Whether you have a small business or a large enterprise, it is important that you utilise instruments that can help you in making an informed decision. This is where BI (Business Intelligence) tools come into the picture.
BI tools are a set of instruments that utilise technologies to create, prepare, present, integrate, and analyse data. With the data gathered by business intelligence tools, it can be turned into actionable business information thereby making effective data-driven solutions.
To help you get started, here are other things you need to know about business intelligence:
What is the difference between data analytics and BI?
Data analytics is often used interchangeably with BI but in essence, it refers to a more sophisticated application used for statistical modeling and other advanced types of analysis. In the late 1980s, Howard Dresner, a Gartner consultant, proposed using BI to encompass the emerging applications and technologies that can help decision makers. The set of applications and technologies that encompass BI are widely diverse depending on the solution.
Why consider BI?
As mentioned, BI refers to a set of instruments used for different reasons. When these instruments are utilised properly, it can have positive effects. Aside from driving quicker and better decisions, here are the reasons why you need to consider BI:
- BI can facilitate the identification of potential areas of operational improvement. Simply put, it can be utilised to optimise internal business processes.
- BI can also help recognise different types of trends within markets or business. Basically, BI can increase operational efficiency by recognising different trends.
- BI can create competitive advantages over competitors that are not well informed. In the end, it can drive new revenues.
Who should drive the implementation of BI?
In BI, you must understand that sharing is the key to success. BI projects typically involve everyone so full access to information is imperative. BI projects should start with top executives followed by the salespeople whose job is to increase sales. With this, they will likely embrace any tool that can help them do just that – provided that the tools are easy to use.
With BI systems, it can facilitate the employees in modifying team and individual practices that can lead to improved performance. When the executives see a difference in the performance, they will bring the teams up to the level of the leaders. After bringing the salespeople on board, you can use them to get the rest of the company on the BI bandwagon.
So, how should you implement a BI system?
At the onset, your company should analyse the way you make decisions. The discussions will drive what kind of information your business needs to collect and publish in BI systems. A good BI system should give context – it is not enough that they only report sales. They also need to explain the factors that influence sales. Like any projects, BI will not yield returns if the supposed end-users are skeptical of the technology or refuse to use the result.
When it comes to BI, it is crucial that your business implement it strategically as it can fundamentally change how the business will operate and how the leaders make decisions. For this project to be successful and effective, you need to find a solution that is extra attentive to the end user’s feelings.