Business intelligence (BI) is a set of procedures, tools, and technology that converts raw data into useful information. It is a set of services and tools for transforming data into actionable intelligence and knowledge.
Business intelligence directly impacts a company’s strategic, tactical, and operational business decisions. Instead of guessing and intuition, BI fosters fact-based decision-making based on historical data.
BI tools analyze data and produce reports, summaries, dashboards, maps, graphs, and charts that provide detailed information about a company’s activities to users.
Why is BI important?
- Measurement: based on historical data, create KPIs (Key Performance Indicators).
- Determine and establish benchmarks for a variety of procedures.
- Organizations can use BI systems to spot market trends and business challenges that need to be addressed.
- SMEs and businesses alike can benefit from BI systems (Small and Medium Enterprises)
- BI aids data visualization, which improves the data quality and, as a result, decision-making quality.
BI tools are often divided into three categories. The following is a list of the various types that are currently available.
Reporting: Reporting allows users to see their data in various ways, including graphs and charts. They’ve progressed from static (non-manipulated) reports to interactive reports with drill-down capabilities. Ad-hoc reporting, scheduled reporting, and exporting or sharing reports in various file formats are some of the reporting features (PDF, Excel, etc.).
Analysis: Business intelligence is mostly concerned with analysis. Spreadsheet analysis, ad-hoc query, and visualization tools are the three forms of analysis. On the other hand, predictive analytics employs data mining and machine learning to forecast future trends in data. Predictive analytics isn’t merely a function of business intelligence software; standalone predictive analytics solutions are also.
Embedded BI: (also known as embedded analytics) integrates business intelligence tools into a company’s existing systems. Several companies (Izenda, Microsoft, Exago BI, and Zoomdata) specialize in embedded software. ERP, CRM, accounting, and marketing systems are just a few examples.
Before selecting a BI tool, run through this fast checklist
With the recent rise in business technology, more vendors than ever are available to assist your firm with power BI services. BI solutions are becoming increasingly important to all forward-thinking businesses, but selecting the ideal BI solution necessitates extensive research. That is why, before deciding on a remedy, you must do your homework.
Know what your firm requires – Identifying your primary goals for adopting BI software is critical (also known as use cases). Where does your organization need to improve, for example? Revenue? Sales? What is the level of employee performance? Are there any new business opportunities? These goals will aid in the creation of your use cases.
Create a funnel for shortlisting candidates – After you’ve determined your goals for using the BI tool, the following step is to compile a shortlist of providers who best meet your company’s requirements. To decide the type of tool you need, start by making a list of must-have features and nice-to-have but not-necessarily-needed characteristics.
Contact with vendors – Describe your business goals and the characteristics you require in a solution. If possible, you should also request a software demo with real-data scenarios. Another option for testing software is to use a free trial if one is available. The majority of vendors provide a 14- or 30-day free trial. Finally, you’ll want to compare the various quotes you’ve gotten.
The advantages of adopting business intelligence software
Increased cooperation: Because everyone has access to the same data, BI technologies can dramatically improve collaboration and break down silos within teams. The dynamic reports and dashboards are simple to distribute. Anyone with access to the dashboard or report can submit comments. External users, such as clients or vendors, can also access reports securely.
Ability to aggregate data from numerous sources: Businesses operate using various systems, each of which can store enormous volumes of data. Users can execute analytics in one platform using BI software, linking data from many internal and external sources.
Improved productivity for IT employees and data analysts: Many BI applications have self-service capabilities, which allow end-users to access features without requiring assistance from a data analyst or IT department. Additionally, some BI software functionalities, such as data cleaning, are automated, allowing data analysts to focus on other critical tasks.
Identify new business prospects: Business intelligence assists companies in enhancing their operations, such as increasing sales or revenue, improving customer service, or adding new employment responsibilities. Users may easily discover trends in their data using BI software’s forecasting features, such as predictive analytics. Companies can also use BI technologies to help them eliminate any procedures that are no longer effective or are causing them to be inefficient.
Real-time data access for quick decision-making: Businesses must quickly adapt to changing conditions to gain a competitive advantage in the market. As a result, vital decisions must sometimes be made fast. Automated features in business intelligence software allow customers to immediately acquire the answers they need.
Conclusion
The right data collecting and analysis can help you boost your profits and ensure your company’s overall success. Business intelligence (BI) tools are the most effective way to collect data from various sources and extrapolate useful business-enhancing information, but selecting the correct BI solution for your company is critical. Visit ONPASSIVE to know more.
We at Onpassive Digital are work towards making Data Analytics and Big Data available to all the businesses and help them in achieving their maximum reach and realizing goals.