Era of decision making: Understanding role of business intelligence

With the increasing level of performance and competition, it has become essential to use technology in almost all parts of the game. Be it Formula One, Moto GP, Tour De France, or the NBA, success in sports depends on making the right decisions in split seconds. As a result, technology is playing an increasingly important role in international competitive sports. It is being utilized to strategize, execute and analyse various areas, including performance, recovery, and results. Like sports, business is another area where technology plays a critical role in building a winning formula.

Decision-making has always been an integral part of the success and failure of a business. Technological solutions have taken a leading role in driving decision-making with the amount of data generated across business functions.

Data and analytics are not enough to empower businesses to drive decision-making. It needs to generate actionable insights which are provided by business intelligence. While data sets the foundation and analytics becomes the backbone, insights are the soul of the business intelligence framework of an organization.

Departments like sales, marketing, procurement, finance, HR, etc., used to generate and analyze data in silos a few years ago. With business intelligence coming to the fore, it has empowered businesses to make decision-making comprehensive and seamless.

Here is how business intelligence is playing an essential role in the era of decision-making:

What is effective decision-making in business?

Decision-making is becoming more critical than ever with increasing competition and changing consumer preferences. Here is what effective decision-making can achieve for a business:

It saves time and money

Taking the right decision at the right time can help a business save time and money. A company with leaders capable of making the right decisions can assist in responding to business challenges and changes in consumer preferences much faster.

Helps build a confident team

With capable top management that can drive growth with the proper judgement, it helps build a confident team that can work efficiently. Such an ecosystem allows employees to quickly bring innovative ideas or areas of concern to the notice of management.

Prepares better response to competition

Increasing competition is one of the top concerns for any business across industries. It is better to make sound decisions that help a business deal with the competition efficiently.

Improve customer experience

Effective decision-making can prove to be instrumental in improving the customer experience for a business. Making decisions by understanding the purchasing trends and customer behavior help in building customer loyalty.  Hence, delivering a superior customer experience is critical for driving revenue in an organization.

Minimize business risk

BI can detect outliers in the data and predict risks. This helps businesses make the right decision at the right time, eventually reduce business risk in operations. It is essential because of the uncertainty involved due to external factors.

Time to rethink the role of business intelligence in effective decision-making

For leaders to make the right decisions, it is crucial to provide the right ecosystem. Business intelligence can help build this ecosystem in the organization. According to Gartner , 65 per cent of the decisions being made in business are more complex than they were two years ago. As a result, it is time for companies to look beyond data, spreadsheets, and dashboards in isolation and focus on the role of business intelligence in building a successful strategy. Here are some areas in which business intelligence can help in better decision-making in the organization:

Better utilization of data

Business intelligence and decision-making go hand-in-hand to make a business successful in today’s competitive landscape. Embedding analytics and intelligence in operational apps/software can help in utilizing data and insights generated to make immediate actions/decisions.

By using available data to generate actionable insights, business intelligence helps a company make better decisions. Solutions like machine learning, data analytics, and artificial intelligence come together to form business intelligence that powers decision-making.

A business can make sense of the generated data and capture information in an action-oriented manner to make way for faster growth and better decision-making. In other words, business intelligence is a critical component that helps an organization utilise data more efficiently.

Bridging the gap between data and decision making

Business intelligence helps a business bridge the gap between data and decision-making. Business Intelligence transforms organizational data into reliable insights helping a company to make data-driven decisions at all levels.

Text and voice-based querying for easier and faster access to insights and AI-powered predictive analysis help businesses quickly access comprehensive and actionable business insights. With seamless data acquisition, improved accessibility, and robust architecture, a company is set for unparalleled performance with business intelligence.

Pushing Data democratisation 

Business intelligence empowers decision-making at all levels in an organisation. As all departments rely on an embedded analytics platform as a single source of truth, it helps an organization push for sustainable growth. It is crucial to ensure that these insights are not limited to a few departments or a few levels of the organisation.

As a business intelligence platform does not rely on the technical know-how of an individual to provide valuable insights, an organization can aim for data-driven decisions and build better customer experiences.

An end-to-end business intelligence and analytics platform helps harness the power of data and provide a bird’s eye view of the present and future. Powerful data-driven storytelling is only possible if a company can make decisions based on the insights generated from the data.

The author is EVP - Growth, Lumenore. Views are personal.

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