Role Of Business Intelligence (BI) In Today’s Enterprise?
Business Intelligence (BI) is a complete software suite that takes data from multiple software and translates it into meaningful consolidated metrics, enabling better decision-making and driving profitable business actions. A BI Software helps transform the operational data into actionable knowledge and intelligence. BI allows organizations to monitor the Key Performance Indicators (KPIs) & initiate course-correction in case those KPIs are not where they should be. While today some ERPs are coming in with their own built-in BI tools, most ERPs use Third Party tools for BI. Let’s first discuss the value of integrating a BI Software with an ERP System.
Importance of BI in ERP Systems:
BI plays an extremely critical role in ERP systems by providing a bird’s eye view of the entire business in an easy-to-understand format along with predictions, analysis, trends and extrapolations. Some of the key elements of BI are:
- Data Analysis: This is the core element of BI where the large store of data collated from all functions in an organization is used for analysis and to guide management decisions.
- Data Legacy: With an effective BI Tool, the correct analysis of data can be made of the legacy data collected from previous processes or software as well. This analysis of legacy data without an effective BI Tool becomes extremely difficult otherwise.
- Faster and Informed Decision Making: If the right Business Intelligence tool is in place the organizations need not rely on assumptions for taking important decisions. BI helps organizations to interpret relevant trends and patterns from the collected data and enable the management to take quick & well-informed decisions.
There is no doubt that in today’s world of rapidly changing business dynamics, increased competition and discerning customers, BI is one of the most critical technologies for running a business of any size. The integration of BI with an ERP system forms the perfect collaboration for applying BI techniques and taking important decisions for running a successful business.
The Importance of Business Intelligence in ERP systems is that it enables an enterprise to analyse and leverage on the vast amounts of data being captured by the ERP Software as well as other Software running in a company. The BI Solution takes the data, analyses it and presents it back in a manner that can be used, rather than leaving the data locked away within various software, i.e. the information is now in an actionable and easy to interpret format.
Difference between BI & ERP
Today almost all types of organizations are incredibly data rich, but most of them really don’t know how to action this data and make it useful. The data comes to them from various software being used within the company including ERP.
When an organization needs to process orders, generate invoices and wants to store transnational data they use an ERP software. Most ERPs are strong on Transnational Reports and while they have some level of analytics built-in, they lack the Analytics offered by BI tools.
A BI software therefore makes the business agile, proactive, forward thinking and customer-centric. Overall, one can say that an enterprise can enhance the power of an ERP System with the help of an integrated or third Party BI solution.
An ERP System with an integrated BI Software will yield all the information in one intuitive platform required for a business to take faster and better-informed decisions. ebizframe ERP is one such ERP System which comes with a powerful BI Tool. It is being used by 1,100+ clients across 25+ countries worldwide. To know more about how you can leverage the power of ERP and BI, please write to us at: [email protected]