Top 8 Benefits of Business Intelligence in Business

If a business is growing and wants to maintain a good relationship with its customers, it may need a system that supports app integrations in its business. That being said, today, many businesses are starting to adopt business intelligence.    However, Businesses need to understand the crucial things about achieving the goals created by business strategy through business intelligence concepts.  This system can assist businesses to learn from their past and predict their future.   

Everything about Business Intelligence

Basically, business intelligence (BI) has two definitions related to intelligence. However mainly, it’s human intelligence capacity that implements in business activities.    This technology is a new field that combines human cognitive ability with artificial intelligence (AI) to manage and support business decisions.    Second, intelligence can be defined as valuable information about the currency and its relevance.  Business intelligence concepts have been used by Gartner Group since 1996. It is defined as the application of a set of methodology and technology such as  J2EE, XML, DOTNET, Web Service, OLAP, data mining, and so on.   By using technology, companies can make their operations more efficient and enhance their competitiveness.   According to Stackowiak (2007), business intelligence is a massive collection of data, analyzing it, visualizing it in a series of reports that makes data essence to be the base of business activities, allowing management to make business decisions.   On the other hand, Zeng (2006) categorizes business intelligence technologies based on information delivery method, report, statistical analytic, ad-hoc analysis, and predictive analysis.   However, please note that   Business intelligence needs software in order to perform data analysis and reports. The use of BI can assist management in decision-making to achieve the goals.   

The Component of Business Intelligence

Business Intelligence consists of several components, each with a distinct function. The tool is used in business intelligence often known as an intermediary in the transaction application and decision-making application.    Here are the components of business intelligence:

• OLAP (On-Line Analytical Processing)

OLAP is a technology behind many business intelligence that provides direction or navigation through data to a non-expert.  OLAP gives business views to reports, analysis, modeling, and planning to business optimization. The system can be employed with data warehouse and processing required queries. 

• Advanced Analytics

Advanced analytics is data mining, forecasting, or predictive analysis. It utilizes statistical analytics techniques to forecast. 

• Corporate Performance Management (Portals, Scorecards, Dashboards)

Corporate performance management is equipment that is used by a company to create a company’s strategies through the determination of methodologies, data analysis, processing, and reporting to monitor and manage the company’s performance.

• Real-time business intelligence

This component allows matrix distribution in real-time. The distribution can be performed through email, messages system, and interactive visualization.

• Data Warehouse and Data Mart

Data warehouses and data marts are crucial components in business intelligence. Data warehouse handled most of the company’s records for integration, cleansing, aggregation, and query tasks.  It also includes operational data as integrated data sets that continue to be updated to facilitate decision-making. 

• Data sources

Data sources can be operational data, data history, external data, or information from existing data sources.  Data is also presented on other platforms. It can be organized information such as tables or spreadsheets or unorganized data such as file normal text, image, or other multimedia information.

The Benefit of Business Intelligence

Business intelligence offers many benefits for companies. It can reduce errors made by humans, increasing communication between departments while performing coordination activities.    In addition to that, companies can also give a quick response if there is a change in financial, customer preferences, and supply chain operations. Generally, business intelligence enhances the whole company’s performance.    Business intelligence has become a crucial part of companies’ performance. Here are the benefits of using Business intelligence:  

• Fast and accurate reports

  Employees can use templates or reports that are customized with various data sources. The reports are created in real-time and employ relevant data, thus businesses can respond quickly.  

• The valuable business insights

  Companies can measure employee productivity, revenue, or certain department performance. Business intelligence provides information about companies’ strengths and weaknesses. It will also give a warning and assist matrix tracking.  

• Competitive analysis

Business intelligence has the ability to manage and manipulate a large amount of data which becomes the advantage of competitive analysis.    In addition, budgeting, planning, and forecasting are powerful ways to continue to become the top one in the industry. Companies can monitor competitors’ sales and marketing performance.  

• A better data quality

Business intelligence can conduct collecting, updating, and creating data quality. Companies may combine various data to have a complete picture of their business.   

• Improving customer satisfaction

Business intelligence can assist companies to have a better understanding of customers’ behavior and customer pattern. Most companies receive customer feedback in real-time and the information can be used to retain the customers and reach new customers.   Business intelligence can identify purchasing patterns, hence it assists companies to anticipate demands and provide a better service.  

• Identify market trends

Business Intelligence can assist businesses to identify new market opportunities and formulate strategies with supported data. It will give companies long-term profit.   Employees can utilize external market data with internal data to discover new market trends.   

• Increase business operation efficiency

Business intelligence can combine various data sources that assist the whole of the business. Businesses will spend less time searching for information so that they can focus and make accurate reports.    Accurate and updated data can also assist professionals to focus on the goals as well as evaluate their decision.  

• A better and more accurate decision making

Businesses must make quick decisions because competitors may move faster than others. Companies may lose their profit if they fail in accuracy and velocity.    Businesses can employ existing data to provide information to the decision-makers at the right time so that decisions can be made immediately.   There are many benefits that companies can get from business intelligence if they implement it in the right way. The implementation of business intelligence can be performed by partnering with developers.   Companies have to be up-to-date with the trends by implementing a collecting system and an effective data analysis.  

Discover New Market Opportunities with LOKASI Intelligence

Business intelligence assists companies in gathering different types of data, such as customer data, in order to obtain customer-related insight.   Customer data that have been gathered and analyzed are called digital customer intelligence. A deep analysis of digital customer intelligence allows businesses to understand customers location and their movement, lifestyle, job even their social-economic status.   All of those informations accommodate businesses in creating effective, accurate, and real-time business strategies.   LOKASI Intelligence is a platform that integrates business intelligence and machine learning. It provides information about customers and other data that can be used for business purposes.   In addition, LOKASI Intelligence is equipped with a whitespace analysis feature. The feature allows users to find and identify new market opportunities. The purpose of whitespace analysis is to discover new opportunities that can be tapped into by businesses.   The users can also use whitespace analysis to determine the performance of the store or outlet on their own. Find out more about how we help businesses to grow their business by contacting [email protected] or WhatsApp at 087777977731.