A concept that has recently been drawing the attention of business leaders is business intelligence. To provide an example of this kind of analysis, let’s take a look at the work processes of a doctor.
The word “diagnosis” normally is used in medical vocabulary. When a patient goes to a doctor’s office complaining of pain, he or she gives this professional some information. The doctor, in turn, may ask for clinical exams which will provide even more information. After this, the professional interprets the data and arrives at a conclusion to resolve the patient’s problem.
Can you imagine what it would be like if your business could use an information analysis process with this quality and organization? This is what business intelligence has to offer your company: a precise diagnosis.
Business Intelligence: your company talks!
Your company’s processes can be optimized, which will generate savings and improve quality as well as productivity, but to do this it’s important to have access to the data that they generate.
It’s not very efficient to talk about “improving processes” when you don’t know what needs to be improved. To do this, the first step is to correctly analyze information related to your production activities and cross-reference this data with other analyses such as: the market and the cost of each process or even the impact that it has on the product’s final price. All of this is possible with Business Intelligence.
The language of entrepreneurship is written in numbers, and the most important thing is to understand them. Automating this task means that precise reports are always in the hands of business leaders, helping them make changes with a minimum chance of making a mistake.
Business Intelligence improves decisions
ERP software, which monitors a company’s processes, can offer a forecast of market trends. This is because this data is analyzed together with a collection of information, including market data.
That being so, your business can foresee, for example, the need to invest in the hiring of employees, because it already has information that includes a forecast of an increase in sales.
Create realistic targets
Market analysis which ignores internal factors will not deliver results for your company. In this scenario, a business leader will question why his or her business has had little growth if the sector has done well overall.
To help a company establish efficient targets, Business Intelligence presents reports that take into consideration your business’s real situation, giving the entrepreneur the chance to prepare the company for the current market scenario.
Take advantage of transparent data
Credibility attracts investors and ensures solidity for any company, but to establish this, it’s very important that the organization receives reliable data.
Business Intelligence, through its automated systems, considerably diminishes the risks of human error and fraud in the generation of information, giving it credibility in the eyes of decision makers and leading to a more reliable and prosperous company environment.
This information can ensure that subordinates will have confidence in their leaders’ judgment when faced with complex decisions, because these leaders will be able to convince them that these decisions are necessary.
However… be very careful about the source of your data!
Even though Business Intelligence is very useful to organizations, great care must be taken in relation to this technology to ensure that it is used effectively and efficiently.
Contrary to what many preach, Business Intelligence cannot and should not be seen as the only technological analysis available to organizations and often can provide decision makers with erroneous data.
It’s crucial for you to conduct a profound analysis of the source of this data before you begin making decisions based on it. Information about costs and expenses and their impacts on processes, products, services, channels and clients represent good examples of information that is not available to organizations and therefore requires special treatment through pre-modeling; it’s necessary to treat costs and results in an efficient manner with a separate system to ensure really effective analyses – and this is something that neither a BI nor an ERP system can offer. Efficient modeling involves its own nuances and requires special treatment before reports and analyses and generated, because otherwise inaccurate information may be passed to decision makers, thus make sure you proceed very carefully here!