The Use of Business Intelligence in Data-Driven Companies
Through the use of business intelligence, companies now have more data, more information about their operations and workflow, than ever before. In fact, the automation of nearly every aspect of the modern business has led to the speculation that over 75 million jobs will soon be replaced by machines.
That’s not to say that everyone will disappear from the workforce, but some roles will, and that’s not necessarily a bad thing. Up until the 1980s, the phone company still employed switchboard operators to route long distance calls and take messages when circuits were busy; can you imagine a switchboard operator job today? No, because automation handles it so much faster, better, and cheaper than the operators of old. I’m sure some switchboard operator out there laments her lack of employment but, for the most part, the world moved on without too much thought for the men and women who once asked, “Number, please?”
As old jobs disappear, new ones appear. Thanks to the use of business intelligence, companies can grow, expand, and profit in new ways. Data-driven companies know the information gleaned from their systems doesn’t supplant the statistical analyst who once worked the spreadsheets but complements her job in new ways.
Human Ingenuity to the Rescue: Use of Business Intelligence
Lamplighters, copy boys, and switchboard operators all share one thing in common: human ingenuity pushed their jobs aside. Automation, including electric lights, email and texting, and automatic phone switches, all created by a clever person or team of people, pushed technology to the next level.
Human ingenuity never goes out of fashion. It’s always in short supply. With human ingenuity, the use of business intelligence takes all that automation and puts it to good use.
The ultimate goal of a useful data analytics and business intelligence system is to inform decision-making. With the right use of business intelligence, companies can:
- Improve operational efficiency: In business, we talk about two leverage points to increase profits: increase gross revenues or decrease operating costs. Either or both will help boost net revenues. Business intelligence can be used to improve operational efficiencies, reduce costs, and improve productivity. Reduced costs and improved productivity both lead to higher net revenues, a goal for all companies.
- Increase revenue: Lest you think we’re only concerned about the expense side of the aforementioned equation, let’s talk a bit about how the use of business intelligence can increase gross revenue. The facts revealed through smart data analytics and business intelligence can lead to creative insights into profitable business strategies. New approaches to business problems may increase sales. That also tilts the revenue equation favorably for any company and, combined with decreased costs, boosts profits.
- Shorten customer response times: Companies that rely on the use of business intelligence to inform their customer service operations can dramatically shorten the response time to customer queries. By automating how queries enter the company through multiple channels, they can be routed more quickly to the appropriate person. Short response times lead to happier customers.
- Solve business problems: Looking across business intelligence data also helps you pinpoint recurring issues. These problems may be small, but over time can result in drains upon systems, profitability, and worker productivity. The use of business intelligence can help you find and fix these problems, like finding leaks in a water pipe before a slow leak floods the whole house and damages it beyond repair.
The automation of business processes isn’t new. It’s been going on since the dawn of time when Og the Caveman discovered flint; his technological advancement enabled him to light fires faster and better than Zug the Caveman, and Og survived the winter.
So, too, will your automated business be able to survive and thrive times of business stress when it has automation in place. Using data, analytics, business intelligence, and automation, you’ll be in a much stronger position to weather the storms of competition, economic downturns, and more. The future begins with the right use of business intelligence and automation that improves many areas of your business.
Mindover Software is a software reseller with a broad range of accounting, ERP, finance, customer relationship management, and other software products, including Acumatica and Sage 300 software. For more information, please contact us or call 512-990-3994.