The value of monitoring and analyzing web data and analytics is something that most business leaders are familiar with. As I’ve mentioned before, recent estimates for the number of companies using Google Analytics range anywhere from 30 to 50 million.
I often wonder though, why aren’t more executives paying attention to business intelligence?
These analytics have nothing to do with website data and statistics but are just as important to the efficiency, revenue growth and success of a business. In its most basic form, business intelligence encompasses the analysis of a company’s raw data and analytics, to produce actionable takeaways. Data analyzed might include current sales figures, customer shopping habits or operations costs. With more data at our hands, business intelligence is critical to making informed business decisions and can be a key component of forming predictive analyses for the future of a company.
Here are the top benefits of incorporating business intelligence into your long-term business strategy.
It Reduces Costs
The oil and gas industry has been using business intelligence from the start — many would say it’s ingrained in the industry. From geological data to help determine where and how to drill for oil to assessing market conditions and profit advantage opportunities for gas pricing, quantifying value is at the core of how this industry extracts value and raises profits.
It Improves Efficiency And Productivity
The healthcare industry is now leveraging business intelligence to drive efficiency and productivity. One of our clients used business intelligence to pinpoint challenges in their system for patient referrals, understood where inefficiencies lived and eventually addressed these problems by incorporating a digitally connected referral network. Business intelligence allowed them to experience a boost in their appointment completions, shortened scheduling time and also decreased appointment lead-times and the average cost per referral.
It Supports Decision Making
Amazon is known to leverage business intelligence and predictive analytics to support everything from customer engagement to lead scoring, customer segmentation, lifetime value cross-sell recommendations and win-loss analysis. Business intelligence supports data-driven decision making with the right information at the right time.
It Improves Sales
From monitoring trends to improving sales and even minimizing theft, actionable insights from big data are central to successful retail businesses today. Fashion retailer Charming Charlie used business intelligence to manage and provide insights on 25,000 active SKUs at the brand’s 250 stores across the United States. By measuring success, understanding allocations and determining buying patterns, the company is able to improve sales, distribution and inventory management.
It Reveals Opportunities
No company wants to miss out on a new opportunity, but how can they ensure they recognize one before it’s too late? Careful analysis of your data will help you understand customer behavior and even give you the power to better detect what your customers would like in the future. From predictive analytics to data that reveals service or product gaps, business intelligence findings have the power to help companies stay ahead of the curveball.
There’s no question — companies that successfully use business intelligence make better business decisions and are poised to outpace and outlast their competitors.