Business intelligence has become an important asset for all companies that want to reach the next level. What is business intelligence? Business intelligence (BI) is a technology-driven process for analysing data and presenting actionable information to help executives, managers and other corporate end users make informed business decisions. It comprises the strategies and technologies used by enterprises for the data analysis of business information.
How does business intelligence work? BI is a technology-driven process that involves various steps: data mining, analytical processing, querying and reporting. Business intelligence works by acquiring information from any system and then recording it in a database and then presenting it for your business.
Have you already implemented BI in your business? Do you know why business intelligence is important? The main purpose of BI is to take accurate decisions thus creating more opportunities for organisations
Here are the main benefits of business intelligence:
Business intelligence can help boost your company’s ability to analyse consumer trends. With the help of business intelligence tools, it is easy to identify the demand and supply trends amongst your target audience, and specifically in your industry. This is beneficial since getting such great insights into consumer behavior can help a business plan out it's strategy, production, manufacturing, and budgeting accordingly.
The reason this helps increase customer satisfaction is based on past and current trends, businesses offer products and services to their customers the way they like it. Business intelligence is helping improve relationships between businesses and customer, thus affecting customer relationship management.
Business intelligence brings a better return on investment for businesses. The reasoning behind this is simple. The more businesses get an insight into the workings, trends and analytics of their business processes, the more aware they are. This strategic awareness leads to faster reporting, lowering the operating costs etc and can help produce products that match the requirements of the consumers.
BI helps kick in a more effective process or way of working for the business. This in turn directly affects the revenue generation of a business.
BI enables a business to get access to details insights and analytics about the business. This data helps them identify risks and elements that set them back or are not efficient in growing the business. Once you are able to identify the risks to your business and the things they are associated with, it becomes easy for the management to eliminate and effectively manage these risks.
Although this can be time-consuming, it can have fruitful results over a longer period of time. In the bigger picture, identifying and analyzing risks can help make better and more informed decisions.
As we get a greater insight into the data recorded and analyzed by BI, we can also expect an increase in the efficiency of the business, products, and services offered. Why? Because the more we understand our business needs, the more we can detect early mistakes.
Greater insight into these faults is bound to clear the bottlenecks in the sales funnel, thus improving the efficiency of your business services/products. This in turn also helps attract more leads and build a strong foothold in the market.
Apart from being an important contributor in the decision-making process, BI also helps you gain a competitive edge over competitors in your market by keeping you constantly updated on the current market trends. By knowing the trends that are prevalent in your industry, your business and make informed decisions that will ensure that you stay on top and ahead of your competitors.
BI is an excellent analytical tool that is used by businesses to succeed. Business intelligence is a blessing for businesses by identifying not only the effective bits of the strategy in question but also faults that are affecting your business.
Business intelligence enables organizations to manage vital business information in a smart way. After going through this article you must have known the benefits of business intelligence. This clearly reflects why business intelligence is needed.
Anuja is the Co-founder and CEO of RedAlkemi Online Pvt. Ltd., a digital marketing agency helping clients with their end to end online presence. Anuja has 30 years of work experience as a successful entrepreneur and has co-founded several ventures since 1986. She and her team are passionate about helping SMEs achieve measurable online success for their business. Anuja holds a Bachelors degree in Advertising from the Government College of Fine Arts, Chandigarh, India.