What is Business Intelligence?By definition, business intelligence (BI) uses tools and services to transform data into actionable insights that help an organization make strategic and tactical choices. BI tools access and analyze data sources, then present the results as reports, summaries, dashboards, graphs, charts, and maps to give users extensive information about the condition of the business. The importance of BI boils down to the practice of turning data-driven decision-making, which has long been the craze in business and other settings, into a practical reality. One of the essential purposes of developing a BI strategy is to extract insight from consumer data and make better decisions on behalf of clients.
Advantages of using BI tools in overall Business Operations:
- Increase in the number of sales due to better targeting strategies.
- They boost operational productivity and product development with a better understanding of customer requirements based on market trends.
- They help develop more effective business strategies to figure optimal marketing platforms based on simplified data of ideal customers.
- Improved and accelerated decision-making supported by BI tools and analytical suggestions.
- BI tools help in identifying business issues to be addressed before they even occur.
- They help in identifying upcoming market and business trends to maintain a stable rate of customer acquisition.
- They help in acquiring a competitive edge by performing competitor analysis with technologically advanced BI platforms.
Statistics based on Business Intelligence:
- In 2020, 54% of businesses stated that cloud-based business intelligence is critical to their present and future activities.
- In 2021, Microsoft Power BI is the most used BI software, with 36% of the market share.
- With a 7.6% CAGR, the worldwide business intelligence market will grow from $23.1 billion in 2020 to $33.3 billion in 2025.