Improving Profitability with BI
Current competitive scenario is driving organizations for finding new ways to reduce costs and increase profits. Business Intelligence can be an extremely helpful tool to achieve this objective. When organizations are equipped to extract crucial facts from operational data and then act upon them quickly, the result is often improved selling efficiency and enhanced profits. The BI tools today are more than capable to support this data analysis and boost bottom lines. Let us ponder over how BI can achieve the profitability objective.
BI tools can be useful in a diverse number of scenarios – figuring out whether or not you are selling to the right customers and what their shopping habits are or seeing what business processes within your company are working well and those that are in serious need of an overhaul.
- Granular understanding of Profitability – Any business must be understand the factors driving its profit to be able to focus their efforts and resources on the most profitable factors. The profitability of an individual product, customer, partner or sales representative will have certain impact on overall profitability. Nurturing the most profitable and helping the less profitable resources to improve will have positive impact on the overall profitability of the organization.
- Aligning business activities with strategy – BI can provide you a complete picture of what business processes within your company are working well and what needs to be revised. The information derived from data analysis can help with clear guidelines in aligning the business activities to move towards the common corporate objective.
- Intelligent Workforce – Empowering the larger workforce with data analytics capabilities can improve the results dramatically. With more people using facts derived from analysis of data greater values can be obtained. Increasing the sheer number of people using BI will drive more efficient use of available data and will convert regular employees into an Intelligent Decision Makers.
- Know Your Customers – KYC programs and using customer information to gain knowledge about them has become a crucial factor to serve the customers better. Valuable insights on this front open up multiple opportunities for businesses. It helps in Increasing the Brand Awareness, Strategically hitting the right audience, Creating customized marketing & sales strategy and Increasing sales. It also guides organizations to know Who are their most profitable customers and how they can be served better to improvise on the bottom lines.
- Identify possible Cost Reductions – A Penny saved is a Penny earned. The available data can be analyzed to find out various areas to save costs. The effective analysis of data permits businesses to improve operational efficiencies, negotiate better with their suppliers and customers, reduce wasted resources and inventory, find out root cause and take appropriate actions etc.
- Accurate Financial Information – Instant access to accurate financial performance information is critical for profitable finance management. With BI we can access customizable data marts to create multi-dimensional views or dashboards of the transaction data information captured in ERP and non ERP data. Once created, these BI reports can be viewed using various functions such as drill-down, charting etc. to analyze the financial investments and decisions affecting finances. These reports can also help in evaluating the contribution of SBU groups, departments, and products.
Profitability in any business is controlled by two sets of people – Those who bring in money and Those who spend it. Though it essentially includes everyone in the company, how many of those earners and spenders – other than the CFO – really understand the numbers enough to actually know what’s going on?
1KEY BI software solutions can change that scenario. Think of 1KEY BI as a comprehensive performance enhancement suite that helps the right people to run the business decisions in a better, smarter, more intelligent, finally profitable way.