Business Intelligence and Cost reduction

It has been proven that the implementation of a Business Intelligence system leads to an associated cost reduction , thanks to the increase in the performance of the organization's ICT infrastructure.

Business intelligence

The Business Intelligence (BI) techniques allow to improve the performance of the organization by obtaining information, which will revert to the profitability of the business and will allow to focus maintenance efforts and take advantage of new opportunities.

As we can see, the great flexibility that Business Intelligence marketingmediaweb  offers , supposes a wide range of benefits. However, we have grouped them into four main categories:

1.            Cost reduction

2.            Increase in income

3.            Improved decision making

4.            Improvement in internal management

Cost reduction

It has been proven that the implementation of a Business Intelligence system leads to an associated cost reduction , thanks to the increase in the performance of the organization's ICT infrastructure.

In addition, there is greater employee productivity, which has a greater divinebeautytips  availability of quality information. However, quantifying the benefits is difficult from an economic-financial perspective.

Therefore, we are going to break down the benefits that a BI system offers in reducing costs to better understand its potential.

Improved operational efficiency

Offering users, both internal and external, access to information in real time allows them to respond quickly and efficiently without increasing operating and maintenance costs.

To this must be added that the availability of updated data reduces the degree of uncertainty in a decision, and makes it easier for users to nanobiztech detect possible errors, increasing the quality of the information collected .

BI helps with business reporting

As information technology has grown rapidly in the last decade, there has been an increased need for companies to collect their operations, finances, and other information in one document , preferably on a computer that can be easily accessed and edited.

Business Intelligence Systems helps you create these techcrunchblog  documents by querying information from difficult logic models - for example, human resources and capital improvements - to create a single readable document . These company reports mean to provide a large amount of information about the situation of the company at the employees' fingertips. BI allows users to design their own reports, which enables companies to redirect programs previously intended for this function. This factor represents significant savings in the necessary human resources, since the staff can be assigned to projects that add more value to the company.

Negotiation with clients and suppliers

There are a wide range of important aspects to consider when negotiating contracts with suppliers and customers . For example, by analyzing the performance of a supplier, on issues such as shipments or changes in prices, you can get an excellent position when it comes to discussing the details of a contract, as well as the possibility of negotiating the globalmarketingbusiness   volume of the discounts offered. Likewise, the fact of identifying the consumption patterns of a client can improve the offers that we can propose.

Error analysis

If any of our sections are performing poorly compared to the others, identifying the root cause and implementing best practices or solving the problem can be key to the business.

Some of the reasons that can lead to poor performance are improper management, a regional market trend, or sales strategy . Thanks to BI, it is possible to identify the causes of problems and apply best practices accordingly, simply by asking "why?" The process begins by analyzing a high-level report, for example, sales in each of the country's geographic regions. Each answer obtained is followed by a new question, and users can then drill down to a specific report until they find the root of the problem. Once the causes are better understood, more effective action can be taken to fix the problem.

Identify wasted resources and reduce inventory costs

BI can be a key tool when calculating costs for a company, in order to identify hidden costs or missed opportunities. Through this process, it will be possible to improve the business from its base, since it will be possible to allocate resources to highly profitable products, clients and projects . In turn, having a clear understanding of the success of promotions can help us effectively monitor inventory levels.

Boost the return on investment in ERP's or data warehouse

Keep in mind that users with a low technical level find it difficult to get the most out of the data without a good reporting and analysis tool. BI can help them unlock company information , thereby improving understanding and performance of their functions.