Things Business Owners Need to Know About Business Intelligence
Business intelligence or BI is generally used to collect, integrate, and analyze data. It assists organizations in carrying out data-driven processes and provide better decision-making abilities.
There are several BI tools available in the market that can perform complex data processing tasks. And there is an option of custom BI software development for any business. The user-friendly functionality of BI tools, have made them an important element in sustaining the processes at many organizations. Over the years, many organizations have realized how critical business intelligence is for their business. Right from self-sustainability of data to cost-cutting benefits, BI promises to bring a lot to them.
This will contribute to making the global BI market to reach $33.3 billion in 2025 from 23.1 billion in 2020. The highly-customizable and feature-rich interface of BI tools results in providing several use-cases that can benefit a business owner.
5 Important Things to Know About Business Intelligence
Modern BI tools allow you to analyze data to generate user-specific and appealing reports. The reports can be customized based on the requirements of the organization. For instance, reports pertaining to different departments or business processes can be generated to understand and analyze the effectiveness of business practices. Some Business Intelligence tools also have built-in templates that can publish standardized reports for users.
Reports can be retrieved in real-time which results in faster planning and execution of business policies. The software can also be combined with Artificial Intelligence (AI) algorithms to give inputs on future strategies. The tools use Machine Learning to understand user behavior and deliver the reports desired by business owners.
The purpose of business tools is to make things accessible to a larger number of people. The centrally located data warehouse is distributed across a wide network that is accessible by all the employees of the organization. While this integrates data storage across departments, it also increases the risk of a security lapse.
BI tools use advanced security features to prevent security breaches. The software can be customized to specify which features will be accessible by employees at different levels of the organizational hierarchy. Those lower down the hierarchy can be authorized to use fewer features as compared to those at the management level. BI tools make it easy to create different user classes that ensure the security of data.
Self-Service of Data
A problem with big data in large organizations is that it becomes difficult to interpret the data. Not all employees are analysts who are capable of understanding the complex attributes surrounding the data. They don't understand metadata, data modeling, ETL logic, and other complex IT processes that are responsible for analyzing the data.
BI tools complete the back-end IT work to present the data in a language that is understood by all. The software can convert the data into business language that looks similar to the data generated by ERP and CRM systems. The application program interfaces (APO) of BI tools further make the data accessible on the go. Employees can log in to BI tools from desktop or mobile applications to read different pieces of information. It also eliminates the long waits that generally resulted from using conventional data processing tools. BI tools help decision-makers to study the data in real-time across connected devices to create actionable strategies.
Can be Upgraded
The needs of growing companies can change over time. You may need complex computer systems for your business to integrate and accommodate diverse business processes. Transitioning to different business tools can be time-consuming and also cause frustration in employees.
With BI tools you do not have to worry about this, as it is easy to upgrade or modify the features and data processing capabilities of the software. You can send a request to your service provider listing your specific requirements and they will help you transition your workforce to the upgraded system.
Cost Reduction and Efficiency
Using BI in industries like the Oil & Gas, Automobile, Defense and Pharmaceutical can significantly reduce costs. For example, BI in pharmaceuticals can help monitor supply chain management, salesforce, and regulatory compliances. It can also help them to improve research and analyze data to give better results. With companies investing billions of dollars into R&D, implementing BI tools in the organization can significantly lower their production and operating costs.
BI can also be used to define algorithms to ensure consistency in quality management. The software can be programmed to provide warnings if there are any deviations from predefined attributes. This results in effective processes and higher quality products.
There is no doubt in the fact that business intelligence will witness increased adoption rates across industries in the future. Just like companies look for smarter employees, they are also on the lookout for smarter business tools. Business Intelligence is the answer to their need for creating efficient and predictive business strategies. BI will surely redefine the business landscape in the coming years.