In the era of Industry 4.0, the importance of Business Intelligence lies in managing the flow of digital information. That is, in the complex process of data collection for its integral analysis.
This is how BI provides the ability to create reports, graphs and comparisons in real time for decision making. It is a determining tool of the globalized system, by means of which it is possible:
- Make a joint analysis of internal and external information from various sources and systems.
- Data-driven forecasting and forecasting with Artificial Intelligence
- Enhance the capacity and depth of analysis and comparisons.
- Detect opportunities after understanding the Big Data collected.
- Assess the risks of the different scenarios to develop action plans.
In short, BI leads to objective and informed decision making. It is a means that leaves intuition aside to assertively seek efficiency and effectiveness based on information.
Competitiveness highlights the importance of Business Intelligence
The importance of Business Intelligence comes from the same competitive dynamics of the digital environment. This is all part of “Industry 4.0”, which relies on the technological systems of this era.
- Core technologies. These are emerging technological systems, such as 3D printing, Big Data, artificial intelligence, collaborative robotics, virtual reality, among others.
- Internet of Things (IoT). These are interconnected technological systems for process automation.
- Cyber-physical systems (CPS). Synergy between the physical and cyber worlds through integrated monitoring and control systems.
- Smart Factories. They are systems of interconnected networks of machines, communication mechanisms and computing power.
In this technological context, BI is indispensable for a management that sustains and drives organizations. It is an interactive processing where all the elements of the market are clearly visualized.
Benefits of Business Intelligence
The implementation of these information systems provides several benefits, among which the following are worth mentioning:
- Creation of a virtuous circle of information. Information generates knowledge that allows better decisions to be made, which in turn translates into better results that, at the same time, produce new data.
- Expansion of the organizational vision. A unique, conformed, historical, persistent and quality approach to all relevant information is achieved.
- Integral management. An evaluation system is established with metrics, key performance indicators (KPIs) and key target indicators (KGIs) that are fundamental to the company’s performance.
- Clarity of the environment. A better understanding and documentation of the value chain in which it is immersed is achieved, in order to be competitive.
These benefits are also obtained in real time, which facilitates immediate action by the organization. This model leads to the maturation of management from a globalized digital point of view.
Revealing statistics on the global flow of data and information
Data and information are so crucial for organizations that just a glance at the statistics is enough to convince even the most incredulous.
- 90% of the world’s data has been generated in the last two years.
- It is estimated that most companies analyze only 12% of the data they collect.
- There are more than 50 million connected smart devices in the world, collecting, analyzing and sharing information.
- The cost of erroneous data amounts to USD 3.1 billion per year.
- Data investments in the financial services industry represent almost USD 9 billion.
- Artificial intelligence is predicted to impact marketing to grow to USD 40 million by 2025.
- IoT will save consumers and businesses USD 1 trillion a year over the next five years.
It has been proven that BI is a determining tool for organizational success in the present and in the future. An analytical evolution that Industry 4.0 has established within good management practices.
The importance of Business Intelligence in general
We can conclude that, at present, the importance of Business Intelligence lies in the reduction of uncertainty. That is, in the mitigation of doubts that may exist at the time of making decisions.
In the medium and long term, Business Intelligence achieves:
- Reduce costs
- Generate revenue
- Reduce process time
The simple fact of having valuable information available allows decision making at all organizational levels to enhance overall competitiveness. Information continues to be a company’s greatest strategic asset.
