Regardless of whether you run a top tier business or one from a building that’s falling apart; business success depends on making informed decisions. It all boils down to big data, the trending buzz word kicking up a storm in the business landscape. However, the potential of Big Data is rendered useless without Business Intelligence tools. A company that is clearly able to identify the connection between the two has the potential to find a path to the top rather than the exit. But what is Business Intelligence?
Investopedia explicates Big Data as “The growth in the volume of structured and unstructured data, the speed at which it is created and collected, and the scope of how many data points are covered”. Business Intelligence incorporates a set of tools, applications, and methods that allow for data collection, analysis, running queries, and creating visualizations to make analytical data available to operational workers and corporate decisions makers. Simply put, it benefits organisations by churning those huge petabytes of data and rendering it useful in a way that helps them take profitable actions. Let’s have a look at the importance of business intelligence and analytics for organisations.
Gut feeling is not the best business strategy; hence, one of the major benefits of business intelligence is that it leaves no room for guesswork. Business intelligence follows an objective approach that is based on facts, which further helps increase conversions. It involves carefully testing key metrics for analytics, which allows for analyzing the said strategy or product, before diving directly into it.
Many a time organisations, waste time looking inward at resources rather than throwing the net on the vast amount of data and fishing out intel. Today, retailers have changed the way they look at customers. It is not about having ‘something to sell’, but rather, understating the demographics of ‘who’, ‘why’, and ‘when’. Business Intelligence helps you get real-time data that is accurate, which makes room for predicting the ‘what if’ scenarios. It proves to be a valuable asset to identify sales trends, product movement, tap into the potential of unexplored markets, and improve sales and negotiations, streamline and valuable insights into customer behaviours. You can read more about how Netflix successfully used business intelligence and analytics to its own advantage.
BI makes information actionable by providing information through unified views of data, real-time reports, showing data in context, removing obstructions that come with manually preparing reports, providing customized dashboards that can extract important data for daily operations, the autonomous running of reports, and data validation without the need for IT experts.
It makes it easy for a business top pivot when faced with a roadblock, with fast and agile responses. Simultaneously, automated data collection, aggregation, reports generation helps reduce labour costs. Further, by analyzing historical sales and stocktaking data, it can help achieve stock optimization.
When it comes to data it can be too much, too little, too old, too detailed or just plain irrelevant. A well-planned BI system helps separate the wheat from the chaff, to increase efficiency, by making reliable information available instantly to organisations. Therefore, it is essential to invest in innovative software and business intelligence professionals to leverage data for competitive advantages.