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Business Resource Center - B2B Technology Articles
Turn Data into Information with Business Intelligence
Ever heard the term “Business Intelligence”? While you may initially think it means doing business wisely, it is actually a term used to describe a technology system that is changing the way business is done. Simply put, “Business Intelligence” refers to a specially designed technology system that integrates electronic data from separate programs, files, or software. It helps to provide business owners/managers with all the pertinent information needed to run the business and make smart business decisions without the time or pain involved in assembling facts, figures, and stats from different areas and programs (i.e., accounting, customer service, manufacturing, etc.). Initially a technology for large, corporate America, Business Intelligence is moving into the mainstream – and fast. Small to medium-sized businesses are currently in the process of adopting Business Intelligence. In fact, according to Gartner (the world’s leading information technology research and advisory company) Business Intelligence technologies earned a number one ranking in priority for business’ technology concerns (source: http://www.gartner.com/it/page.jsp?id=501189). Why? Because Business Intelligence is all about helping owners/CEOs make better decisions about the future of their businesses by putting all the needed information at their fingertips.
How will Business Intelligence change business?
Business Intelligence is about putting the right information into the hands of people who can make decisions, improve processes, and share information. It helps business owners/CEOs solve problems faster and better because they have more, accurate information readily available. Think about the information you need to run your business. Do you compile data from different programs and spreadsheets? How much time does that take? And, how long does that data remain current? Business Intelligence allows the user to have all of the needed information in an easily accessible program/format – and the best part is the information is real time, making for more informed decisions. And, more informed decisions mean business can continually improve on its processes. For example, let’s say the owner of a manufacturing company needed to find a way to cut costs on his per piece price for widgets in order to secure a major contract for 100,000 pieces. He is up against a major industry competitor for the contract and needs to act fast. Fortunately, he has a Business Intelligence system in place that integrates data that affect his manufacturing costs: his vendors (pricing), his manufacturing line (productivity levels), his sales team (sales and commissions). Because he has this Business Intelligence system in place, he is able to quickly analyze all of his costs and offer a price lower than his original estimate within the hour -- as opposed to the two days needed by the competition. Who do you think will win the contract? And, because the manufacturing owner knows for certain the lower price he offered still allows him to make money, he doesn’t have to worry about losing money on the deal. He made an informed business decision, fast, in order to push his business forward.
How can I incorporate Business Intelligence into my organization?
Incorporating Business Intelligence into your organization is relatively easy because you use your existing programs, systems, and applications. You don’t replace these applications; rather, you integrate these systems, programs, and data to create information. When determining how you can best utilize Business Intelligence in your organization, you first need to determine what information you really need and possibly don’t have easy access to. Likewise, determine what problems exist in your business that if improved upon could have a positive impact on your business’ future. Think about the “islands” of data that, if combined, could give you a better picture of your business’ operations. From there, you will need to contact an IT company that handles Business Intelligence systems. This company will most likely ask you additional questions about your data, your goals, and your challenges, helping you to determine how Business Intelligence could best serve your organization. Working together, you can create a solution that will meet all of your established needs.
How difficult is it to adopt Business Intelligence?
The hardest part about Business Intelligence is actually determining what it is you want and need to know. Business owners/CEOs are often so accustomed to not having a “the big picture” at their fingertips that they have a hard time communicating what data they need to integrate to produce relevant information. Once a Business Intelligence system has been created and implemented, all it takes is a change in habit … like printing a report, checking a new window, or entering information into a new program. The power of the technology lies in the fact that it allows users with various levels of sophistication to make use of the same information.
Business Intelligence is all about information. It is about using the data that already exists in your business in separate spheres and combining it together for the purpose of creating usable information. So, start thinking today about the data you have in your business and what you could do if all that data was available and integrated in one simple system. The possibilities would be endless!
Is Business Intelligence for You? Key Questions a Business Owner/CEO Should Ask
- What data are you currently “dumping” into spreadsheets? From what systems? From how many?
- How often is the information updated?
- How accurate is the data?
- What key pieces of information do you need to see in order to effectively run your business?
- Would you benefit from being able to view this data at any time, from anywhere?
- Who else in your organization can benefit from having appropriate levels of access to this information?
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