The way technology can influence business decisions and make business data work for future sustenance is the core of business intelligence. It is a value-added tool to transform raw data into insightful action loops.
Unaware of themselves, businesses transact with and collect tonnes of data everyday that are not used to their fullest capacities. It is analytical intelligence that transforms data into knowledge centres, placing the decision-makers in vantage points to take strategic and time-bound decisions. The norms of consumer-oriented marketing necessitate businesses not only to cater to present demands of customers, but to build for the future, based on predictive analytics. Intelligence engineers hold the solution to this.
Core functions of Business Intelligence (BI)
By improving an optimizing business processes, the team of business analysts crunch exhaustive business data and empower them to provide the following decisions:
- Collection and integration of business information and presenting them in a form that can be projected for predictive analysis.
- Using static and historical reports for dynamic purposes such as understanding buyer behaviour, optimisation of production and marketing budgets, formulation of future sales strategy and capacity building for the short-run and the long-run.
- Upgrading from the stage of pondering on and learning from the past, to a confident stage of forecasting quality of outcomes.
- A new dimension to control and monitor processes has been developed by intelligence managers. In addition to identification of flaws and deviations in making a post-mortem analysis, the core function of BI is to improve future performance and avoid committing mistakes of the past.
Extrapolation into future projects on strength of real-time business intelligence
One of the important ways by which a business scales up is by venturing into new and unexplored markets, finding more subscribers for its brand and by asserting brand perception in global markets. However, in view of phenomenal outlay of funds required for expansion, BI tools come a boon in hand-holding businesses to tread cautiously through a futuristic lens.
- Real-time business intelligence is a powerful tool that can prepare businesses for future-oriented business making. With inflation rates hitting the roof in today’s economy, using BI tools are highly recommended to justify and re-validate the spend on future projects.
- The real-time support provided by operational intelligence leverages the power of data and infuses it into daily operations. This will aid businesses to save considerably on internal operations and bank them for investments in future projects.
- Tools like scorecards, dashboards and alerts are must-haves in the BI toolkit that can help businesses is responding proactively before things take an undesirable twist for the worse.
Every business endeavour is a strategic exercise to achieve the ideal return on investment, both for fixed and working capital. Without a sound forecast of ROI and the time-frame in which it will accrue, it is unwise to step into the future.
- BI uses models such as OLAP (Online Analytical Processing), GIS (Geographic Information Systems), DSS (Decision Support Systems) and MIS (Management Information Systems) to get a realistic and most accurate grip on the future, which will be a guide to determine ROI for stakeholders.
- Using technologies like data mining and data warehousing the intelligence team ensures that only relevant and qualitative data is fed into the loop and hence quality of forecast is reliable.
- ROI forecasting will enable businesses to decide on critical resource allocation, funding and its sources and also finalize embedding of appropriate control mechanisms into key development projects.
The need for competitor profiling and intelligence
For business to understand the target market better and wield control over buyer psychology, it is imperative to understand the strength of competition. Present day business norms necessitate not only cognizance of competitor strengths but prediction of competitor behaviour.
- BI makes way for better understanding of competition by analysing their product offerings, sales strategies and business practices.
- By remaining ahead of what competitors plan and target in the near future using BI technology, businesses can bask in the early-bird advantage, by reaching the destination even before competitors start their journey.
- Practical forecasting of the outcomes of competitor strategies will help businesses to realign priorities and redefine internal businesses processes. In most cases, a prudent prediction of competitor behaviour will help in preventing churn of potential customers and assertion of their brand loyalty.
- BI prevents possible threat of dwindling customer loyalty and human capital attrition due to onslaughts by competition. Informed decisions can be made, in order to re-engage and retain customers and key employees, by implementing crucial policy changes in the near future. A reasonable knowledge of outcomes will help optimize the human resources budget as well.
Your technology infrastructure for capturing future markets
Being in the know of your outcomes by intelligence forecasting can help you remain many steps further in asserting market share. Data mining enables you to make the most profitable use of customer profiling and analysis. Forecasting of customer behaviour is the key to enhanced market share. BI actuates this by:
- Conducting analysis on data drawn from customer buying patterns, demographic segmentation of markets, buyer feedback, buying trends and critical reviews.
- The analysis throws light on possible behaviour of customers when new features are introduced in products, when new products are introduced and in what markets can new products be effectively marketed.
- BI tools can forecast even customer behaviour in response to competitors products due to advanced techniques employed that can focus on avenues to avoid customer disintegration in the future.
- Flawless forecasting of marketing outcomes will give necessary guidelines to marketing managers in planning the scope, scale and coverage of their marketing campaigns. Geo-targeting of customers based on intricate profiling and advanced customer intelligence are further benefits of BI.
Intelligence thus facilitates and aids businesses in becoming market leaders, in a most cost-effective way, where huge amounts of data collected becomes the only investment that is needed to activate same. Accurate forecasting of outcomes help businesses to optimize investments and sail safe in uncertain waters.