Business intelligence (BI) is one of the key ingredients to any successful company. It is simply defined as “the study of business”. In a nutshell, business intelligence is also known as the process of utilizing certain statistical techniques with the intent of deriving specific information to create and justify new strategic business plans. In essence, BIS is an application that seeks to understand a company’s entire business environment by utilizing statistical tools to gather and make sense of complex and often-surprising facts. Simply put, BIS is used to gather information from various areas of a company’s operations in order to determine how it functions, where its weaknesses lie, what its strengths are, and how to improve upon them through proper implementation of strategic business plans.
Statistics have always been key to businesses and this is why many businesses hire an analyst to carry out research and provide them with analytical information. Businesses therefore need to be proactive in hiring an analyst that will not only provide them with what they need but will also make them understand the importance of these efforts. In essence, businesses need BIS analysts to act as “white knights” in their battle against strategic failure. This means that they need someone who can fight and win the battle in order to bring about positive results.
There are two different methods of conducting business analytics; descriptive and predictive. A descriptive method makes use of historical data available to make sense of current business situations. In this method, a company would look to see if its competitors are meeting their goals and if their current strategies are effective. In order to determine if the company is meeting its goals, this type of analysis needs to be performed on a regular basis in order to see if the company is making the right moves and is successful.
The other method of business analytics involves using mathematical techniques and mathematical equations in order to derive actionable intelligence from extremely valuable and accurate data available. This type of analysis makes it possible for businesses to determine if their strategies are working or not. Hence, this method is extremely beneficial as it is able to identify weaknesses in a company’s strategy and strengthen them accordingly. This means that companies are able to develop new strategies and improve their performance.
One of the primary reasons why companies need to use business analytics is to come up with more efficient ways of extracting value out of the data available. This is because of the fact that the amount of data available is increasing by the day and because of this, it is increasingly difficult for businesses to cope up with all the analytical work. Hence, businesses are looking for effective ways of making use of the information available in order to achieve more efficient results. In turn, this allows businesses to benefit from highly accurate and timely data and this improves their ability to make important decisions and business decisions quickly. This then leads to improved customer service and higher profits for businesses.
Businesses need to use sophisticated analytics because of the fact that customer satisfaction is highly dependent on how customers view the services provided by a particular company. Hence, it is extremely beneficial for businesses to understand the customer needs in order to provide them the best service possible. In addition, this improves the chances of businesses being able to improve and re-design their services in order to better meet the demands of customers. Hence, by using this method, businesses can ensure customer satisfaction by making use of the right tools and software and this in turn leads to customer loyalty. In turn, this ensures that businesses are able to increase their sales.