Business Intelligence refers to the use of tools, technologies and other applications in collecting,integrating, analyzing and presenting the raw data of an organization to create insightful and helpful business information. BI involves a range of activities including data mining, data processing and data visualization. The primary purpose of BI in a business is to help corporate executives, managers as well as other workers make better and more informed decisions. Companies are now employing a heavy use of BI to cut costs and identify new business opportunities in whatis called business process re-engineering.
Why is Business Intelligence Important?
BI provides historical, current and predictive insight on business decisions. Its impact can be measured on almost any business function be it sales, production, finance, among others. BI is very vital when it comes to customer analysis. Today, customers are interacting with businesses in a number of ways. It can be through chatbots,websites, social media, email among others. These increased number of touchpoints have resulted in availability of data from multiple sources. BI aims at integrating data from multiple sources to get a complete overview of what customer is saying.
Improving Business Efficiency
The current market is saturated making the internet overcrowded with content, ideas, products and services.Whatever we want can now be easily accessed. In this age of information and product overload, no one needed to bump to a company or business that does not offer differentiated products. With proper understanding of market trends, business intelligence can come up with new business models and techniques that help in improving the overall business efficiency.
Business intelligence can be very important in defining the exact strategy a business should use in driving revenue. Such insights can be very important in defining who the end user is,what influences their buying decisions and where they are found. Today, the marketplace is highly crowded with companies pushing for different information in the hope of making a sale. Business intelligence can be very important in extracting data about the behavior of your ideal customers. BI also comes in handy in defining viable marketing strategies to maximize revenue and improve ROI.
For business that want to gain a competitive advantage, basic insights such as google analytics, account statements among others can be accessed. However, majority of traditional data analysis techniques give insights into data that a company already has. With Business intelligence, a business can gain competitive advantage over others because it involves looking for secondary data sources, market trends, and social signals among others, which all give a competitive advantage to businesses.
Another key importance of Business Intelligence is spotting a business problem. Many BI applications cannot be integrated with accounting software to find out trends that would otherwise never be discovered by executives. There is also a new trend known as self-service business intelligence which involves making software and tools as comprehensively simple as possible. The main aim of self service business intelligence is to make business intelligence accessible to everyone, including those lacking technical or statistical knowledge.