5 Rules of Business Intelligence & Analytics Every Company Should Know
As businesses strive to stay ahead of the competition, the amount of data they generate continues to grow exponentially. However, with great data comes great responsibility — and complexity. The numerous variables involved in business analytics can make it challenging to make informed decisions and identify opportunities.
On the contrary, there are rules that you and the management can follow to harness the power of data and make informed decisions in driving your business forward.
5 Rules of Business Intelligence and Analytics
These "rules" can safeguard your business from risks or swiftly seize any opportunities that may arise from your business analytics.
Have Specific Goals Set
As the saying goes, "If you fail to plan, you plan to fail." This rings true when it comes to business intelligence and analytics. Without specific goals, your efforts to gather data will be aimless and ineffective. For this reason, time is a precious commodity that should be used wisely.
Every business wants to improve, but to achieve this, you need to define what improvement means for your specific organization. This means setting clear and specific goals that align with your overall business objectives. Rather than trying to improve everything at once, focus your efforts on specific areas that are most critical to your business, such as production, customer service, or employee morale.
With specific goals in mind, you can gather data that is relevant to your objectives and find patterns that will help you evaluate which direction to take. This will enable you to make informed decisions and take actions that will drive your business forward.
However, it's important to note that setting goals is only the first step. Which is why you need to....
Monitor your data
Setting specific goals is a crucial first step in leveraging business intelligence for your organization. However, it's not enough to simply gather data and analyze it once. To truly harness the power of your data, you need to constantly monitor it and be proactive in identifying potential dangers and opportunities.
Your data can provide valuable insights into the performance of your business, as well as predict future trends and obstacles. By staying on top of your data, you can anticipate and respond to the changes in the market, adjust your strategies, and make informed decisions that will keep you ahead of the competition.
This is where business intelligence analysts come in. They can help you identify key performance indicators (KPIs) and create dashboards that provide real-time insights into your business operations. By monitoring your data regularly, you can detect any anomalies, identify areas that need improvement, and optimize your operations for maximum efficiency.
However, it's important to note that predictions aren’t enough to guarantee what will happen next. That's why you need to continually...
Prepare for contingencies
In the world of business intelligence, data is king. It provides valuable insights that can inform your decision-making and drive your business forward. However, even the most accurate data can lead to false predictions due to a variety of factors, ranging from human errors to unforeseen events like accidents or natural disasters.
That's why it's essential to prepare for contingencies in your business intelligence strategy. You need to have a plan in place that will protect you from potential risks and enable you to take advantage of unexpected opportunities. This requires a fresh perspective on your data and a willingness to think outside the box.
One way to prepare for contingencies is to use scenario planning. This involves creating multiple hypothetical scenarios based on different outcomes and assessing the impact of each scenario on your business. By doing so, you can identify potential risks and opportunities and create contingency plans that will help you mitigate the risks and capitalize on the opportunities. Thus, a good way of avoiding such problems is to…
Keep it simple
“If you can’t explain it simply, you don’t understand it well enough.” A proverb popularly attributed to Einstein, this is the perfect way of explaining this rule. Your company does not comprise of one person alone, but multiple others working together for a singular purpose.
Unless you have complete and absolute control of your business’s workings, you would definitely need to share this data (or at least, certain parts of it) with the other people invested and involved in your operations.
Not everyone is as experienced as you are in depicting data, and you can’t expect everyone to easily detect patterns or make predictions. That is why you should keep the way your present data as simple as possible to quickly get your team up to speed while avoiding the possibility of any misunderstandings or misinterpretation of the data.
Keep in mind that this data is what dictates your business’s future - something as simple as numbers on paper can mean either success or bankruptcy. Miscommunication or misunderstanding will lead to decisions that can and will damage your business. Thus, a good way of avoiding such problems is to…
Follow Business Rules
Business rules are a set of guidelines that define the processes and operations within an organization. Adhering to these rules ensures consistency and uniformity in the way you gather and analyze data.
For instance, if your business operates in multiple countries, it would be best to use a unified currency for financial calculations. A business rule can specify that "all profits must be calculated in terms of US Dollars/British Pounds/etc." Such a rule simplifies the data analysis and presentation process, enabling you to make informed decisions.
Business intelligence and analytics involve complex procedures that require thorough examination and calculation. Even a minor error can lead to inaccurate predictions and jeopardize your business. By following established business rules, you can achieve a smooth and efficient analytics process that yields reliable results.
Incorporating these rules into your business intelligence and analytics strategy can significantly enhance your decision-making process. With specific goals, monitored data, contingency planning, simplicity in presentation and adherence to business rules, you can ensure the accuracy and effectiveness of your data analytics.
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This post was first published 16 June 2016 and edited 24 April 2023. Edited by: Angelica Garcia