Business intelligence; data-based decisions with a system
Management decisions in companies today are made almost exclusively on the basis of data. It is either data from your own company or data about competitors. In the 1990s, the term business intelligence became established in this context.
Business intelligence, or BI for short, is a software-based process that collects and processes data - with the help of which, it can then be used for visual reports, dashboards and analyses. Especially in recent years, the topic of BI has gained more and more steam, as companies are now accumulating more and more external and internal data.
Data basis: Data warehouse as the basis of BI
In order to be able to prepare and analyze the data, it is first collected in a data warehouse. Since the data is usually available in different formats and usually unstructured, it is homogenized and structured there.
A data warehouse combines data from multiple data sources into a central system to support business analysis and reporting. Business intelligence software queries the data warehouse and presents the results to the user in the form of reports, charts, and associations.
Some newer business intelligence solutions can extract and absorb raw data directly, but data warehouses are still the data source of choice in many cases.
What are the benefits of business intelligence?
As I said, business intelligence helps managers and managing directors make decisions based on large amounts of data. Instead of relying on estimates and approximations, BI allows them to make decisions based on business data, whether it's manufacturing, supply chains, customers, or market trends.
Business intelligence makes companies data-driven companies and offers them the following benefits:
Improving ROI
BI uncovers superfluous resources and costs. The ROI can increase earnings through intelligent allocation.
Increased customer benefit
Through improved knowledge of customer behavior, preferences and trends, potential customers can be better addressed or products and services can be adapted to changing market requirements.
Process optimization
Thanks to BI, operational processes can be monitored and continuously optimized.
Improving supply chain management
Supply chains can be optimized through comprehensive monitoring activities and sharing the results with partners and suppliers.
Conclusion
In times of big data, software-based analysis with BI is a must for every company. Only those who know their company, their customers and the competition in detail can gain a competitive advantage.
Business intelligence has therefore been part of the strategic business orientation of large corporations for a long time. However, BI is no longer just reserved for management. Middle management is also increasingly turning to data-based analysis for their decisions.
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