For the vast majority of entrepreneurs, the most difficult part of running a business is decision making. Lately, optimizing business decision-making has been associated with the concept of Business Intelligence.
Next, we will tell you what it consists of
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What Actually Is Business Intelligence?
We call business intelligence to all that group of processes, tools and technologies focused on obtaining quick and easy data from the business management system. These data can be analyzed and interpreted, with the aim of elucidating decision-making and using them as a source of knowledge for the managers of a company.
Within a company, Business Intelligence is applied at three different levels:
- Operational level: It affects daily decision-making in the company’s immediate workflows.
- Tactical level: Helps decisions that affect the company in the near future. They may be, for example, monthly operating tactics, which should be continually reviewed.
- Strategic level: It refers to long-term decisions, setting final objectives that will be those that contemplate decision-making.
Effective Tools For Business Intelligence
Business Intelligence relies on a whole set of tools that help collect relevant data.
Therefore, we can group Business Intelligence tools into five different areas:
- Production: They are the tools that will help to obtain statistical data on production lines, inventory turnover and similar concepts.
- Logistics: The tools that help to track shipments or monitoring orders, among other tasks.
- Finance: Expense reports, cost reports, tax forecast, etc. Here are all the tools that help the financial analysis of a company.
- Sales: Tools that provide customer and product data to segment the market and make sales forecasts.
- Marketing: Tools for market segmentation in order to help analyze trends in sales and customers.
Advantages Of Business Intelligence
Here are some of the most interesting advantages of Business Intelligence:
- Greater efficiency: By using business intelligence to centralize all of your company’s information, you can use it to optimize workflows and increase the efficiency of all business processes.
- Response speed: Obviously, having all the information provided by business intelligence implies that you can anticipate problems and prepare more effective solutions. In addition, you will have more solvent tools to solve unforeseen events.
- Improved customer service: The centralized database generated by business intelligence implies that, in the event of any problem with a customer, a service can be offered in which the customer feels that solutions are really being provided
