The term Business Intelligence was used for the first time by an IBM employee, Hans Peter Luhn, to indicate the process of collecting data to turn it into information to be used to plan business decisions. Today, the relationship between Big Data and Business Intelligence is strictly interconnected and can bring significant benefits to the company that knows how to enhance it to improve its competitiveness. Business Intelligence is the key that allows management to make concrete decisions based on real and truthful information. With an effective analysis of the data that the company has, the latter can make decisions quickly and in this way it can better pursue its objectives and it can be more competitive precisely because it starts from real values and analyzes on a considerable amount of data. Other advantages deriving from a correct analysis of Big Data are the reduction of risks and costs on the one hand, an increase in revenues and opportunities on the other, because the company can better understand the needs of its customers and propose them an appropriate offer. Moreover, it becomes easier to make decisions because there is a univocal view of the information present in the company and knowledge is shared more within departments and areas.
What interconnections are there between Big Data management, its analysis and Business Intelligence?
In recent times our ability to collect data has increased dramatically, just think of the data produced through social networks, which constitute an information asset for the marketing department of any B2C company. This large amounts of data requires ad hoc tools and methodologies to memorized and analyzed data, and it is through data analysis and its use that Business Intelligence is developing more and more. Business intelligence starts from the analysis of data, or requires it, to improve company offer, management, sales and propose the best response to emerging needs and trends.
What are the advantages of using Business Intelligence techniques for SMEs?
Nowadays any company produces – and is able to collect – various data that analyzed in an appropriate manner, can facilitate business decision-making processes. Unfortunately only 13% of Italian SMEs, as illustrated by the “Osservatorio Big Data Analytics e Business Intelligence” of the Polytechnic University of Milan in its 2016 report, invests in this field, while the large companies invested 785 million € in 2016. For this reason, it is important that SMEs understands the value of Big Data analysis and its benefits and works to create a system for the collection, analysis and use of data. Among the business sectors in which the link between Business Intelligence and operations is more evident, certainly there is marketing department because today it has a greater range of ways of collecting quality data that can allow a detailed profiling of customers for every type of company offer, thus allowing the optimization of marketing campaigns. At the same time, the marketing department, analyzing a large amount of data related to profiled targets in detail, can create proposals to launch products on the market that meet the characteristics of the demand.