Learn about how businesses, large and small, can benefit from business analytics.
Modern business organizations are making use of highly developed business analytics techniques and technologies to deal with massive amounts of data. It helps them set up a reasonable advantage by obtaining the proper information at the best time. Use this to your advantage. This will surely become a successful business strategy. Correct data administration can provide insights to an entrepreneurial boom. Business proprietors, corporate managers and entrepreneurs must strive to become analytical. Understand your customers and make the proper decisions. Business goals should be more expansive and strategic. Meanwhile, try to optimize your prospective courses of action. Companies need to pursue business analytics.
Usefulness of Business Analytics
Most business owners ask the following question: Why is business analytics functional for a company?
To begin with, analytics is composed of highly developed artificial intelligence and techniques in statistics that ensure valid insight in connection with company data. Considering that the quality and size are good enough, it is possible to mine for information that may not be available through any other means. Data can unearth numerous customers and the company knows which ones should be targeted.
Then, remember that the data size is too big. The algorithms were built to put together human intelligence and computer technology.
Lastly, cost of BA should also be considered carefully. This includes the money and time required to finish the job; evaluation of qualitative analysis involved in producing with the data on hand and business profits; and, reasonable costing.
An effective analysis should generate a model that may be utilized for an indefinite period and deliver endless returns to scale.
Corporations must adopt a meaningful approach in analytics. A strategic plan must be about looking for the right opportunities for business development, innovation, delineation, and impact in the market. Formulation of strategies should integrate an understanding of analytics. You should be detailed regarding analytical targets. It may be necessary to discover more analytical opportunities.
It has been said that successful enterprises make it a point to practice analytics in various fields especially marketing and forecasting. Two major approaches in business analytics are the following:
- Engage in macro-thinking for your business and trends that affect it as well as demographic shifts, market trends and customer preferences. This involves assessment of performances for potential areas of improvement along with factors that propel performance. This also calls for exploring your intuitions about the business, what makes the product or service click, and possible advances.
- Conduct an organized inventory of primary business processes. This includes the methods for decision-making and actual business decisions which can benefit from business analytics.
There are several tools that you can use for big-picture thinking in connection with your business. There are performance drivers and corresponding opportunities for segregation. Use tools in analytics that the organization is comfortable with. Said conduits can analyze core processes one way or another to discover how activities contribute to overall business results. Possible targets for business analytics differ according to industry dynamics. It also depends on how companies put values in the market.
So-called value chain businesses may prefer to concentrate on issues such as supply and demand variability, asset costs, adaptability of operations, and interaction with others within the supply chain. Value-based analysis has two valuable functions. It assists you in concentrating on primary business goals as well as ways that analytics can help. At the same time, it recommends venues that you can find outside the industry for novel examples of analytical applications. You can try other industries with the same type of value that you advocate. Appropriate models include institutions with parallel business problems but in different frameworks. Their analytical applications are easier to recognize. These are also relevant and not difficult to transfer.
It is possible to find analytical opportunities by reviewing your business decisions regardless of connection with clear business processes. Find out how information and analysis can produce better results. These are some of the conditions to search for:
- These are complicated decisions with many variables and stages.
- Simple decisions where constancy is needed or mandated by law like unbiased credit and lending.
- Places where you should optimize the process or activity entirely particularly in the local scene.
- Decisions that entail understanding the significance of connections and relationships.
- Places where there should be better projections.
Aside from Big Data, there are significant biggest technology developments together with needs of modern customers up to the next five years. These drive the requirements for business analytics. Trends in mobile, agility, cloud, social collaboration, integrations, and in-memory are important.
Proper tools should be available. However, these should not be limited to browsers connected to servers and accessible through desktop computers. It should be more of a mobile experience in tablets and smart phones. Content providers must be more accessible globally in all devices. Users prefer customizing experiences in mobile analytics experience. What is the meaning of all these? People would like analytics and intelligence if necessary.
Collaboration and Social Data
Would it not be great for you if there can be mutual work groups and discussion forums similar to the one featured in Facebook? Imagine if these can be incorporated to your Business Intelligence system. This is considered phenomenal for jobs in customer service and support facilities. Everybody can work online rather than try to locate 20 employees from various departments to address a customer issue. A single group can have access to all applicable information required for a specific task.
Corporate organizations are looking for solutions hosted on cloud for complete flexibility with regards to deployment. This increases the use of part or all solutions at a speed that the customer desires. Cloud has emerged as a choice that must be available for all degrees of operation while existing with on-premise platforms. The boundary between on-premise and on-demand is fading as cloud services likes in-memory apps integrate with current business intelligence use.
Computing (in-memory) maintains a considerable influence on business analytics. A lot of enterprises employ business analytics solutions. These are designed for creating reports, inquiries and dashboards on multiple data sources. It ranges from SAP Enterprise Resource Planning to generic databases which include Oracle, SQL programming server and DB2 database software. The convolution of said data sources makes it relatively demanding to optimize solution performance.
Companies can facilitate real-time analytics scenario where users will go through a significant improvement in their capacity to observe and explore information. This can be done by transferring information from several incongruent sources into a single database (in-memory). Consider the effect of providing an extra 10 minutes of productivity back daily to an organization with 100,000 workers. This translates to 1million minutes of added work capacity produced each day.
Software tools make available enhanced customer insights. These implements can also offer crucial analysis to guide business owners in making decisions. As big data turns out to be more prevalent, the price of software also becomes more reasonable. On the other hand, the usage of Big Data is gradually increasing. Even small and medium enterprises are gaining access to enormous data that was once limited to industry major players. For instance, only 1.7 percent of small companies used business intelligence software in 2010. This number has already increased to 9.2 percent in 2013.
This is called by many as an intelligence explosion although it still remains in the early stages as far as the business intelligence software sector is concerned. As software tools continue to become more efficient in terms of intellectual tasks, the programs can start to surpass human beings. Indeed, this is another opportunity for profit and new business growth. The use of software can help employers to bring down operational costs as well as incidence of human error. The growth of information leads to more clever business decisions in real time.
Fortune 500 corporations are now starting to develop their own business intelligence software or hiring experts to perform said tasks. These are used to create new jobs, industries, and better approaches to business. In fact, the current projection is that cloud-based applications and business intelligence will inflate to $95 billion in 2015.
According to IBM, cloud, analytics, mobile, and social apps have three clear-cut impacts on small and middle enterprises:
- These transform unique ideas to actual merchandise or service promptly by eliminating large outright capital investments in terms of technology and manpower.
- These enable entrepreneurs to scale up or down fast in responding to evolving client demands.
These take away geographic limitations and open up new markets that were not accessible in the past.
The number of small businesses utilizing intelligence software and is expected to continue growing rapidly
Enterprise Resource Planning
Enterprise resource planning has become a buzzword in the IT sector. ERP refers to the business management software that enables corporate organizations to utilize integrated applications system. It automates back office functions associated with technology, services and human resources. The software also incorporates different aspects of an operation which cover product planning and development, manufacturing/production, marketing and sales.
What are the expectations?
- There should be complete integration capability. The software must integrate multiple systems such as financial and marketing. Time and valuable resources should not be wasted on integration. They can input data and use this in different places. Besides, the process of systems upgrading needs to be simple.
- Using SAP or Oracle ERP makes business operations more efficient which are essential in a fast changing and highly-competitive atmosphere. In an enterprise, change is not only a possibility or probability. It is inevitable. This covers extreme levels of customer service, production, reduction of costs, and stock turnover. More than these, the software should provide impetus for effective supply chain management and electronic commerce.
- The ERP has to provide a distinct format of sales statistics instead of having separate figures for marketing, finance and administration. Enterprise resource planning also regulates production or manufacturing procedures. There are plus points for businesses that standardize methodologies and make use of a single computer system. CEOs want their respective companies to save time, boost productivity, productive collaboration, and schedule production across multiple production units and work sites.
- This program should also systematize HR information which is very beneficial for multi-site companies. An amalgamated method for monitoring employee time and conveying benefits is particularly useful. This advocates a sense of equality among the employees and streamlines the company as well.
- The concept of Enterprise Resource Planning’s integration is to combine systems and resources in enterprise information. The ERP systems like Oracle and SAP were developed to join together processes in a particular enterprise. This consists of planning, sales and manufacturing. However, the more recent products also cover human resources, marketing, customer service, finance, and inventory management.
Company executives believe that growth areas in the Enterprise Resource Planning market should be more advanced than, and as efficient as, cloud-based systems which are more responsive to their needs for changing business models.
SAP & Oracle ERP
SAP and Oracle are definitely the market leaders. However, as the market and industry continue to evolve, more innovative products are necessary.
These products should be based on fundamental drivers which are:
- Business Processes
- Systems Technology
- Technological Upsides or Benefits
- Software Vendors
- Monitoring and Reporting
- Cost of Ownership
However, this dissertation will first present the legacy created by the top two ERP software providers.
SAP and Oracle are the pioneers in this field. However, the capabilities of other providers such as Microsoft and Net Suite have demonstrated features that can respond to the expectations of clients in terms of Enterprise Resource Planning. Chief executive officers, chief information officers and chief financial information officers will most likely prefer applications that will provide them with inputs and systems for more informed decision making. Then, it will not be an ill-advised move to veer away from the traditional solutions. All that matters is to make company operations more efficient and cost-effective.