BI tools are used to collect data in a single place, transform it into understandable information for the entire business team and make strategic decisions from this information. This process comprises different phases that combine methodologies with tools to reach the final result.
To fully understand what Business Intelligence is, it is necessary to know the phases that make it up. BI is not a single system but a fundamental architecture that ultimately provides essential information on which entrepreneurs can base their decisions.
Table of Contents
Extraction Of Data From Sources
Company data comes from a myriad of sources: from offline and online contracts, from emails, from SMS, from social media, from user navigation on the website, from the mobile application if it has been created, and from possible other sources. This means that the collection itself is inorganic because it can be in different formats and saved in multiple places. The result is a lot of confusion! BI collects all this data in an electronic format to extract usable information, thus avoiding the loss of very precious material for the company, the acquisition of which has cost time, effort, and money.
Analysis Of The Collected Data
After having collected the data through the first phase, it is time to transform it into understandable and usable information even by those who are not an analyst or an expert in the sector. What does it mean? Current and future trends, behaviors, models, and forecasts must emerge from these data. This phase is essential so that entrepreneurs and managers can study the translated data and make their assessments. As you can see, each step is necessary to have an exact picture of the current situation in which it finds itself and make its estimates for the future.
Overview Of The Company In The Market
BI is a revolutionary tool for companies because it allows them to understand their situation in the market and what they can do to improve it. To do this, the extrapolated information gives an accurate picture of the trend of the market itself, of the forces at stake, of the players, creating the starting point from which to make decisions for the future. Entrepreneurs need this knowledge to grope in the dark and not risk making hasty or ill-considered decisions that would jeopardize the company’s health. And from here, we move on to the next stage.
Therefore, business intelligence is essential to not lose even a single piece of data along the way and be able to extrapolate accurate information from all these numbers and letters. Now let’s take it a step further and consider the actual use of BI. They are being able to create a cross-section of the current market.
A forecast of the future trend allows entrepreneurs, managers, and managers to make reasoned decisions where business risk is well evaluated. This means that entrepreneurs can immediately consider the implications in the months and years to come of one action rather than another. They can evaluate the most favorable moment for a new campaign or even wholly change direction concerning all this. which has been done to date.
Making Effective Decisions
To make intelligent decisions, entrepreneurs need to know how the market is doing now, how it will go in the future if there will be any unexpected turns of events that could have a significant impact. Furthermore, they need to know the situation within the company. This means knowing which activities have paid off and which ones have given poor results, and whether the different teams work in synergy or if the workflows need to be revised.