Information technology and modern databases simplified the effort to mine data and to produce various combinations of reports. The database server collects the performance data and waits for it to be processed. Data must be transformed and analyzed in order for it to be useful.

Once the data is processed and manipulated, it can then be evaluated properly. Once the content is analyzed, meaningful reports can be produced. Graphs may be created in order to obtain a visual representation of the information. Demonstrating the performance findings in a graphical format is ideal when presenting the information to the leadership.

The data is a powerful asset for the organization because the database is rich with information about employee performance. Information can be extrapolated from the database such as formulating trends, and analyzing the employees’ performance results.

This type of information is known as business intelligence, and it can be used to increase a company’s competitive advantage. HR practitioners can use the technology and access the information instantaneously. This information can be utilized to focus on areas of performance improvement and training that are needed the most.