Drowning in Data? How Business Intelligence Can Help

In our technically advanced world we currently live in, the overwhelming amount of data that we have can be the ultimate benefit, or bog you down in a sea of statistics. Finding the facts behind the figures is something business leaders can't afford to ignore. This vital information allows you to zero in key factors and stay a few steps ahead of your competitors. You're not alone. Thanks to Business Intelligence (BI) tools entrepreneurs can understand data more quickly, and see what's happening in real time and adjust accordingly. This is also a great tool for marketing managers in terms of monitoring ROI of ads and empower companies in an even more complex way with the implementation of predictive analysis. These tools are designed for different audiences, which means both the tools and departments exist in silos. For example, a marketing team would work with a completely different system than a CFO might use. These tools will eventually evolve to span different departments and industries, but entrepreneurs would be smart to experiment in the interim to learn how BI can benefit their businesses.

The use of BI is now commonplace and regardless of your industry or market, there are likely tools to help empower your business. Data collection tools have flipped the situation and matured to provide data in bits and pieces with just a few clicks. As these tools become more powerful, companies that use them correctly will enjoy tremendous advantages, such as understanding customer behavior, increasing profit margins, attracting new clients, and ensuring marketing expenditures are driving sales.

Looking to leverage your data? Check out 3 ways how:

Oversimplify at First, and Ramp Up Slowly

Everyone talks about the importance of data, but far too many business leaders rely on their instincts when it’s time to make hard decisions. BI tools create a clearer understanding of historical data and incorporate real-time updates, providing a quick return on actionable insights. The more you understand which metrics truly matter, the more effective your strategies become.

Understand Your Customer Churn (if you have recurring revenue)

Most companies don’t fully understand the consequences of churn. Losing half of your recurring revenue every year is unacceptable, but you might not even know it’s happening if you don’t leverage your tools. While many entrepreneurs would say a monthly churn of 5 percent isn’t a huge problem, the magic of compounding means that trickle swells to a flood of 46 percent annually — far too much churn for any business.BI tools enable companies to look at metrics such as monthly recurring revenue, breaking your clientele into high-value, medium-value, and low-value customers.

Find Tools That Fit Your Department or Industry

Without real-time analysis, you risk pouring money into projects that don’t create value. BI tools can help you assess your capabilities and determine which efforts are worth continuing. New BI tools are coming onto the market every day. For any insight you might want, a tool is probably available (or will be soon).

It takes a lot of work to wrangle the immense data that we are flooded with, however, there is no need to wander in the dark with the help of BI. Get more out of your data with the aid of these strategies and tools while improving your immediate and long-term projects.

To read more on Business Intelligence and the tools available, click here.

ABOUT THE AUTHOR:

Jim Barnish is a strategic change leader with over 15 years of global and integrated operations, sales, and marketing experience. Over the course of Jim’s career, he has successfully worked with companies undergoing accelerated business development, process improvement, change management and operational transformation initiatives.