Accounting Blog for Business
Posted by Cedric Joshua Martinez
Jun 16, 2016 3:48:08 PM
There are many variables to focus on when it comes to business intelligence and analytics, which also means there are many things that can go wrong. However, by following these best practices - “rules,” if you will - you can safeguard your business from risks or swiftly seize any opportunities that may arise from your business analytics.
Have Specific Goals Set
Gathering data is a pointless endeavor without goals. It will be like counting leaves on a tree - excessively time-consuming, while ultimately getting you nowhere. While it is every business’s goal to improve itself, you need to specify what your goals are before you could even think of achieving them. Remember that you can’t improve everything in one go. You need to focus your efforts on specific aspects of your business, such as production, customer service, or employee morale. With singular goals in mind, you can find patterns that can help evaluate which direction you need to take. However, you still have to...
Monitor your data
Do not let your goals distract you from identifying potential dangers to your business that your data could warn you about. Data can predict both the opportunities and obstacles that could come to your business; with knowledge of what’s to come, you can strategise and remain at the top of any situation. This is what makes business intelligence analysts so valuable to any company. However, predictions aren’t enough to guarantee what would happen next, which is why you need to…
Prepare for contingencies
Even the most accurate data can lead to false predictions. This can be due to a number of factors ranging from human error to accidents or natural calamities. Remember Murphy’s Law: Anything that can go wrong, will go wrong. That is why you need to prepare contingency plans to protect you from (or even allow you to take advantage of) certain circumstances. To help you do this, you need to have a fresh perspective of your data, and that can only be accomplished if you…
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 you present data as simple as possible, in order 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 what dictate the processes within a company. For example, a business with multiple branches in foreign countries would likely prefer to calculate finances in their home currency. Their business rule will run along the lines of: “All profits must be calculated in terms of US Dollars/British Pounds/etc.” Business intelligence and analytics that follow this system will make data analysis and examination so much easier for presentations and predictions.
Business intelligence and analytics comprise a complicated process that can take days to fully examine and calculate. A single wrong prediction or inaccurate bit of data could spell doom for your company. Keep the above rules in mind to make your business analytics a smooth and accurate process.
Do you want to better understand the complexities within business intelligence and analytics? Contact D&V’s team of professional BI analysts to find out more!