Today, most businesses operate in an ambitious, global marketplace. Business owners must satisfy stakeholders by meeting growth projections. Integrating the right tools can make the difference between growth and failure, prompting companies to seek new resources offering a competitive advantage.
For business owners, the challenge is determining which tools offer a proven advantage that can help them refine their operating processes, improve customer service, and meet their business goals. Since the 1960s, businesses have relied on business intelligence (BI) to help them make their business decisions. Business intelligence tools enable companies to gather and process relevant data that offers actionable insights they can trust. Choosing the right business intelligence software can transform operations and enable companies to thrive. Although several options are available, the information explored here will help you choose the best BI tools for your company.
What is business intelligence software?
BI software performs multiple tasks. It’s used to gather relevant data, including client feedback, market trends, and business issues. The software analyzes the data and uses data visualization to convey information in business intelligence reports with charts and graphs. The summaries from a BI report help business leaders understand how strategic business decisions could impact their operations. For example, if a complete BI report indicates a sharp decline in demand for one of your company’s primary products, reducing production and introducing new products could prevent your company from suffering financial losses. BI software turns data sets into actionable data, ensuring your company has an action plan for modifying business operations to capitalize on the data.
Why do companies need business intelligence software?
Since business intelligence was introduced in the 1960s, the marketplace has changed. Many businesses used to compete with local companies. Over time, this expanded as companies spread throughout geographic regions and across nations. International trade deals opened the doors to global competition. Since the introduction of the Internet, global competition has increased. A company in a small town on the other side of the world can jeopardize your sales by offering superior products or services.
Integrating business intelligence reporting into your operations ensures you can compete in the global marketplace. Your intelligence reports ensure you have practical strategies to address issues and keep your company competitive. You can also use reports to anticipate issues before they arise and prevent losses. With effective business intelligence software, you’ll keep your finger on the pulse of your industry and won’t be caught off guard by unexpected developments.
The right business intelligence software for your company should be functional, scalable, and flexible.
Effective business intelligence software is functional. It should have a user-friendly dashboard with data visualization solutions suited to your business needs, enabling you to produce a business intelligence report with ease. The best business intelligence software should also be scalable. This means it should adapt to changing needs. You don’t want to invest in BI tools that are obsolete within a matter of months. Flexible software that integrates with application programming interfaces (APIs) from other software will be more valuable than software you can’t integrate with other APIs. Ensuring your software can integrate with other tools is crucial because it ensures you’ll be able to use the software effectively for more extended periods without upgrading.
What types of companies benefit from BI tools?
Many companies benefit from business intelligence software. For example, a computer manufacturer and retailer benefits from business intelligence software by accessing relevant data about computer sales trends and design features. Computer manufacturers and retailers can use this information to determine whether to emphasize the production of 2-in-1 laptops.
BI tools help medical companies stay on top of the latest healthcare trends and identify what types of healthcare services are in demand. Companies that sell medical equipment use this data to set production targets. They may also rely on business intelligence software to make predictions about future trends and develop new equipment to improve testing or treatment processes.
Business intelligence tools ensure business operators have crucial business information related to their industry. Business leaders use this data to inform their business decisions, enabling them to thrive in the marketplace.