Nowadays, it is extremely important that your company not only be rich in data, but also rich in insight. Business Intelligence refers to the process of extracting information and transforming it into data that will support the future decisions of your company. Business Intelligence provides a platform to build data for insight through queries, reports and online analytical processing.
Business Intelligence is gaining a sturdier foothold in the business sector based on its ability to be fast and effective. It allows for quick and detailed data analysis along with easier eye-catching presentation that surpasses those long hours spent hashing out statistics and spreadsheets. Ultimately, the better your Business Intelligence tool is, the smaller the revenue drain will be. Here is a list of some of the best functions Business Intelligence software can provide.
This function covers the everyday processes involved in a business. Managers that handle transactions typically use this type of report in an effort to track daily sales and detect shortages. Because Business Intelligence allows for these processes to be automated, these reports can be handled in real-time. Automation also allows for finding the source of a problem faster without spending an endless amount of time on analysis. Less time spent on never-ending spreadsheets means less errors and more up-to-date accurate information.
In the past, businesses had to gather data from various software systems and/or applications and compile the data in an effort to improve business processes. However, with an increased flux of data, processing has become much more tedious. Business Intelligence software allows for the easy processing and collecting of data through one integrated system as opposed to various platforms. All the data can be accessed through one simple tool for comprehensive predictive analysis, reporting or auditing.
Through analysis of multiple sets of data, managers can make better predictions and informed decisions backed by data. Business Intelligence systems can allow a business to calculate the profitability of their success ahead of time, as well as the outcome of alternate decisions. The ability to forecast is rendered more important by high-level executives and managers since their decisions carry the most impact. Forecasting is considered to be a dynamic procedure because it takes into account all of the variables and generates predictions for the coming year, which are always subject to change.
Budgeting and Inventory Monitoring
Budgeting requires heads to consider historical data (mostly from the previous year) as well as the company’s goals and variables that may arise, such as changes in the market for example. Through the ease of a visual dashboard and reports, employees can gain insight on spending patterns and trends much faster. Organizations can develop strategies to reduce spending, conduct in-depth financial analysis, track suppliers and spending, ensure compliance, measure performance and analyze procurement data with a Business Intelligence solution. By making informed decisions, staff can conserve the resources and increase profitability of the business.
This is an important function for any business interested in analyzing customer trends and behaviors. Companies can leverage this data to adjust their services to meet their customer’s needs and also attract more business through marketing efforts. For instance, companies can determine the success rate of e-mail campaigns and advertisements to make on-the-spot marketing decisions. By improving market effectiveness, a company can gain an edge over its competition.
Not only is it important to track customer behaviors, but it is also important to be aware of the customer experience you are offering to clients. By storing detailed customer profiles that provide data on history and preferences, you can better anticipate your customer’s needs while simultaneously boosting customer loyalty.
The best Business Intelligence solution is one that is capable of handling multiple tasks that best suit your company’s needs. It takes more than just intuition and spreadsheets to acquire the information needed for business success. Business Intelligence software designed for analytical efficiency and accessibility can help protect market share and identify new revenue opportunities by turning large amounts of information into meaningful data.
Daphne Lefran has been writing about business-related topics for many years and currently writes on behalf of the business solutions specialists at True Sky. In her spare time, she enjoys capturing moments through a camera lens; traveling to new and far away places and cheering on the Florida State Seminoles. Follow her on Twitter @daphnelefran