Why Do Companies Need Business Intelligence?
Team Thoughts
Business Intelligence (BI), also referred to as business analytics, involves using data-driven insights through both quantitative and qualitative methods to analyze information. BI systems help organizations improve their decision-making processes, allowing for more strategic choices and more efficient critical decisions.
BI serves as a valuable tool for conducting market research by merging external data from the broader market and industry in which a business operates with internal organizational data, such as financial and management information. When these data sets are brought together, they provide a holistic view of potential business actions — from operational decisions like product placement to larger strategic concerns such as pricing strategies.
Business intelligence is far more than a trendy term. It’s about distributing relevant information to facilitate better decision-making within an organization. As one of the most essential resources for informed decision-making, BI allows companies to gather comprehensive data from various sources, which helps them make better choices and enhance overall efficiency. Its growing prominence in today’s business landscape is evident, with an increasing market share and a strong foothold in the corporate world this year.
A common misconception business owners have when considering BI solutions is the belief that any data can be input to achieve the desired insights. This notion is flawed — even with custom-designed BI software. Feeding random data into a BI platform without a clear plan will only lead to confusion and unhelpful results. This is why having a well-defined strategy is crucial. Without it, you won't achieve meaningful outcomes.
Developing this strategy is a task that needs to be tailored to your specific business needs. Although there is no one-size-fits-all solution, the following steps can serve as helpful guidelines:
With the help of reliable BI developers, you can now build a tool that extracts the data you’ve identified in your strategy. The data collection process should be designed to filter out irrelevant information while capturing only the most valuable insights. Once gathered, the tool will need to organize this data and store it in a data warehouse. If you opt for custom-built software tailored to your business intelligence needs, this process can be fine-tuned to the point where it becomes fully automated. This means that raw data from various sources can be transformed into valuable assets, analyzed, and turned into actionable insights for your company.
These insights can be presented in the format outlined in your strategy — whether that’s visualizations, reports, or another method you choose. You can even link these outputs to other digital platforms, triggering additional automated processes.
One of the main benefits of using BI software is that it provides real-time insights, allowing you to respond to emerging or imminent risks more effectively. However, while BI software may recommend a specific course of action, you are not obligated to follow it. As the decision-maker, you have the final say on whether these insights are actionable. In essence, BI software is a valuable tool for minimizing potential risks within an organization, but its full potential is only realized when combined with your expertise to extract the most value from data analysis.
The ability to collect, analyze, and apply data to improve various business processes and operations is crucial for the safety and profitability of any organization. With this in mind, investing in business intelligence is an investment in the future success of your company.
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About author: Maria Krüger, Head of partners engagement, Linvelo?