How Business Intelligence Drives Digital Transformation in 2022 and Beyond
With the expected growth rate of 30.06% by the year 2025, the adoption of business intelligence (BI) across industries is becoming extremely widespread and crucial. Right from traditional sectors like banking and insurance to flourishing domains like InsurTech and EdTech, BI is driving digital transformation in every business sector you can think of.
Digital transformation enabled by digital transformation solutions helps generate valuable insights on business processes, performance, and trends, enabling organizations to capture new opportunities, identify problems, and then take actions to address them.
Advancements in areas, such as the Internet of Things (IoT), big data, and machine learning, are placing BI in the spotlight. With the help of BI tools, organizations can now extend their decision-making capabilities beyond basic reporting of incomplete, outdated views of their data.
In this article, we will discover how business intelligence is driving digital transformation and reshaping businesses around the globe. But before we get into that, let’s first understand the meaning of business intelligence.
What is business intelligence?
Business intelligence is a technology-driven process that enables businesses to organize, analyze and contextualize business data from around the company. BI provides reports and performance measures that help businesses make informed decisions in the present day.
Moreover, the technology can be used for generating sales reports, keeping track of user retention, and showing the status of prospect customers. It is mostly used as a way to generate a detailed overview either on business or product.
So, if you haven’t considered adding BI into your enterprise digital transformation strategy already, maybe now is the time. Let’s talk about what makes BI technology a crucial part of modern business strategy.
How is BI driving digital transformation in 2022?
BI and digital transformation are deeply intertwined. In fact, one could say BI is both the enabler and result of digital transformation. With the help of business intelligence tools, companies can find useful insights from the pile of data to stay competitive and maximize revenue streams. It also allows businesses to make better decisions and take their businesses to the next level.
BI helps businesses sort their data
These days, businesses are flooded with data. And for the most part, it’s not a bad thing. Enterprises need data to better understand their business and plan for the future. Having a huge volume of data simply means organizations are taking advantage of all of the available data-captured opportunities. The major drivers of this include expanded access to IoT technology, cloud-based ERP systems, and the availability of inexpensive data storage. All of this data gives businesses a better understanding of key processes, which helps business leaders make better decisions.
However, dealing with data at scale gets a lot more complicated. Getting valuable insights becomes dependent on maintaining quality data. When businesses do not have well-established strategies of data governance to manage the data quality, they put themselves at risk of collecting “dirty data”, which can lead to poor insights and bad business decisions.
Business intelligence tools, when paired with accurate and well-managed data, can help drive valuable new insights into the business operations and improve performance and decision-making. Ultimately, BI is the key enabler for businesses to use the increased amount of available data in today’s competitive world and turn that into real results.
BI helps maximize business value
One of the biggest advantages of using BI is its ability to maximize business value. There are several ways in which the BI software can make this possible. First, BI gives businesses a better view of the data, allowing them to be more accurate in their decision-making process.
With a better picture of their data, it’s easy to make cost-saving decisions, predict market trends, and understand the consequences of changing variables.
Second, business intelligence connects every level and department of a business, from c-suite executives to project managers to entry-level workers. This, in turn, allows the workforce to think more strategically, giving them a chance to utilize their critical thinking skills to invent new ways to improve the business.
Moreover, BI also helps organizations gain a competitive edge through an increase in efficiency, wider profit margins, cost savings, and more. Actionable insights from BI help organizations outperform other businesses and attain long-term stability in the market.
BI is shaping future business models
Business intelligence services are fundamentally changing the way workers operate. The outbreak of the Covid-19 pandemic in 2020 has brought tremendous change for various businesses. Previously stable businesses are now seeing a great amount of fluctuations in their operations.
Businesses that analyzed and gathered extensive data about customer behavior, sales, and more were able to bounce back quickly by adapting to changing trends and realizing specific insights.
By focusing on certain items that are more in demand or re-allocating sales resources to adapt to changing customer preferences, BI is enabling a level of flexibility that was impossible until now.
As organizations lean more towards BI tools, job responsibilities will move to focus more on rapidly responding to the insights available. Jobs, for the most part, will involve more critical thinking and strategy. Savvy business leaders should already be preparing for this shift in the workforce to occur.
In this era of digitalization, business intelligence is a must-have for any organization that wishes to remain competitive in its space. It allows businesses to gain better insight into their organization’s past, present, and future to make informed business decisions. To accomplish this, BI software collects, organizes, mines, and visualizes crucial KPIs. It leads to increased revenue, promotes efficient inventory management, and improves sales intelligence.
If you are unsure of where and how to go about implementing BI solutions for digital transformation, you can take the help of a trusted business intelligence software development company. The experts will offer top-notch services and solutions in the form of consulting, implementation and support and make the BI journey easier for you.