What is Business Intelligence?
Business intelligence encompasses a variety of methods, tools and processes, so that it is referred to as a BI system as a whole. On the one hand, this system includes methods ranging from classic data analysis to data mining, i.e. pattern recognition in large amounts of data. On the other hand, tools from established software companies such as Microsoft, SAP or Oracle are used, which offer visualisations in addition to statistical evaluations. The basis is a database, the creation of which is also part of the business intelligence system through a systematic process.
What are the advantages of a business intelligence system?
Management decisions can be made subjectively from the gut or they can be based on objective data. It is up to you to decide which way to go, but we can help you with the latter. Well-founded data analyses can support you not only in far-reaching management decisions such as the outsourcing of business areas or in questions of location selection. Even in day-to-day operations, you are well advised to constantly check the efficiency and effectiveness of activities and take countermeasures if necessary. Here too, your business intelligence system supports you with ad-hoc reports and KPI dashboards. The advantages of a business intelligence system are clear:
- Well-founded decision-making process
- Cost reduction through increased efficiency
- Information advantage over the competition
- Rapid response due to high availability of information
How do you organise the data?
In most cases, BI dashboards are not based directly on ERP systems, for example. This is because not all information is available in the ERP system. Or it is available in the wrong structure or aggregation. The database is also constantly changing, which is another argument for organising the database separately from the ERP data. This is why so-called data warehouses or data marts usually form the data basis for BI systems.
What data is required?
Companies are increasingly networked and digital. Inevitably, they are building up a database which, if organised, can provide valuable information. So how can this data be utilised? The data in your company can be roughly divided into master data, inventory data and transaction data. The sources of information are numerous. These include your planning and control tools for individual business units and cross-company ERP systems. Other sources can be machine data in real time, but also handwritten inventory data. If information is still missing, we can supplement this with extensive market knowledge and benchmarks. All in all, this results in the database on which the further steps of your business intelligence system are based. We will find out exactly what data you need in a customised workshop so that it is tailored to your strategy and task.
Where are dashboards useful?
The required data is now available not only in large corporations but also in small and medium-sized companies. This is why business intelligence systems are now used regardless of the size of the company. Within a company, business intelligence systems are most commonly used in controlling, e.g. to support periodic reporting. However, KPI dashboards are also replacing traditional handwritten information boards in operational areas such as production and logistics. In marketing and sales, analyses and evaluations from BI systems are used to analyse trends. The areas of application are therefore numerous. Enquire about the possibilities in your company today.
How do you create a business intelligence system?
The systematic approach to the conceptualisation and implementation of a business intelligence system by Bross is based on established data mining processes, in particular to master large volumes of data. It is important to understand the BI system not as a finished product but as a step-by-step recurring process for the continuous improvement of the system.
Step 1: Strategy and target definition
The aim of a BI system is to aggregate relevant company-wide key figures both horizontally and vertically. Only then can the right decisions be made and conclusions drawn without any gaps. Accordingly, a strategy is required at the highest level, e.g. based on market studies, as to where your company’s journey should go and which key figures can be used to measure the achievement of the goal.
Step 2: Data collection and analysis
This step comprises four sub-steps, consisting of data collection, data description, data exploration and ensuring data quality.
Step 3: Need for action and continuous improvement
The third step is to convert the data obtained into information and derive the need for action. One example would be that a profit margin could not be achieved because some products have negative contribution margins. The key figures and analyses have revealed this and the corresponding decision would be to streamline the product portfolio or adjust prices.
Business Intelligence mit Power BI
Bross uses Power BI from Microsoft as a BI tool in its consulting work. Power BI is a cloud-based business analytics service that was developed for the end user and has the following components: Power BI Desktop, Power BI Service and Power BI Report Server. The creation of a BI system in Power BI offers the following advantages:
- Multiple data streams (on-premise & cloud) can be connected
- Reports can be called up at any time and from anywhere
- Integration into existing environments and systems is possible
- Data can be updated automatically
- Simple and intuitive use for end users and admins
- Low time and cost expenditure for configuration and maintenance of analyses and reports
Do you need advice on implementing a BI system in your company?
Contact our BI experts for a free, no-obligation consultation.