Knowing what business intelligence or business intelligence is is the first step to start taking advantage of all the information that is generated every day in your business on factors such as the relationship with your customers, changes in the market, product development and more.
For this reason, today we have gathered all the information you need to know to understand in detail what it is about, what its importance is and how to implement it successfully in your company.
What is Business Intelligence?
Business intelligence is a data analysis process that combines business analytics, data mining, data visualization, data tools, and infrastructure to deliver actionable insights that help executives, managers, and workers make decisions. business informed and based on real information.
As part of the business intelligence process, organizations collect and analyze data from internal computer systems and external sources.
The ultimate goal of business intelligence initiatives is to drive better business decisions that enable organizations to increase revenue, improve operational efficiency, and gain competitive advantage over business rivals.
Modern business intelligence enables you to take a complete view of your organization’s data and use it to drive change, eliminate inefficiencies, and quickly adapt to market or supply changes.
Importance of business intelligence in a company
The importance of business intelligence lies in the following factors:
- It helps reveal business or market trends.
- It can lead to the identification of areas where operational efficiency is maximized or can be improved.
- It makes data analysis more understandable and useful to decision makers through the use of tables, graphs, and other forms of visual representation.
- It provides a “what if” analysis of different possible business decisions or perspectives.
Benefits of using business intelligence
In addition to the previously mentioned reasons, the application of business intelligence can bring multiple benefits to a company, among which are:
1. It helps you get information about customers
With effective business intelligence, companies can better understand their customers by analyzing their buying patterns and creating user profiles. This helps them create better products and product experiences for their customers.
2. Improved visibility into business operations
Organizations that take advantage of business intelligence will have better control of their business processes because they have better visibility into what is happening in the organization.
Having an active watch on standard processes and procedures helps to rectify any errors fairly quickly.
3. Get actionable insights
Actionable data is those metrics that actually allow action to be taken, rather than just a number that gives apparent confidence to be heard.
The most important thing when making any business decision is to have enough data to support the decision.
With traditional reports, it is not as easy and convenient to obtain actionable information as it is with business intelligence.
4. Improved efficiency throughout the organization
Having an adequate business intelligence system considerably improves the efficiency of the entire organization. This, in turn, has a positive impact on the organization’s overall revenue.
By making meaningful data accessible to multiple teams in the organization, wait time on report requests is reduced and productivity of all teams in the company is increased.
5. Availability of data in real time
A business intelligence system provides real-time data at all times. This, in turn, reduces the risk of any potential human error in preparing any critical data reports.
Having access to data in real time allows the company to stay informed about the health of the company at all times.
How to implement business intelligence?
Now we present 7 steps to apply the business intelligence process in your company:
1. Data extraction
The first step is to use databases, statistics, and machine learning to discover trends in large data sets. Data from various sources, such as surveys and observations, is collected, integrated and then stored.
2. Data preparation
Once the collection of multiple data sources has been done, identifying the dimensions and measures, data sets are created and prepared for data analysis, often by creating different analysis models.
3. Data analysis
Using preliminary data analysis will allow you to find out what has happened. Next, the results of the descriptive analysis are taken and the data is drilled down using statistics, for example, about how this trend has occurred and why.
Data analysts typically perform queries against data sets or models, ask specific questions about the data, and extract answers from the data sets.
Query results are used to produce visualizations in the form of charts, graphs, histograms, or other visual representations, along with dashboards and reports.
Preparation of reports
Decision makers use data visualizations and reports to help them make decisions. They can also use their business intelligence dashboard to drill down into the data and learn more.
Performance Metrics and Benchmarking
Finally, comparing current and historical performance data helps track performance against targets, typically using custom dashboards.
Now that you know what business intelligence is, what its importance is and how to develop it, it is time for you to start creating a solid strategy in your company to start taking advantage of all the information about your business, the market and your customers for the make more accurate decisions.
Remember that with you can have access to a great source of business information, from information gathering through online and offline surveys for market research to customer experience platforms and employee experience with personalized dashboards, insights repositories and much more. further.
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