Business intelligence provides many advantages to companies who apply it, and has become a key factor to improve the competitiveness of enterprises in almost all industries. Here are a few of the key benefits of utilizing business intelligence.
Cost reduction, increased efficiency
The company staff from all departments, need to have reliable and relevant information to do their jobs. Most companies are unaware of the amount of work and resources needed to generate all that information and distribute it to the people who need it. Not many are really aware of the significant cost of not doing so, as this results in a lack of coordination, wrong decisions and poor utilization of available resources in the company. It is an expensive oversight to not have available relevant and necessary information ready at the time that it is required.
This work is usually done manually by the interested parties, which takes time out of their own obligations, forcing employees to spend productive time on a task that could easily be automated. Generally, they do rely on tools such as spreadsheets. Although this is a factor that goes unnoticed, a very important part of the hours of office work is data collection and reporting. A good business intelligence system should be able to automate much of this work, minimizing the possibility of errors and allowing people to devote their time and talents to what really matters, analyze information, not process. This will improve decision-making, coordination between departments and speed in general all business processes.
More ability to make decisions
By reducing the costs of information, a new horizon for the company with many more possibilities open. First is improved decision making as to provide more relevant, accurate and updated information, ensuring we are in a better position to make decisions that fit the reality of the company and our market. How many wrong decisions could be avoided if adequate information presented in a format that would facilitate its comprehension were consistently available?
Secondly, the company can start to consider issues or projects that were previously impossible to assess due to lack of time or resources to make a reliable estimate of the costs and potential benefits. In general, there is ample relevant information to be collected, and knowledge is power.
The natural improvement in responsiveness is also remarkable when utilizing business intelligence strategies to their fullest. We can not only provide the necessary information in a much more visual and intuitive way that allows us to locate errors much earlier, but all of this occurs on a much faster time frame than normal. We can also define our own system of alert for exceptions to rules or trends, so we always know what is going on within the company.
You do not need someone to be continually reviewing data values to know if something goes wrong. You can program the system to generate notifications when a specific value is outside the parameters that have been set. The program will proceed to check all of these indicators on an ongoing basis and if it finds any anomaly, the system will alert people registered as responsible for such matters. Here are some examples:
- A break of stock of a particular product. Tell the boss to make a new order.
- A decline in sales in an area. Send mail to delegate and his team responsible for sales in that area.
- A higher level of non-payment of 20% by the a customer. Send mail to business and billing departments.
Increased visibility and a better understanding of the business
The business intelligence systems are not only able to provide analytical and reliable information quickly, but they can do it with attractive visual formats for easy understanding and visualization.
This flexibility to present information allows it to assimilate much faster and better detect the crucial points that can be useful.
It also serves to expose developing problems that may have passed unnoticed among many rows and columns of numbers and alert the proper person to correct them.
Often the perspective from which we look at reality is crucial to give the correct solution to the problem before us factor. The business intelligence systems offer us multiple views, allowing us to improve our outlook and our ability to understand the business. If you are still not convinced, this video offers a compelling explanation of all the has been presented here.