Today it is not just the large organizations, be it a small company or a midsized firm - every moden company needs some kind of business intelligence solution to be competitive in the market.
Drawback of not having business intelligence
Let’s consider a company XYZ that does not possess moden business intelligence system in place. A manager in that firm wants to investigate the profitability of a particular product over a specific time period. He may also want to find out who had the greatest volume of sales during that time. In order to get his answer, he (or his team) will need to invest a lot of time combing through customer relationship management (CRM) data, financial and accounting system data, and a few “rogue” spreadsheets. Time and effort needed for such simple requirement is very significant.
With no business intelligence solution, every aspect of the business will be negatively impacted. Technology team spends all of its time sorting through reports to find the right data, paralyzing the decision-making process.
However, a smart organization will establish a unified and comprehensive system that can grow with the company instead of becoming obsolete in a couple of years. This type of system pays dividends immediately: your payroll hours are used more efficiently, your forecasting is more accurate, and your streamlined process makes everyone happier and more productive. Let us explore more on such an organization where a BI solution is in place.
Benefits of Business Intelligence
Single version of truth
An enterprise wide business intelligence solution will help to achieve unified view of data and therefore a single source of truth for the organization. This will help to avoid silos of information repository and confusion about validity of reports.
Ease of information share
With BI solution in place, sharing information with people across your organization will be efficient and effective. BI makes it easy for everyone- from decision-makers to functional teams- to access and analyze up-to-date information anytime, anywhere. Everyone throughout the company can make better decisions, faster.
Collaboration of data
Having a single, central location allows you to monitor your key performance indicators (KPIs), access reports, analyze your data, and share documents. All of the functional areas are aligned to articulate strategies, set objectives, and monitor the organization’s performance so you can make better informed and timely decisions that support your overall business strategy.
Deeper analysis of data
Enterprise wide data warehouse will help to gain insights to understand and analyze your business performance and opportunities at a deeper level. This will further help to analyze and evaluate information that is readily accessible and easy to interact assisting to make strategic and tactical decisions.
It will be easy to achieve meaningful analysis and reporting. Readily able to track and analyze KPIs against key business goals to gain a better understanding of how your business is performing today and this will avoid a situation where it’s too late to impact performance.
Scalable and flexible solution
Effective BI solution comes with the scalability and flexibility to grow and change as your organization does. Many companies rely solely on the most widely used BI tool, the Excel spreadsheet. While Excel offers many useful features such as graphs, charts, and pivot tables which assist in decision-making, it doesn’t scale to your business. Also, compiling data from multiple, disparate databases is time-consuming and is prone to errors. However, Excel is still a key component of a total BI solution.
Less dependency on IT
Providing employees with access to analytical data that is readily available and understandable allows them to work more effectively and support the overall business strategy. With not much dependency on IT Team, managers can access reports at any time to meet their needs.