Business Intelligence refers to Intelligence as information that is valuable for its relevance to business decisions. It comprises of expert information and knowledge that come in handy for efficient management of organizational and individual business.
In this sense, we can understand business intelligence as a means to gather, give access to and analyse data to help companies make better business decisions. Companies that claim to have business intelligence have expert knowledge about various factors such as customers, competition, stakeholders, economic environment etc. that enables them to make good quality business decisions.
Business Intelligence includes all strategies, processes, data, technology that help companies to collect, analyse and implement information to target better business opportunities.
This information is typically stored in a data warehouse that holds information about the company. Separate teams are designated to collate, manage and analyse information gathered in an agile manner.
Business Intelligence is sometimes confused with competitive intelligence which is natural since business intelligence gives you a competitive edge.
Competitive intelligence actually uses data for a different purpose. The focus is on marketplace, data gathering, analyses and distributed to understand how to gain an edge over competition.
Need for Business Intelligence
Business Intelligence enables companies to make informed business decisions and is a source of competitive advantages. When you are able to extract and value the information from indicators in external environment and make accurate forecasts about future business trends, you are able to make decisions that benefit your organization before competition does.
The chief objective of business intelligence is to improvise timeliness and quality of information that helps you charter the best course towards growth and success.
- You are able to gauge the position of your company in comparison to competition.
- You are able to detect change in customer behaviour and purchase patterns.
- You can measure the capabilities of your company.
- You understand market conditions, future trends, demographics and economic information.
- You are able to understand what competition is doing.
Even start-ups and SMBs (small and medium businesses) are trying to take advantage of business intelligence just like the bigger players. Owing to more intuitive interfaces, intelligent data preparation tools, improved generations and lower pricing, small companies are empowering themselves to become their very own data scientists.
Here are some of the chief reasons how Business Intelligence is changing the business environment and contributing in its steady growth and evolution. Itransition BI consultants concluded that “GREAT ACHIEVEMENTS COME FROM SMART DECISIONS and hence it is advisable to take note of the relevance of business intelligence to take your business to the next level.
- Better Business IntelligenceWe all know what is business intelligence, but there are certain ways by which we can aim to make it better for better results. BI works in tandem with big data. Before the rise of big data, business intelligence was limited. Big data helped in giving business intelligence a legitimate name in the business world and a separate career field. Nowadays several companies are gearing up to go to the next level with the help of business intelligence experts.
Business intelligence can be used in any business that generates data and hence, we see several big and small companies benefiting from better business intelligence. We also see new areas of deployment for BI in the business world.
- Targeted MarketingBusiness intelligence and big data can help companies to create targeted marketing efforts. Big data is highly accurate and this accuracy helps companies to make concentrated marketing efforts to measure customer needs.
Big data analysis can help companies in making accurate predictions for the targeted consumer. Your business can make tailor made decisions about perceived customer requirements and design specific messages to target specific needs.
- Superior Customer ServiceBig data can highly influence customer service. Businesses know what customers exactly need which will help in making the customer service processes proactive and upbeat. You can even differentiate your company based on your highly superior customer service that becomes a key differentiator.
With predictive analysis and proactive customer service, you can win a loyal customer base that gives you a definite edge over competition.
- Product DesignBusiness intelligence coupled with big data not only improves customer service but also allows companies to make products that are customer responsive. Data analysis can help product designers to focus on customer needs responsively without having to rely on customers to tell you what they are looking for.
- Data Departments
Data departments are on the rise in companies that are experiencing business intelligence and big data. Businesses are now developing separate data departments that have an important status and influence management decisions quite critically. Data breaches are also a great business threat which is why these data departments are protected and in many companies made confidential.
- Improved EfficiencyBusiness intelligence and big data affect the efficiency of a business. Without data, no business process can work properly. Data analysis is also being done to identify business constraints and working towards discovering and eliminating them.
- Cost ReductionBusiness intelligence and big data has the power to reduce business costs. Data helps in forecasting trends and helps in planning processes, especially in manufacturing businesses where inventory costs can often go haywire. Predicting sales and production can help companies plan their operations appositely.
Business intelligence and big data is here to stay as we see more and more companies embracing these concepts to achieve more and becoming competitively more agile. Data is helping businesses from all directions, enabling them to make better and informed decisions. If you don’t wish to be left behind in the corporate race, it’s time that you discover the power of business intelligence and big data.