Business intelligence increases transparency and cut costs when used effectively. Many enterprises have less room for error, so the ability to use BI for forecasting and predicting outcomes is becoming more important.
BI software can be particularly beneficial for accountants because it enables correlations, segmentation, clustering and regression analysis, according to the Journal of Accountancy. Organizations often have a huge amount of data, and BI can help them make inferences and gain insights. Many managers understand the use of big data analysis to make better decisions, but it is difficult to interpret massive amounts of information without an analytics solution.
Benefits of BI for financial professionals
Business analytics can be a great solution for accountants because advanced software can detect fraudulent activity or irregularities more readily than the human eye. However, many organizations have delayed implementing big data analytics because they believe software is expensive and requires a high level of skill to operate. Smaller organizations in particular hold on to these misconceptions about BI, the source stated. Wider adoption has dropped the cost of some BI software. Analytics software is available at different price levels, depending on the capabilities a company needs. Many of the features can easily be learned by a regular user. Small businesses could gain an advantage over their competitors by leveraging analytics.
By implementing analytics, financial professionals can observe and interpret trends within the company, such as sales and customer behavior by looking at the drivers of profits and costs. Understanding how and why certain things are happening can help companies increase profits.
Organizations can gain better awareness of their customers through business intelligence. Customer relationship management software and BI can be leveraged together. CRM can help businesses retain clients and gain profitable customers. BI can analyze CRM data to define specific customer actions, and sales and marketing teams can have a better response to consumer behavior. BI also enables better trend forecasting, and it can reduce uncertainty. Financial professionals can improve preparation for risk by assessing potential events.
The global market for BI solutions is expected to grow to $19 billion by 2017, according to a report from Research and Markets. This would be a significant growth in the industry. Companies are trying to stay competitive and expand into new markets, and they need sophisticated tools to accomplish these initiatives. As BI software has achieved wider adoption, many organizations are implementing it to retain market position.