What is Business Intelligence (BI)? 10 benefits
Why can working with insight, intuition or “feeling” if using data lead you to success? One of the uses of information is called BI, and in this article we’ll explain to you what Business Intelligence (BI) is.
What is Business Intelligence (BI)?
Because of the high competitiveness and market demand in companies that are better prepared to compete with each other, BI is a smart way to optimize failures and keep business in the spotlight.
BI is an acronym that stands for Business Intelligence. Many call it business intelligence because it covers all sectors of a company, from finance, operations, sales, to marketing.
Basically, BI is a set of theories, methodologies, processes, technologies and structures that transform large amounts of data that, alone, do not mean much, into information essential for good management.
Meaning, it is a set of techniques and tools that aim to support decision making and to monitor the results of a company’s investments.
Business Intelligence or simply BI is a way to group and explore information to discover the competitive advantages your business has.
Its central objective is to assist in the interpretation and analysis of data and information, to identify opportunities or risks.
Discover the benefits of Business Intelligence (BI)
BI helps an organization to structure a strategic plan to build sustainable competitive advantages that give value to the business and the solutions it offers to customers.
There are numerous advantages to using BI tools, such as, quicker and better decision making, enhancing the operational efficiency and optimizing processes.
Support for decision making is offered by Business Intelligence through the ease of viewing analysis and reports resulting from processes.
Suppose you have to make a very important decision that will affect your budget. With a report displayed on a computer or phone screen, you can know exactly what to do in a lot less time.
This is because you have access to the overall situation of your business. With it, you can make a thoughtful, strategic and intelligent decision in a matter of minutes, saving you time and effort. Thus, you will begin to guide your business more strategically.
Business intelligence tools help you identify consumer trends and changes in your audience’s behavior.
In this way, they help in the detection of business opportunities, in the development and launch of new products , in the increase of revenue and in the winning of new clients and markets. Consequently, it also helps in increasing profitability!
For example, with a simple click and using the right tools, we can find out:
- Consumer trends;
- Customers who buy frequently;
- When they buy;
- Products which generate the best profitability;
Now that we have explained what Business Intelligence is and some of its advantages, let’s list 10 of the most important benefits of business intelligence:
- Helps you get to know your business;
- It improves the decision-making process, basing it on evidence;
- Facilitates the access and sharing of information that supports management;
- Allows real-time analysis with fast navigation;
- Helps identify system losses;
- Reduces the risk of problems and obstacles;
- Delivers correct results, at the right time, to the right person;
- Identifies cross-selling and direct sales opportunities;
- Provides quick answers to any business query;
- Gets valuable information about customer behavior.
Pillars of Business Intelligence
- Data collection: In the first instance, all company information and data is collected and analyzed. Certain characteristics are defined such as productivity; opportunities; reputation etc.
- Organization and analysis: the data and information collected and analyzed are organized into databases. To make it easier for managers to quickly read, you can present them visually, with the aid of tools and platforms.
- Action and monitoring: Decision makers base their decisions on the information analyzed and monitor the results.
How to use Business Intelligence in your company?
You wondered what BI Business Intelligence was and read an introduction to the subject above.
Now, how do you move from concept to reality by using it in your company?
There are 3 basic points to creating a business intelligence strategy within the corporate environment.
They are as follows:
1. Reliable and quality data
To be successful with this strategy, you need to be very attentive to the quality of information used in Business Intelligence processes.
It needs to be easily interpreted and accessible.
The first point that deserves attention is where this information will be saved.
It is advisable to have quality infrastructure, capable of delivering information with integrity and efficiency.
It is important to create access rules for business security.
Therefore, investing in good data governance it’s essential.
2. Clear vision of the objectives
The analysts responsible for the Business Intelligence strategy in the company should have a clear vision of the objectives for the analysis to be well executed.
Know what your business goals are, your strengths and weaknesses, and your needs.
This way, it’s possible to collect data on the Internet, analyze emails, CRM, ERP and even marketing automation, among many other sources, often freely available, such as government agencies, unions, NGOs, and many others.
3. Change according to business goal
Knowing what Business Intelligence is and applying it correctly in planning gives a company the competitiveness it needs to manage sustainable business in the long run.
It is fundamental to detect the origin of problems and identify how to optimize work routines in companies.
It is through a detailed analysis of internal activities and information that the decision-making process becomes more efficient.
Business Intelligence vs. Big Data
The two concepts are part of digital transformations that are revolutionizing the way companies develop. Even though they may be different, they can be complementary. In this way, you can unite them and achieve more results.
Want to understand the difference once and for all? Let’s continue below:
Big Data (data accumulation)
With digital innovation and the vast amount of data that technology allows to be exchanged, this large amount of information and data is analyzed by data science experts. They seek to find correlations between data, which alone are of no use, but which together can bring about various benefits to organizations.
Data can come from a variety of channels: websites, blogs, social networks, tools, apps, videos, audios, images, etc.
BI, however, is Big Data’s next step. Using structured data, Business Intelligence helps you understand the business database, guiding those involved in the best strategies to take.
BI structures the information – which, in general, already makes sense and communicates, refines, evaluates and guides it strategically to increase competitiveness.
That is, ideally you should use the two concepts to understand in a deeper and clear way how data can disrupt or help your company. In addition, it is interesting to use BI after Big Data to gain a better understanding of the relationship between data, even to perhaps change the path proposed by correlating information.
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