Business Intelligence - The opportunity of data and why we should use it

Big data becomes smart data.

Data usage as a success factor

But why BI and all the data madness, since it has worked in recent decades, if not centuries, even without it, right?
Yes - Companies were doing business even without “complex” data processing systems and reached customers and business deals, but times are changing. What sounds like a phrase is a fact. As opportunities grow, not only does competition increase, but also customer expectations.

However, it would be too little to regard the use of BI systems as a mere means of survival in order to remain competitive. 

The strategic breakdown of data and the ability to gain interactive access to information, of which an unimagined amount has probably been left out so far, is rather a specific opportunity — from day one.
Business intelligence systems use visualizations to process what has been solved so far with static graphics into individual dashboards that can be precisely adapted to the questions, interests and needs of companies.

The aim of business intelligence is to present content and interconnections effectively, comprehensibly and vividly for recipients. Based on data, a clear picture of business activities can be drawn while employees grow into internal analysts.

From data theory to practice

Companies usually consist of complex structures and diverse requirements. The more employees are involved, the more challenging it becomes to maintain an overview and strategic focus. Performance managers provide a multi-dimensional presentation and measurement of internal processes and are used for continuous improvement and targeted planning. The interactive presentation of the company's history (reporting) and the clear and rapid recording of the current status also creates a valuable tool for forecasting. 
Patterns as well as strengths and weaknesses of internal structures are revealed through data mining and the important customer journey gains new understanding.
Existing data can be seen as a digital experience when it comes to making new decisions, weighing options and illustrating possible follow-up scenarios.

An example

An old saying from business psychology says that it is five times as expensive to acquire a new customer than to get an existing one to buy again.
Reason enough to pay close attention to and respond to the needs and demands of existing customers.
For example, the international financial services provider American Express uses its collected customer data for preventive measures in the event of cancellations. 
Based on data, the company calculates probabilities and is therefore able to identify a considerable percentage of customers who plan to cancel within the following four months.
 For American Express, this is a significant competitive advantage, as it allows preventive interaction.

#BI #BusinessIntelligence #SmartData