• May 24, 2023
  • 5 min. read

What is business intelligence: Tools and techniques for business operations

content writer

Anush Bichakhchyan

Content Writer

What is business intelligence: Tools and techniques for business operations

Data da-da… As the notes of Beethoven's 5th Symphony arise in your mind, let’s talk about data and Business Intelligence.

In the highly competitive business landscape, where every niche already has giant players and numerous small and medium-sized businesses, understanding data and using it to make informed decisions is not a luxury but a necessity for staying ahead of competitors and maintaining growth. This is where Business Intelligence (BI) comes in. It is an integral part of any organization's strategy, providing insights and solutions that help businesses thrive in a fast-paced, ever-changing environment. 50% of businesses already use BI tools and understand their value; the rest will soon transform their raw data into actionable items for their major strategy.

With the growth BI system as one of our main services, we have an in-depth understanding of Business Intelligence, its components, tools, and techniques, and today we will show you how we can implement it in your organization.

What is Business Intelligence

Business Intelligence (BI) is the process of collecting, analyzing, and transforming raw data into valuable information that helps your organization make informed decisions. The process is covered with various tools, techniques, and methodologies designed to assist companies in understanding their businesses better and making data-driven decisions because we all know data is KING.

BI encompasses various aspects like data scrapping, data analysis, reporting, and visualization. By analyzing data from various sources, including customer feedback, sales data, and marketing and product analytics, trends, you can gain valuable insights into their operations and make informed decisions based on facts rather than assumptions.

The importance and goal of Business Intelligence

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Business Intelligence is built around the goal of creating a comprehensive, intuitive, and user-friendly system that will empower product, marketing, and sales teams with actionable insights and data-driven decision-making capabilities. What does this all mean?

  • Improved Decision Making: With a BI system, you can easily access and analyze data from multiple sources in real-time, helping you make data-driven decisions quickly and accurately.
  • Increased Efficiency: BI systems automate data collection and analysis, reducing the time and effort required for manual data processing. This allows your teams to focus on other critical tasks, such as developing new products or improving customer satisfaction.
  • Enhanced Productivity: By providing teams with actionable insights, BI systems help you identify areas for improvement and optimize processes, resulting in increased productivity and profitability.
  • Competitive Advantage: BI systems can help businesses stay ahead of the competition by providing insights into market trends, customer behavior, and competitor activity. This allows businesses to adapt quickly to changing market conditions and capitalize on new opportunities.

The Aha moment is is coming! Continue reading 

Key components of Business Intelligence

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Successful implementation of Business Intelligence in an organization requires understanding its key components. These include data warehousing, data integration, data analysis, data visualization, reporting, and dashboards.

Data Warehousing

The foundation of any BI system is a well-organized and structured data warehouse. A data warehouse is a centralized repository that stores data from multiple sources within an organization, such as enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and other operational databases. It enables organizations to consolidate and maintain large volumes of data from various sources in a single location, making it easier to access, analyze, and report on the collected information.

Data Integration

Data integration involves consolidating data from different sources and transforming it into a unified format for use in BI applications. This process is critical for organizations to ensure that their BI system can accurately interpret and analyze collected data. Data integration can be a complex task, especially when dealing with disparate sources and varying data formats. The use of proper data integration tools and techniques helps organizations streamline and automate the data integration process.

Data Analysis

Data analysis is the core of Business Intelligence. It involves sifting through large volumes of data, identifying patterns and trends, and extracting valuable insights that help inform decision-making processes. Data analysis can take multiple forms, such as descriptive analytics, predictive analytics, and prescriptive analytics.

  • Descriptive analytics addresses past performance data,
  • Predictive analytics provides insights into future events and scenarios,
  • Prescriptive analytics proposes actions to optimize specific business objectives.

Data Visualization

Data visualization, a critical aspect of BI, is the process of representing complex data in a visually appealing and easily understandable format, such as charts, graphs, and other visual representations. Data visualization tools enable users to interact with data, identify trends and patterns, and make sense of large volumes of information quickly and easily. These tools help business users perform their analysis more efficiently and support better decision-making processes.

Reporting and Dashboards

One of the primary purposes of BI tools is to generate reports and dashboards that present data in a coherent and visually appealing manner. Reports provide a detailed analysis of specific datasets, while dashboards offer a snapshot of critical performance metrics and KPIs in real time. Reporting and dashboards allow business users to monitor their organization's performance, identify areas requiring attention, and make well-informed decisions to achieve their goals.

Based on these components, the BI system follows these objectives:

  • Actionable reporting to identify growth opportunities
  • Measurable and trackable growth metrics and KPIs
  • Real-time access to growth data for informed decision making
  • Collaboration among cross-functional teams
  • Automated data visualization and reporting

Have you missed your data?

Implementing Business Intelligence in Your Organization

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Implementing Business Intelligence in your organization requires careful planning, execution, and ongoing management. The implementation process can be divided into four stages:

  • Data gathering
  • Data cleaning/standardization
  • Analysis
  • Reporting

Steps to Implement a Business Intelligence Strategy

  1. Selection of BI system based on company needs: After defining the objectives and scope, the next step is to select a BI system that meets the company's needs. This involves evaluating different tools based on functionality, ease of use, scalability, and cost.
  2. Design, development, and implementation of the growth BI system: Once a BI system has been selected, the design, development, and implementation process can begin. This involves customizing the system to meet the specific needs of the organization and integrating it with existing systems and data sources.
  3. Integration with data warehouse and data sources: BI systems rely on data from multiple sources, including internal systems and external data sources. Integration is critical in ensuring the BI system accesses the data it needs to provide insights and support decision-making.
  4. Building reports and dashboards for the growth team: Reports and dashboards are the primary means for the team to interact with a BI system. Building reports and dashboards tailored to the needs of the growth team is critical in ensuring that the system is helpful and effective.
  5. User training and support: To ensure that you can use the BI system effectively, user training and support are essential. This includes training on how to use the system, as well as ongoing support to answer questions and address issues as they arise.
  6. Ongoing maintenance and improvement of the system: Finally, the BI system will require ongoing maintenance and improvement to ensure that it continues to meet the organization's needs over time. This includes regular updates to the system, as well as ongoing evaluation to ensure that it provided the insights and functionality needed to support growth and success.

Selecting the best BI tool for your organization is a critical decision that could significantly impact its success. When evaluating BI tools, consider the following factors: ease of use, data connectivity, data analysis and visualization capabilities, collaboration features, mobile access, and scalability. Ensure that your chosen tool suits your organization's business needs, fits within your budget, and can be easily adopted by your team.

With proven efficiency, we implement two popular BI tools for internal and partner projects.

Power BI

The Power BI business analytics service provided by Microsoft allows users to visualize and analyze data from different sources, including Excel spreadsheets, cloud-based, on-premises data sources, and third-party applications.

With the Power BI tool, users can create interactive reports and dashboards, share them with others, and collaborate in real-time. The tool also provides AI-powered insights and data-driven alerts.

Key features:

  • Data-driven functionality to make justified decisions
  • Smart dashboard for simple integration and data analysis
  • Self-service analytics

Tableau

Tableau is a data visualization and business intelligence software to connect, visualize, and share data in a visually compelling and interactive way. The tool has interactive dashboards, reports, and charts that help users easily analyze and gain insights from their data. It supports different data sources, including spreadsheets, databases, and cloud-based data, and provides drag-and-drop functionality to make it easy for non-technical users to create and customize visualizations.

Key features:

  • Compatibility across desktop and mobile devices
  • Data preparation and cleaning tools
  • Live chat for instant support

Time is Now: Start gaining valuable insights with BI: Bottom line

In conclusion, Business Intelligence plays a fundamental role in helping organizations make data-driven decisions and achieve their business objectives. By understanding the core concepts of BI, selecting the right tools and techniques, and effectively implementing them within your organization, you can unlock the true potential of your business data and drive sustained growth and success.

Trust your partner agency in the role of the growth team to implement a growth BI system and ensure the robust focus of your business success.

FAQ

What is business intelligence (BI)?

Business intelligence (BI) refers to the technologies, strategies, and practices used by organizations to collect, analyze, and interpret data to support informed decision-making and improve business operations. It involves transforming raw data into meaningful insights that can drive strategic planning, optimize processes, identify trends, and uncover opportunities for growth.

What are the key components of business intelligence?

Business intelligence comprises several key components, including data collection and integration, data storage and management, data analysis and reporting, and data visualization. These components work together to ensure that organizations have a comprehensive view of their data and can derive actionable insights to drive business success.

What tools are commonly used in business intelligence?

Business intelligence tools encompass a range of software applications and technologies designed to support data analysis and reporting. Some popular BI tools include:

  • Data visualization tools (e.g., Tableau, Power BI)
  • Reporting tools (e.g., Crystal Reports, SQL Server Reporting Services)
  • Data mining tools (e.g., RapidMiner, IBM SPSS Modeler)
  • Online analytical processing (OLAP) tools (e.g., Microsoft Excel, Pentaho)
  • ETL (Extract, Transform, Load) tools (e.g., Informatica PowerCenter, Microsoft SQL Server Integration Services) 

What are the benefits of using business intelligence tools?

  • Enhanced data analysis
  • Improved decision-making
  • Increased operational efficiency
  • Better visibility and reporting
  • Competitive advantage

How can business intelligence benefit different departments within an organization?

  • Sales and Marketing: BI tools help track sales performance, analyze customer behavior, identify target markets, and optimize marketing campaigns.
  • Finance: BI tools enable financial analysis, forecasting, and budgeting, facilitating better financial decision-making and risk management.
  • Operations: BI tools provide insights into operational efficiency, supply chain management, and inventory optimization, helping streamline processes and reduce costs.
  • Human Resources: BI tools support HR analytics, employee performance tracking, and workforce planning, aiding in talent management and improving employee engagement.
  • Executive Management: BI tools offer executives a comprehensive view of the organization's performance, allowing them to make strategic decisions based on accurate and up-to-date information.