiently and integrated into day-to-day business. Those who understand it and use it in a targeted manner can achieve long-term success in the digital age.
