Contents
- What is a BI system?
- Why are BI systems needed?
- What types of BI systems are there?
- How to choose a BI system?
- How to implement a BI system: tips and mistakes
What is a BI system?
A BI system, or Business Intelligence system, is a set of powerful tools and software designed for collecting, processing, and visualizing data from various sources. The main task of such a system is to aggregate large volumes of information and present it in a user-friendly format — graphs, charts, and tables. This allows organizations to identify trends and issues in business processes, which, in turn, serves as the basis for making informed management decisions.
For example, if it is necessary to determine which advertising channel brings the most orders for a specific product, a BI system simplifies the analysis process. Instead of manually reviewing numerous reports, the system will provide all the necessary data on one screen, quickly identifying overlaps and conclusions. This significantly saves time and effort, allowing focus on more critical aspects of business management.
Why are BI systems needed?
The main functions of a BI system include:
- Collecting and analyzing data from various sources.
- Storing and visualizing information in an understandable format.
- Identifying systemic issues and trends in business.
- Optimizing decision-making processes.
- Saving time for both users and analysts.
By connecting a BI system, companies can provide access to data for numerous users with individual dashboards tailored to their functional tasks. For instance, a marketer can track advertising performance metrics, while a logistics manager can focus on inventory levels in warehouses. This allows each specialist to obtain relevant information without having to wait for reports from analysts.
What types of BI systems are there?
Depending on various factors, BI systems can be classified as follows:
By physical data location:
- Cloud (SaaS): Suitable for users willing to host their data on cloud servers.
- On-premises servers: Preferred by clients who cannot afford a leak of confidential information.
- Rented servers: Ideal for companies that do not wish to invest in their own equipment.
By cost:
- Free: Some vendors offer basic versions of their systems for free, such as Yandex Datalens.
- Freemium: Costs depend on the type of usage, as in the case of QlikView.
- Paid: Most systems are offered for a fee, but there is a possibility of free trials, as with Klipfolio.
How to choose a BI system?
The choice of a suitable BI system depends on many factors, including the scale of the business, its direction, and the qualifications of employees. When selecting, the following points should be considered:
- Ease of use for end users.
- Training for employees and time to learn the system.
- Availability of specialists capable of maintaining the system.
- Specific business requirements and the possibility of mobile access to data.
It is important that the system meets the needs and demands of the company. If the BI tool turns out to be too complex, its advantages may be lost due to constant inquiries to the IT department for assistance.
How to implement a BI system: tips and mistakes
Implementing a BI system can vary in complexity depending on how the company has previously worked with data. Key steps include:
- Assessing the current state of data management.
- Defining clear needs and goals for implementation.
- Selecting suitable software and hardware.
At the same time, it is important to avoid common mistakes, such as:
- Starting the implementation without a clear understanding of business needs.
- Delegating all implementation processes to the IT department without involving other stakeholders.
A proper approach to implementing a BI system will significantly enhance the efficiency of data analysis and usage within the company, which in turn will lead to more informed business decisions.