Have you adapted to the changing digital economy? Here are 5 reasons why you need to invest in Business Intelligence (BI).
The digital economy has given no room for non adapters. Kiwi businesses are moving towards a digital transformation that has enabled businesses across many industries to be more reliant on data and perhaps more customer focused. There are number of digital tools and platforms in the market recently that allows enterprises to collect data. This can then be used to drive some valuable insights and better serve their customers.
Sounds easy right?
Practically this is more complicated in practice especially for businesses that have been around for years. Business leaders today have multiple sources for data such as social media reviews, ratings, NPS scores, CRM system, customer surveys, and insights from here and there. This often leads to what is referred as “big data fatigue”. However, there is a number of valuable information hidden in these data and the only way to cut the clutter is to adapt a business intelligence solution.
Research commissioned by analytics company SAS recently found nearly 72% say analytics helps them generate valuable insight and 60% say their analytics resources have made them more innovative.
1. Optimising the Return of Investment
While negotiating a contract, companies having no visibility if the work involved will be profitable end up sending their sales representatives to sites that are not profitable. This creates a flow-on effect of lower profits. With business intelligence, you can implement an easy to use dashboard that can enable decision makers to mitigate the risk of not maximizing ROI.
2. Digital Transformation
Gone are the days of paper based methods. Businesses who have switched to digital have accumulated huge amount of data which is being underutilised at the present time. Data and analytics are the key accelerant of an organization’s digitization and transformation efforts. Similar to using your website analytics, BI can help businesses better service your clientele to prevent attrition and increase referrals from satisfied clients.
3. Accurate forecasting Challenges
Most business use excel spreadsheets as a tool for analysis and the report is prepared manually with room for error due to various touch points within the business without any real coordination amongst the employees. Something as simple as forecasting the percentage of growth rate compared to the last financial year is inaccurate and cannot be relied on. With the use of the BI dashboards, forecasting can be done with less human intervention. For example, a retail vendor can analyze the business pipeline over the period of the entire year and going back a couple of years to analyse the trend in sales and the busiest time of the year. Based on this, an effective purchasing strategy can be used to regulate stocking of products and warehousing. Your very own BI Tool with open source components and interfaces of latest trends can be created for your business.
4. Social Media marketing and BI
It is estimated that by 2020 the accumulated volume of social media will reach 44 trillion gigabytes. With such an enormous amount of data available and marketers utilizing social media as a key part of their media marketing strategies, having accurate reporting tools like BI is necessary to monitor and report on the different marketing strategies. Using BI tools will help you justify your spend on advertising and work out what the return on investment is with accuracy.
5. Appropriate decision making
Having transparency across data will enable leaders with accurate decision making and define right business strategy. BI can help with measuring business performance, analyse the gaps in the business, minimize loss of revenue, regulate inventory and help in measuring productivity amongst the staff. In short, BI will support leaders with making more meaningful decisions.
The author of this blog, Aaron has many years of experience in setting up business intelligence tools for businesses in New Zealand. Aaron’s new venture, Statslab is committed to provide high-performance business intelligence through reporting, monitoring and consultation with customisable dashboards. Contact us.
Have a go on our interactive dashboard example and let us know what you feel in the below comments.
Transforming your data to help you make better decisions.
Aaron from STATSLAB was very easy to work with and explain their BI concepts and methodologies very clearly. The Business Intelligence that they offer was once reserved only for large corporations but they make it affordable for small to medium size business, giving us powerful data tools to compete with the big boys.
STATSLAB was very easy to work with. They were able to explain Business Intelligence concepts to lay-people, and how Business Intelligence could assist the Auckland Table Tennis Association in improving its everyday business.