Business intelligence benefits and challenges
Business intelligence (BI) technologies have revolutionized the way organizations process and analyze business insights. This approach to data analysis allows companies to make data-driven business decisions to achieve their goals. Below, let us look at some business intelligence benefits and challenges, but first, let's identify what BI is.
What is business intelligence (BI)?
A business intelligence solution is a modern technology that collects, stores, and analyzes all the data generated in a company. This data produces reports and analytics and compiles in a simple, easy-to-understand manner. This structured data allows companies to make better business decisions.Below are some business intelligence benefits and challenges.
Benefits of business intelligence
Why are so many organizations implementing business intelligence solutions? Below are a few reasons.
Improve the decision-making process
Implementing BI solutions provides organizations with the opportunity to analyze business metrics and KPIs using data from multiple sources. It provides a data visualization of the company's by generating visual information that is easy to interpret. This data can help businesses understand how certain aspects such as seasons or ad spending impact their KPIs.
Banish company silos
Most organizations operate in silos, where each department collects its own information without it being shared within the organization. These silos can lead to valuable data slipping by the wayside. The problem also occurs when technologies within departments isolate customer data by channels, such as social media or email. This isolation makes it impossible to gain a solid understanding of the customer profile.
Through BI systems, you can extract specific data from your organization to gain an advantage over your competitors. You can identify products that are selling and dedicate the proper resources to promote them. The information you analyze, such as buying patterns, can be used to optimize your website with popular, high-converting products
Challenges of business intelligence
Now, it might seem clear why implementing BI into your organization is a good idea. However, challenges can arise along the way.
Lack of a clear BI strategy
Adopting BI without analyzing business performance and identifying goals might lead to an expensive and unsuccessful business intelligence implementation. It is important to set targets and pinpoint areas for improvement before investing in a business intelligence tool.
Company-wide adoption of BI
If your company does not adopt new BI technologies, it will have difficulty understanding its data. The wrong way of interpreting data and turning it into action can make BI less likely to be adopted by stakeholders. Setting measurable KPIs across each division can help make this transition a success.
Poor data quality
If you collect poor data, then the insights generated by BI tools will be of little value. Poor data quality can result in poor business efficiency. Ensure that your organization is collecting high-quality data by implementing standards on the type of data you collect.Companies should be aware of the business intelligence benefits and challenges and how it can impact their business.Check out the recording of our webinar to learn more about business intelligence: "How to overcome the top five CRM obstacles with business intelligence". Contact XRM Vision at 514 819-9094 or email us to learn more about business intelligence (BI).