The use and benefits of implementing Business Intelligence in controlling
What is business analytics?
Business analytics is nothing more than a technology that enables companies to effectively manage and analyze business data collected throughout the organization. The main purpose of BI tools is to apply techniques to transform raw system data into easy-to-understand and useful information. We can divide most BI systems into four main parts:
Data warehouses are places that store a company’s information, derived from its operational systems. This data, then, is transformed (cleansed and integrated) and loaded into the data warehouse. The reprocessed information is used for business analytics.
Business analytics are tools for extracting, mining data, which is then analyzed in data warehouses to bring it to an integrated form.
Business Performance Management (BPM) tools, monitor and analyze the progress of business goals.
User interface – we are talking about an interactive dashboard through which the user can easily navigate. This dashboard has built-in tools for reporting, data visualization and, most importantly, quick access to the information needed.
The global business analytics market is projected to grow from $24.05 billion in 2021 to $43.03 billion in 2028 (source), thus maintaining a CAGR of around 8.7% during the forecast period. The rapidly evolving technological era of enterprises is forcing them to adopt BI platforms so that decision-making processes are based on data that is efficient. With Power BI, enterprises can maintain a balance between digital and business competencies (source).
Application and Benefits of Power BI in Controlling
Why is utilizing Power BI functionalities so important? To explore this topic, we will focus on four main arguments:
- Identifying Key Business Issues – Companies typically monitor dozens of defined Key Performance Indicators (KPIs). Tracking and, more importantly, understanding them without technology is inefficient or even impossible. This is where Power BI tools come in handy. One of Power BI’s key functionalities is the ability to layer data, allowing for a broader perspective on existing KPIs. This approach enhances the understanding of the phenomena affecting a company’s operations and performance. Additionally, Power BI enables weighting different KPI components, making it easier to visualize which variables have a greater or lesser impact on the analyzed indicators.
- Accelerating and Enhancing Business Decision-Making – Power BI integrates data exploration, analysis, and visualization, providing management and business users with unified data access. This improves decision-making processes and ensures more informed strategic choices. As a result, companies can predict potential outcomes faster and react more quickly. When combined with predictive analytics, BI tools can deliver near real-time event updates, enabling businesses to stay ahead of market changes.
- Optimizing Business Processes to Improve Productivity and Efficiency – Every organization processes a vast and continuously growing amount of data. Identifying trends and internal phenomena is often challenging. BI technologies, including built-in analytical tools, consolidate and integrate data from ERP systems and other business applications, allowing organizations to identify operational dynamics over specific periods.
- Power BI functionalities can detect inefficiencies in production processes, bottlenecks in supply chains, and unoptimized IT networks, revealing discrepancies between different systems. Since the COVID-19 pandemic, management goals have increasingly shifted toward efficiency improvements and cost savings, rather than prioritizing revenue and sales growth.
- Enhancing Marketing and Sales Programs Through Customer Data Analysis – BI tools provide marketing and sales teams with key insights into market needs and purchasing patterns, leveraging both internal and external data sources. In this context, Power BI helps businesses reach customers more effectively, ultimately increasing their sales potential. The reports generated by BI significantly improve the accuracy of marketing campaigns, enable the development of effective sales presentations, and support the creation of targeted promotional offers. Additionally, Power BI allows for precise customer targeting based on demographic data and consumer preferences, making it a valuable asset for strategic marketing.
In the near future, business transformation—whether for small or large enterprises—will be inevitable. Investing in BI technology today will undoubtedly yield tangible benefits in the future. The exponential growth of data, increasing sales volumes, and expanding business operations pose significant challenges for traditional systems. Faster implementation of advanced Power BI solutions will lead to greater efficiency, productivity, and data transparency for management teams. This results in a “2+2=5” effect—achieving synergy within the organization, where the combined benefits of technology adoption exceed the sum of individual improvements.
share article:
