Business intelligence (BI) is the set of technologies, tools, practices, and applications that are used in businesses to collect, analyse, integrate and process information. It is a technology-driven process that is a combination of related activities that include querying, data mining, reporting, and online analytical processing.
The purpose of business intelligence
Business intelligence is mostly applied to assist business executives, managers and workers to come up with innovative business ideas and make more informed choices about the direction their company should take. Proper application of BI also enables companies to identify new opportunities for business, cut costs, and identify inefficient processes that require re-engineering.
If applied correctly, BI can help a business measure its progress towards achieving its business goals and strategic plan. BI is about creating a platform on which a business can convert relational data collected from various streams, which is then integrated to help companies become proactive. In so doing, a company gains a competitive advantage over its rivals.
Why use business intelligence systems?
Business intelligence tools rely on the collection of data to perform at their best. They are decision support systems that are sometimes used interchangeably with executive information systems, report and query tools, and briefing books. The tools enable people in business to analyse data at their capacity, rather than rely on technological tools to generate and examine complex reports. The information they access and analyse gives them room and back up for sound business decisions, based on facts and hard numbers, as opposed to relying on anecdotes and gut feelings.
Business intelligence software systems provide a clear view of current, historical, and predictive outlooks of business operations. They bring together data gathered into a data mart or warehouse, which is mostly derived from operational data. The software elements in business intelligence systems support the reporting, visualisation, and data mining of pivot-table analyses. The applications can also be used to handle other business functions like production, sales, cash flow, and other sources of data for the business. The purpose is to create a business performance management system to benchmark within the industry.
Who should lead in business intelligence implementation?
Everyone involved in making a business successful should be given access to BI so that they can make changes to areas with mistakes. The implementation of BI should begin with the top executive, but next in line should be the sales executive. Since they are responsible for marketing and increasing sales and are compensated for the same, they will gladly embrace a tool that can make their digital marketing work easier.
With the help of BI systems, businesses can modify their performance consequently boosting business growth and development. When there is an improvement in one team, other teams will want to get up to speed with the level of the leaders.
Like most other technological projects, business intelligence will not produce results if the users are not confident using them or they feel threatened. If this is the case with your team, contact us today at vLinkD and we will help you deal with the technological lag.