Ever wondered what business intelligence is and why we use it. I’ll be answering those questions and educating you why you should be implementing BI for your business.
So, let’s get straight into it. What is BI? Well BI is all about harnessing the data that your business generates in all of its different activities. Then we analyze and visualize this data in order to clearly understand it and gain valuable insights into how your business is performing. Now, these insights, in turn, allow you to make better informed smarter business decisions to help your business evolve and grow. And that’s basically it. The three stages of BI which in theory sounds quite straightforward but in practice, it has many challenges. Let’s dig a little deeper and take a closer look at each one of these three areas in turn.
In today’s modern business world, companies generate a lot of data. Gone are the days when it was all contained in spreadsheets and on-premise databases. With the online age, we now have things like social media and cloud-based business services and they all generate tons of data. Therein lies the biggest challenge for BI. All of this data is separate in what we call silos meaning it’s hard to easily get a global 360 view of how your business is performing in all of its activities without having to look at multiple reports in different places. What we really need to do is to bring these disparate data sources together and analyze them together to get a clearer picture. Will dedicate more time to the specifics of where and how to access your data. So, what about the analysis part. Well, the end product of the analysis usually takes the form of a report or dashboard containing visual representations of your aggregated data like.
A car dashboard displays things like your speed. How much is left in the tank? Or even the outside temperature. A BI dashboard contains your business’s metrics or KPIs like your revenue stock levels or how much engagement you’re getting on social media. When you track and benchmark your KPI as you can measure your business’s performance visualizing your data makes it easy to read understand and digest a dashboard gives you an AT A GLANCE snapshot of performance and helps you identify areas where you’re doing well and those that might need some more attention or investigation. Now data visualization is a discipline all unto itself. And effective visualization is the key to making sure that your data is as easy to understand as possible. Finally, once we’ve got all the data together analyzed and visualized it’s time for the insight stage where we read the results of the analysis and see what we can learn. Your dashboard can help you spot trends to see how metrics correlate with each other and also compare periods of time to see how things are evolving. Now obviously every business is different with different data.
Hopefully, now you have a better understanding of what business intelligence is.
I will see you on the other side of the flip flop show 😊