The Importance of Business Intelligence
Table Of Contents
- What Is Business Intelligence?
- Data Security Is Important
- What is the impact of using business intelligence?
- Improved decision-making process
- Problem reduction
- Opportunity identification
- Cost reduction
- How to apply Business Intelligence to the business?
- Ability to spot trends
- Knowledge of the target audience
- Innovation opportunity
For decades, management worked like a game – the player who made the best predictions and anticipated the movements of other players won. Not in the modern world. Do you want to understand how market intelligence can predict scenarios and make decision making more accurate? It is important to find out how to apply business intelligence to the business because if your company is concerned with digital transformation, then you should consider these points. There are a plethora of benefits that could change your business mindset forever.
What Is Business Intelligence?
Business Intelligence is very useful for business growth, but to understand how it can be used in your company in a way that provides good results, you need to understand the main characteristics of this powerful tool. You should consider looking into educating yourself and your team further and can click here to learn more. According to Investopedia: “Business intelligence (BI) refers to the procedural and technical infrastructure that collects, stores, and analyzes the data produced by a company’s activities. BI is a broad term that encompasses data mining, process analysis, performance benchmarking, and descriptive analytics.”
Data Security Is Important
The security of collected data is fundamental to business intelligence strategies. It is no use having valuable business information stored without the slightest care. If the information is lost, the company will suffer a great loss, as it invested time resources, and qualified labor to collect and model the data. To keep all information secure and accessible only to managers, the idea is to invest in information cloud storage. Business Intelligence is a tool that needs data relevant to the business. So, it is necessary to filter only the information that is useful for the manager. Incomplete and irrelevant data must be discarded.
What is the impact of using business intelligence?
As its name says, BI is the use of intelligent strategies for managing important information, which can be useful to increase the profitability of your business and keep your company competitive in the market. See what their impacts are!
Improved decision-making process
With the strategic use of data related to your business, the decision-making process becomes much more practical and efficient. This is because the manager will have the right information at the right time, which allows him or her to make a more realistic analysis of the impact that a decision can generate for the company.
A company deals, every day, with problems, ranging from customer dissatisfaction with the brand to disagreements with suppliers. With the use of data, the manager can better deal with these challenges and even avoid setbacks.
Will a company that can identify opportunities at the right time always be a profitable business? But how to do that? Through using information about the customer experience, for example, you can understand consumer behavior and offer them what they need when they are most likely to spend.
A company that works with data processing and intelligent information analysis can reduce costs in different sectors of the business. This is because if you have important data on your customers’ behavior, you’ll be able to create specific marketing campaigns to reach them at the right time. This factor reduces advertising costs and increases the profitability of the business, but it is just one example since business intelligence involves a general analysis of the business, which makes it possible to improve the processes of the entire company.
How to apply Business Intelligence to the business?
There are many ways to use BI to enhance a company’s success. Contributions to sales and marketing are among the most relevant and commented on. Meet the main ones!
Ability to spot trends
The first relevant aspect is the ability of BI to, as mentioned, point out tendencies. It crosses data from a variety of sources, including comments on social media and tools like Google Trends, to identify hot topics among consumers. In this way, companies can develop products and services that meet the needs of consumers, being able to change or adapt their catalog or collection according to customer expectations, to ensure good acceptance in the market.
Knowledge of the target audience
But the advantages do not end there. BI also allows the marketing sector to get to know the customer in-depth. When analyzing its database, it draws an exact profile of the niche market that the company should explore. Therefore, Business Intelligence reveals who the target consumers are, what their characteristics are (gender, age group, income), habits, needs, and interests. It also reveals what channels to use to reach the target audience. For this, BI crosses the data not only from the company’s information bank but from everything available on the internet: publications on social networks, records of phone calls, websites that the customer accesses, and even the banners on which they click. With such an accurate profile, the marketing team can identify who wants to buy the product that your company wants to sell, pointing out the channels where these people are and what are their needs that can be solved by your service. In this way, the marketing team can develop effective initiatives to reach this consumer. And offering the product to anyone who wants to buy is to make it possible to increase sales and, consequently, the ROI of their shares.
BI can track the market, analyze the needs of its customers, and also investigate its competition. What is the advantage of this? The main one is the ability to point out consumers’ desires that the competition is not able to meet. In this way, your company has the opportunity to innovate, create trends, and launch products or services that are not exploited by the market. This attitude guarantees the organization the status of an innovative brand, capable of reinventing itself to meet the needs of its target audience, which is an indisputable competitive differentiator.
If you’ve understood everything we’ve talked about so far, you’ve realized that business intelligence is the key to valuable opportunities. Learn the rudiments of its benefits further and educate yourself on the incredible opportunities that lie at your fingertips.
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October 19, 2021