Within the framework of an increasingly competitive and challenging business environment, companies need to find solutions and systems to generate competitive advantages from data collection, analysis, and transformation into strategic decisions that allow them to design successful plans and properly manage the different areas and departments.
In this context, the concept of business intelligence appears. The art of business intelligence refers to the optimal use of data aimed at making business decisions.
Business Intelligence as a Business Strategy
Business intelligence can be understood as a business strategy that seeks to increase the company’s performance or competitiveness through the intelligent organization of its historical data (transactions or daily operations) stored in its databases and located on virtual hard drives known as “cloud.”
Today’s businesses value the scalability of data storage in the cloud. This is because it provides them with practical solutions for managing and preserving data. At the same time, companies are also realizing the potential of the Internet of Things (IoT), as they know its future lies in getting user experience data associated with their products and services. These examples shed light on the worth of data generation evolution and highlight the indispensability of these tools for modern businesses.
Although the concept of business intelligence has been recognized since the 1960s, its relevance remains unchanged. It has undergone a constant and marked evolution towards much more effective models adapted to the new technological environment.
Lately, the term “big data” has been widely used to refer to business decision-making based on analyzing and managing large databases and automating processes.
The art of business intelligence is an integral part of big data management as it lies in effectively managing big data to extract valuable insights for informed decision-making.
Phases of a Business Intelligence Project
It is not enough to collect a series of data, even if it is of quality, nor to use the appropriate methodologies and tools. To successfully carry out a business intelligence project, it is necessary to carry out a series of steps or phases where the project and objectives are planned in detail, work teams are configured, data is analyzed to make decisions, and, once corrective actions have been implemented, monitoring and control are carried out.
Phase 1. Planning and definition of objectives
Project planning includes the following three elements that must be taken into account when making decisions:
- The specific and detailed objectives that are intended to be achieved.
- The resources, both personal and technical, of the company.
- The estimated costs and deadlines for its execution.
Phase 2. Team formation
The proper selection of work teams and the assignment of roles or functions is essential for the project’s final success. Criteria of suitability, personal motivation, knowledge, and experience in managing improvement processes and data analysis must be used. But, above all, we must choose those professionals who work daily in the departments we intend to improve and who are highly knowledgeable about their work routines, problems, and factors that can be improved.
Phase 3. Execution and start-up of the project
After choosing the methodological framework and the team’s formation, the data is analyzed to convert it into valuable insight and make sound decisions. This strategy can help you improve the processes of the different departments by increasing their quality and effectiveness.
Advanced data analysis systems focus on the following two main areas to ensure that high-impact decisions are taken:
- Improving the quality of one or more processes; optimization of the productivity and effectiveness of the company as a whole; increasing business efficiency.
- The review and optimization of processes, the improvement of the distribution of tasks, and the optimization of resources. In addition to the inside information that allows you to make better decisions, data analysis also encourages this point.
Phase 4. Measurement of results
The completion of the project does not represent an end-point but rather the beginning of a new cycle that will focus on monitoring and evaluating the improvements introduced through making appropriate decisions based on data analysis. When measuring results, special attention must be paid to detecting possible deviations in the defined objectives, the economic and human resource costs, and the scope of improvements. If any discrepancy occurs, it will be necessary to execute the pertinent corrective actions.
Following these crucial phases of BI can help companies efficiently apply data science techniques and principles in a specific business context, which is called the data science business.
The Role of the Analyst in Business Intelligence
The business intelligence analyst is the professional in charge of collecting and analyzing information and data on sales, markets, consumers, etc., to facilitate the making of the most appropriate operational or strategic decisions to achieve the company’s objectives.
This professional profile is widely in demand to work as an analyst in intelligence production units, study, analysis, and prospective services, strategic planning offices, and BI units of both public and private companies.
The daily task of a business intelligence analyst is complex. It must be carried out systematically and continuously since their work base is information that constantly changes.
Obtaining information is only part of your job since the true value for the organization is found in its subsequent analysis and processing.
These are the main functions of a BI analyst:
- Plan and organize systematically, obtaining quality, functional, and relevant information from the company’s environment and the competition.
- Detect changes in sales, income, expenses, and other important data of the company or organization.
- Identify changes in consumer behaviors or preferences concerning your company and the competition.
- Transform data into reports and conclusions that serve to make the best decisions for the company in different areas such as financial, strategic, operational, etc.
- Detect new market opportunities and business lines based on the extracted data.
- Advise management in decision-making.
- Compare the strategies implemented and check if they have served to obtain the expected objectives or results.
- Identify errors, weaknesses, and strengths of the company.
Business intelligence is a crucial strategy for today’s organizations looking to stay competitive in their respective highly competitive business environments. Data management and analysis can help businesses make informed decisions and gain a competitive edge. If you’re looking to harness the power of data visualization, contact TORII Technology Corporation, TTC and benefit from our data visualization service. Let us help you unlock the true potential of your data.