Business intelligence (BI) is a popular term in the context of computerization enterprises and increasing their competitiveness on the market. It can be understood as the process for analyzing and transforming raw data into readable and helpful information, which are turned into knowledge, support decision making and conscious analysis of actions taken in the company.
Data in BI applications is constantly collected and analogically, in a continuous manner supports the company in making well-informed decisions. Note that BI systems do not directly inform what specific decisions should be made, but very clearly helps qualified employees (managers, executives and other corporate end users) to avoid wrong or risky decisions.
BI have a basic purpose - to help enterprises consciously make decisions based on hard data. Business intelligence applications organizes knowledge and presents it in the form of very friendly and clear reports.
Every Business Intelligence system is created as a dedicated (or adapted) application for the company. Each business is different and requires an individual approach, that’s why used sets of schemes and algorithms can’t be the same for every company. This whole process requires preparing the entire pre-implementation analysis - what data can feed the data warehouses and what information management and employees depend on. These information may relate to organizational processes in the company, financial optimization, product sales and many more.
Benefits of BI:
- Data Visualization - you can create intuitive data visuals that are easy to understand and simple to interpret (charts, graphs, videos, animations and infographics). That kind of tools can help you understand how many client’s visit your store, what is your monthly income, which products are top-searched by customers, etc.
- Benchmarking - you can use reports offering accurate, timely data that allow businesses to evaluate their performance against individual KPIs (Key Performance Indicator) or trends, providing valuable insight into the organization’s current state.
- Performance Management - BI tools help to track, manage and implement performance goals. Company can define objectives such as sales target or assumed delivery time and track progress on a daily basis.
- Improve Inventory Management - BI tools can help you during processes of sales, delivery and inventory management. By generating reports detailing stockroom you can determine when to purchase new inventory. You can also track inventory going out, so you can better prepare for future buying trends and reduce inventory waste.