Strategic company management sounds like a luxury for small and medium-sized enterprises (SMEs). But with a tool for Business Intelligence (BI), even small companies can make better decisions – and make their business fit for the future. In this article, you can find out what BI software can do and how you can use it.
Do you know at what time of day you generate the most turnover? Do you have a suitable new offer today for customers who shopped with you yesterday? What sales go through the tills how often? Which warehouse material is used up the fastest? How long is the time period between acquisition and ordering? Do you have more customers when it rains?
Data is an important resource
These are just some of the questions you could answer precisely with Business Intelligence. And every answer influences your balance sheet. Facts and figures are particularly important for company development within the digital
transformation. In this context, it is not only the traditional key performance indicators (KPIs) that help management to better understand and manage costs and sales.
Precise, up-to-date knowledge about resources and processes within the company is also to be found in the data that is generated in the company on a daily basis. Unfortunately, it is still only on too rare occasions that it is collected and analysed. Data is a resource, like time or raw materials, that every company should use efficiently and comprehensively.
Business Intelligence makes data management intelligent
One approach that turns data into valuable information is Business Intelligence, or BI for short. This analytical information system collects, aggregates and presents data that is decisive for business success.
The reports help management to make more informed, and thus better, decisions. Corporate Groups and large companies have been using BI systems for some time. On that scale, Business Intelligence makes use of an enterprise resource planning (ERP) system, where all the key figures for the company and its processes are brought together.
In too many small and medium-sized companies, Excel tables are still used as a management information system for the collection and analysis of KPIs. Many people can work with them. That helps, but it doesn’t take you further, because it is not intelligent, not fast and not secure enough. Each manager updates the table differently and the manual data entry is subject to errors. Furthermore, this type of data management takes up a lot of time – from entering KPIs to evaluation and analysis. Links to various sources are complicated and the scope of data that can be entered is limited to one million items.
There are now many BI systems that you can understand, integrate and use even if you don’t have an IT degree or an IT department. Cloud-based services that automatically collect, link and present the relevant KPIs from existing systems via a tailored dashboard offer a simple entry point, for example. These services make it easier to get started, because they reduce costs and complexity and contribute to value creation more quickly.
Better planning and implementation with BI resources
For example, a baker can use the information from the BI tool to plan use of resources more precisely, understand demand more clearly and to provide corresponding service – including adjusting for the season. They can anticipate when customers will start buying Easter bread and how much of it they will purchase. By analysing data over a long period, they can optimise use of human resources and plan to have more staff at peak times. Marketing activities can also be measured and evaluated very differently with a precise BI analysis.