Businesses using business intelligence are normally those big ones. It mostly comes from the banking, telecommunications, and retail industries. This happens because core applications for the BI system are very costly. However, technology these days has given small and medium enterprises (SMEs) the chance to avail the service of BI with out costing so much. They might not have large amount of data coming from their company, but still, these information need to be managed properly and correctly to ensure the success of their business. BI system is used to extract, identify, and analyze data such income sales by products or by associated expenses and income.

For small businesses, there are business intelligence systems that most closely fits them since most owners can’t spend the money for core BI vendor solutions. The applications that small businesses can make use of are In House BI SME solutions and Saas BI on-Demand solutions. Tools used by small businesses for BI include dashboards, scorecards, analytics, and data mining. These tools provide a total BI solution with interactive and graphical capability that is efficient for business reporting and typical periodic reporting.

So as to push the value of small as well as other companies, business intelligence can be utilized to 5 business purposes. First one is measurement. In this program, a hierarchy of performance metrics as well as benchmarking is made. The created performance metrics and benchmarking is used to inform the business owners about the progress made toward achieving their objectives. Second is analytics. This program comes up with quantitative processes in order for the business to have the best decisions and to be able to perform business knowledge discovery. Analytics is normally comprised of data mining, process mining, statistical analysis, predictive analytics, predictive modeling, business process modeling, and complex event processing.

The third business purpose where business intelligence can be applied is reporting or enterprise reporting. It is not for operational reporting rather for the strategic reporting and serves as the strategic management of a business. Included here are data visualization, executive information system, and on-line analytical processing or OLAP. Collaboration or collaboration platform is the fourth business purpose. Through data sharing and electronic data interchange, this program can make the different areas of a business work together, from inside the business to the outside area of it. The last business purpose is knowledge management. The said business purpose makes the data of the company focus on strategies and practices. It is important so that it will identify, create, represent, distribute, and enable adoption of insights and experiences to the business. Learning management and regulatory compliance are results of knowledge management.

Technology has reduced the competition gap between large companies and SMEs. With the improvement of new business intelligence systems suited for SMEs which are inexpensive, the competition became more intense. SMEs can now manage their data effectively without using a tool or system that burned their pockets.

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Posted in Entrepreneur by Noelle Hamilton No Comments Yet