Is business intelligence really that important for your business? Well, yes!
Business Intelligence or BI has been a privilege only reserved for large enterprises who can afford to maintain IT specialists, data scientists and business analysts.
But in the last decade, SaaS revolution brought powerful software to various businesses’ and open the door to business analytics. It’s a booming industry – according to Gartner worldwide business intelligence and analytics market to was $16.9 billion in 2016. This is a clear sign that modern business intelligence platforms are emerging to meet new organisational requirements and creating a deeper analytical insight.
“The shift to the modern BI and analytics platform has now reached a tipping point,” said Ian Bertram, managing vice president at Gartner. “Organizations must transition to easy-to-use, fast and agile modern BI platforms to create business value from deeper insights into diverse data sources.”
BUSINESS INTELLIGENCE – KEY POINTS
A business intelligence (BI) system is a key component of a company’s IT framework in 21st century. It is the component that enables business users to report on, analyse and optimise business operations to reduce costs and increase revenues. Most companies use this component for strategic and tactical decision making where the decision-making cycle may span a time period of several weeks (e.g., campaign management) or months (e.g., improving customer satisfaction).
Competitive pressures, however, are forcing companies to react faster to changing business conditions and customer requirements. The common functions of BI technologies are reporting, analytics, data mining, business performance management, benchmarking, predictive analytics and prescriptive analytics.
“KNOWLEDGE IS POWER.”
AND DATA IS KING. Business data can be valuable to provide information on about a multitude of different things. The data we create is gathered sorted and diagnosed to find patterns that allow a business to make decisions that help to be more competitive. Data analytics has become increasingly strategic to most businesses so that every business process is now an analytics process and every professional an analytics user.
However, becoming a data-driven business and moving away from the traditional line of reporting isn’t always easy. Most businesses do not take the time to monitor their data, they are just busy doing day-to-day tasks. There are some ways that one can start implementing smart BI to their business strategy and utilise for a full financial benefit.
Complex data from multiple sources can make it difficult to process and might scare you from implementing BI. Start with what you already report and take it from there. Begin with something that you already report on like buying trends or sales forecasts. Collect and prioritize pain points and key performance indicators (KPIs) across the organization. They might not all make it into the initial rollout but it is better to start big and roll back. Understand where this data comes from and what influences this data, perhaps seasonality affects your business or your marketing doesn’t involve seasonality changes and therefore you are losing customers.
To successfully implement BI to your business you must have support from all of the business areas from the get-go. Every stakeholder and their respective business areas should be involved throughout the process.
Key advantage point of BI is that it can offer a seamless integration and KPI reporting for all of the aspects of the business. However, to successfully implement BI all of the teams need to be involved in the process. By involving a range of stakeholders, you can ensure you cover the variety of BI users from strategic, tactical to operational. These different types will need customized solutions for different data they will want to gather and different outputs that are important to them.
SET THE RIGHT EXPECTATION
It is simply impossible for the business to expect that BI will work overnight. Data admin, management and automating existing reporting processes can be difficult to implement to full capacity at first. Instead, a BI process should be started with main business targets at the centre. Concentrate on reporting the main targets like expanding client base and satisfaction, expanding existing markets, growing revenues or any other main KPIs. Before initiating any project module, it is important to consider factors such as its relevance, accuracy, consistency, and timeliness.
LOOK FOR THE RIGHT SOLUTION
Once you determined what you and your team are looking for and what you would like your business to improve on. Evaluate every solution thoroughly — if possible, do a proof of concept (PoC) on your own data to test parameters like performance.
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