Most people understand the term “company” as the place or establishment where a given business activity is conducted. But, in fact, the technical meaning of the term is that it is an organized and structured activity aimed at the production, circulation or sale of a particular good, product or service. And this activity is complex and cannot be at the mercy of amateurism.
For a business to go ahead it is necessary that the business activity is carried out in a professional, responsible and assertive manner, choosing the right strategies and taking the necessary actions.
But this is only possible if the manager knows the key information and data about your business. You have to bet on business intelligence.
In today’s post we will talk about the importance of business intelligence for the development of the organization and how it works in practice. Keep up!
What is business intelligence?
The complexity that marks economic activity requires entrepreneurs to exercise their function seriously and professionally. To do so, they need to have relevant information about the niche in which their business is located and which best practices to adopt.
Without knowing the main aspects and characteristics of your activity, you run the risk of the business collapsing and being overwhelmed by competition.
Business intelligence is the process of obtaining, selecting and analyzing key information regarding market trends, characteristics and challenges.
It seeks to study the current market and collect as much information and data as possible and use it to support companies’ strategic planning and decision making.
Importance of Business Intelligence
According to information gathered on the SEBRAE website, thousands of new ventures appear in the country each year. Even so, many of them cannot stay long and end up closing their doors even before the first biennium.
For a venture to be successful, strategic management is essential. It is necessary to anticipate trends, analyze competing companies, do research on the best investments, the target audience, the best suppliers, etc. Without it management becomes blind, vulnerable and left to fend for itself.
Business intelligence must be exercised in two ways. You need to know the nuances of business inside and outside of it.
These internal and external monitoring help define organizational strategies and allow them to be revised as needed. Knowing the reality of the company from the inside out, it is possible to anticipate events and minimize the risks inherent in an increasingly competitive market.
Business intelligence, through the use of information obtained in the analysis process, will allow changes and all other adjustments necessary for the growth and development of the organization.
Thus, it consists of a continuous process of obtaining, selecting and using external and internal information and certifying its reliability. This data can be useful, for example, in making decisions about producing new goods based on consumer preferences, investing in a particular segment, increasing marketing efforts, establishing new partnerships with suppliers or other companies, etc.
Business intelligence in practice
Business intelligence can be applied in different ways. Managers and business leaders must make a series of decisions on a daily basis. And your choices need to be assertive to avoid future problems or the loss of good business opportunities.
Thus, prior knowledge of information about the economic outlook and the reality of the company itself (its strengths and weaknesses) will enable the adoption of strategies for business development, as well as for strengthening the brand and improving the financial result.
Business or market intelligence is also essential to the pricing process, which is nothing more than the determination of the final cost of the product, observing variables such as quality, consumer market demands and competitiveness.
Benefits of business intelligence
There are many advantages to using market intelligence, but the main ones are:
- Subsidize strategic planning
Business or market intelligence, among the many purposes it seeks, serves as the basis for defining strategies that drive the business.
The data collected can be either quantitative or qualitative in nature. Both are essential to the success of the venture’s strategic plan. This information can be measured and compared using appropriate metrics and indicators. It is possible to measure the quality level of the most different data (customers, products, competitors and other relevant factors).
This control serves to make planning even safer and more focused on business goals and objectives.
- Allow anticipation of actions
Through business intelligence it is also possible for the manager to anticipate actions, taking a more proactive stance and avoiding becoming reactive to everyday problems. The complexity of the economy calls for early preparation and rapid solutions to emerging demands. Without it, the company risks succumbing to competitors.
- Make safer predictions
Analyzing the business scenario in which the company operates, collecting data and making comparative studies, it is possible for the manager to make more reliable forecasts and take original actions to solve the problems that arise. Early knowledge of reality also enables more agility and enhances the ability to take preventative measures to ensure business integrity in the face of potential difficulties.
- Effective risk management
As it is the process of obtaining, analyzing and tactically using the data found, business intelligence helps in the effective management of organizational risks, whether negative (threats) or positive (opportunities).
Thus, it provides the adoption of strategies compatible with external changes (resulting from government actions, economy and market structure) and internal changes (loss of talent, change in sector structure, increase or decrease in sales, etc.)
Business intelligence is an increasingly recurring subject in the daily life of companies. To broaden its results, better manage its risks, strengthen itself in the face of competition, etc., it is certain that business activity is complex and, as such, needs to be exercised with professionalism and seriousness. Thus, success will be soon ahead, at the next turn of the road.