Nowadays, it is difficult to find a company, no matter the size, that is not data-driven. Every business collects and analyses data to gain their competitive advantage. However, the process of gathering and then interpreting information manually is rather time-consuming and error-prone, which is why it is wiser to use a tool to perform the process automatically. The best and the most popular solution is, without a doubt, business intelligence. If you wonder why, continue reading.
Contrary to what many people think, business intelligence is not a tool used to perform data analytics. Instead, it is a set of tools, technologies and operations which enable a company to collect and then present valuable data of an organisation in a graphic form so that you can generate comprehensible reports and translate them into insightful information. The reason why business intelligence is inevitable for every company is that performing data analysis manually is simply not efficient as it may result in a business loss. Without analysing your data properly, you can only assume if your business is, or is not, profitable.
The main aim of business intelligence is to help companies to make more accurate, data-driven decisions. The important thing is that the tool does not tell nor show you what to do, it enables you to see the condition of your business and draw conclusions yourself. A business intelligence solution allows you to spot new business opportunities which you otherwise would have missed and to identify inefficient business processes which you now can improve.
Another essential feature of business intelligence is what it shows you. The data you receive allows you to see what is happening to your business right now and not what will happen in the future. It reads and gathers information concerning all of your business processes and how they influence your company. A tool used to review internal data in order to predict future opportunities based on operations and decisions made so far is called business analytics. It enables you to recognise what can happen or what could happen by taking a specific approach.
You need data to do your job better. Business intelligence shortens the time you normally would spend on mining, merging and analysing data which allows you to obtain valuable intelligence about your business. The solution provides you with accurate real-time information presented in the form of charts, graphs, dashboards and maps which enable you to transform it into insights. Visualising data is a great way to better see and understand the state of your organisation.
However, monitoring different aspects of your business requires different sets of data. What is more, that data may come from different sources. Business intelligence enables you to decide which part of your business processes you want to analyse and what kind of information you want to obtain. Before you start using the tool, it is best to identify problems your business is facing and remember that business intelligence will not solve them for you.
Things you can achieve by using business intelligence tools are key factors to business prosperity. Even though the results may not be visible at first, making data-driven decisions and thus improving inefficient business operations helps you to succeed in the long term. The greatest benefits of business intelligence are:
Implementing business intelligence may be expensive and time-consuming, which is why you need to prepare both yourself and your entire team. When having business intelligence developed by an IT company, business analysts usually turn out to be great advisors when it comes to meeting the biggest challenges and needs of your company.
You need to know what you have - which means what data you can collect or are already collecting and what sources it comes from; and what you want to have - which means what goals you plan to achieve with the gathered information. Again, business intelligence does not do the job for you. Instead, it enables you to see your organisation, its problems and potential opportunities more clearly.
Despite what many small business owners think, business intelligence - just like any other useful business tool such as bespoke software or your own e-commerce platform - is not dedicated to large corporations only. To the contrary, these solutions are even more beneficial when implemented in small enterprises. Exploring and analysing data enables your company to grow as, thanks to its popularity, business intelligence is already available at a comparable cost.
TO SUM UP
Exploring data is an excellent way to regain the competitive advantage as you become more aware of the needs of your customers and the possibilities of your own company. Without that, you may miss many opportunities and your competitors will be happy to take them.
However, what is essential to remember is that business intelligence is not an analytical tool which would tell you what can happen in the future. It gathers and presents data in a graphic form so that you can see the current state of your business as the visualisation is a great way of exploring information. Forecasting the future is important but it is useless without an accurate understanding of what is happening to your business right now.