Published on: January 27, 2015
Business intelligence, also referred to as big data, is the talk of the time for businesses and an important focus. It all starts with collecting important data and information related to company finances that is used for analysis purposes. Unfortunately, for many businesses, it is probable that too much time is being spent on the former instead of the latter. The overwhelming focus put on the collection of data instead of on analyzing it can be very ineffective. This is because it is the analysis of the data that leads to improvements in a company’s financial and operational situation, not the collection part. To learn more about the financial analysis piece of this process and how financial analysis tools are beneficial to it, visit here.
Because inordinate amounts of time are often wasted on data collection instead of on analysis of this data, let’s take a closer look at this process and how to improve it. Don’t let yourself and your business drown in the data trenches and lose out on the opportunity to sufficiently analyze and use this information.
Business intelligence can provide your company with valuable insight and direction, but if you aren’t using the data correctly, you could be missing out on key opportunities. Typically, Chief Financial Officers (CFOs) and financial departments spend about 80% of their time collecting data for analysis and only about 20% of their time analyzing data. For some organizations, the time spent analyzing data is even less. In order to create a healthy balance between data gathering and analysis, you need to have the right tools in place and a clear focus on analyzing your data. With a clear focus, key data, and financial analysis tools, you can begin to not only to see the value of the data you gather but be able to use it for a greater purpose as well.
How do you effectively collect data and use it?
- Automating Processes
Automation is essential to reducing time spent gathering data. Are you still using spreadsheets and other manual processes to gather important information and data instead of using effective business software? A fair majority of businesses are, and this is exactly where so many of them are wasting time. Technology has come a long way. Business software solutions have evolved, allowing businesses to automate all kinds of business processes, including data gathering. Tools such as business intelligence applications allow financial leaders to quickly obtain the information they need and present it in such a manner that makes it easy for analysis. When you stop managing your data and information with spreadsheets and start using automated business solutions, you improve your efficiency (not to mention your data accuracy). With a simple investment, you can begin cutting the time spent gathering data in half and focus your efforts on analyzing quality data to make better business decisions.
- Using Key Performance Indicators (KPIs)
The key to improving your business decision making lies in the type of data you use to make those decisions. By narrowing your focus and identifying specific sets of data to record and measure instead of trying to collect it all, you can get the data you need to make important decisions. KPIs (key performance indicators) make it possible to track, measure, and obtain the information you need to ensure your business is on track to achieve specific objectives while eliminating the need to sort through and collect ALL data. These KPIs can be set up in your business intelligence software system.
Although data is important, automating data collection and narrowing down the data to what is most essential for decision making using KPIs improves the data collection piece of business intelligence. To learn more about business intelligence solutions we offer, visit here. Mindover Software understands that effectively collecting and using business data is no easy task. We are here to help. Contact us for personalized assistance.