What are the costs of not using business intelligence?
In a tough economy, businesses are looking to streamline operations and cut unnecessary costs wherever possible. One of the most efficient and effective ways to do this is by incorporating Business Intelligence (BI) tools into the workplace. And while there is an initial cost associated with any software, the cost of not using BI is so much higher.
What is Business Intelligence (BI)?
This is a software solution that is transforms raw business data into useful insights that can then be used to make impactful business decisions. The sheer volume of data being created by industries today is immense, but it’s a completely wasted resource without BI. With the right BI tools, you can transform this into an invaluable business tool that brings about long-lasting business growth.
What are you risking by not using BI?
There are obviously many benefits of BI to business, but you’re actually taking a real risk by not considering this software – particularly as you can be assured that competing businesses are. Here’s a look at some of the costs you’ll incur by overlooking BI.
– Over- or understocking
For those in the warehousing industries, relying on instincts for market trends and seasonal fluctuations is just not sufficiently accurate in modern business. And this is even truer in the current economy following the turbulence of Covid-19 within the business world. Where businesses once relied on monthly or quarterly reports to determine the amount of stock required, market changes are making this a completely unreliable and outdated technique. This ultimately results in over- or understocking, which means losses to the company somewhere along the line. By implementing a BI solution, your business is able to quickly respond to changes in stock, allowing you to replenish to meet the existing customer demand, rather than an anticipated one. Whether it’s a one-time deal that’s pushing demand – or even a pandemic – you’re able to keep up with the trends and meet demand accordingly.
– Underperforming employees
In the past, it was very difficult to accurately assess employee performance. Employers would rely on HOD reports, customer feedback and annual appraisals which don’t always pinpoint areas of underperformance or even areas of exceptional work ethic. BI uses the visual representation of data in the form of dashboards that allow for a very quick overview, not only of business performance, but also of individual employee performance. With a few click of the buttons, business owners and employees with relevant access can actually monitor performance and identify areas of improvement.
– Loss of customers
Customer retention is key to business survival, but with so much competition and accessibility today, customers are spoilt for choice. This makes retaining customers that much more difficult and, when losing customers, it’s almost impossible to know why they’ve gone elsewhere. However, with a BI system you’ve got access to real-time data so you can see any customer loss almost immediately. This allows you to act quickly in rectifying the cause for the loss – whether it’s a better competitor price, customer experience or even missed trends. By understanding your customers at an even deeper level, you’re able to customise your approach and improve the experience.
– Wasted time and resources
Your IT department is undoubtedly spending a large portion of time on dealing with requests for reports across the entire company. This is a waste of valuable IT time and can be saved through BI as end users can access reports relevant to them. This ensures your IT department is focused on more pressing issues.
Too often, there’s miscommunication and even animosity within one company because of inter-departmental friction. This effectively wastes time and resources even further as teams are insular rather than engaging for the betterment of the company as a whole. With BI, your departments are able to work more seamlessly with access to data. The quick overview provided by a dashboard and unique business insights will break down barriers and encourage cohesive daily operations.
– Missing the connections
This compartmentalisation isn’t beneficial for employees, and it certainly isn’t beneficial for employers, as valuable connections are often overlooked. With BI tools, the data across the entire business is collaborated, cleaned and displayed in a dashboard format, giving you insights into business operations that would previously have been missed. You have access to customer satisfaction ratings, surveys, social media listening and other data-critical tools that help drive your business further.