Definitions of Business Intelligence (BI)
Business intelligence (BI) can be defined as a collection of mathematical models and analytical procedures used to generate knowledge useful for decision-making processes from available data.
Business intelligence (BI) is a collection of procedures, systems, and technology that transform raw data into relevant information that drives lucrative business operations.
It is a collection of tools and services designed to turn data into actionable intelligence and knowledge.
BI has a direct impact on strategic, tactical, and operational business choices in organisations. BI allows for fact-based decision making based on previous data rather than assumptions and gut instinct.
Business Intelligence (BI) is all about turning raw data into useful insights for better decision-making. If you’re new to the concept, check out our detailed guide on the Introduction to Business Intelligence: History & Evolution.
Importance of BI in Today’s Business
In today's ever-changing business climate, business intelligence is required to maintain a competitive advantage. Business intelligence enables a firm to examine consumer opinions, the market, and customer behaviour, giving them a competitive advantage in capturing larger market shares and increasing revenue.
The following are some of the reasons why business intelligence is beneficial to any organisation:
• Gather actionable insight
Company intelligence is the process of converting raw business data into useable knowledge. Raw data will not provide you with meaningful insights into your company parameters, but BI will provide an organisation with a comprehensive data analysis to uncover pain areas or opportunities that can be leveraged to develop more customer-centric strategies.
• In-depth grasp of the organisation
Understanding the business as a whole is difficult if you do not know each component of the business, especially those that are sometimes disregarded. Business intelligence enables a firm to identify and improve each component that requires attention.
• Meet sales and marketing targets
Meeting sales and marketing targets is difficult if the organisation does not understand the target market, trends, or changing client wants. Business intelligence provides in-depth analysis to jumpstart an organization's sales, improve the performance of the marketing function, and assist in synchronising both teams to reach sales and marketing goals.
• Anticipate consumer behaviour and trends
In today's commercial world, customer engagement is a concept that is frequently emphasised. As a result, rather than relying on old outmoded approaches based on a hard sale, it is critical to attract prospective clients to you.
A business intelligence software allows a corporation to develop comprehensive customer profiles based on every encounter or input received along the customer journey. This enables companies to gather vital intelligence, which offers them with precise insights on buyer behaviour and trends, allowing them to improve their sales, marketing, and growth plans accordingly.
• Increase overall productivity
Many firms have inefficient bottlenecks, old traditional procedures, and manual everyday chores that stifle growth. Business intelligence software can help to break down these bottlenecks, automate regular operations, and streamline procedures, bringing new levels of organisation and prioritisation to everyone's job.
This allows for more effective and responsive customer service, better utilisation of human resources, and accurate measurement of marketing initiatives, all of which increase overall productivity across the firm.
• Data governance and regulations
The new GDPR law imposes numerous constraints on the collection, use, storage, processing, and sharing of personal data. The new legislation includes requirements to maintain data accurate and up to date, to establish justification for data processing, and to develop a clear privacy policy to promote openness.
A GDPR-compliant business intelligence software application assists you in centralising all data, which enhances transparency and reveals flaws and gaps. Furthermore, it lets a corporation to follow global norms and legislation in order to avoid being blacklisted by regulators and customers alike.
• Accelerated ROI
Finally, business intelligence assists organisations in accelerating ROI by controlling day-to-day efficiency, sales conversion metrics, and customer experience through analysis and modelling.
It also allows a company to gain vital insights about consumer purchasing behaviour, customer experience, and customer demands, placing the organisation on a successful route.
From Guesswork to Data-Driven Decisions
Organizations no longer rely on making the best guess or following their gut instinct. Business intelligence provides firms with reliable data and real-time changes.
It also investigates future market patterns, forecasting methods, and even allows for the prediction of "what-if" situations to eliminate the need to guess or estimate.
