The 5 Components of Business Intelligence your Company Needs
Today’s technology allows businesses to process data and turn them into actionable insights. In this blog, we discuss how business intelligence (BI) components work to provide you a more holistic growth potential.
Behind its complexities, BI’s ultimate goal remains: to help business owners land with a sound decision. With the right information and in-depth understanding of the data, you can proactively catch up with the trends in the industry today.
What are the components of business intelligence?
Learn how you can get the upper-hand in leveraging BI to its fullest extent by learning its core.
Online Analytical Processing (OLAP)
Behind the majority of great BI tools is OLAP.
OLAP is an approach in sorting, selecting and analyzing aggregates of data in multi-dimensional aspects so you can quickly solve complex calculations, analytical queries, and sophisticated data modeling. In addition, it also assists in creating ‘what if’ scenario planning.
Through this solution, the user analyzes a specific information in multiple aspects, which then helps them extract necessary insights for their decision making process.
Advance Analytics or Corporate Performance Management (CPM)
Are you looking for ways to improve your service line, hit your target effectively, or study which market will best accommodate your new product?
Advanced analytics or CPM allows you to look at the statistics of your specific products or services, and steer them to boost your operational performance. CPM is your best approach if you’re looking for changes such as budget remodeling, improving of business strategy, better key performance indicator (KPI) alignment, and upgrading financial planning.
Business intelligence in the cloud is an ideal partnership that makes the best out of both platforms in catering a business’ need for deeper analytics and the convenience and accessibility of the cloud. A cloud-based CPM makes an easier turnaround for process implementation, cost reduction- all combined with speed and flexibility.
Real-Time Business Intelligence
Real-time BI (RTBI) is gaining traction in today’s business landscape.
Since trends quickly come and go, adapting and incorporating changes immediately can give you a competitive edge over others. This BI component comes in handy when you need real-time insights as fast as possible.
With RTBI, you can create quick responses to the trends using email, messaging systems or even through digital means. Your Marketing Team can leverage this by offering limited-time offers or craft promotions that can spike your sales.
Data warehousing is a BI component that quickly sifts through large amounts of data to create statistics about your industry which you can use to your advantage.
Data warehousing deals with unstructured information that processes data in special ways. It functions separately from a simple database as it analyzes massive information in the shortest possible time.
For instance, you want to know how your affiliate companies are performing for the past 52 weeks. You pull out insights and compare which subsidiary performs efficiently than the rest.
Data is the lifeblood of BI. Without it, the whole concept is stale and lifeless.
Before doing analysis, understanding your sources- whether it be internally or externally is important. These raw elements are sorted and organized using software applications to create more meaningful data sources that can be put in tables, spreadsheets, charts, and presentations, among others.
Operational data are beneficial for companies. With this, BI navigates in between different data sources to scan through large piles of information. However, it’s harder to process raw data using obsolete legacy mainframes. If you’re wondering what operational data you’re gonna need for the long-haul, take note of the following:
- Enterprise Resource Planning
- CRM (Customer Relationship Management)
- E-Commerce Apps
In a nutshell, business intelligence has an undeniable impact on a business’ operational efficiency. BI, in its core, has the data we turn to for insights, and the reliability of sources it gets information from. It is a tool powerful enough to make strides in preparing for your company’s future.
If you have a good grasp on business intelligence components, implementing it in your strategy would reap you several benefits in running the business.
D&V Philippines has experts onboard who can help you translate your data into significant insights that will support your decision-making for the business. You can download our guide Business Analytics whitepaper to know how we can make data work for you and your organization or contact us today.