Why Is Business Intelligence Important?
The chances are that you have heard the most used buzzword, Business Intelligence, along with big data. But, you might not know the exact terminology. Don’t worry, in this article we’re bringing you the most comprehensive look at the importance of Business Intelligence.
So, what is Business Intelligence?
Business intelligence (BI) is a set of software applications used to evaluate an organization’s data. In simplest words, BI provides actionable insights that allow organizations to analyze critical organizational data and helps to analyze it. BI includes the cutting-edge technologies which are used to obtain these actionable insights of business.
Why BI is Critical to a Business, Regardless of Size?
Many thanks to the advent of Business Intelligence and the tools! This cutting edge technology has made data analysis easier and more cost-effective than before. Today, businesses of all sizes are taking benefits significantly from business intelligence. Even start-ups can quickly set up dashboards using the data from their existing applications to understand their business better. And, if you haven’t made the most of it, you need to consider using it because of its availability and increasing simplicity.
What Tools are Important to Business Intelligence?
At present, businesses of all sizes are surrounded with a robust list of vendors offering Business Intelligence tools. This gives the organization the ability to choose a BI platform based on various factors, including the size, intricacy of business operations, or type of technology they own. Companies are using the data from business intelligence software to determine what items within the business need to be improved because they’re not selling well. BI systems also help employees keep track of information effectively, and modify their teamwork practices, ultimately leading to improved performance and increased productivity.
Here are the few BI tools companies use to gain more insights and improve the infrastructure:
|· Pentaho BI||A modern business analytics platform provides data integration and OLAP services.|
|· Microstrategy||Provides cloud-based services and mobile software|
|· Business Intelligence||Integrated platform to provide a meticulous snapshot of the organization.|
|· Oracle Hyperion System||Integrate Hyperion to create a robust business solution.|
The Importance of Business Intelligence
There are a number of reasons making businesses want to invest in Business Intelligence. Let’s take a look at five of the most important ones:
Better Return on Investment
When it comes to obtaining a better return on your business investments, look no further than Business Intelligence. The reason is straightforward — the more you get insights on your business operations, the more you can work for revenue. BI can help you measure a number of key performance indicators and enable you to assess operational efficiencies, thus lowering down the operating costs and increasing the revenue generation of business.
Gaining Competitive Edge
BI is an excellent analytical tool used by businesses to make out the effective bits of the strategy as well as faults that are affecting your business. By keeping you constantly updated what’s going in your business and in the market, BI helps you make informed decisions and get a competitive edge in the market.
By understanding what your business needs are, you can identify early mistakes and come up with strategic solutions. That’s what BI gets its name for. BI enables organizations to get a greater insight into their raw data by providing them greater insight into potential threats faults. BI makes it easier to measure the performance of your organization, identify the areas of improvement, entice more customers, obtain a remarkable position in the competitive market, and ultimately increase the efficiency of the business.
Reduce & Manage Risks
Besides gaining a competitive edge in the market or understanding changing market conditions, BI enables a business to comprehend the business, helps them identify risks and elements that are not efficient to your business. This allows companies to eliminate these risks and helps make better and more informed decisions.
Comprehend consumer behavior
Understanding consumer behavior is important to comprehend the buying pattern of consumers, and once it is done, the information could be used to develop products as per customers’ requirements. Among many reasons, BI allows organizations the ability to understand customers’ needs and expectations.
The Future of Business Intelligence
Business Intelligence solutions, without any doubt, allow companies to make intelligent and data-driven decisions. But, the question should be what the future of BI is? How will the technology continue to drive value in a growing market?
The future of BI is bright as it is not a passing tech trend. And, the impact of BI on the business environment is on the rise. With the rise in BI, the importance of data quality is more critical than ever. Data-driven companies will also have a significant advantage over their competition.
According to CIO, “Interest in business intelligence (BI) is swelling, as big data is probably to burst out nearly doubling its current size. The reason is simple — BI supports numerous business-critical functions, such as analytics, business performance management, and text mining and predictive analytics.”