Business intelligence (BI) is a process driven by technology for evaluating information and presenting the findings to aid managers, practitioners and other users in making business decisions. In other words, it is the procedure of collecting data, analyzing it and presenting a report to enable business executives to make crucial business decisions. Business intelligence consists of various instruments and methodologies that help a company to assemble data from both internal and external sources analyze it and eventually use it to plan the future of the organization. Business professionals unaware of this important concept need to comprehend its applications and usefulness which they can implement to revolutionize their corporation. This paper explores extensively on the idea of business intelligence mainly its applications and value in any business setting.
Business intelligence systems enable managers of a company to make well-informed decisions thus improving its competitive advantage. This takes place when the firm is able to collect relevant information from both external and internal environment, to forecast the future of the organization. Efficient use of business intelligence process, therefore, allows the company to predict with considerable evidence about future trends such as adverse changes in economic conditions and demographic factors. Executives are then capable of determining required measures to be taken to ensure that the future changes do not interfere with the success of their company (Herschel, & Richard 5). In a nutshell, once an organization uses business intelligence approach efficiently and proactively, then it can make useful short-term and long-term decisions which benefit the company.
The principal objective of business intelligence is to increase the quality and appropriateness of business information. Correct, reliable and high-quality information, provides a manager with the best course of action to take. The process of business intelligence allows executives to comprehend the current position of the corporation vis-à-vis to its competitors in the market. By knowing its position in the industry, the firm will figure out what other businesses in the market are doing and come up with better strategies to stand out (Bontis, &Nick. 271). Further, BI reveals the potentials and capabilities of the firm which once well executed, can develop the company’s productivity and profitability.
Business intelligence improves the general company performance in all aspects. The practice enhances easier communication flow among various departments while at the same time coordinating employees’ activities. BI also, enables a firm to respond swiftly to both major and minor variations in the financial conditions, hence curbing any lose prospects. With an augmented application of BI tools, employees can easily convert their individual knowledge through the analytical intelligence to provide solutions to challenges facing the company. Additionally, business intelligence can benefit an organization in figuring out the risks it is exposed to and advocate for necessary precautions to reduce or eliminate their impacts (International, & Conference 32). Moreover, with BI, an organization can identify more chances and opportunities which can support its growth and expansion. For instance, researchers applying this technique can recognize a profitable market niche or a gap which needs to be filled. In connection to this, managers in their ultimate decision making can determine the appropriate combination of products that consumers will most likely tend to purchase. Business intelligence procedure effectively aids in combating some challenges which frequently influence company’s efficiency. BI can assist in discovering money-laundering and other criminal activities which subject the company to unnecessary loss and under-productivity. Well-analyzed information can reveal why a business firm is faced with increased labor turnovers and take necessary measures such as improved job satisfaction and fair remunerations.
Customers of a company are the most vital aspect to its success, especially in the contemporary complex business world. An organization cannot thrive without the adequate support of its clients. Therefore, it is very imperative for the business managers to have relevant information on their customers’ and preferences. Salespeople and marketers should keep track of the firm’s customers by collecting data about them and using it increase sales and gain market intelligence. Business intelligence enables a firm to gather adequate and reliable information on the trends in the market setting and coming up with advanced commodities in expectation of consumers’ change in demands.
Technology-based information systems are now prevalently used in every major sector, efficiently improving the overall performance of all corporations around the globe. For an organization to remain strongly competitive in the market it, it requires applying analytically oriented procedures that can transform its capability to use its available information effectively in decision making. The business intelligence analytical system which relies entirely on the current time data has come along with considerable changes in the whole decision-making process. This technology-driven procedure enables efficient data analysis and presentation of actionable information which has aided managers, executives, clients and other external and internal users in making more informed decisions. In the contemporary business world, BI has played significant roles in ensuring firms’ growth and development. For instance, the process has supported many organizations in predicting about the uncertain future of the business and taking the necessary measures to prevent any potential loss. Managers should, therefore, advocate for the use of BI in order to revolutionize their corporations.
Herschel, Richard T. Principles and Applications of Business Intelligence Research. Hershey
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Bontis, Nick. The Strategic Management of Intellectual Capital and Organizational Knowledge:
A Collection of Readings. New York: Oxford University Press, 2002. Internet resource.