What is the connection between business intelligence and ERP?
The terms ‘Business Intelligence (BI)’ and ‘Enterprise Resource Planning (ERP)’ are used a lot in modern business, and if these terms are still unfamiliar to you, then you’re at the right place. BI and ERP can drastically enhance business operations if implemented correctly. Here’s a look at how this can be done, and the connection between these to software types.
Business intelligence (BI) and ERP
What is Business Intelligence (BI)?
BI provides you with a comprehensive overview of your data through business analytics, data mining, data visualisation and best practice. Having developed exponentially over the years, BI now provides data-driven solutions that empower business for better decision making.
What’s the value of BI?
Businesses can leverage BI to improve business performances using quality data accessed from various avenues. Here’s how:
- Tracks business performance in various areas
- Analyses customer behaviour
- Identifies market trends
- Identifies issues or challenges within the business
- Notes ways to optimise operations
- Seeks avenues for increased profit
Read More: Business Intelligence Benefits
How is this done?
BI is able to achieve all the afore-mentioned benefits through several processes including:
- Data preparation
- Data visualisation
- Data mining
- Reporting and querying
- Descriptive analytics
- Visual analysis
What is Enterprise Resource Planning (ERP)?
ERP software applications allow companies to integrate all processes that run a company through a single system. It will integrate processes such as planning, purchasing inventory, sales, marketing, finance, human resources, customer relationship management, and more.
What’s the value of ERP?
ERP is a dominant integration tool in business that streamlines operations and enhances day-to-day working in a number of ways:
- Time saving – ERP co-ordinates all transactions and workflow, allowing easy access to essential business-decision information.
- Better customer relations – ERP systems provide insights into customer interactions and communications, ensuring the customer is effectively attended to at all times.
- Cost savings – ERP systems will lower costs through more efficient supply chain management and distribution, as well as shortened development times.
- Improved performance – Through its significant business support tools, ERP systems will improve overall performance.
- Better profits – Because of the time and cost savings as well as improved performance, your business will benefit from increased profits.
How can ERP assist your BI?
The ERP and BI systems can work together to convert business data into useful information that can propel your company forward. ERP software can organise your business data which BI software will then mine and present into usable visuals. Effectively, BI requires ERP to function fully and, in fact, some ERP systems will have a built-in BI functionality.
What are the benefits of BI in ERP?
Here’s a look at why the symbiotic relationship of BI in ERP is truly beneficial for business:
– Enhanced business predictions
Bi will provide you with a complete overview of your ERP data through easy-to-understand dashboards.
– Increased employee time
Where businesses used to have dedicated teams of employees committed to data analysis, BI will generate accurate reports without such input, freeing up your staff to work on other critical business operations.
– Accurate reporting
The automation of data analytics also diminishes the risk of human error that could have disastrous effects. It also prevents the creation of multiple reports and multiple headaches.
– Predictive and prescriptive analytics
An ERP system with BI functionalities allow for effective historical data analysis and future trend predictions. BI can also provide prescriptive analytics for future business decisions.
– Historical insights
Through ERP and BI, you can analyse your company’s previous data such as sales’ performance as a way to analyse your numbers and identify areas of growth.
– Better data analysis
Using both BI or ERP, you can better analyse and use your business data, determining what is effective and what isn’t. Core business processes that can be improved include:
- Better forecasting
- Preventative maintenance
- Identifying areas of waste
- Access to updates
- Better visibility
If you’re looking at ERP software, then it’s worth considering a system that has BI functionality to enhance your business operations. Work with industry leader, Canvas Intelligence, for a customised BI solution that works for your business.