Business intelligence is a technology-driven process used to analyze and present useful information that assists businesses in making informed business decisions.
It comprises different practices, application, tools and technologies which are used by an organization to collect, prepare for analysis, and present raw data to form actionable and insightful business information. Business intelligence consists of activities that are related, including reporting, online analytical processing, data mining, and querying.
Companies across the world have in the recent past been investing in the use of business intelligence tools like executive information systems, query and report tools, and briefing books. These enable the analysis of information on their own rather than depending on IT to go through complex reports.
Such access to information assists users to back up business decisions that have hard numbers instead of anecdotes and gut feeling!
Other reasons why business intelligence (BI) has been integrated into companies include:
1. Customer intelligence
BI offers companies tools for analyzing information about customers, which enables delivery and development of responsive and better services for customers, thereby assisting the organization reach and exceed expectations.
2. Data convergence
Business intelligence helps assemble data which can be accessed by strategic employees and decision makers. This enables the monitoring and identification of problems, and allows for different options to deliver the best outcome per the priorities of the company.
With time, it will become easier to operate the technology platforms to operate; firms will thus need fewer experts to operate them.
3. Data-driven decisions
The tools for Business intelligence help companies in analyzing information for more informed decisions. This way, firms can make better choices and set priorities when planning on ways to deliver desirable results. The risk of wrong information reduces when data moves into a system from spreadsheets. Applying business intelligence helps decision makers use specific data and spread it with ease among central personnel, improving internal processes and speeding up data-driven decisions.
Business intelligence, however, comes with some challenges.
There may be confusion between business intelligence and business analytics; the work of business intelligence is to report, rather than process management.
A company has to understand its business process knowing all the activities that comprise a specific process before starting a business intelligence project.
Cultural challenges may inhibit its implementation. Having standardised data ensures there are accurate insights. For BI to be successful, data must be in good working order before starting on insights.
The benefits of business intelligence are clear, especially in assisting in the reduction of risks and costs, improvement of revenue, speeding up actions and decision processes as well as gaining data visibility across the company. It could be considered one of the most vital business tools available.
SBA Legal can help develop and implement a business intelligence program for your legal company or departments. Call us today.