Businesses are approaching rapidly at a neck-breaking pace, and each competitor is trying to get the upper hand over the other leveraging technology and data-driven approaches. For such a cutting-edge competitive market, every decision made by the executives and the leaders is crucial. Irrespective of the industry, every enterprise generates or collects a lot of data, but not all use such resources to that extent.
That is where Business Intelligence comes in to leverage these raw resources or unusable piles of data into a meaningful or interpretable form. Companies are now leveraging various data-driven and business intelligence tools like Microsoft Power BI, Tableau, QlikSense, etc., to perform business intelligence analysis. In this article, we will learn about business intelligence & how it can make a difference in decision-making.
What is Business Intelligence (BI)?
Business Intelligence is a branch under which businesses can conduct different data-driven actions like data mining, data preparation, and management, with the intent to find meaningful insight from data. According to some reports, the global Business Intelligence market size will expand to 33.3 billion USD by 2025. Through business intelligence software like Microsoft Power BI, Google Data Studio, Cyfe, InsightSquared Deals Analytics, Adobe Analytics, Looker, Sisense, Alteryx Stage, BI analysts collect & process vast amounts of data from both internal and external sources. Companies leverage BI to determine performance metrics from past data that enable executives to make data-driven business decisions.
Importance of Business Intelligence in Decision-making:
Most business intelligence tools leverage OLAP (Online Analytical Processing) and raw data resources for supporting enterprises with data analysis, monitoring KPIs, and generating different types of reports. Through these reports and analytics, companies can pinpoint the areas where they need to focus currently & what market trend is going on. Let us dig deep into the various benefits business intelligence caters to when a company adopts it.
- Create realistic targets for the ongoing business: Every business comes with a lot of internal data, and using statistical measures, companies should measure the business requirements. Through business intelligence techniques & tools, business executives question why the business is facing particular challenges & what realistic targets can help the company grow.
- Foresee existing market trends: Most companies collect a vast amount of data and extract those that can provide facts and insight towards the current market trend. Based on that market data, companies can decide which approach to take for better driving the business. BI tools render a significant role in understanding the market and the maintenance of business stability and growth.
- Quick analysis and reporting: Through BI tools, professionals can make a rapid analysis of business flows, trends, and data emitted by the business or its customers. Professionals can quickly generate reports and visualizations of the business data through business intelligence tools. It can help managers and executives make prompt decisions.
- Taking advantage of transparent data: Transparency in data and numbers driven by the business increases credibility and attracts investors towards solidity for any company. But to get such transparency, companies should harvest some reliable data from reliable sources. Business intelligence tools help draw precise data through graphs, dashboards, and visualization figures that can assure investors and leaders in making effective decisions.
- Display data in an understandable form: Graphics, reports, and images help humans better understand numbers and facts always. Business intelligence tools help companies enhance their decision-making through such visualizations. Through BI techniques and tools, analysts can easily showcase the business facts and data in an understandable format – so that from top-class leaders to users, everyone can understand what the data wants to display.
Other importance of business intelligence are:
- Enhances operational efficiency
- Provide competitive analysis
- Boost revenue
- Help in making informed and rational decisions
Tools used in Business Intelligence:
For leveraging the data resources associated with the business, BI analysts leverage BI tools for better insights from raw granular data. Here are some BI tools used by most companies:
- Microsoft Power BI: Most BI techniques leverage data to generate dashboards and reports that convey what the data trends are trying to narrate easily. Power BI is robust data visualization software created by Microsoft that provides features like dataset filtration, a range of attractive dashboards, various charts like Donut, Area, Line, Stacked, Gantt, etc.
- Adobe Analytics: Adobe Analytics is another powerful BI tool that provides real-time diagnostics, marketing analysis, and segmentation. The complete procedure caters to a detailed analysis for better intelligence, and through this tool, it is also feasible to specify the target audience.
We hope this comprehension has given you a crisp idea of the importance of BI. While business intelligence helps your company to make data-driven decisions, companies need to be cautious about using it in the right way. If you want to extend your partnership for enjoying better data-driven decisions, Kockpit Analytics can provide you with consulting and solutions.