Economics/Business

Purpose of business intelligence/benefits/application/data sources

The Business Intelligence (BI) is a concept that has already been practiced for some years in the market, but recently gained strength in the face of advances made in the field of Information Technology. This is an issue that enhances the business strategy and allows for smarter decision-making. Purpose of business intelligence

In this article, we’ll talk about the famous BI in more detail, explaining its concept, benefits and applications. We’ll also cover your relationship with Big Data, risk management and predictive analytics. 

What is Business Intelligence?

Business Intelligence or Business Intelligence is a set of practices that aim to provide relevant data and information for the efficient management of a company. Therefore, it encompasses processes that range from the collection and organization of data on certain subjects to its analysis and dissemination.

In the era we live in, in which the amount of available information grows exponentially, the main challenge for companies is to be able to take advantage, amidst the informational chaos, that can truly impact their business. 

In this sense, BI performs this role and counts on the help of technology to enhance processes and leverage strategic planning .

What are its benefits?

Information has become one of the most important assets for the success of companies. However, it is not the one that has more data that stands out, but the one that has the right information, organized, analyzed and transformed into business knowledge. 

In this sense, BI provides numerous benefits in all sectors of the company, such as HR , sales and marketing. But there are some points that are the most relevant among these advantages, as we will see below. Purpose of business intelligence

Deeper and broader understanding of the business

What level of knowledge do you have about your business? Do you know who your customers are, what products and services they like best, what they believe can be improved, what your competitors are better at?

BI is able to answer these and many other questions based on hard data obtained through in-depth and accurate analysis of internal and external information. 

In this sense, for everything that, in past decades, it was necessary to rely on the good intuition of entrepreneurs and managers, it can now be available to everyone at any time.

Basis for strategic decision making

What defines whether a company will be successful in the market or not are the decisions it makes along the way. This applies from the smallest and simplest, such as what will be the color of the packaging of a particular product, to the largest and most complex, such as what is the best time to offer a new product.

The decision-making is one of the most critical moments in the management of any business because it involves choosing a path that may be irreversible. In this sense, BI contributes so that definitions are made based on concrete and secure information, in addition to allowing a more reliable forecast of scenarios. 

Constant growth and innovation in the company

From the moment there is a deep and broad understanding of the business and the decisions taken begin to bring good results, the consequence is the constant development of the business, both in terms of expanding market presence and in the quality perceived by customers. Purpose of business intelligence

Business Intelligence is based on the continuous analysis of data in search of points to be corrected, improvements to be implemented and opportunities for new products and services to offer. All of this in advance, putting yourself ahead of the competition.

What are the Purposes of business intelligence

The main Purposes of business intelligence are:

1. Collect all possible data on customers

These data include:

– Number of people entering the store at different times of the day. This is done by an advanced people counter.

– Tour that they do inside the premises.

– Websites that they visit from their mobile phones through the Free Wi-fi provided by the store.

2. Analyze the collected data

A set of numbers is useless if they are not interpreted. Business intelligence technology, in its current state, provides automated solutions for this.

Thus, among other things, it can be known which are the busiest and least crowded days and times or which are the sectors of the store that go unnoticed in the eyes of customers.

3. Develop strategies to increase profits

With the tools provided by business intelligence and based on the data collected and its subsequent analysis and interpretation, it is intended to develop strategies to increase profits. It will be looked for: Purpose of business intelligence

– Increase the percentage of purchase , that is, seek that each person who enters the premises becomes a customer.

– Build customer loyalty . Get them to come back and become regular customers.

– Reduce expenses . Eliminate those actions and unnecessary issues that report losses to the business and do not provide any benefit that compensates them.

4. Allow constant control of the store manager

Under the premise that delegating tasks is important, but its supervision should never be abandoned, business intelligence gives the store manager the possibility of having in real time all the data they need to make the right decisions.

For example, through the Store Managers app , developed by Intelligenxia, ​​it is possible to know in real time issues such as traffic, conversion rate and others Relevant KPI’s.

How to make and apply BI in the company?

The application of BI is carried out in a few steps, very simple to understand, despite requiring highly competent professionals to be executed. Follow up!

Data collection and organization

The first step of BI is to obtain the data to be used by the company. The big point of attention right now is that there is an ocean of information available, but just a few liters of this “water” will be interesting for the business. So the challenge is to know what to collect to avoid wasting time and effort. Purpose of business intelligence 

Then the collected data needs to be stored in an organized way to be easily accessed. Imagine receiving a container of materials to manufacture your products and not having any criteria for putting them in stock:

  • how will they be found later? 
  • how to know which are the newest and the oldest? 
  • how to know the origin of each item? 

This is also the case with information, which needs to be properly organized.

Data analysis

This is the most critical and important part of BI: data analysis. It is at this moment that the data collected in internal and external bases are transformed into strategic information and knowledge for the business. 

But data analysis can be done in different ways and using different tools. Here, the quality will depend much more on the competence of the professionals who carry out this process, as they will define which data can be crossed in each situation and how to interpret each result obtained. Purpose of business intelligence

Information sharing

Finally, all this knowledge generated needs to be shared for use by managers and other professionals. Although it seems simple, this step requires some care. The first one is to ensure that the analyzes provide information in a clear and objective way, in order to facilitate its use.

Another important point is to guarantee the accessibility and, at the same time, the confidentiality of the information. In this regard, it is important to have management tools that are easy to use and with access control features.

What are the best data sources for BI?

As we said, Business Intelligence starts by collecting data that is available from several internal and external sources, among which we highlight the most currently used by companies of all segments and sizes in the topics below.

News and Website Monitoring

Every business is influenced by the environment to some degree. Therefore, it is very important to know what is happening in the city, country and in the world, above all, how these events can affect your company. Among the subjects to be monitored, what cannot be left out is the economy and everything that is directly related to your product or service. Purpose of business intelligence

Social networks

Social networks were created for people’s leisure and entertainment, but ended up evolving into much more than that. So, of course, your customers are on at least one of these networks, providing information on both behavior and preferences. Today, there are numerous tools that allow interesting data collection, which can be used strategically in the business.

CRM

Looking inside the company, CRM is the most information-rich system to be handled by BI. There is a precious database of people who buy your product or service and even those who are in the negotiation process. It’s where you can better understand who these people are, what they want, what they reject and what solutions can be created to better serve them.

 

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