Business intelligence is a collective term used to describe processes, technologies, and strategies for gathering, analyzing, and presenting business information. Business intelligence aims to improve an organization’s decision-making process by acting as an aid in areas such as planning, forecasting, budgeting, target tracking, optimization, sales analysis, etc.
There are four key components to BI systems:
- A data warehouse. Dedicated to collecting and organizing company data from a range of sources into a single, easily accessible location.
- Business analytics or data management tools. Used to mine and analyze the data warehouse.
- Business performance management (BPM) tools. Utilized to track and assess progress toward company objectives.
- A user interface. Often an interactive dashboard with data visualization reporting capabilities is used to provide quick access to information.
Now that you’re familiar with the basics let’s explore why companies develop business intelligence strategies in general.
The Benefits of Having a Business Intelligence Strategy
To put it simply, a business intelligence strategy allows an organization to derive maximum value from all of its data. Business intelligence aims to create more efficient operations by improving decision-making and streamlining processes.
A business intelligence strategy is founded on a vision of success, on an understanding of competitive advantage and how to achieve it. A successful BI and analytics strategy combines a data-driven and objective knowledge of markets, customers, operational processes, and business performance, as well as better-informed insights from the BI team and business users.
Don’t have a BI strategy yet? Here are a few steps to help you develop a top-notch business intelligence strategy.
How to Develop a Business Intelligence Strategy?
The first step involves defining your business intelligence needs. Before developing a business intelligence strategy, it is necessary to assess what you want to achieve and determine the data required for analysis.
Then carry out an audit of the data analysis tools your company already uses. Last but not least, conduct a poll among decision-makers and other business users to learn more about how they use data. How many meetings and decisions rely on data, reports, and dashboards already? Which of the existing reports are the most useful?
Knowing where you stand allows you to take further first steps toward a BI strategy. And, here are five steps on how to develop one.
1. Choose Your BI Platform
To use your existing data to its fullest potential, you need to start by selecting a BI platform.
Nowadays, many different types of business intelligence platforms are available on the market, but most companies choose one based on their needs and the available budget.
2. Assemble Your BI Team
Once you have selected a BI platform, start assembling a team of experts in order to build and maintain your business intelligence system. Find someone with the skills needed to install, configure, and support a BI toolset in your organization.
Also include a data analyst on the team, as this person will be responsible for unlocking the full value of your company’s data.
3. Select Your Data Source(s)
Next, select the data source(s) that you would like your BI tool to use. BI platforms typically import data from a data warehouse. Modern BI tools allow organizations to evaluate data from multiple sources.
4. Develop a Business Intelligence Roadmap
Prepare a business intelligence roadmap that outlines your BI project’s scope, timeline, and capabilities. Your final goal will be to provide all decision-makers with easy access to reliable, actionable information.
5. Cultivate a Culture That Relies on Data
Ensure that everyone in your company understands the necessity of data-driven decision-making. The change will take time, and it won’t be easy, but you can gradually foster a data-driven culture by encouraging everyone to learn how to use BI tools and visualizations.
Did you know that a good business intelligence strategy can help you stay ahead of your competitors? Make sure to equip your company with an exceptional BI strategy. If you’re unsure where to start, HICO-Group can show you the way.
At HICO-Group, we offer a holistic approach to customer solutions for business intelligence. We are masters in working with KPIs. From KPI identification and planning to building future-proof data solutions, we implement state-of-the-art BI concepts customized for your company’s needs and market.
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