This time, we decided to introduce you to Business Intelligence. If you have a business, product or service, you should consider how and how much it can help you.
What does the Business Intelligence term refer to?
Business Intelligence (BI) refers to the use of strategies and tools that serve to transform information into knowledge, with the aim of improving the decision-making process in a company. The important thing is to have the necessary data to decide a path or an action that can be validated.
Well-processed information about the business is a differentiating factor that makes competitiveness. If you know which aspects to see and which variables to read, you can define where to move forward with satisfactory results.
With the proliferation of the information age, data sources are increasingly diverse, so BI tools have become more sophisticated. They are, nowadays, quite powerful, capable of analyzing and processing an infinite amount of data from an infinite number of sources, and of helping companies to draw conclusions for decision-making that, in short, lead to improving their business incomes.
What types of BI tools do we know about?
- Data Management Tools: Tools for data management, namely: Data warehouse and Data mart. Information is obtained from each of the available sources, transformed and stored in these data stores.
- Data Discovery Applications: Predictive analysis techniques to make projections. It is carried out in cases in which the information to be examined lacks obviousness, which is why a more in-depth study is required.
- Reporting: They help to visualize the information graphically. They are, for example, Balanced Scorecards (BSC) as dashboards with information; Decision Support System (DSS), that is to say: systems to aid decision-making based on information analysis; Executive Information Systems (EIS) for strategic decisions.
What are the advantages of Business Intelligence?
- Allowing a combined analysis of internal and external information from different sources.
- Ensuring greater depth of analysis and reporting, compared to manual studies.
- Providing the ability to analyze historical data series to have a data probability for future times.
- Having the ability to make projections and forward-looking forecasts based on all previous analysis.
Steps prior to launching a BI project
- To analyze the requirements considering the business.
- To select the BI platform based on costs and information available.
- To design the dashboards to implement.
Who is using BI successfully?
While all large companies used or are using Business Intelligence to refine processes, we know of examples of smaller businesses that have implemented it to achieve better results.
Some famous companies are:
- Toyota: to reduce production costs.
- Firestone: to improve distribution logistics.
- Wal-Mart: to maximize sales.