Robbie Morrison, CEO of Velosio, is a technology leader with 30+ years of experience driving business success through innovative solutions.
Business leadership is not for the faint of heart. It requires a blend of vision, courage and pragmatism to steer a company toward success.
Leaders often face decisions that are not only difficult but can have far-reaching effects on their teams, their companies and sometimes even their industries. With any tough business decision—such as pivoting the direction of the business, turning down opportunities that don’t align with the long-term strategy or values of the business or promoting the right people—you can be more confident in data-backed decisions.
Think about the Covid-19 pandemic when there was so much business uncertainty. Many businesses were trying to determine which segments of their customer base to focus on during this unprecedented time. For example, many thought that the healthcare market was going to erupt, but data showed that as the virus spread rapidly across the globe, and while healthcare systems faced a surge in demand for medical care, they were simultaneously grappling with supply chain disruptions, staffing shortages and financial pressures.
At Velosio, we discovered that our initial assumption—that emerging organizations would reduce IT spending—was incorrect. Instead, these organizations were investing in technology that would support a remote workforce. In response, we doubled down on our efforts to support these technology initiatives. This analysis and pivot not only allowed us to better serve our clients’ needs but also allowed Velosio to grow.
Key Benefits Of Implementing Robust BI And Analytics Tools
For business leaders, the ability to make informed decisions quickly and effectively can be a game changer for the business. In a study conducted by Forrester, 90% of surveyed leaders said data and insights have an indispensable role in their organization’s day-to-day work activities, yet less than one-third, on average, are actually analyzing available data for insights.
This is where business intelligence (BI) and analytics tools come into play, offering a competitive edge and an untapped goldmine of information to those who leverage them. The McKinsey Global Institute found that companies using data-driven strategies see productivity gains of 5% to 6% compared to their competitors.
Here are the key benefits that robust BI and analytics tools bring to a business:
1. Data-Driven Decision Making: With BI tools, businesses can transform data into actionable insights, enabling them to make decisions based on evidence rather than intuition.
2. Enhanced Efficiency And Productivity: BI solutions can streamline data processing, reducing the time spent on data collection and analysis, thus boosting overall productivity.
3. Improved Customer Insights: Analytics can help in understanding customer behavior and preferences, leading to better customer service and tailored marketing strategies.
4. Increased Revenue: By identifying and acting upon opportunities quickly, businesses can capitalize on market trends, leading to increased revenue and growth.
5. Cost Reduction: BI tools can help identify areas where costs can be cut without compromising on quality or performance.
6. Strategic Planning: Long-term planning can be supported by historical data analysis, providing a solid foundation for future business strategies.
Where Do You Start?
It’s hard to know where to start if you’re not yet leveraging data for decision making. The implementation of BI and analytics can seem daunting due to perceived complexities and costs. It’s helpful to first identify specific pain points and opportunities and design analytics solutions around them that deliver tangible value.
For instance, start with data from one business system or business unit. Evaluate the current state of your data management. Do you have a centralized system, or is your data scattered across various platforms? Is your data reliable and up to date? There are numerous BI tools tailored to different business sizes and needs. It’s important to select a tool that is scalable, user-friendly and within your budget.
One of our clients in the horticulture industry started by analyzing business data from their enterprise resource planning (ERP) system and, after initial success, will soon add customer resource management (CRM) and payroll data—and eventually point-of-sale data. Their goal is to make sure that when they report a number, that number is the same for sales, marketing, finance or accounting.
The number that the CEO sees should be the same as what the salespeople or marketing team sees. By ensuring the number is the same for everyone, it allows for transparency across departments and a shared understanding of what that number truly represents.
Choosing The Right BI And Analytics Tools
BI and analytics tools are no longer a luxury reserved for large corporations; they are a necessity for businesses of all sizes looking to make data-driven decisions. Choosing the right BI tool for your business will depend on various factors, including your specific data needs, budget constraints and the technical expertise of your team.
When vetting potential tools, look for those with integrations that help you access data across the enterprise to make decisions faster. For instance, my company uses and supports clients with tools that enable enterprise-grade ingestion and semantic modeling, like Microsoft Power BI and Microsoft Fabric. For full disclosure, my company, Velosio, is associated with Microsoft.
Conclusion
The integration of robust BI and analytics into business operations is not just a luxury but a necessity in today’s data-driven world. It empowers businesses to navigate the complexities of the market with confidence and precision. The latest research shows that data-driven companies are more agile and outperform their peers by embedding data into every decision and process. And by investing a little upfront into a BI and analytics tool, you can gain long-term benefits.
