Business intelligence is all about taking valuable raw data from your company’s operations and turning it into useful, understandable insights that help you understand what you are doing well, what you need to improve on and where your company is headed. Insights gleaned from business intelligence can also help you to identify new opportunities for further growth. But if you’re just getting started, understanding business intelligence can be a headache in itself. Here are three terms to get under your belt as you make your debut.
Reporting
Whether simple or more sophisticated, reporting forms the foundation of business intelligence and is key to knowing how your company is doing – and how to make it do better still. No matter the size of your company, financial reporting helps you to understand your position in terms of revenue and expenditure. Typical reports you might produce on a regular basis include balance sheets, cash flow statements and profit and loss accounts. Business intelligence tools like Enterprise Resource Planning applications can help you get a hold of these reports and customize them to suit your needs, to a level of detail and usability that most of us just aren’t going to manage with a spreadsheet alone.
Data Visualization
Having access to reams of business data is all very well, but in reality it’s not of much use if it doesn’t mean anything to everyday humans. You and your colleagues are business focused and, while you might know your way around a bit of data analysis and your IT systems, you don’t want to spend your lives with your head buried in sheet after sheet of formulae. Frankly, you’ve got better things to be doing than that – like getting on with the day-to-day management of your business.
That’s where visualization comes in. Just what it sounds like, visualization is about taking your raw data and presenting it in a way that’s instantly understandable and meaningful to its audience – whether that’s you as business owner, your boss or your company’s investors. Visualization can help you to convey a high-level overview of business performance, before you drill down to consider more specific areas of your products and services. Some business intelligence tools also offer interactivity to allow you to get exactly what you need from complex data.
Corporate Performance Management
The performance of your business depends on a huge number of factors, and if you are properly preparing for the future then you are considering a multitude of scenarios depending on how those factors play out. That can leave you with multiple versions of your budgets and cash flow statements but, without effective business intelligence software, you’re likely to have that information stored in a messy tangle of spreadsheets.
A better solution is a business intelligence application that allows you to import data from various locations, and adjust your reporting output according to variables in the numerous factors you are forecasting. With speed that those clumsy spreadsheets just couldn’t replicate if they tried, you’ll have at your fingertips a set of responsive, adaptable reports that enable you and your team to spend more time on analysis and making plans for the future.
Want to learn more about using business intelligence to propel your company to greater heights? Get in touch with us today.