Business Intelligence Adds Value to the Financial Industry
Most businesses are aware of the value business intelligence (BI) can bring to their company. It has been applauded for increasing transparency, cutting costs, and improving decision-making when used effectively in the business environment. Because many businesses have little room for error, business intelligence’s forecasting and predicting capabilities have become increasingly important to all industries.
Business intelligence software, however, can be particularly beneficial for accountants and financial professionals because it enables thorough financial analysis, including correlations, segmentation, clustering and regression. These types of businesses often have a huge amount of data, and business intelligence can help financial professionals make inferences and gain insights. Many managers understand the use of big data analysis to make better decisions, but it is difficult to interpret massive amounts of information without an effective analytics solution.
What are the benefits of business intelligence for financial professionals?
Business intelligence is a great solution for accountants and financial professionals because the software can detect fraudulent activity and irregularities faster than the human eye. Many companies, however, have delayed implementing business intelligence tools because they believe the software is expensive and requires a high level of skill to operate. Smaller companies in particular seem to hold this view of business intelligence software.
Due to increased adoption, however, many business intelligence solutions are now affordable to even the smallest businesses. The software is available for purchase at varying price points, depending on the level of capabilities the company requires. In addition, many of the features included in business intelligence solutions are easily learned by the average user and require no additional skills or training. Small businesses who adopt business intelligence solutions could gain a significant advantage over their competitors.
By implementing analytics, financial professionals can observe and interpret trends within the company, such as sales and customer behavior by looking at the drivers of profits and costs. Understanding how and why certain things are happening can help companies increase profits.
Companies can also gain better awareness of their customers through business intelligence. Customer relationship management (CRM) software and business intelligence can be leveraged together to provide the company with a full customer view. CRM can help businesses retain clients and gain profitable customers; business intelligence can analyze CRM data to define specific customer actions, and sales and marketing teams can have a better response to consumer behavior. Business intelligence also enables better trend forecasting, and it can reduce uncertainty. Financial professionals can improve preparation for risk by assessing potential events.
The global market for business intelligence solutions is expected to grow to $19 billion by 2017, according to a report from Research and Markets. This would be a significant growth in the industry. Companies are trying to stay competitive and expand into new markets, and they need sophisticated tools to accomplish these initiatives.
If your financial company could stand to improve its use of analytics, contact us today. We offer a variety of business intelligence solutions and tools designed to add value to accountants and financial professionals.