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Business Intelligence: How & Why

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Business Intelligence: Meaning and Importance

 

What is Business Intelligence?

Business Intelligence is called BI in short. It refers to an AI-based software. BI is used to generate user-friendly business reports. Managers use these simplified reports to make informed decisions.

Companies have large amounts of data stored with them. Organizing and then analyzing that data can be too hectic for employees. More problems arise when it is a large scale company. Analyzing complex data manually is a time-consuming and draining task. In addition, it also includes manual errors and biases. This is where BI comes in. The software helps decision-makers to make sense of complex data.

How does it work?

Companies collect data from internal & external systems which is then processed and organized in a simpler form. Thereby, helping in strategic planning.

For example, companies that want to make sales predictions using BI. They collect data like current production, sales history, competitor research, customer behavior, market trends, etc. Then this data is organized in a systematic form. Organizing means removing duplicates, adding & modifying the data uniformly.

BI tools then derive business reports from the information. These are ready-to-read reports that can help managers make informed business decisions. It also helps in combining analytics, data mining, data visualization, and data tools and infrastructure. It gives a 360-degree view of an company’s data.

 

Let us now see why Business Intelligence matters.

BI matters because:

  • It helps the managers in making data-driven decisions that are more accurate.
  • Using it, leaders gain access to useful data and act on it right away. This lets them gain an edge over other businesses.
  • Business analysts can use BI to know market trends. Then, they use market trends to increase sales and revenue.
  • BI helps to improve customer satisfaction. It scans customer behavior and suggests to them what they like.
  • It can also help in tracking performance and finding issues in business operations.
  • BI analyzes competitors’ data and compares it to your performance. This helps to gain an edge over competitors.

 

The decision-making of your company should depend on business reports backed by data and not guess work. Managers use BI to drive change and cut-out any shortcomings. It also comes in handy while trying to quickly adapt to market trends or supply changes.

 

Read 3 benefits of BI tools for your business here.

 

-By Nivedita Verma for Radius360x