Business intelligence, or the art of using data to discover insights, has become a crucial part of developing business strategy for leading organizations, including government agencies, Fortune 500 companies, and educational institutions. Businesses that want their operations to be more informed and backed by data must use business intelligence. This is done with the help of a BI strategy.
A BI strategy is a blueprint that helps you decide how to use data in your company. You need a business intelligence strategy, as merely choosing a BI technology is not enough to leverage the benefits of business intelligence. Many organizations struggle with implementing business intelligence solutions
because of a lack of a proper BI strategy.
The Downside of Not Developing a BI Strategy
A business intelligence strategy will help you to address all your needs and problems related to data, develop a cohesive system, and maintain it. You might encounter various problems if you don’t have a BI strategy. Here are some of the pitfalls of not having a business intelligence strategy, which you can simply avoid by developing one.
Reduced Possibility of Successful BI Implementation
According to Gartner, business intelligence adaptation
is only around 30% in most industries. If an organization wants to avoid being one of those who haven’t implemented BI, a pre-planned BI strategy is the key to successful adoption. A company that lacks knowledge about the system they want to implement is at a higher risk of failing.
Risk of Overspending
A company that does not have a BI strategy is likely to overspend compared to those with a business intelligence plan. This is because there are no strict guidelines to follow. A company without a business intelligence strategy will agree to whatever a vendor tells them about their company or industry requirements. Later, if they don’t use that feature because they don’t require it, paying more for that feature will be a complete waste of money.
Wastage of Time
A company without a business intelligence strategy has to begin all over again with its business intelligence software search. Failure to adopt business intelligence tools
can also be frustrating for the employees because of the inconvenience caused. This emphasizes that having a defined business intelligence plan is always better.
Steps to Build a Business Intelligence Strategy
The business intelligence strategy should align with the overall business goals resulting in an exponential growth. So, let’s start with the five steps to developing a successful business intelligence strategy.
Determine Business Intelligence Strategic Objectives
The first step towards developing a BI strategy is identifying and highlighting the strategic objectives. Next, the business intelligence
team must evaluate the unique business objectives, align them with relevant data and resources, and recognize processes that empower the company.
Conduct Cost and Benefits Analysis
Let’s assume you have ten possible BI software options but which one will help you deliver the larger business objectives. How will you prioritize and choose your platform? In such a case, conducting a cost and benefits analysis is always helpful. The steps for conducting the analysis are as follows:
Set a framework for your analysis
Add the cost of implementation
Consider the margin impact per product
Check if the cost and benefit projection is favorable for you
Analyse the need for additional resources or re-alignments to be made with existing resources
Choose a Business Intelligence Platform
Business intelligence software can do a lot, but it is not the entire BI strategy. Now, that you have identified the strategic objectives and have conducted a cost and benefit analysis, you can consider the following components while choosing a BI platform
Data access and the viewing of useful content
Data interactivity within a visual interface
The ability to go deeper into data on your own and find new insights
Promote new insights into a governed environment
Collaborate on data analysis and visualized analytics
Build a Strong Team
You should never forget that only a strong team with a data and analytics mindset
can ensure a successful business intelligence implementation. They must be tech-savvy to handle complex IT issues and should be familiar with convoluted statistics and mathematics. They should also have a creative approach to problem-solving.
Create a Business Intelligence Roadmap
The BI team needs to develop a roadmap for the implementing a business intelligence strategy. You can consider the following things to create a BI roadmap:
Keep track of deliverables and dependencies
Keep a watch on the future and make adjustments to your strategy as required
Be proactive instead of reactive
Case Study: Customer Satisfaction Boosted by Business Intelligence
Expedia is the parent company of Hotwire and TripAdvisor, all the three are leading tourism companies.
Expedia was facing challenges related to customer satisfaction, which is extremely crucial to the company's mission, strategy, and success. The online experience should resemble a pleasant journey, but the company had no access to the customer's voice.
To tackle this issue, the organization had to manually aggregate heaps of data with insufficient time for analysis. The customer satisfaction team was able to examine consumer data using business intelligence and correlate results to ten objectives that were directly tied to corporate priorities. KPI owners create, monitor, and analyze data to spot trends or patterns.
As a result, the customer service team can now monitor how well it is performing against KPIs and take corrective action as needed. In addition, the data can be used by other departments.
If done correctly, a strong business intelligence strategy can bring irresistible power to your company. You can prevent yourself from overspending, save time and gain a competitive advantage by having an approach based on BI strategy while selecting BI software.
What is a business intelligence roadmap?
Business intelligence managers and their teams utilize business intelligence roadmaps to visualize all aspects of BI, including analytics, adoption, data, and training. Plan how to use business intelligence to increase efficiency and performance across your organization.
What is the business intelligence lifecycle?
Business intelligence lifecycle management is a way to design, build, and manage BI that includes business customers. It focuses on making data models, database objects, data integration mappings, and front-end semantic layers right away from input from business users.
How does Netflix utilize business intelligence?
Netflix utilizes traditional business intelligence tools and big modern data technologies. As a result, it creates algorithms that predict what consumers are most likely to watch. It also makes extensive use of open-source software in this regard.