What is the Impact of Business Intelligence on the Decision-Making Process?
Among the most difficult challenges faced by companies are slow decision-making processes. By adopting Business Intelligence that extracts, analyses and transforms raw data into intelligent, relevant and actionable insights, you can empower your teams to be decisive and sustain your competitive edge. As you know by now, the key to business intelligence is data - a commodity that is bursting these days, thanks to connectivity and technology. Data analytics makes decision-making 5X faster! So, what is the cause of this data explosion, and how does it tie up with business intelligence’s impact on the decision-making process? Let’s find out.
The Rise of Data Explosion
With each passing year, the number of channels that produce data has also continued to increase. This has been due to the rise of eCommerce and social media that generate exceptional amounts of data daily. The growing concept of the Internet of Things (IoT) has also enabled all kinds of smart devices to gather, process, and generate more data. According to a study, computing storage capacity is growing around 58 percent per year. As of 2019, the total publicly known data stored has amounted to 41 zettabytes. Despite efforts to get rid of useless data and efficient data management, global public data is expected to reach 175 trillion gigabytes by 2025.
The Role of Data in Business Intelligence
BI offers enterprise businesses the opportunity to connect contrasting data sources into one unified source, collate and structure the data, and offer an interface for end-users to extract reports and dashboards that can drive more acquainted business decisions. Data and business intelligence, therefore, enable organizations to gain a deeper understanding of their industry and customers, all the while empowering them to churn out predictions and forecasts that can guide them towards better operating models, market response, innovation, and profitability.
Impact of Business Intelligence on Decision Making
- You can manage data quality better: According to Gartner, poor data quality costs businesses $15 million per year. As collected data is often incongruous, if it is left so, it can negatively impact the accuracy of a dataset. Thanks to Business Intelligence, this problem can be solved easily via Data Quality Management - a comprehensive system to extract, distribute and manage data. At the end of the day, it’s not just the quantity of data, but also it is quality that counts towards producing better analysis and increasing profitability. The higher the data quality, the better will be the identification of underlying KPIs. If a company is looking to invest in a certain business, for example, data quality management can help them build more confidence in their investment and give them better insights about possible growth and opportunities.
- You can visualize data better: What would aid in the better grasping of processes, insights and decision-making - a huge dump of data or beautiful, seamless visuals that intuitively guide you to discovering hidden insights? The answer is the latter, and it can be made possible by Business Intelligence solutions that convert textual data into impressive visual presentations. For analysts and decision-makers, the best part of helpful data visualizations is that it makes apparent patterns, correlations, outliers and relationships between various parameters that otherwise might largely go unnoticed. With data visualization, insights begin to jump out and you can make decisions that can have a huge effect on your business.
- You can sharpen decision-making accuracy with Artificial Intelligence & Predictive/Prescriptive Analysis: Imagine being able to detect and sort anomalies in your business without human intervention, automate complex business features, make highly precise forecasts and even generate intelligent decisions to achieve future results. That’s what artificial intelligence and predictive/prescriptive analysis bring to the table via Business Intelligence. For instance, with AI, data scientists can build intelligent models to help executives stay in touch with key business events. Or AI can help create live dashboards to analyse processes and operations in real time instead of relying solely on historical data. With predictive analysis, for example, hospitality businesses can accurately forecast footfall at hotels to maximize occupancy, or airlines can deduce the best airfare for individual flights.
- You can take improved, quicker operational decisions: Before the introduction of advanced data analytics, business leaders used guesswork and intuition to improve business processes. Nowadays, complex analytics provide managers with different insights into company processes and consumer behaviour - all automated and within no time at all. Based on that, they can make 5X faster decisions that may impact sales forecasts, budget planning, inventory management, employee bonuses, and satisfaction, as well as boost customer experience.
- You can optimise employee performance: Among the elements which negatively influence employee productivity is the lack of clear goals and an overall sense of purpose. Burnout, frustration, and micromanagement are all bottlenecks to constructive decision-making. However, Business Intelligence may prompt both employees and management to overcome these difficulties by optimizing their workdays and reacting quickly to changes. In this way, each employee feels responsible for the company’s performance. No wonder, as per a survey, 90% of sales and marketing teams consider BI critical to getting work done effectively.
- You can ensure an increased revenue: 1300% - that’s the average ROI recorded by enterprises equipped with Business Intelligence and data analytics. Given the above-mentioned benefits of business intelligence, when your decision-making gets fine-tuned with the help of powerful data and AI, you can expect increased profitability in your business.
By 2025, the global Business Intelligence market is expected to reach $33 billion. For enterprises looking to be future-ready and gain an edge over their competitors, it is the right time to hop on the data train with advanced business intelligence - something that we have expertise in.
PennyWise provides a full range of Business Intelligence services which vary from solutions for data management to reporting and visualization to analytics. Along with helping you build the necessary database architecture through secure and featured technologies such as MS SQL Server, MySQL, MongoDB, and PostgreSQL. We also provide consulting and data analytics solutions using advanced tools such as Power BI, RapidMiner, Tableau, Klipfolio, Cognos, and MicroStrategy.