Understand the potential of Business Intelligence for your company

Business Intelligence (BI): what it is, its importance, and how to develop.

In a world increasingly driven by the speed and complexity of data, the concept of Business Intelligence (BI) emerges as an indispensable tool for companies that wish to remain competitive and innovative.

In practice, Business Intelligence refers to the set of technologies and strategies used to perform corporate data analysis, serving as support for strategic decision-making.

The importance of BI in the modern business scenario is undeniable, as it allows organizations to convert large volumes of raw data into relevant information, facilitating precise insights and informed actions.

But how can companies develop an effective Business Intelligence strategy? This is what we help you understand in this article, where we demystify the concept of BI.

Here, we highlight its relevance in daily business operations and provide practical guidance for leaders and managers who wish to implement or enhance their BI initiatives, leveraging the potential of data to achieve significant results in their operations.

What is Business Intelligence (BI)?

Business Intelligence is a set of methods and technologies that organizations use to examine business data and convert it into actionable insights that guide both strategic and operational decisions.

BI tools explore and analyze datasets and present analytical conclusions in reports, summaries, dashboards, charts, and maps, offering a deep understanding of the state of the business.

In other words, the concept of Business Intelligence refers to a range of tools that facilitate immediate access to information about the current state of a company, based on the available data.

Why is Business Intelligence important for companies?

The importance of Business Intelligence for organizations lies in its ability to guide decision-making through information that addresses past and present business issues.

For example, BI can be used by corporate teams to monitor key metrics and set goals.

Thus, it can be considered an essential investment that promotes a data-driven culture within a company.

When aligned with specific use cases of an organization, a BI tool can free up time for employees to focus on meaningful actions that drive business progress.

But to take advantage of this, it is crucial to ensure that the BI solution meets the company’s requirements in terms of:

• Integration with data sources

• Analytical depth and data detail

• Query capability and interlinking between different data sources

• Data accessibility

• Data presentation and dashboards

• Support, documentation, and active user assistance

How does Business Intelligence work in practice?

In practice, Business Intelligence acts as the guide to your company’s data, transforming raw numbers into actionable insights.

To help you better understand how it works, let’s examine the stages of this process in practice.

Data Collection

BI tools collect data from various sources, such as sales records, customer feedback, market trends, and operational statistics.

Data Integration

At this stage, BI tools play a central role by combining data from different sources into a unified system.

They specialize in unifying information from various departments and IT systems to create a global and cohesive view.

This integration capability is essential to ensure that all relevant data is aggregated, allowing for a comprehensive analysis that reflects all business operations.

Data Management

At this point, BI tools play a crucial role in ensuring the quality and integrity of the data.

This means they automate the process of cleaning and organizing data, eliminating inaccuracies or duplicates that could distort the analysis results.

Moreover, these tools implement robust security measures to protect your company’s confidential information.

Data Analysis

This is the stage where the data begins to represent something, tell a story, and be understood beyond the numbers.

Through detailed analyses, BI tools examine the complexities and interactions within the data to identify patterns, trends, and anomalies.

Data Visualization

Data visualization involves presenting the data in an easy-to-understand format, such as tables, graphs, or dashboards.

This helps in the clear and effective communication of data analysis results.

Action

Whether optimizing your marketing strategy, simplifying your supply chain, or improving customer experiences, Business Intelligence provides the necessary intelligence to make informed decisions that drive your business forward.

Business Intelligence Examples

Below, we present some examples of BI. Check them out!

Data Exploration

Data exploration uses information from existing refined datasets and converts it into actionable insights.

For example, an organization can use data exploration to extract historical information about customer churn rates, helping identify areas that need adjustment to better guide customers through the purchasing process.

Visual Representations

If your data is organized and consolidated, but you need to present your findings to a wide audience, use BI to generate clear and aesthetically pleasing visual representations.

For instance, a business leader can use BI to create a series of charts that illustrate the company’s new strategy and present them in a meeting.

Predictive Analysis

Predictive analysis uses machine learning methods and statistical algorithms to predict the likelihood of future outcomes based on historical data.

For example, a retail company can apply predictive analysis to forecast future sales, stock needs, or customer purchasing behaviors.

All of this helps companies make informed decisions about inventory and marketing strategies based on these predictions.

Operational Intelligence

This form of BI offers real-time monitoring of business operations.

For example, an operational dashboard can display up-to-date information about the supply chain.

This allows logistics managers to immediately adjust routes or delivery schedules in response to unforeseen delays.

Report Generation

Another practical way to communicate data results is through report generation.

For example, a company can use BI to transform data from various successful case studies into a presentation for a potential client who is skeptical about the organization’s services.

Performance Comparison

BI can extract and analyze data from competitors to help an organization set benchmarks for its metrics.

For instance, if BI reveals that competitors of the same size are selling, on average, 15% more units per month, the company’s leadership may adjust its goals to get closer to that number.

Geographic Intelligence

By combining geographic data with traditional BI information, geographic intelligence can be crucial for companies.

A common application is selecting retail locations, where a company can use geographic intelligence to analyze the demographic and economic data of a region.

This helps determine where to open new stores or optimize the supply chain.

What is the difference between traditional BI and modern BI?

In the past, BI tools followed a conventional paradigm of business intelligence.

This model was characterized by a hierarchical approach, where business intelligence was under the control of the IT department, and most analytical questions were addressed through static reports.

This meant that if someone asked an additional question about a report, their request would be placed at the end of the queue for report generation, requiring the process to restart.

This method resulted in slow and frustrating reporting cycles, where no one could effectively use the data to make decisions.

This approach to BI is still used to generate standardized reports and provide answers to static questions.

However, modern business intelligence is more accessible and interactive.

While IT departments still play an important role in controlling access to data, users at various levels can customize dashboards and create reports with minimal intervention.

With the right software, you can view the data and get answers to your own questions.

How do different sectors use Business Intelligence?

Next, we show how different sectors of a company can use Business Intelligence in practice. Follow along.

Finance

Finance is one of the most crucial functions in any enterprise, especially considering that the financial health of a company determines its long-term success.

In this context, Business Intelligence solutions empower finance professionals, as well as managers in other areas who may need to work with data, to extract insights that will help increase efficiency and optimize processes such as budgeting or financial reporting.

This all results in consolidated financial stability.

Information Technology

In the IT area, it’s necessary to have a practical understanding of what is happening in the department to act quickly and accurately.

Handling multiple reports and being frequently requested by other sectors to create one (or many) reports can create obstacles to the efficient functioning of the IT department.

Here, an effective IT dashboard will save valuable resources and relieve the often-overwhelmed department from multiple requests from other areas of the company.

Sales

No organization can thrive in today’s market without a sales department, often filled with intricate processes and ever-evolving strategies, whether short-term or long-term.

In this sector, synchronizing sales operations, CRM management, leads, and performance tracking in a single overview can be a complex challenge, even for experienced professionals.

This is because data is often scattered across multiple systems, and the only way to connect them is through conventional spreadsheets.

However, modern times demand innovative solutions, and Business Intelligence meets this need, providing solutions for every sales professional involved.

Customer Support

Customers determine the success of a business.

Therefore, helping them with their challenges is one of the crucial stages of the customer journey with your company.

In this case, efficient customer support service can mean that the customer will return and recommend your brand to others, while poor customer service can damage your reputation and, consequently, your business’s financial health.

For this reason, implementing a Business Intelligence solution to improve your customer support department can be extremely beneficial.

In practice, a BI tool will allow you to perform detailed analyses on key aspects such as support team performance, call center metrics, and customer behavior, among others.

This way, it will be possible to optimize all support processes and provide an exceptional customer experience, setting you apart from the competition.

Business Intelligence Tools

Business Intelligence tools are resources that allow organizations to transform data into actionable insights to guide strategic decisions.

With a variety of functionalities, these tools collect, organize, analyze, and visualize data from various sources, offering a comprehensive understanding of business performance.

When looking for these models, you can find tools ranging from robust BI platforms to more specialized solutions that meet specific business needs.

This allows you to enjoy the generation of personalized reports, interactive dashboards, and predictive analyses, providing a detailed view of business operations.

It’s also worth noting that BI tools are becoming increasingly accessible and intuitive, with user-friendly interfaces that allow users to explore data and extract insights without needing advanced technical knowledge.

Mitra is a comprehensive solution designed to drive efficiency and operational excellence in your organization. Discover it today.

Conclusion

Business Intelligence tools represent a fundamental piece in the puzzle of modern business management.

From data collection to analysis and visualization, they enable organizations to turn information into actionable insights, driving strategic and operational decision-making.

Whether in finance, IT, sales, or customer support, BI plays a crucial role in each sector, offering a comprehensive view of business performance and enabling the optimization of processes and strategies.

With a more accessible and intuitive approach, BI tools are now within the reach of companies of all sizes, promoting a data-driven culture and driving long-term success.

For leaders and managers looking to maximize the potential of their data, investing in an effective BI strategy is essential to standing out in an increasingly competitive and dynamic market.