You have heard the term Business Intelligence since it's extremely popular within the business world but many of us do not know exactly what it is and why companies are considering it as an essential tool.
Importance of Business Intelligence
We are currently living in the era of technological advancements and it has completely transformed not only our lives but the way we conduct our business operations.
Organizations that have the access to data-driven tools enable them to gather more information about their consumers, but not all companies have utilized it. What is the role of Business Intelligence and why does it matter to your business? Let’s discuss.
What is Business Intelligence?
Business Intelligence (BI) refers to the process of collecting, integrating, and analyzing data to support better business decisions. It covers multiple approaches that allow the organization access to information that is vital to the success of different areas of business, from finance, sales, marketing, and other departments.
Business Intelligence is sometimes confused with Business Analytics. The difference between these two terms is the questions they answer. Business Analytics deals with the question of ‘why’ to make educated predictions about what will happen. Business Intelligence, on the other hand, answers the questions of ‘what’ and ‘how’ to keep what works and change what does not.
With BI, your business is empowered with improved actionable data and enables you to get more insights into trends that you can integrate well with your business planning strategy.
How can BI help your business?
Adopting Business Intelligence provides multiple benefits to your business departments. For sales, BI provides your team with in-depth conversion analytics and revenue analysis to better assist them in identifying what’s working or not and help them improve sales performance.
For the Human Resources department, implementing BI can provide them with insight into employee satisfaction, and utilize it for compensation and payroll tracking.
For the Finance department, BI provides invaluable insight into financial data that will help them identify potential problem areas that could cause a negative impact on the stability of a business.
Also, BI allows executives to eliminate gray areas that may affect the growth of the company and increase efficiency and productivity leading to more business opportunities.
Besides the benefits mentioned for the different departments within an organization, the following are a few more advantages of BI:
Deep understanding of consumer behavior
The data you can gather through BI analysis allows you to monitor patterns that help you have a better understanding of the current trends. This will enable you to deliver products or services that will meet the demands of the market.
Improved marketing and sales intelligence
BI can help you improve your competitive edge in today’s market. BI can be used to analyze metrics and turn this data into more actionable information. Once you have a deeper understanding of how consumers interact with your business, you can find solutions to their current challenges and increase sales with targeted messages.
Visibility of your core business components
Business Intelligence makes it simpler for executives and leaders to see each component of the business and reach those that are often overlooked. In turn, they can easily identify what needs to improve or change.
Develop a more effective business model
When you have all the data, insights, consumer habits, and other metrics, you’ll be able to create a more effective, stable, and results-oriented business model. Today’s digital environment enables us to get what we need within a few clicks and being able to utilize the information from BI is essential to our strategy.
Business Intelligence is an investment worth looking at. Affordable software and tools that are developed for BI provide small to medium-sized businesses the opportunity to utilize it and create a strategic plan to further grow their business and keep it moving.
Power BI is a platform developed by Microsoft to bridge the gap between data and decision making. It allows your business to transform data into a meaningful one as it thoroughly analyzes your business. Most companies utilize Power BI because of its ability to execute BI solutions and the ease of use even for non-technical users.
Implementing business intelligence with the right set of tools doesn’t stop there. Support from the organization is required for it to be a success. When you look at investing in Business Intelligence, ensure that you have a good understanding of its framework so you can make better use of it.
If you want to explore more on Business Intelligence and all the possibilities that come with it, reach out to us today and we would be happy to assist you.
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