Business intelligence the 5-step process to maximize business profits
Posted by LauraDerbyshire on May 21st, 2020
Every business works towards profit and this can be accomplished by making the right business decisions. Business leaders make countless decisions that influence work in various ways. However, the ultimate goal is to make decisions effective enough to pave the way for profits for organizations. Therefore, the successful implementation of the plans is the main need of each business and Business Intelligence proves to be useful in this context. Let's take a look at Business Intelligence and its components:
Business Intelligence plays a major role in implementing correct planning strategies and procedures. BI technology helps its users collect, store, access and analyze data. The set of applications covered by Business Intelligence allows companies to effectively implement the Decision Support System, applying concepts of Online Analytical Processing (OLAP), Statistical Analysis, Forecasting and Data business Intelligence.
Business Intelligence serves to send information to the right decision makers at the right time. Many users prefer BI as it leads them to arrive at facts based on the conclusion or more commonly known as 'single version of the truth'. This provides the best end product and leads an organization to convert raw data into useful information; therefore, bringing profit.
Features of a business intelligence solution:
It is a single point of access to information.
The Business Intelligence process collects raw data and turns it into useful information; and transforms it even further into knowledge that must be used intelligently. The BI process is based on five main stages mentioned below:
Data Provisioning - This stage works on collecting data from different sources, including email messages, images, formatted tables, reports, sounds, and other relevant sources. The main role of Data Sourcing is to collect data digitally; therefore, the sources for collecting data are computer files, digital cameras, scanners, etc.
Data analysis: The next stage is to organize the data collected from Data Sourcing and estimate the data based on current and future trends. Also known as data mining, this stage also predicts the information that will be needed in the future.
Situation Awareness - This stage of the Business Intelligence process helps filter relevant data and use it in relation to the business environment. Users compile the data by closely observing market or government forces. policies, to make decisions easier. Combinations of different algorithms are used to adequately identify awareness of the situation.
Risk assessment: taking risks is part of every business; but, if one can take precautions, it is extremely useful. The risk assessment stage helps to identify current and future risks, including cost benefits; choosing the best options; and comparison between two decisions to identify which one will be beneficial. Summarize the best option among the various options.
Decision support: This last stage of the BI process helps to use information intelligently. The goal of this stage is to warn users of various crucial events, such as poor staff performance, acquisitions, changing market trends, sales fluctuations, and much more. Help make better business decisions to improvise staff morale and customer satisfaction.Also See: Business Intelligence, Intelligence Process, Risk Assessment, Raw Data, Intelligence, Data, Business
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