What Is Business Intelligence and Its Benefits?

Business Intelligence

Business intelligence or business intelligence (BI) is the set of processes, applications and technologies that facilitate the rapid and simple collection of data from business management software for analysis and interpretation , so that they can be used for the taking of deci:sions and become knowledge for those responsible for the business. There are business management software for this purpose.

This technology acts as a key and strategic factor for the organization as it provides decision makers with timely and reliable information to respond to situations that may arise in the company such as entry into new markets, cost analysis, profitability of a product line, etc.

The information provided by the BI can have different scopes such as:

  • Operational level: In this area it is used to make daily decisions about the transactions that are made when carrying out the company’s operations.
  • Tactical level: Provides information for middle managers in analysis and monthly decisions that are useful for follow-up reviews and action taking.
  • Strategic level : At this level the decisions are of greater impact on the company, the information being used by senior management.

Business intelligence tools usually show information in the form of dashboards or specific dashboards and reports that can be created from the data obtained from the ERP that the company uses for its management, so that The information is presented to the user in an agile and accessible way so that the corresponding analysis and interpretation can be carried out.

It is worth mentioning that these tools are very useful for the different areas of the organization such as:

  • Marketing: In this area the BI can be used for market segmentation, trend analysis and customers.
  • Sales: Analysis of customers and their profitability, analysis by product, by segment, projections and sales forecasts.
  • Finance : Detailed reports of expenses, costs and income as well as for financial reasons and financial analysis of the company.
  • Logistics: Shipment tracking and order monitoring to know the cause of your loss.
  • Production: Productivity report of production lines, inventory turnover, etc.

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The Business Intelligence or Business Intelligence is a tool that is here to stay and transform the world of commerce. Here are some of the benefits of applying it in a physical store. 

1. Lets know patterns of customer behavior

Business intelligence offers the possibility of knowing various aspects of clients and potential clients. For example:

  • What are the times when you visit the store the most?
  • What is the route they do inside the premises.
  • What store sites go unnoticed before your eyes.
  • Even what they look for on the Internet with the local Wi-Fi.

2. Increase sales

This is the ultimate goal for which the business works: earn more money. Through business intelligence this goal can be accomplished in a short time and without wasting energy on unnecessary actions.

Details such as, for example, renewing the signage of the premises to make visible sectors that clients do not take into account in their usual route, can give financial benefits and it is thanks to business intelligence that this can be known.

3. Reduce expenses

Is it worth having 10 customer service employees on Mondays at 3 in the afternoon? Or should the workforce be reduced at that time and emphasized at other times of the day or week? The answer to that will depend on each business.

The installation of a people counter , to subsequently act accordingly with the data you provide, is one of the many ways in which business intelligence can help reduce the costs of a store.

4. Accelerate the analysis time

Business intelligence tools include not only data collectors (for example, a people accountant ) but also the automated software needed to analyze and interpret them on a dashboard .

Then, it will be the person in charge of the store or the person in charge of the sector who makes the decisions, but assisted by a first level software that will save you time and make better decisions.

5. Help set realistic goals

Experts say that goals, in any field, must be specific, measurable and realistic . Only then will there be hope to see them fulfilled.

Business intelligence helps store managers set realistic goals. With the data available from the store and when compared with current and historical data of stores in the same category and / or geographic region, goals and projections can be established.

6. It works in practice

So far, only some of the benefits of incorporating business intelligence tools in a store. This, far from being a purely theoretical issue, is something that anyone who puts them into operation in your business can benefit in the short, medium and long term.

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