Management11 min read
Business Intelligence: what do I need to know about the topic?
Also called BI, the concept of Business Intelligence involves the use of tools, such as software and services, for the transformation of data into actionable and strategic knowledge for the company.
Technology is already part of successful businesses that don’t want to stop in time. However, it is no longer enough just to have automatic resources, but that do not exchange information. With so much data currently generated, it is necessary to ensure that it is useful for the company - and this is possible with Business Intelligence.
This strategy has won the business world and can be adopted in several companies, such as retail companies. However, more than using technology, it is essential to know how to apply it in a structured way.
How about learning how to walk these paths? Next, we’ll show you everything you need to know. Check it out!
What is Business Intelligence?
Also called BI, the concept of Business Intelligence involves the use of tools, such as software and services, for the transformation of data into actionable and strategic knowledge for the company. Does it seem complicated? However, it’s not!
Let’s consider a retail brand, which carries out online and physical sales. With the help of an ERP, the business is able to capture various information: who bought it, which were the most sold products in a period, and even which marketing campaigns brought the highest results.
From a complete analysis, it was possible to verify that a certain product is trending or that a campaign returned more returns than all the others. With this knowledge, there is a way to take appropriate actions. In these cases, it may mean replenishing the inventory with the items in high demand or investing in campaigns similar to the one that worked. Do you see how this knowledge serves to generate performance?
This is an increasingly used strategy because the volume of data we generate is also growing. Since the presence of technology is growing, using BI is the best alternative to treat information and make it practical.
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How does Business Intelligence work?
Looking at it like this, it may seem that this strategy depends on a magic spell, right? But in truth, everything depends on a structured functioning, which has the right resources and develops actions with well-defined objectives. It is as if we were talking about a large machine, with several gears that work synchronously.
In practice, there is no “cake recipe” for Business Intelligence, since it depends on the needs and interest of each business. However, there are some common steps. Are we going to know how it works?
Technology selection and implementation
Adopting this approach depends on the use of appropriate technologies for each scenario. In this initial moment, the business must understand which solutions fit into their daily lives and what can really help in the decision-making process.
If the objective is to better understand the audience, for example, it is necessary to use a CRM. To have data from all sectors, it is worth using an ERP. In the creative and dissemination part, a module on production and results is the most suitable. If the intention is to know the business completely, it is worth using these and other resources.
Then, the technology must be implemented. This consists of adapting the processes, training the team and leaving everything running in the best way.
Data collection and analysis
With technology in full swing, we can think about data collection. This concept involves the so-called ETL, which corresponds to extracting (extract), transforming (transforming) and loading (loading) information. The data go to a common base, where they are then analyzed.
The great trick of Business Intelligence is that it allows you to cross a large amount of information in a short time and efficiently. With these analyses, it is possible to make super-complex calculations in a matter of seconds and even find trends and patterns.
Data visualization and decision-making
After these analysis processes, it is necessary to present the results obtained, right? For this, there is data visualization. A good BI resource is capable of creating graphics, dashboards, reports, and so many other elements. The objective is to simplify the understanding of the information, making the data accessible.
With visual and presentation aids, management has a clear vision of the business and its current state. With this powerful information, you just need to start making practical decisions. Awesome, isn’t it?
What is the importance of Business Intelligence for a business?
The application of this data analysis and use technique is essential for the performance of the enterprise and its various sectors. For retail companies, this is especially important, as it relates to sales and overall performance.
Next, see what are the greatest benefits of applying Business Intelligence and discover what it can offer!
Increased productivity and efficiency
Imagine having an internal team capable of delivering more results and, at the same time, optimizing the use of resources. Did you think? Know that this is possible with Business Intelligence. After all, the use of technology makes it possible to automate certain functions, which avoids the execution of repetitive and time-consuming tasks.
Data collection and analysis become more practical and the team can focus efforts on truly strategic tasks. In addition, it is a way of identifying the points that deserve attention, which allows prioritizing the use of time, money, and efforts. The result: productivity can be increased!
Optimizing market perception
The way in which your company is viewed is also favored thanks to the use of this concept. After all, it’s a great way to offer more quality in all operations, production or not.
Think, for example, of retail. With a greater volume of information, there is in-depth knowledge about the public, which allows effective sales. It is still something that helps communication with the public, which brings the relationship closer.
This also generates an optimized experience, since there is a chance to place customers at the center of the strategies. As a result, the company stands out in the market and improves its image.
Reduction of operating costs
We can say that the increase in productivity and the reinforcement of the image are two great secrets to increasing profitability. After all, it’s a perfect combination to increase sales and revenue.
It’s also a way to identify bottlenecks and sources of waste. As a result, there is a reduction in costs, without affecting quality. Therefore, there is a high profit margin, which increases the chances of making good investments.
Guarantee of competitive advantage
Do you know what happens when you combine all these factors? It is possible to differentiate yourself in the market and become much more competitive. With more resources, investments, and improvements, your brand gets ahead of competitors.
In addition, the strategic use of technology is a great way to identify trends, to make predictions, and even to map the competition. This makes it possible to take advantage of the best opportunities, which helps to achieve robustness and ensure market permanence.
What is the importance of data for decision-making?
Having the correct information is crucial to knowing which path to choose, right? Therefore, we are able to make better decisions with the use of Business Intelligence. But tell the truth: do you really know what the impacts are on this process?
Next, we will show you what makes the use of BI so relevant for decision-making. Check it out!
Increased level of reliability
Imagine analyzing the information in a report and making a decision, only to later discover that the data wasn’t totally right. That’s very risky, agree? With Business Intelligence, the chances of this happening are minimal.
All calculations and relationships between information take place automatically, which offers a lot of precision. With the decrease in human performance, it is easier to circumvent possible flaws that may compromise the entire process. Reliability, therefore, is decisive for generating effective decisions.
Increased visibility
Another interesting point of the BI concept has to do with integration. The data comes from different sources and comes together into a platform and database. With this, it is possible to collect information from all sectors of the business and from different systems.
Instead of having knowledge scattered and hidden in each area, everything is clear. Thus, a manager has a much easier time seeing the big picture and understanding the impacts of a decision. This is the best way to have a robust understanding of the business and to know which path is appropriate.
Positioning in relation to the strategy
As we said, BI is not based solely on the use of technology or the study of data. It’s all about using this in an actionable and strategic way, according to the company’s needs and interests.
So, decision-making doesn’t happen in isolation or unhelpful. With the use of these analyses and privileged information, it is possible to align with strategic objectives and thus achieve better results.
Greater dynamism for decision-making
In such a competitive environment, time is precious. Delaying too long before making the next decision can put your business at risk and potentiate threats. Business Intelligence, on the other hand, favors monitoring, practically in real time. With this, it’s quick to have the necessary data to make a decision.
This is essential to gain dynamism and to make the company be able to stay ahead of the others. In fact, this is crucial to generate prominence and innovation in the business.
How to apply Business Intelligence in a company?
To obtain these advantages, BI solutions must be adopted correctly. Every business has needs that must be considered and understanding what the essential steps are is something that helps this process.
So that you have no doubts, we brought you what to do to apply Business Intelligence to the business. Check it out!
Make a good plan
The operation depends on a structured action, so it is necessary to plan the implementation correctly. Start by mapping business processes and identify which ones can be automated or analyzed, for example.
It is also essential to identify the level of digital maturity and how prepared the company is to collect and analyze data. If necessary, there is the adaptation to accommodate these changes. In addition, define objectives and indicators for retail and technology, in order to monitor the results.
Find suitable solutions
Next, you need to select the technology. In the case of retail, a Product Information Management (PIM) or Product Information Management feature can be combined with other platforms.
In this process, choose integrated, versatile, robust alternatives that bring the vision of each part of the business. Rather than selecting the resource, check for support, setup, and even consulting services. All of this makes it easier to implement and adopt Business Intelligence.
Set priorities and implement gradually
Since it is not possible to do everything at once, the ideal is to establish what the priorities are in relation to data collection and analysis. Choose the appropriate sectors for this process and define what information should be collected.
From this, train employees and reap the first results. Thus, it is possible to understand what works and make the process more effective.
Validate data with use
Another crucial point for everything to work as expected is data validation. In the beginning, it is important to carry out tests and monitor the effectiveness of the system, according to the needs.
This allows us to understand the impacts of BI on the business and to be sure that the information actually provides the answers to the questions that are asked. With this, you will have security.
Be ready to adapt
When everything is running, it is necessary to analyze the results of the indicators defined there in the planning. See if the processes became more productive and if the expected gains were consolidated.
This analysis is essential to recognize improvement points and to be able to adapt resources. Thus, everything will deliver the expected performance with ease.
What precautions should be taken when implementing Business Intelligence?
As important as BI is, it will only be functional if it is applied correctly. In the process, many companies commit flaws that can put the strategy at risk and compromise the business. You certainly don’t want that to happen, do you?
For this reason, we have separated the essential care and the errors that need to be avoided. Check it out!
Ensure information integration
Don’t forget the importance we attached to data integration, as this guarantees centralization. It is essential to ensure a good flow of information and to make the systems talk. Thus, it is possible to prepare a more complete analysis.
Make controlled changes
During implementation, it is worth taking care to carry out controlled and specific changes. Instead of making a process complete, change it in steps. So, if something goes wrong, you can easily return to the original position.
Track usage performance
Even though it is automatic at several points, Business Intelligence depends on oversight. Follow the performance, see the evolution of the processes and be prepared to make the necessary adaptations.
Focus on information quality
More than collecting a large amount of data, it is essential to ensure that it is of quality. Stay focused on strategy and always seek alternatives that meet business interests.
Business Intelligence can transform the results of the team and your company. With the correct adoption, it is possible to achieve a level of performance that leads to success!
Now that you know the concept, how about spreading this information? Share the post on your social networks and tag your contacts!
