Why is business intelligence (BI) important?

In business analytics, maintaining a competitive edge demands prompt action. To surpass competitors, businesses need to tap into the potential of data and make informed choices. With abundant data, organizations can utilize business intelligence (BI) to unleash its value.

Business Intelligence (BI) tools play a key role in structuring unorganized data and visually representing it through graphs, charts, maps, and other means. By doing this, they boost efficiency, facilitate sound decision-making, and empower businesses to utilize their data amidst rapid technological advancements.

How business intelligence helps in businessHow business intelligence helps in business

Business intelligence implementation encompasses a range of tools, techniques, strategies, and practices that companies use to gather, integrate, evaluate, and make logistical business decisions. Utilizing these tools enables decision-making and gives companies a competitive edge and overall business health by implementing sophisticated predictive analysis capabilities.

Here are some ways business intelligence helps businesses:

Understand customersUnderstand customers

Businesses can better understand their customers with Business Intelligence and smart strategies. With BI, you can know your customers well enough to know how they purchase things and what they love to purchase. This will help businesses create useful products and services that their customers will appreciate and love.

An example is customer data segmentation, which divides customers into various groups based on what they buy, when, how, and how often they buy. With this technique, businesses can now give the right personalized incentives (discounts or special offers) to each separate group of buyers. With this approach, customer satisfaction will breed loyalty and keep them returning for more.

Boost business operations visibilityBoost business operations visibility

Business intelligence illuminates all areas of the organization and helps better understand and control how things work in the company. It allows them to spot and fix mistakes or problems in their business processes. Globally, 26% of all industries have adopted BI, while 67% have access to bi tools.

Let’s say there’s a logistics company struggling with late deliveries. They can use business intelligence to determine the main reasons behind these delays and where they happen. This information is valuable because it allows the company to improve customer service.

Get actionable insightsGet actionable insights

Having enough data to support your business decisions is crucial. Business intelligence provides access to vast amounts of information that can provide valuable insights and help you make better choices. One of the useful metrics provided by Business Intelligence BI is the percentage of customers who abandon their shopping carts.

This data indicates when customers leave the purchasing process without completing it. By understanding these drop-off points, businesses can take the necessary steps to reduce cart abandonment rates. This might involve improving the checkout process, addressing any issues causing customers to leave, or offering incentives to push customers to complete their purchases.

Improved efficiencyImproved efficiency

When companies leverage Business Intelligence, BI systems, and artificial intelligence, they can work better and faster, which can lead to making more money. These systems help different parts of the company easily share important information so they don’t waste time on reporting, finding data, or understanding it. Thanks to business intelligence platforms, when sharing information becomes easier and faster, companies can eliminate unnecessary tasks and let employees focus on their actual jobs instead of spending time dealing with data.

Access to real-time dataAccess to real-time data

A business intelligence solution gives you access to up-to-date information, which helps reduce the chance of making mistakes when creating critical data reports. Real-time data enables you to keep a close eye on how the company is doing, find and fix any areas where things aren’t running smoothly, respond quickly to sudden changes in the market, and improve your customers' experiences.

Stronger marketing effortsStronger marketing efforts

Using business intelligence solutions can help you create successful marketing campaigns that give you a better return on your investment. These modern bi solutions provide important numbers and measurements, like how much it costs to acquire each customer (CAC), how much it costs to generate each lead (CPL), and site traffic analytics (like CTR). These metrics help you understand how well your current and past campaigns perform and where you can improve.

BI solutions help you understand how productive your employees are, how much money you’re making, how much profit you earn from each sale, and how well different regions or departments are doing. They can help you determine what parts of your business are doing well and what areas need improvement. You can even set up alerts to keep track of the most important numbers for your business.

Provides competitive advantagesProvides competitive advantages

BI can assist you in gaining insight into what your rivals are doing, helping your company to make intelligent choices and personalize marketing campaigns for better conversion and engagement.

Improved reportingImproved reporting

These systems help organizations create robust reports by slicing data to uncover hidden insights and trends, hence, data interpretation. It helps stakeholders make better decisions and gain an advantage over competitors. KPI software monitors financial stability, operations, and sales data from various sources, generating real-time reports with easy-to-read visualizations like tables, charts, and graphs.

Identify market trendsIdentify market trends

Using external business intelligence market data can help you spot trends in the sales cycle and identify regions where you can make a lot of profit. You can find new places to sell your products or services by analyzing information about your customers and the market.

Some companies use social media to understand customers' opinions about their services or products. This can give them business intelligence and important information about what customers like and what problems they’re facing.

In simpler terms, using information from outside sources can help you see which products are popular and where you can make the most money. By looking at data about your customers and the market, you can find new places to sell your stuff.

Increase revenueIncrease revenue

Using BI tools like employee productivity analysis can help you ask why certain things happen by comparing different aspects of your business. Business Intelligence can help finance segments of a company, as they can evaluate in-depth insights into financial data.

This can help you find out where your sales are not doing well, gather customer feedback, analyze what your competitors are doing, and improve how your business operates. Using these tools, you can make changes that will help you make more money.

Better data qualityBetter data quality

Sometimes our raw data can be flawed or have errors, especially if it’s not organized well. But companies that pay attention to having accurate and reliable data tend to do better. They can use Business Intelligence to gather information from different sources and better understand how their business is running.

Business Intelligence ensures data accuracy, integrity, and consistency through effective data management practices and data governance.

Risk identification and managementRisk identification and management

By using BI, companies can identify and reduce possible risks by uncovering patterns, anomalies, and instances of fraud. This strengthens their ability to manage and address risks effectively.

Cost savings and revenue generationCost savings and revenue generation

By using data analytics, and data-driven insights, businesses can find ways to save money, improve their operations, and discover new ways to make money. Data analytics makes decision-making 5x faster for businesses.

They can analyze their expenses and find areas to cut customer acquisition costs without sacrificing quality. They can also identify ways to make their operations more efficient, saving money in the long run. By studying their data, they might discover new opportunities to generate more revenue or find untapped markets.

Who is business intelligence for?Who is business intelligence for?

Business intelligence (BI) encompasses a range of approaches and tools that organizations employ to examine business data and convert it into insights, which shape both long-term strategies and day-to-day operational choices. Business Intelligence BI involves data analysis of a company and presenting concise user reports, performance indicators, and patterns that guide managerial decision-making.

Business intelligence is for:

• Data analysts and data scientists responsible for extracting insights from data.

• Data engineers involved in data collection, integration, and maintenance.

• Big data specialists. Some online entertainment companies, like Netflix, have BI advantages linked to Big Data specialists.

• Small and medium-sized businesses looking to leverage data for informed decision-making and growth.

• Company managers and executives seeking actionable insights to drive strategic planning and business performance.

How DoubleCloud helps specialists and businesses with BI?How DoubleCloud helps specialists and businesses with BI?

Organizations are collecting and storing a lot of data these days. But just having the data isn’t enough. It’s important that people in the organization can understand the data and use it to make good data-driven decisions. This is where DoubleCloud data visualization comes in.

DoubleCloud provides a business intelligence platform that empowers specialists and businesses to create cost-effective sub-second analytical applications. It utilizes proven open-source technologies like ClickHouse and Kafka, offering exceptional performance for real-time data processing. Integrated with Amazon Web Services, DoubleCloud aggregates, stores, transfers, and visualizes users' data to help them gain valuable insights faster.

With DoubleCloud’s fully-managed service and digital platform, organizations can easily build data analytical solutions and pipelines. This goes beyond managed databases; it enables users to ingest data from external sources like Facebook or Google ad platforms. Furthermore, the free BI tool facilitates the creation of dashboards with just one click.

A key feature is AI-Insights, which is integrated into DoubleCloud Visualization. This feature allows users to obtain ready-made conclusions from their charts with a single click. ChatGPT, the AI-powered component, analyzes data on users' dashboards, identifies the subject of the data, and provides precise and unbiased summaries. Notably, AI-Insights is available in seven different languages, enhancing accessibility and usability for users worldwide.

Final wordsFinal words

Business intelligence (BI) enables empowered business users to combine raw data from several sources, evaluate it, and communicate the results with key stakeholders. The top 3 business intelligence trends are data quality control, data visualization, and self-service intelligence (BI).

While all company choices have risks, a solid BI system mitigates these risks by delivering trustworthy and meaningful data. Business Intelligence BI enables firms to traverse the data-driven world and seize opportunities successfully.