Business Intelligence and Analytics Introduction to Business Intelligence and Analytics Business intelligence or simply (BI) is a technology-driven step by step process used both in data analysis and presentation of actionable information to assist corporate business managers, executives and other end users in making more informed business decisions.
Therefore Bl encompasses an extensive variety of applications, tools and methodologies that enable organizations and Enterprise Resource Planning system to collect data from internal systems and external sources.
Moreover they develop and run queries against the data, prepare it for analysis, create reports, data visualizations and dashboards to make the analytical results available to operational workers as well as corporate decision makers. Importance of BI and analytics to Enterprise Resource Planning system Basically, the potential advantages of business intelligence and Analytics programs include optimizing internal business processes; accelerating and improving decision making; driving new revenues; gaining competitive advantages over business rivals and increasing operational efficiency.
BI systems can also aid companies to identify market trends and spot business difficulties that need to be addressed. However, Enterprise Resource Planning solutions have become the cornerstone for not only making data acquisition but also on other related operations more efficient. But as most enterprises Resource planning come to learn quickly, simply making sure that there is ERP system solution installed is not much use. The necessity of the hour is to influence business intelligence tools to enable the data work. Here is how Business Intelligence and Analytics help an Enterprise Resource Planning system become more powerful;
Guesswork and approximation elimination With the Business Intelligence and Analytics tools in place, Enterprise Resource Planning will be powerful since there will be no more have to work on “gut feeling” for significant strategy decisions. Business intelligence and analytic system provides the capability to mine correct information right from the data, and understand relevant trends and patterns. BI Systems provides direction to data strategy and migration efforts Most societies and their ERP consultants incline to focus on simply transferring old data from a legacy system to the new ERP system. Like it is known in the computer language that “garbage in, garbage out,” it is important to make sure that the data in the new system fully supports new business intelligence capabilities (Eric Kimberling-the Panorama Consulting).
With the right Business Intelligence and Analytics strategy, ERP Systems becomes powerful since there will be reduced amount of useless information and data transported over to the new system during the data migration stage. ERP system becomes powerful since there will better access to historical sales information and consequently greater insight into the business and other areas of profitability. The Legacy data This is another vital aspect of an ERP, The data left over from previous process or software.
While companies and ERP System know the importance of legacy data, Most of them are usually at a loss in term of gleaning insights from it. Again, it is only through business intelligence and Analytics tools that a correct analysis can be made hence making the ERP systems more powerful.
Data warehousing Even a reasonably sized ERP system solution tends to generate tremendous quantity of data on a daily basis. However, if this data is not processed and tagged alongside, one will be likely to end up with a huge data store that is of limited practical use.
Hence ERP system gains power as these calls for more proactive data warehousing that is achieved under the domain of business intelligence and analytics. Real time data allows for fast decision-making in ERP system One of the most noticeable benefits of BI and analytical software that integrates with an ERP system is the ability to give managers significant real-time look at the data they require in making intelligent decisions in both short and long terms.
For instance, a production manager in a particular manufacturing environment will need to keep a close watch on the floor’s scrap rate. Therefore, with a quick glance at the dashboard, s/he will be in a position to see the floor’s scrap degree in real time, subsequently workers will be entering that information and data as it occurs. In any case the rate reach an intolerable level, the production manager can easily halt the process and find out the root cause before wasting too much time and material.
Hence, this BI and analytical system can then be applied to long-term analysis to aid identifying trends and opportunities for process improvement. Going beyond traditional reporting Another area where BI and analytical system can have a transformative effect on Enterprise Resource Planning system is in reporting. Modern BI system goes beyond the elementary reporting functions used in the past by generating more dynamic environment for the users to manipulate data as needed.
Usually, reporting was a static process – corporate leaders could get a snapshot of where a particular data set stood at the end of a precise day or week. Bl system puts all of the gathered data at the user’s fingertips giving ERP system more power of making sense for each individual stakeholder and real-time look at data without need of having to pull it out of the system. It also brings a high level of consistency especially to the reporting process.