- Business Intelligence tools transform raw data into information that organizations can apply to optimize the decision-making process.
- Some advantages BI tools offer organizations are increased efficiency, holistic view of business metrics, fast answers, optimized operations, better control over functional areas, and increased insight on consumers’ behavior.
Nowadays, the reality of business demands that companies and technology are connected and aligned to increase profits, be more competitive, and have more business opportunities. In this situation, Business Intelligence tools (BI) allow us to transform raw data into information and information into knowledge so that we can optimize the decision-making process.
From a formal point of view, we can define BI as the set of methodologies, applications and technologies that let us collect, debug and transform data from transactional systems and unstructured information (internal and external to the company) to structured information for its direct exploitation (reporting, OLTP/OLAP analysis, alerts, etc.) or for analysis, supporting the making of decisions in the organization.
At the beginning, this technology was incorporated by big organizations but is currently also used by medium and small businesses.
BI allows making the best use of the data to which the company has access, transforming into a strong competitive advantage. It gives robust conclusions for decision making in terms of cost reduction, financial projections, sales planning, production efficiency and inventory management, among others.
Some advantages that Business Intelligence tools offer to organizations are:
- Increase efficiency: All information can be centralized and visualized on the same platform and converted into useful and organized information, saving time and facilitating efficient decision making.
- A holistic view of important business metrics: Everyone in the organization can access the company’s data, such as business metrics, dashboards, and other important reports.
- Faster answers: Get immediate answers to business questions so you can make decisions without having to hunt down information on various platforms and reports.
- Optimize operations: When implementing a BI system, you will gain insight into the performance of your operations. This allows you to know the areas in which the operation needs to improve or modify something in order to optimize.
- Better control over the functional areas of the company: Areas such as Production, Inventory, Marketing, Purchasing, and After-sales Service, are likely to be included in a BI system to centralize access to customers’ data, the costs of materials, research, and development. Having all the information stored in a single place and being able to analyze it in a matter of minutes is a great benefit in costs and, over time, reduces errors in decision making.
- Analyze the behavior of the consumer: Analyze consumer buying habits and make this information profitable for the company, even increasing the effectiveness of loyalty campaigns. You can also build predictive models that facilitate cross-selling, promotions, luxury product sales, and other strategies aimed at the right customer with the right information.
Although BI may be costly and tedious, the benefits of its implementation can be a game-changer for the organization. It is a great tool to improve efficiency and competitiveness in organizations. Are you considering BI tools for your organization? Share your thoughts in the comments!