Strategic Business Intelligence
It would not be entirely surprising if a large percentage of small to medium sized businesses were somewhat unable to articulate the concept of business intelligence and how it affects their firm. This does not mean necessarily mean incompetence or willful negligence. It might very well be that these businesses are in fact using business intelligence but have either not identified it or could have identified it under a different name.
The purpose of this article is to give a brief overview of the role that business intelligence can play in the effective administration of an entrepreneurial adventure. In the briefest manner possible, I will attempt to explore some of the broader themes that run through this concept.
Many business people will know their bottom line. Occasionally this is just a case of instinct and talents. Alternative the director may have to attend a course or undertake significant management training to acquire these skills. A good manager will understand exactly how and when to maximize their business profits. Some might even have a very sophisticated outlook on things such as human resource management, contracting and cost based pricing. However the total sum of all the information that a business needs to functional decisions is called business intelligence.
Unfortunately in the current world of fast technology and extreme deadlines, there can be a tendency to ignore or even de-prioritize the business intelligence aspect of an organization’s general fabric. This is really about knowing your market, who and what you are up against as well as the ramifications of some of the decisions you make or choose not to make.
Admittedly it is a tedious process of research and may require a dedicated in-house or external provider to look at the data. There also needs to be a mechanism for storing and sharing the information that has been obtained. However economies of scale and the resultant structural efficiencies will normally offset some of the bureaucratic baggage that comes with some of these high end concepts.
For the prudent manager, technology will play an invaluable role in increasing the speed with which the relevant information can be gathered as well as the accuracy and relevancy of that information. Technology can also be used to disseminate the information and lessons learned in a bespoke way to each unit depending on their own specific requirements. Furthermore the idea of using technological tools will be particularly effective if, as is the case in most instances, the budgets for the business intelligence team are derived from strategic rather than project specific funds.
In conclusion for those organizations that intend to make business intelligence a reality for their day to day activities, it will be important to sell the concept to the key stakeholders such as decisions makers and end users. Resistance will be limited if the people on the frontline can see the results and positive impacts of some of the decisions based on business intelligence. In fact the failure to gain awareness about the issues raised may lead the business to close down due to bad results. I would go as far as arguing that the understanding and use of business intelligence is an essential aspect of a modern business.
Business Intelligence, business strategy, Costing, Functional Decisions, HR Management, Market Segment, Perspective, Strategic Planning, Structural Efficiencies
