With over a decade of experience, I have observed that few leaders have a strong sixth sense in forecasting business based on their experience. They don’t require data to make an informed decision and have been able to sustain the market for more than 3 decades however I have always advocated that to grow and sustain you require data to make informed decisions as the market is changing every day. Another interesting fact I have experienced is that companies purchase BI tools however only approx. 30% of them use the tools.
In today’s fast-paced world, businesses must make smarter and faster decisions. One tool that can help is Business Intelligence (BI). BI turns data into useful information, helping companies grow and succeed. Let’s explore how BI works and why it’s so important.
What is Business Intelligence (BI)?
Business Intelligence (BI) is an application that pulls data from all possible sources, analyses it and provides meaningful output to the stakeholders. This in turn assists in making informed decisions for businesses. If you imagine BI as a microscope you can discover minute details of an organisation.
How Does BI Help Businesses?
- Better Decision-Making:
- BI assist organisations in making informed decisions by making available data-driven insights at the right time. For instance, a retail store can use BI to establish sales levels of a particular item in the store. This way the store can stock the right products to sell, and in the process increase its profits.
- Cost Savings:
- Through BI, businesses can identify areas of expenses and alert if expenses cross the threshold. For instance, a company may employ BI to discover that they spend significantly huge amounts on shipment. They can then seek other means of transportation which are cheaper, an aspect that may be helpful.
- Improved Efficiency:
- BI tools can automate routine tasks which will save time and reduce errors. For example, instead of manually compiling sales reports, a BI tool can generate them automatically.
- Sustainability:
- BI can offer the information that is required for creating long-term business methods, going environmental friendly and practising true ‘Eco-Friendliness’. Since key performance indicators such as energy, emissions, supply chain, and other indicators are measured, organisations can use them for decision-making regarding sustainability. about
- Predictive Analytics and Forecasting:
- BI tools enable predictive analytics, helping organisations estimate trends, demands, and performance. For example, infrastructure companies can forecast and based on the data place orders which will help them to manage costs and reduce inventory loss.
Real-World Examples of Business Intelligence
- Netflix:
- Ever thought about how Netflix knows your favourite shows or movies?
- Netflix uses BI to recommend shows and movies to its users. By analysing viewing habits, Netflix can suggest content that users are likely to enjoy, keeping them engaged and subscribed.
- Amazon:
- Amazon uses BI to manage its vast inventory. BI helps Amazon track which products are selling and which are not, allowing the company to optimise stock levels and improve customer satisfaction.
The Power of Data
According to the latest, it was estimated about 328.77 million terabytes of data are generated per day. Imagine the quantum of data generated from transactions to movie searches everything is data.
Just imagine how data generated from a small grocery store can be helpful not only to manufacturers but also to supply chain companies. For example, manufacturers can set perfect pricing and quantity requirements based on the data from average billing per household and purchasing each billing.
Getting Started with BI
- Identify Your Goals:
- Before you start using BI, it’s important to know what you want to achieve. Do you want to increase sales? Reduce costs? Improve customer satisfaction? Knowing your goals will help you choose the right BI tools and strategies.
- Choose the Right Tools:
- There are many BI tools available, such as Tableau, Power BI, and Qlik. Choose a tool that fits your needs and budget.
- Train Your Team:
- Make sure your team knows how to use the BI tools. Training is key to getting the most out of your BI investment.
Conclusion
Business Intelligence is a powerful tool that can help businesses grow and succeed. By turning data into actionable insights, BI helps companies make better decisions, save money, and improve efficiency. Whether you’re a small business or a large corporation, BI can be your sword for success.
If any suggestions/recommendations or help are required, please feel free to contact me.
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