Numerous types of technologies have been developed to help improve the world of business. One of the bigger breakthroughs during the past decade was the utilization of business intelligence. It has allowed businesses to grow steadily with significantly lowered risk of making a bad financial decision.
Let’s take a look at what business intelligence is, how it helps businesses and whether everyone can use it.
What is Business Intelligence?
Business intelligence includes any type of process about which a company is collecting an abundance of data. This includes all the financial reports and revenue information. Also, it allows businesses to monitor other tasks such as marketing management, asset tracking, customer relations and other similar processes.
The end result is astonishing, as companies collect an immense amount of feedback, which makes all the future decisions more strategically sound. The following are some examples of how business intelligence improves businesses.
How does it help businesses?
The main advantage that comes with this type of data collection lies in the fact that everything is centralized. This means that you can integrate all of the other tools and analyze the collected data in a single place, painting a much better picture for your business. These are some processes that can be improved with business intelligence.
- Marketing efforts – You need plenty of analytics for some marketing approaches, but not all of the effects of the campaign are measurable. However, by relying on business intelligence, you can put a ROI value on your marketing strategy and actively work on improving it. Collecting this type of data helps businesses avoid making mistakes, which includes marketing decisions based on luck or gut feeling. All this results in higher ROI figures, creating more profit for a business.
- Strategic financial planning – With business intelligence, company managers are in a position to better understand the money flow, and which times of the year are the best for business. According to this data, business owners can more easily make smarter investment decisions. For example, during the off season, a business owner will precisely know how to cut costs and save money instead of wasting it.
- Improving customer support – Customer support is crucial for every business, as it serves to create a loyal base of returning customers. By collecting data about customer service, your managers can help improve this department. Positive customer experience is very important in all lines of work, and business intelligence can help with its improvement.
- Learning about the market – All the annual collected reports can help your business better understand the market. When is the peak season in your line of work? When are the sales the lowest? Who is actually your target audience? Which age groups are most likely to purchase from you? How do big shifts in the market affect your business? All these questions can be easily answered by using business intelligence.
- Know your inventory at all times – Businesses often run low on the number of items in their inventory. This can sometimes cause a loss in millions of dollars for some companies. However, with business intelligence, monitoring the state of your business inventory becomes a much easier task. All of the data is transparent, making it easy for you to renew the inventory at the right time.
These are only some of the processes which can be significantly improved with business intelligence. There are many more in which using this technology can help you save time and money, while increasing the productivity of your business.
Can small businesses utilize this technology?
One would think that relying on business intelligence is only reserved for the biggest companies in the world, but the reality is that businesses of all sizes can use it. However, it is important to know that bigger businesses can use business intelligence with an in-house team.
On the other hand, businesses can outsource the process to a business intelligence service providing company. A great example is Itransition BI Consultants, which can, among many other things, help small businesses get better insight into their performance.
Having access to this amount of data was practically unimaginable in the past, however, with the expansion of informational technology, this has become possible for businesses of all sizes. If you want to know everything about your business down to the last detail, using BI is the perfect way to go.