What is Business Intelligence?
Business intelligence (BI) is a broad category of computer software applications used to collect, integrate, analyze, and present business information.
BI tools help organizations make better decisions by providing timely, accurate, and actionable insights into their business operations.
Many BI tools are available on the market, each with its features and capabilities.
Some of the most popular BI tools include:
1. Data visualization tools: These tools help users to visualize data in a way that is easy to understand and interpret. Marketers can use them to create charts, graphs, and other visual data representations.
2. Data mining tools: Used to mine large data sets for valuable insights. Marketers can use them to identify trends, patterns, and relationships between different pieces of data.
3. Analytics tools: These tools help users to analyze data and draw conclusions from it. Marketers can use them to predict future trends, optimize marketing campaigns, and make better decisions about product development.
4. Dashboards and Reporting tools: Dashboards are visual displays of information marketers can use to monitor key metrics and KPIs. In addition, marketers can use them to track progress, identify trends, and spot problems early.
Businesses of all sizes and industries can use business intelligence tools. However, they are most commonly used by large organizations with complex data sets.
Businesses relying on digital marketing can benefit greatly from user-friendly BI solutions. BI tools make it easier for marketers to use data to drive actions and campaigns that impact company revenue. However, some businesses are hesitant to start using these tools because they don't have enough experts on data or financial resources.
This should not be a problem anymore because there are now many BI solutions that have low investment costs. In addition, there are solutions available for any budget.
What kind of Business Intelligence tools are there for marketers?
Marketers can use BI tools to gain insights into customer behavior, track the performance of marketing campaigns, and optimize their strategies.
Some of the most popular BI tools for marketers include:
Data visualization tools: These tools help users to visualize data in a way that is easy to understand and interpret. In addition, marketers can use them to create charts, graphs, and other visual data representations.
Example tools: Power BI, Tableau, Qlik, Looker
Dashboard and reporting tools: Dashboards are visual displays of information used to monitor key metrics and KPIs. Marketers can use them to track progress, identify trends, and spot problems early.
Example: Tableau, DataStudio, Datorama, DOMO
Data pipeline management tools: These tools help users manage and automate the data collection, transformation, and analysis process. Analysts can use them to streamline workflows and make it easier to get insights from data.
Example: Fivetran, Supermetrics, Matillion, Databricks
Business Intelligence Market Size
According to Fortune Business Insights, the global business intelligence market was worth $24.05 billion in 2021 and is expected to reach $43.03 billion by 2028.
This growth is being driven by the increasing need for insights into big data, the growing adoption of cloud-based BI solutions, and the rising demand for mobile BI.
The North American region is expected to dominate the market, followed by Europe and Asia-Pacific.
The Cloud analytics segment is growing quickly. It is expected to be worth $65.4 billion by 2025. This is because it is easy to use, flexible, and scalable. Cloud analytics also gathers data from many different places.
To learn more about Business Intelligence tool's like Power BI or Tableau's market share check out my article "Power BI market share - BI jobs demand grows as it dominates the market".
Business Intelligence Usage
Around 26% of people in a company of 100 staff members use BI tools regularly. This number is higher for bigger companies. For example, over 80% of companies with more than 5,000 workers use BI tools regularly. This is because these companies have access to larger data sets that need specialized BI tools to be analyzed.
Organizations use 3.8 different business intelligence tools on average. More and more businesses are using BI tools to help them make better decisions. Companies realize they can get more benefits by using multiple BI tools. This way, they have more options for data analysis.
Although some data gathered by businesses is not meant for analysis, wasting 97% of all data collected is still a huge problem.
Business analytics statistics show that, although there has been an increase in BI adoption, companies still have a lot of room for improvement when it comes to making use of the data they gather.
Budget for Business Intelligence
Many organizations plan to spend more on BI projects in light of the COVID-19 pandemic. For example, 10% say they will increase their budgets, while 55% say they will keep spending at current levels.
The main reason for this increase is that businesses are starting to realize the importance of data-driven decision-making. As a result, they are willing to invest more money in BI to get better insights into their data and make better decisions.
In the past, businesses have been hesitant to invest in BI because of the high cost of implementation and maintenance. However, with the advances in technology, the cost of BI solutions has come down significantly. This has made BI more affordable for businesses of all sizes.
Marketer's Success with Business Intelligence
Here are the five key points that marketers should keep in mind when using BI tools:
1. Know your goals: Before using any BI tool, you need to know what you want to achieve. What are your goals? What do you like to learn from your data? Once you know your goals, you can choose the right BI tool for your needs.
2. Collect the right data: Not all data is created equal. You need to collect data that is relevant to your goals. Otherwise, you will just be wasting your time.
3. Clean and organize your data: Once you have collected the data, you need to clean it and organize it so that it is easy to work with. This step is often overlooked, but it is very important.
4. Choose the right BI tool: Many different BI tools are available on the market. You need to choose the right one for your needs. Consider your goals and the type of data you have before deciding.
5. Analyze and take action on your data: After you have collected and organized your data, you need to analyze your data and take action. They can help you make sense of your data and find patterns and insights that you would never be able to see on your own. Then the most important thing is to apply that learning to your marketing plan, operation, strategies, and tactics.
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