What is Business Intelligence (BI)?
The term Business Intelligence (BI) refers to technologies, applications and practices for the collection, integration, analysis, and presentation of business information. The purpose of Business Intelligence is to support better business decision making.
BI has a direct impact on organization’s strategic, tactical and operational business decisions.
What characterizes BI?
Data
BI is a group of sets comprising items of raw value that are used for calculations, measurements, or reasoning. The data has no meaning if not analyzed in a specified context.
Information
It is the result of gathering and organizing data in such a way that it becomes possible to establish relationships between the data items and their meaning in a specific context.
Insights
It is the concept of understanding the information from established models that provide a conceptualization of the information. Insights are the result of a business intelligence process translated into dashboards, reports, and alerts.
What are Business Intelligence Techniques?
Business intelligence technologies use advanced statistics and predictive analytics to help businesses draw conclusions from data analysis, discover patterns, and forecast future events in business operations. Business intelligence reporting is not a linear practice, rather, it is a continuous, multifaceted cycle of data access, exploration, and information sharing. Common business intelligence functions include:
-Data mining: sorting through large datasets using databases, statistics, and machine learning to identify trends and establish relationships
-Querying: a request for specific data or information from a database
-Data preparation: the process of combining and structuring data in order to prepare it for analysis
-Reporting: sharing operating and financial data analysis with decision-makers so they can draw conclusions and make decisions
-Benchmarking: comparing current business processes and performance metrics to historical data to track performance against industry bests
-Descriptive analytics: the interpretation of historical data to draw comparisons and better understand changes that have occurred in a business
-Statistical analysis: collecting the results from descriptive analytics and applying statistics in order to identify trends
-Data visualization: provides visual representations such as charts and graphs for easy data analysis
What is business intelligence software?
Business intelligence software are the tools that make it possible to create value from big data. Some examples of business intelligence technologies include data warehouses, dashboards, ad hoc reporting, data discovery tools and cloud data services.
Business intelligence developers make the data understandable for businesses.
Is Business Intelligence right for my company?
Yes, BI is right for every single company. No matter the size or type of business you run, there is data, and if you aren’t analyzing that data, you are missing out on the full potential of your company.
How is business intelligence used?
Business intelligence has as positive a impact on an organization’s people as it does on performance, projects, and decisions. Business Intelligence is used to turn data into actionable information for leadership, management, organization and decision making.
- Analysing customer behaviours, buying patterns and sales trends
- Measuring, tracking and predicting sales and financial performance
- Budgeting and financial planning and forecasting
- Tracking the performance of marketing campaigns
- Optimising processes and operational performance
- Improving delivery and supply chain effectiveness
- Web and e-commerce data analytics
- Customer relationship management
- Risk analysis
- Strategic value driver analysis
Here are a few departmental specific examples of insights and benefits that can come from its adoption and application:
- Human Resources: HR can benefit from the implementation of Business Intelligence utilizing employee productivity analysis, compensation and payroll tracking, and insights into employee satisfaction.
- Finance: Business Intelligence can help finance departments by providing invaluable and in-depth insights into financial data. The application of BI can also help to track quarterly and annual budgets, identify potential problem areas before they cause any negative impacts, and improve the overall organizational business health and financial stability.
- Sales: Business Intelligence can assist your company’s sales force by providing visualizations of the sales cycle, in-depth conversion rates analytics, as well as total revenue analysis. BI can help your sales team to identify what’s working as well as points of failure which can result in dramatically improved sales performance.
- Marketing: BI provides the marketing department with a convenient way to view all current and past campaigns, the performance and trends of those campaigns, a breakdown of the cost per lead and the return on investment.
Organizational benefits of implementing business intelligence
- Quick answers to critical business questions.
- Align activities with strategy.
- Reduce time spent on data entry and manipulation.
- Gain in depth real time insights into customers.
- Benchmark data against competitor and historical data for continuous improvements.
- Identify and analyze areas to cut costs and for budget allocation.
- Boost internal productivity by spending time on what’s important.
Types of Users of Business Intelligence:
- Analyst (Data Analyst or Business Analyst): They are the statistician of the company, they used BI on the basis of historical data priorly stored in the system.
- Head or Manager of the Company: Head of the company uses Business Intelligence used to increase the profitability of their company by increasing the efficiency in their decisions on the basis of all the knowledge they discovered.
- IT Engineer: For his company.
- Small Business Owners: Can be used by a small businessman because it is quite affordable too.
- Government Officials: In the decision making of the government.
Being able to deduce action from data is a competitive advantage leading you to grow your customer base, improve employee productivity, and create a better product. Business intelligence enables you to know what’s happening in real time, why it’s happening, how to stop it or capitalize on it, and how to predict what will happen next.
The Koukio Solutions team is here to improve your organization’s efficiency by leveraging your existing data. We will provide you with the tools your business needs to transform complex, unorganized, and confusing data into clear and actionable insights. Get in touch today to see how we can improve your business.
Contact us to get professional advice on how can AI be executed in your business.
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