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In a world where data is being called the ‘new oil’, a recent case study shows how business intelligence (BI) can help companies to operate successfully in a highly dynamic market environment. Last year, a leading retailer revolutionised its inventory management by using BI tools. By combining real-time data from different stores and online channels, the company was able to accurately predict demand and avoid stock shortages. The result? A 20 per cent increase in sales and a drastic reduction in excess inventory.
Examples like these illustrate the power of BI. They show how companies that use data intelligently can not only become more efficient, but also respond more quickly to market changes. BI tools enable companies to penetrate complex data volumes and gain insights that are relevant for action. For executives and decision-makers, this is an invaluable resource for determining the direction of the company and achieving sustainable success. In an age when flexibility and speed are crucial to business success, no company can afford to leave the potential of BI unexploited.
What is Business Intelligence (BI)?
Let's start by clarifying the basics: Business Intelligence (BI) refers to technologies, applications and processes that help companies to gain valuable insights from the data they collect. These insights enable companies, for example, to make informed decisions, analyse their performance and take strategic action. BI encompasses a wide range of tools and techniques that collect, prepare, analyse and visualise data in order to improve the decision-making process.
Typical examples of how companies use it include:
Customer segmentation and analysis: Companies use BI to divide their customers into different segments based on demographic data, purchasing behaviour and preferences. This enables targeted marketing campaigns and personalised offers.
Financial analysis and budgeting: BI enables the finance department to perform detailed analyses of income, expenditure and financial risks. Dashboards (as part of visualisation) provide an overview of key financial figures in real time, enabling more precise budgeting and planning.
Optimising the supply chain: Companies in the logistics and manufacturing sectors use BI to make their supply chains more efficient. By analysing data on stock levels, delivery times and transport costs, they can avoid bottlenecks, reduce costs and improve delivery times. The forecasts required for this are the favourite problem of artificial intelligence, which is why companies such as Pacemaker are relying heavily on this technology. The increased sustainability that is increasingly being demanded by organisations through ESG guidelines is equally beneficial for the environment as it is for companies.
BI is therefore an essential tool that helps companies to gain a strategic advantage from data and achieve their business objectives.
What is the difference between business intelligence and business analytics?
Business intelligence and business analytics (BA) are often used interchangeably. This is because both terms refer to the use of data for decision-making. However, despite their similarities, there are significant differences between them that play an important role in practice.
BI and BA – two sides of the same coin
Business intelligence and business analytics have a common goal: they help companies to make better decisions. But while BI focuses on descriptive analysis, i.e. on what has happened in the past, BA goes a step further. BA deals with predictive and prescriptive analysis. This means that it is concerned with the question of what could happen in the future and how best to react to it. Put simply: BI looks back, BA looks ahead.
Typical applications in comparison
BI is often geared towards supporting operational decisions. Companies use BI tools to combine data from different sources, create reports and develop performance dashboards. These help to understand the current state of the company.
BA, on the other hand, goes deeper into data analysis and helps to predict future trends. BA can be used to determine which products could be the most successful in the next season. This enables companies to adapt their strategy in advance and thus secure a competitive advantage.
Different experts, different tasks
The distinction between BI and data analytics experts lies in their specific tasks and the skills they bring to the table. Both roles are crucial to the success of a data-driven organisation. Let's take a closer look at how their focus and working methods differ.
BI experts create the architecture of the data infrastructure
BI experts focus on building and maintaining a robust data infrastructure. They collect data from various internal and external sources, integrate it into central systems such as data warehouses or data lakes, and ensure that the data is consistent and error-free. This includes setting up ETL (extract, transform, load) processes to clean, transform and load data, as well as ensuring that this data is accessible and up to date at all times.
Another important aspect of their work is the aforementioned data visualisation. BI experts develop dashboards and reports that enable management to easily grasp critical information at a glance. These visualisations must therefore be particularly understandable and user-friendly to ensure that decision-makers recognise critical issues and that no important information is lost. Typical tools include SAP Analytics Cloud, Power BI, Tableau or Qlik. BI experts therefore need to have a deep understanding of data models, database management and the corresponding software tools.
Data analytics experts – analysing the future
Data analytics experts, on the other hand, go beyond pure reporting and delve deeper into data analysis. Their job is to recognise complex patterns and relationships in the data that are only visible to the trained eye. They also develop statistical models and algorithms to make predictions and generate recommendations for action. Advanced techniques such as machine learning, neural networks and predictive modelling are used here.
These professionals often work with programming languages such as Python or R and use analytical tools such as TensorFlow or Scikit-learn. Their deep understanding of statistics, probability theory and data science is central to developing reliable and useful models. In addition, they must be able to communicate their insights clearly and concisely to ensure that they can be understood and implemented by decision-makers and other stakeholders.
The wealth of skills and expertise
BI experts need a broad technical knowledge in areas such as database management, ETL processes, data visualisation and business intelligence tools. This ensures that they can navigate complex data landscapes and develop technical solutions that are tailored to the specific needs of a company.
As the profession suggests, data analytics professionals bring with them in-depth analytical skills. They have profound expertise in statistics, machine learning and data modelling. Their ability to extract meaningful insights from huge amounts of data and support future-oriented decisions makes them indispensable partners in the strategic decision-making process.
Together, these two groups of experts create a complete data strategy – one that helps organisations understand the present and proactively shape the future. Their collaboration is a link to sustainable success in a data-driven world.
What are the benefits of BI and BA?
To be more specific, let's look at the advantages that business intelligence and business analytics offer companies. They are much more than just tools for analysing data – they are the key to optimising and sustainably increasing corporate performance.
1. Better decision-making
One of the biggest advantages of BI and BA is improved decision-making. By analysing large amounts of data, companies can identify trends and patterns that would otherwise remain hidden. BI provides detailed reports and dashboards that show the current state of the company. BA then goes further and uses this data to predict future developments. With this knowledge, companies can make informed decisions to strengthen their position in the market.
2. Increased efficiency
BI and BA enable companies to optimise their internal processes. By analysing workflows, supply chains and resource utilisation, inefficient processes can be identified and improved. For example, companies can use BI tools to better manage inventories and shorten delivery times. BA also helps to identify potential bottlenecks or challenges at an early stage and to take action before problems arise.
3. Customer understanding and personalisation
Another major advantage is a better understanding of customers. With the help of BI and BA, companies can carry out detailed analyses of their customers' behaviour and preferences. This enables a personalised approach and improves the customer experience. Through targeted marketing measures based on the results of BI and BA, companies can increase customer loyalty and boost their sales.
4. Risk management
BI and BA also play a significant role in risk management. Analysing historical data and predicting future trends enables companies to identify potential risks at an early stage and develop strategies to counteract them. This ranges from identifying financial risks to preventing operational disruptions.
Conclusion
The advantages of business intelligence (BI) and business analytics (BA) are obvious. They enable companies to make informed decisions, optimise processes and prepare strategically for the future. However, these technologies only develop their full potential through the expertise of BI and data analytics experts.
They not only collect and analyse data, but also transform it into actionable insights. Their analyses are the compass that guides companies through complex and dynamic markets. And without BI and data analytics expertise, the potential of data remains untapped. The best tools and technologies are worthless if they are not used properly. These experts have the knowledge and skills to create real added value from data. They are the ones who turn information into fuel for success or competitive advantage. Every company is a software company these days – take advantage of the expertise and opportunities that business intelligence and business analytics offer you.
