How business intelligence helps you spot trends and avoid mistakes
Business intelligence is the process of comparing historical and current data in order to find solutions for the company’s current strategic objectives. The tool allows you to process large amounts of data using a variety of sources, and the result of the study is provided in a convenient format.
Thanks to business intelligence, it is possible to turn a huge amount of disparate data into an overall and understandable picture in a short time. This process includes 4 main steps. The first is the collection of data. It is most often carried out using the ETL, or “extract, transform and load” method. Information from multiple sources is verified, structured, and moved to a central repository. In this way, the data can easily be used for further processing. The second step involves analyzing the previously collected information against the task at hand. In this process, the system looks for patterns or inconsistencies that are important to the development of the company. For this business intelligence uses a variety of approaches, on the basis of which the program automatically gives recommendations and predicts certain trends.In the third stage of the tool’s work, the collected information is converted into an understandable format, the data is visualized. As a result, the report contains various diagrams, charts, and conclusions, which facilitate understanding of what is currently happening with the business and how to improve the situation.
The fourth step is making decisions based on the findings. Due to the comparison of information about the state of affairs today and in the past, the company’s management has the ability to act quickly. The result gives an opportunity to adjust the current strategy in the course of business processes, without wasting time on restructuring all systems. Thus the company can quickly react to changes in the market, new trends. Besides, business intelligence shows if the company follows the right way of development and prompts a new direction if necessary.
The main advantage of using business intelligence is the ability to quickly identify problems in the operation of the company and get rid of inefficient approaches. Besides, the tool allows to estimate the work of separate departments, to correct it without prejudice to other subdivisions. Business intelligence will indicate new sources of income for the company and find market niches that have a high potential for development. It will also be useful to use a tool to analyze the target audience, its habits, and needs. By understanding the preferences of customers, it is possible to provide them with the ideal solution and take the business to the next level.
Thanks to advances in technology, business intelligence has become available to a variety of companies. There are online platforms where you can perform analysis of your company without resorting to the services of subject matter experts. The simple functionality does not require deep analytical knowledge, and the result of the study is easy to interpret.