How BI analytics works and why businesses cannot do without it
Modern business is gradually but inevitably being absorbed by the digital age. It is becoming risky to remain committed to archaic management tools, not only because of the loss of opportunities, but also because competitors are already taking full advantage of the benefits offered by global digitalisation. This idea also applies to the process of collecting and analysing financial, operational and any other information owned by the company. In this article, we will understand what BI analytics is, its applications and benefits.
What is BI analytics?
BI (Business Intelligence) is a technological process that helps organisations collect, store, access and analyse data to make more informed business decisions. BI tools and applications provide companies with information about their customers, operations, financial performance, etc.
With BI, companies can identify trends and patterns in data that help them make better decisions about their products, services, and strategies. The goal of BI analytics is to help organisations better understand their position in the marketplace so that they can take a higher position over their competitors. You may be wondering what’s so special about BI analytics, since companies have been using accounting, reporting, and analytics for a long time.
The fact is that with the advent of BI systems, these processes have reached a different, higher quality level, which has made it possible to make progress in the following aspects:
- Speed and efficiency
BI systems allow you to access data almost instantly. Instead of waiting for reports to be created and updated, you’ll get all the information you need for analysis in one click;
- Interactivity and visualisation
BI systems provide convenient data visualisation tools such as charts, graphs, and other graphical elements. This allows users to quickly understand complex data and identify patterns or trends that are hidden in tabular reports;
- Combining data from different sources
BI analytics can combine data from various sources, such as databases, spreadsheets, CRM systems, and others. This allows you to comprehensively analyse information and gain a complete understanding of business processes;
- Forecasting and trend analysis
BI systems can use forecasting and machine learning algorithms to identify trends and predict future events. This allows companies to plan strategically and adapt to changes in the market;
BI systems provide the ability to access data from mobile devices 24/7. This allows managers and employees to get the information they need anywhere and anytime.
In general, BI analytics makes data analysis more flexible, dynamic, and accessible, enabling managers to make informed, balanced decisions to optimise business processes and achieve strategic goals.
Why is the issue of BI analytics so relevant nowadays?
In order to better understand the relevance of implementing a BI system in a company, let’s consider the following example:
The word “diagnosis” is commonly used in medical vocabulary. When a patient comes to the doctor with complaints of pain, the patient provides the specialist with some information. The doctor, in turn, may ask for a clinical examination, which will provide even more information. After that, the specialist examines the history and draws a conclusion to solve the patient’s problem.
An accurate “diagnosis” is what BI analytics can offer your company, and a timely understanding of the company’s problem areas is crucial for making the right management decisions.
BI systems transform raw, unprocessed data into structured analytical information that allows managers to see trends, track key performance indicators, and take timely preventive measures. This is essential to stay ahead in today’s competitive marketplace.
How does BI analytics work?
In general, the architecture of Business Intelligence is as follows:
A company can use a large number of different systems for operational and financial accounting that generate structured and unstructured data. Built-in BI pipelines allow us to access almost any data source and take it in raw, unprocessed form.
At the next step, this data undergoes the necessary transformation. Reclassification, distribution, and mapping take place – all in order to clean up the data, enrich it with analytics, and prepare it for consolidation. The data is combined into a single holistic model, with appropriate links between all tables. At the last step, using the already prepared data, we build reports and dashboards for the end user.
What benefits will a company get from implementing a BI analytics system?
By implementing a BI system in your company, you are guaranteed to get
- Integration of data from different sources
BI allows you to combine data from different sources, such as databases, spreadsheets, and others. This creates a single, consolidated view of business processes;
- Presentation of data in a form convenient for analysis
The human brain perceives information more easily in a graphical format. Graphs and charts allow you to understand relationships and trends faster by visualising data, making it easier to interpret;
- Easier perception of patterns and trends
BI helps to identify trends in data, understand market demand, and identify business development opportunities. This allows the company to be more competitive and adaptive;
- Speed of data retrieval
BI technologies can increase the speed of obtaining the necessary data tenfold. Now there is no need to search for the necessary information in different systems, all KPIs will be available in one click;
- Business in your phone
BI provides an opportunity to get all the necessary information online from any gadget 24/7.
BI analytics can be a powerful tool for companies seeking to make more informed and balanced decisions. By collecting data from various sources and transforming it into analytical information, BI allows you to get a real insight into your company’s activities, customers, markets, and much more that could otherwise remain hidden from the manager’s view. The ABM Cloud team has already implemented more than 30+ cases of BI systems for medium and large businesses. Therefore, we will be happy to share our experience with you and help bring your company to a new level of development and efficiency.
The author of the article:
Andriy Bazhan is a leading specialist in the implementation of management technologies at ABM Cloud, business analyst.