As a business owner, you want to know everything there is to know about your business. However, gathering and understanding this information can be next to impossible.
The good news is that there are business intelligence tools designed to provide you with all the information you need in an instant. Here’s what you need to know:
What Is Business Intelligence?
Business intelligence, also known as BI, involves data gathering, data storage, and data analysis to effectively evaluate and transform complex datasets into meaningful and actionable information for businesses to use to improve operations.
This broad term encompasses a variety of different techniques and tools that can be customized to meet the needs of individual businesses.
Why Does Business Intelligence Matter?
The odds are that you already use a ton of different tools to effectively and efficiently run your business. So why should you also incorporate BI tools? Here’s why business intelligence matters and why you should care about it:
- It helps with decision-making: Business intelligence is designed to help you with decision-making. Now, instead of making decisions based on a gut instinct, you can make informed decisions based on real data.
- It helps increase profits: Business intelligence allows you to make decisions designed to increase profits. You can identify problem areas and take action to address these issues while also promoting your strengths.
- Efficiency improves: Business intelligence allows you to get tons of insights with a click of a button. There are no codes to input or errors to fix. Instead, the tool does all the work, and you enjoy all the benefits.
- You can keep up with the competition: Business intelligence allows you to track your data and compare it with competitors to see how you measure up to the competition. From there, you can come up with informed strategies to overtake the competition.
- You’ll keep up with the market: Business intelligence also allows you to track market trends to stay ahead of the curve and keep up with consumer expectations that are constantly changing.
What Are Business Intelligence Techniques?
There are several different functions of business intelligence that can be used to improve your business operations. Here are some examples you need to know about:
- Data mining: Involves sorting through large datasets or data warehouses using machine learning that’s able to quickly and easily identify trends and establish relationships
- Data preparation: Involves combining and structuring data so that it can be properly analyzed
- Data visualization: Involves providing digital representations like charts and graphs so that the information can be easily analyzed and understood
- Querying: Involves building and processing requests for specific data or information from a larger set
- Statistical analysis: Involves collecting the results from descriptive analytics and applying statistical principles to identify trends
- Descriptive analysis: Involves interpreting historical data to draw comparisons and understand the changes that have occurred over time
- Reporting: Involves sharing data and analysis with company decision-makers so that they can make informed decisions based on performance metrics
- Benchmarking: Involves comparing current business metrics and data with historical data to track company performance against industry standards
What Are Business Intelligence Tools?
There are several different types of modern BI platforms that you can use to improve your business operations. Here are some examples to look into:
- Mobile business intelligence tools: Involves optimizing business intelligence so that the data can be accessed on mobile devices
- Real-time business intelligence tools: Involves delivering real-time information to users so that they can make quick and informed business decisions
- Operational business intelligence tools: Involves real-time business analytics that automatically integrates real-time data into an operational system for immediate use by employees
- Collaborative business intelligence tools: Involves the merging of different tools to streamline the information sharing process and gain more actionable insights
- Software-as-a-service (SaaS) business intelligence: Involves cloud hosting and subscriptions to business intelligence software solutions
- Open-source business intelligence tools: Tools that do not involve purchasing a software license for use
- Location intelligence tools: Tools that incorporate geographic contexts and information into business data
- Ad hoc analytics tools: Tools that are able to answer specific business-related questions with quick inquires about key performance indicators on the spot
- Online analytical processing tools: Tools that enable multi-dimensional analytical inquires using the internet
How to Utilize Business Intelligence?
Here are some questions that you need to ask yourself in order to use the right forms of business decision-making tools:
Question 1: What Do You Need Business Intelligence for?
For starters, you need to decide what you need business intelligence for. Business intelligence can be used to fill in gaps or weaknesses within your business. So in order to find the right tools, you’re going to need to do some self-reflection.
In an ideal world, you’d be able to find a business intelligence tool to meet all your needs. However, it might be difficult to find one that checks every single box. As a result, it’s a good idea to rank your business intelligence priorities and then choose the one that best meets your top priorities.
Question 2: Who Is Going to Use Business Intelligence?
From there, you need to think about who is going to use your business intelligence tool. This is because different tools are designed for different people. Some tools are designed for business users, whereas other tools are designed for data teams.
Business-user tools need to be user-friendly so that data can be gathered and analyzed without code. On the other hand, data analytics tools can involve complex coding so that these experts can gather data within specific parameters.
Question 3: What Do You Need the Data to Do?
If you need your data to transform, you may want to consider a tool that caters to data analysts.
On the other hand, if you don’t need to transform data, then you should be able to use a business-user tool.
Question 4: Where Should the Data Live?
Finally, you need to consider where the data is going to live. Do you want your data in the cloud so that it can be accessed from anywhere? Or do you want your data to be located on a secure server? You also need to consider whether or not your data can be integrated with your other tools and data sources.
The Best Business Intelligence Tools
It can be difficult to start your business intelligence journey from scratch, so here are some of the best tools that you should check out:
- Oracle Analytics Cloud
- SAS
- Microsoft Power BI
- MicroStrategy
- Board
- Domo
- Dundas BI
- Qlik
- Tableau
Many of these tools come with free trials that allow you to test the waters before making a final decision. Make sure to explore all of the features offered by the tools you’re testing out so that you can make the most informed decision for your business.
Wrap Up on Business Intelligence
Business intelligence is more than just a trend. Instead, it’s something that you need to get working on as soon as possible. That being said, figuring this all out on your own can be confusing and overwhelming. The good news is that experts like Greg Gillman are here to help.
Greg Gillman specializes in omnichannel growth strategies for D2C brands. He can help you understand and take advantage of business intelligence and use the information provided by these insights to grow and expand your business.
Sources:
Business Intelligence – BI Definition | Investopedia
Understanding Business Intelligence and Its Importance for Entrepreneurs | Forbes
