It is not needed to mention that every business wants to reach on the top when it comes to the success. And that success runs directly proportional with the growth factor. For most of the businesses, growth is something related to the customer retention and acquiring new customers. This is where the “Business Intelligence” comes into the play. Often abbreviated as BI, business intelligence can be formally defined as the practice of collecting information in regards to the business. Entire process of BI involves enhancement of the data collected, firstly into information then into knowledge. It can give any business a precise idea about the requirements of a customer. The organizations that have huge amount of information about the customers can work on that information. The firms that utilize BI acquire complete knowledge and understanding of a customer’s needs, his decision-making process, and cultural, economical, and technological trends. When utilizing businesses intelligence, firms either set short-term or long-term goals. And, BI helps reaching those goals wisely.
Brief History about Business Intelligence:
The concept of business intelligence originated from the Sun Tzu’s “Arts of War”. He believed that one must have the complete knowledge of his/her owns strengths and weaknesses as well as the strengths and weaknesses of his/her enemy so as to win a war with a smart strategy. This is what referred as core idea for modern-day business intelligence. Companies must be aware of their as well as their competitor’s working strategies and flaws in order to act wisely. Wars and businesses are almost alike considering that with BI, one must refine from bulky range of data for management to then creating strategies for the steps to be taken in business and marketing. Warfare also includes strategic planning. BI helps gaining information about every element of the market. Simply knowing the customer will not work, smartness lies in understanding the competitors and being aware of loopholes in self.
What are Key Performance Indicators?
The existing phase of business is evaluated with the use of Key Performance Indicators in business intelligence. As more and more companies implementing KPI, data is becoming available to the businesses more speedily and efficiently. Usually, data is made available after a month or two’s time. Such kind of availability is not that useful for firms to adjust their strategies. Very recently, banks are trying to make data available sooner within short intervals of time. Banks make efforts especially for the businesses, which possess higher credits or operational risks loading. This enables many companies to access new data on weekly basis, and work on their strategies faster than ever before that leads to increased customer satisfaction and retention.
Tools of Business Intelligence:
For properly utilizing the business intelligence, a company primarily needs to collect an ample amount of information. BI tools are of great help for businesses in storing, organizing as well as collecting business data. Some of the data tools include data mining, data warehouses, and data modeling. Utilizing these tools will definitely help improving the efficiency of business intelligence. While an organization utilize the data tools, Online Analytical Processing is carried for the process of analysis. OLAP is generally referred for the simple analytics that is based on the cube or hypercube dimensional analysis.
There isn’t any dearth of vendors who provide help for businesses through business intelligence. A vendor offers a company with the avant-garde business intelligence tools and support that is required for successfully implementing the business processes. Siebel Systems, Altius Consulting, Business-Soft, Ricoh, Microsoft, and SAS Institute are just some of the companies that are renowned for offering best business intelligence tools and support.
The better a business have understanding about its market ranging from the customer to its competitors, the more will be the effectiveness of that business. Businesses that posses a complete, 360-degree understanding about their customer requirements and needs will be a lot better to prepare the successful strategies and implement successful processes that will make their business thrive with excellence.
To be more precise, business intelligence is the path that businesses can choose for the achievement of their goals, which can be either short-term or long-term. Some of the business owners may be worried about the Return Of Investment from business intelligence. No doubt, if a company ends up acquiring many new customers, and retaining the existing customers as the consequences of business intelligence, then it implies a positive ROI.
Therefore, business intelligence, if implemented appropriately, and efficiently, can be beneficial for a company.Tags: