All About Business Intelligence
With a 7.6% CAGR, the global business intelligence market is expected to grow from $23.1 billion in 2020 to $33.3 billion in 2025. (2020, MarketsandMarkets). Business intelligence or BI for short isn’t complicated as it appears. Assume you own a clothing store and are experiencing significant difficulties as a result of long queues in front of your store. It comes out to be your unstructured payment system that is causing the delay. So now your technical team creates an application software for easy digital payments which completely eradicates the issue.
That’s exactly what Business Intelligence does! It is basically application software that stores the data of companies, converts it to useful information & also analyses it to make better business decisions. Virtual networking features of business intelligence tools are used by more than 46% of small businesses as a core element of their business strategy(2019, Grand View Research). For ex: If xyz company wants to create a product, they can totally rely on the analysis of consumer behavioural data formed by the application software to go about it.
Real Life Examples of Business Intelligence
- Price Optimization
The Hotels mainly take help from Business Intelligence to optimize their room price according to factors like availability, demand, seasonality, location & quality of services. BI helps to create a strategy by processing the information that’s already been stored & making better business decisions. Positive behaviour can be automatically recognised by BI tools, which can then be tracked and improved on a regular basis. We all notice the hike in prices that hotels charge during holiday seasons.
- Inventory Management
The over & under supply of goods can elevate the waste of products and cost of expense respectively. BI helps to create an analysed data chart according to factors like when was the last time goods were under or overstocked, when was the demand high, which product sells best & in which time of the year etc. You can assess team member’s strengths and weaknesses using BI data and assign relevant training modules to help them succeed.
- Strategic KPI Targeting
BI supports businesses in gaining a competitive advantage by assisting them in identifying new opportunities and developing smarter strategies. Use the data to spot market trends and boost the company’s profit margins. Reports based on tracking established KPIs keep the company on track to meet or exceed its objectives. We all have noticed the change in market trend of communication industry. For example the transition from computer to portable laptop & more.
How is it different from Power BI?
Power Business Intelligence (PBI) is basically a tool that is created by Microsoft to provide insights and engaging visualisations. It provides an equal edge competition to other BI tools.
Any BI tool generally consists of 3 parts, first being the “Raw data” where the information is completely unstructured and unorganized, then comes “Semantic Model” in which the data is organized & analysed according to pre-defined models of companies, lastly, the BI “reports” are created in a visual format.
Power BI has all the above 3 functions but apart from that, it contains a data modelling tool that has a user-friendly interface & provides multi-layered business solutions. It also focuses on instant report generation i.e., with a few clicks from the dashboard.
The user-friendly interface, attached data source, customized visualization, natural language Q & A, data modelling & report generation sets it apart from other BI tools. The bars of Power BI is therefore high with prices nominal in terms of the assistance it provides.
Why Power BI?
Running a business necessitates making constant decisions. Often, a company’s leader lacks the necessary control over a decision and makes it as best they can, or even by accident (Power BI comes handy in situations like these).
Power BI has numerous benefits, including assisting management teams in making quick decisions without jeopardising the company’s profitability. Power BI makes data visualisation simple. It provides a visual representation of all company data, with options for tables, charts, gauges, and maps, making it easier for teams to use.
Because of its simplicity and visual representation, Power BI is a powerful decision support tool that makes the difference between a typical company and an efficient, agile, and flexible organisation.
Benefits of Power BI are Endless!
The advantage of using software like Power BI is that these four stages are automated and seamless. Once the app is enabled, you don’t have to do anything to enter or access data. Regardless of where the data came from, Power BI takes care of getting it to where it needs to go. The programme processes the data so that it is understandable, reliable, and meaningful, making decision-making easier.
Power BI can be used to manage a company’s logistics, human resources, customer relations, financial transactions, sales, market analysis, and manufacturing processes, among other things. Data from each department can be viewed in a visually appealing, interactive, and easy-to-understand format.
Business Intelligence has already segmented the raw data for you, so you don’t have to. A user can see the data that affects them right away with a customised dashboard. With Power BI installed, it transforms into a collaborative tool that allows teams to work more independently while also promoting information sharing between departments and users thanks to its analytical capabilities.
Teams can work on the same analytical reports at the same time, even if they are in different rooms. Power BI is accessible from any platform and at any time. Employees can act more independently as a result of having easy access to data, and information access make collaboration easier.
By combining the Power BI tool with your ERP software, you can propel your company to new heights. The accessibility of the dashboard by your entire team is a game-changer for your company’s efficiency and competitiveness.
Unfortunately, companies aren’t really aware of the potential Power BI holds. “Do you have any idea what impact Power BI will have on the world of business intelligence?”
Comment below & let us know.
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