What is Business Intelligence?
According to research on KPI practice of businesses, only 36% of leaders use KPIs widely throughout their organization. They all have KPIs to clarify their goals and measure their success. However, they often don't have standard metrics and struggle to keep up with advances in data analytics and corporate governance reporting. Effective governance comes from intelligent data management.
What is the definition of Business Intelligence (BI)?
Business Intelligence (abbreviated as BI) is a technology-based system for data analysis that provides useful information for leaders, managers to make informed decisions to create new opportunities for business. BI is the combination of business data analysis, data mining, data visualization, data tools, infrastructure, methods to speed up business operations.
How does Business Intelligence work?
Tools that enable Business Intelligence (BI) bring together multiple data sources. It enables businesses to gain more insights and intelligence. The goal is to create new opportunities and be able to succeed.
Types of Business Intelligence tools include: Spreadsheets, digital dashboards, reporting and querying software, data visualization software, corporate performance management software, mobile utilities and more other tools.
So what is the operating process of the Business Intelligence business analysis system? Consider the following 5-step process:
Step 1: The data source is integrated into the storage cloud
Step 2: The data sets are sorted and prepared for analysis
Step 3: Users run analytic queries against the data
Step 4: Results are displayed synchronously, visualized on the dashboard or report form.
Step 5: Your business can plan and make decisions for the future or new period based on overview data and post-analysis.
Sample data sources used to build business intelligence may include:
- Customer relationship management system CRM
- Supply chain information
- Sales Performance Dashboard
- Marketing Analytics
- Call Center Data
From the above definitions, it can be seen that Business Intelligence brings a lot of value to the leaders of the business in particular and to the business in general.
What benefits does Business Intelligence bring to businesses?
BI brings many advantages to small and medium enterprises. This is considered the best system for small and medium enterprises to create competitive advantages and promote outstanding development. Here are 5 benefits for businesses when applying business analytics technology:
Easier targeting by audience
Business activities will face many difficulties in effectively classifying target audiences and taking care of customers. So, applying Business Intelligence to business administration, you can easily identify the types of customers. Because, small businesses now have the opportunity to promote services to a wider audience, using various online opportunities. Therefore, there will be many different sources of customers and approaches.
BI software can collect customer data, allowing managers to identify the perfect buyers. At the same time, you can bring your products and services to your target market most effectively to drive sales and increase profits.
Identify market trends
50% of teams and customers are more likely to use Business Intelligence tools after the pandemic than in the past. Businesses can develop a competitive advantage by identifying new opportunities and formulating a data-driven strategy.
You can leverage external market data with internal data to spot new sales trends by:
- Customer data analysis
- Analysis of market conditions
- Address current and potential business problems.
Increase revenue and reduce redundant costs
The second benefit of Business Intelligence is the opportunity to increase revenue and cut excess costs. One is that BI allows you to set KPIs or goals that are relevant and achievable with your business strategy. When you're using BI effectively, you're more likely to see the big picture of your business. That means you will see the possibility of revenue increasing.
Besides, Business Intelligence System also helps you find ways to cut excess costs. For example, you are spending too much money on marketing campaigns that are not effective. Based on centralized aggregate data you can easily rebalance your expenses and business activities. From there, you can focus your capital on activities that are likely to bring good sales to your business.
Create competitive advantage and speed
Failure to address issues with accuracy and speed can have a detrimental impact on your business. By using BI business intelligence analytics technology, you can leverage data to ensure key stakeholders get the information they need at the right time. Finally, speed up the decision-making time for the upcoming activity.
Track competitors' sales and marketing, and create ways to differentiate products and services. Handling large amounts of data efficiently will also give you a competitive edge. Using a Business Intelligence tool can help you budget, plan, and forecast much more efficiently than your competition.
Creating favorable conditions for business collaboration
With business intelligence data management software, it will be easier for small and medium business teams to export and share data. In a business, there will be many projects that need to be done. That is, you need a smart system like a scientific scrum model where continuous communication, collaboration and collaboration is the key to driving the business forward, it is important that all team members can easily access relevant, up-to-date data and use it in real time.
Promoting data culture
The loss and manipulation of data is very common for businesses. It's important to keep data focused and under control. With Business Intelligence, you can ensure that the right people have access to the right data that business leadership provides.
In general, this article has somewhat explained what Business Intelligence is and its benefits when implemented in businesses. In order to analyze current data and store the entire historical system and ultimately come up with a new strategy, new opportunities for competitive advantage require the application of smart and efficient software.
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