With the increasing amount of technology and data available to a business, the need to make informed decisions and utilize the data at hand is increasingly important. One function that helps with this is Business Intelligence (BI). While BI is becoming ever more popular with small business owners, there are common misconceptions about BI that could hinder its effectiveness.
But many of these misconceptions are easily clarified and addressed. See how by taking a look at these tips.
1. Business Intelligence is all about reports and dashboards
One of the things that make business intelligence sound intimidating is the notion that businesses will be bombarded with daily reports and have to make use of complicated dashboards in order help to understand how it works and get it operational. While there are standard tools that small businesses will need to use to gather information that will help with their operations, these tools should not be seen as an inconvenience. The systems and processes in BI can be simplified in a way that it doesn’t limit resource gathering but actually enhances efficiency and profitability.
An executive, for instance, can easily look into the sales numbers of a given month, without having to go over other variables and metrics. Other models of BI can cater to more than just reporting stats and data, as analysis can be collaborative and interactive, thus providing more efficient solutions that will deliver the correct information to the people who rely on the data for their decision-making.
2. The tools are the same for all organizations
The assumption is that whether a company is big or small, the tools in business intelligence work the same. This is what makes small businesses hesitant to apply such concepts, thinking that it will not have any practical use in an organization of their size.
But the truth is, every BI strategy is unique, and as a company, you can tailor these strategies to fit in with the way you operate. Before adopting any solution, however, you will first have to evaluate what specific needs BI must address using the data architecture, so that it will measure your requirements correctly.
3. It can only measure big data
Large corporations can maximize the tools to use in BI because they have larger needs to fill, and they also have all the resources. But what about small companies that may not necessarily need big data?
The thing is, any company that has data will have a use for business intelligence. Small businesses can start with simple and basic solutions, for instance Google Analytics, and then later on, expand to a more comprehensive tool as the organization grows. Business intelligence measures the quality of data, and not the quantity, so you can accomplish something even with very few resources.
4. It takes up IT resources
While BI used to be considered the responsibility of an IT team or expert, now small businesses, which may not have had the resources to in the past to outsource such resources, can use the tools for themselves. There are solutions out there that offer low maintenance, self-service systems wherein reports and dashboards are created and analyzed without the need for an IT expert whatsoever. There are some advantages to having professional IT help sometimes though, but for small businesses, a user-friendly BI system may be sufficient to cover most of your needs.
If you’d like to know about how you might be able to develop your business intelligence systems further, contact us today