Business Intelligence – Critical for Start-up Success
We now live in a time where information equates to strength, and this strength for business owners is business intelligence. A recent research suggested that almost 80% of new businesses fall apart within the first year. The majority of these failures can be attributed to a lack of Business Intelligence (BI) execution. Business Intelligence is the accumulation, delivery and utilisation of intelligent information that may prove useful to the relevant business. An efficient business intelligence tool, along with the inherent acumen for it, can safeguard an entrepreneur from subsequent doom and ensure its longevity. Here is a brief analysis of the key elements of business intelligence that contribute towards a successful business.
An Efficient Business Plan
At the initial stages of formulating a solid business plan, the entrepreneur must undertake a thorough analysis of the related market. This could involve contracting with advisors who are able to offer valuable insights. Considering the reduced costs of specialist analysists and research and development professionals, this task is now easier than ever. Digital business intelligence platforms have made this opportunity more accessible for every entrepreneur. This is the primary aspect of business intelligence that holds the key to a successful business enterprise.
A Thorough Tracking System
A consistent system that vigorously tracks the performance of the market, employees, and overall business scenario is integral in assessing work efficiency and productivity. This system can go a long way in helping business owners to sail through the initial years of business start-ups. Once the initial years are covered through a tracking system, the business is likely to transform into a solid market player in the relative industry.
A Cost-Effective Approach
A superior business intelligence tool can readily promote cost effectiveness through its consistent analysis of where money is being spent and ways in which cash flow can be made more effective. Moreover, through this analysis, one can identify the areas that are burdening the business through their cost and look to remedy them efficiently. This could include payment cycles, invoicing schedules, supply management, and maintenance costs. An entrepreneur can also monitor Return on Investment (ROI) on a regular basis. This safeguards the business from a ‘too late’ scenario where the cash flow disruptions have burnt the company out.
Time Management and Increased Return on Investment
Time management can be classified as an integral element towards increased revenues. An unnecessarily large team increases costs and employees are not utilized efficiently. Consequently, a team that is too small may be overworked and therefore, underperforming. Business intelligence tools assist in comparing productivity with work efficiency and offer insights into the size of the organisation, in terms of its employees. Furthermore, when market research is undertaken successfully, an entrepreneur has a good idea of the amount of potential business opportunities and the expected profitability.
Prediction of Consumer Behaviour
This is another all-important benefit, wherein the right intelligence can provide a meaningful insight into the trends of the market. This may include the buying behaviour consumer choices, etc. This information can lend itself to increasing profitability as products and services can be customized to the needs of the consumer.
Greater Control of Operations
A solid BI investment allows the entrepreneur to exercise control of the operations within the organisation. It creates visibility across the employees, productivity and a thorough view of the business profits and losses. An efficient business analysis will help you analyse progress reports in an efficient fashion with less time consumed. It also helps to track areas that need a certain amount of improvement.
Reliable Data for Productive Execution
With all the relevant information that good BI investment tools provide, it is easier to execute strategies and improvements in the targeted areas. Every execution is then a conscious implementation based on reliable information that will prove to be profitable. Even business development can be executed with a solid background rather than blind investments that may or may not pan out to be successful. Moreover, the reports of consumer behaviour and market trends go a long way in making intelligent choices, along with competitor strategies.
As listed above, the benefits of BI are significant enough to drastically affect the profitability of new businesses. Even seasoned businessmen rely heavily on efficient BI tools. Companies use BI across all levels of management and therefore, this is a holistic way to improve profitability. Start-ups must look to invest in professional analysts along with solid BI tools to reap the benefits of this platform. There are various organisations that look to train entrepreneurs in areas of BI that subsequently go a long way in the company’s success.