Effective management of an organization requires a thorough understanding of its processes. The role of Business Intelligence (BI) is to support a company in collecting large volumes of data and analyzing it quickly. The best results in this area are achieved by integrating this technology into other systems, such as ERP or CRM. As a result, this leads to a significant improvement in the quality of business decisions.
Business Intelligence – what technology does it use?
Business Intelligence uses advanced analytics, which involves continuously collecting and processing data and transforming it into information that is clear even to those who do not specialize in analytics. A key element of this process is transforming “raw” data into knowledge that is useful for trend predictions and optimizing business strategies.
BI systems versus traditional business analytics
What do Business Intelligence systems offer compared to tools used in traditional analytical methods? While the goal is the same, i.e. to provide information that supports decision-making within the organization, there are many differences.
Comprehensiveness and scope of availability
The strength of those solutions lies in combining data from multiple sources, such as the ERP or CRM software, into one centralized location. It enables various departments at various levels of the organization to access the wide pool of information they need. Traditional analytic tools focus mostly on a single source of information or narrow business areas and are usually available to a small group of analysts.
Automation and continuity
This advanced technology does not require manual, time-consuming data collection and analysis – the data is continuously processed and updated in real-time.
Data visualization
BI uses interactive dashboards and visualizations while traditional analytics is usually based on static reports and basic charts.
Predictive analytics
Predictive analytics and the use of machine learning are a major advantage. They enable the creation of precise forecasts rather than solely focusing on historical data.
Processing ability
Advanced tools do not have the same limitations in handling large volumes of data as traditional systems. They can manage even vast collections of Big Data.
This technology is more focused on the operational aspect and is intuitive for a wide range of users. On the other hand, traditional business analytics requires more commitment from the organization and focuses on in-depth analyses that demand specific skills. Since many companies selectively adapt different BI areas in their analytical processes, the boundary between these two directions often becomes blurred.
Primary use of BI in the ERP system
As mentioned before, an undeniable strength of this technology is the ability to use data from various types of software including ERP systems (Enterprise Resource Planning). Thanks to this integration, organizations gain a comprehensive analytical tool for business optimization. This results from the ability to effectively utilize data gathered in such operational processes as finance, logistics, sales, human resources management or production processes.
Key areas of use of advanced business analytics in ERP systems:
Financial business analysis and controlling
BI in ERP systems allows for ongoing monitoring of key financial indicators such as revenues, costs, profits or cash flows. Its users can create dynamic financial reports and forecasts that facilitate budget management and identify areas that require improvement.
Inventory analysis and logistics
Organizations can analyze inventory levels, product turnover, and supply chains data in ERP systems. These analyses help to optimize inventory levels, minimize storage costs and streamline logistic processes.
Production analysis
The integration of BI with manufacturing modules in the ERP system allows for analyzing production line efficiency, identifying downtimes, and evaluating production quality. This enables companies to improve resource planning and reduce bottlenecks.
Human Resources Management
BI supports the analysis of human resources data including absences, employee turnover, team efficiency, or remuneration costs. Companies are able to make better-informed decisions regarding their HR policies.
Personalization of sales, services and marketing operations
The integration with ERP data related to sales and customers allows for the analysis of purchase preferences and creation of personalized offers. This enables companies to identify the most profitable customer segments and optimize their sales strategies.
Data reporting and visualization
Based on ERP data, BI automates reporting processes, providing trend and data pattern visualizations at the same time.
The seamless integration of Business Intelligence and ERP systems is a trend that primarily supports efficiency improvement through quick problem identification, automation of reporting processes, better understanding of customer needs, and reduced time for data analysis. Moreover, it provides increased business control by providing an insightful overview of the current company’s situation and supporting accurate strategic planning.
In addition, modern ERP systems ensure the integration with artificial intelligence (AI), which significantly extends analytical capabilities that can be automated.
BI solution implementation – benefits for companies
We live in an era of unprecedented data growth, driven, among others, by the increasing number of users and devices generating information. Furthermore, data is becoming more diverse, which makes data structuring more challenging. Meanwhile, the volume of data and the ability to analyze and utilize it effectively are crucial factors in an organization’s success. Consequently, implementing advanced business intelligence systems has become essential.
There are multiple operation areas that can be optimized.
1. Integrate and standardize data from dispersed locations
The situation when company departments function autonomously and manage their processes independently can create challenges in effectively gathering and sharing information. All business areas – sales, warehouse, or service, should operate on the basis of the integration of data from various sources into a cohesive, comprehensive report. Company processes that involve manually downloading information from multiple systems and consolidating it in Excel spreadsheets are inefficient and hinder decision-makers from accessing and modifying data in real time.
BI system automatically gathers data from all sources. It aligns and transform data into clear visual reports and analyses that can be easily shared within an organization, based on predefined permission levels. Depending on preferences, data can be displayed in more general or detailed views.
2. Minimize reporting time
Generating reports manually – which some companies still do – is a complex process consisting of several steps: from downloading “raw” data, through processing and tailoring it to the needs of a user, to verification. This multi-step process consumes valuable time that could be better spent on analyzing current market trends, monitoring key performance indicators, or quickly identifying potential discrepancies.
BI technology allows for downloading and processing data from various sources in a short time. Thanks to advanced algorithms, BI-based platforms can immediately download and process even the most complex and extensive data sets (Big Data). The process of generating reports takes only a few seconds in BI systems, whereas it could take days using traditional methods.
3. Maintain control over your KPIs
Infrequent monitoring of strategic Key Performance Indicators (KPIs) is a business concern faced by companies. A perfect scenario assumes that KPIs are under constant control, which is impossible in the case of long-term reports preparation. This significantly limits the ability to respond quickly to changes in business environments.
Business Intelligence systems allow for the continous updating and monitoring of company data. With the ability to adjust data download frequency, the organization can continuously monitor its performance, identify potential issues, and analyze their causes. This is particularly beneficial for companies facing such challenges as imprecise inventory control or inconsistencies in billing systems. Advanced analytical tools support the quick implementation of corrections in case of detected irregularities in processes, as well as notify users when KPIs reach their planned values.
4. Gain full insight into ongoing operations
If an organization uses, for example, monthly reporting cycles, managers and other decision-makers in individual departments may have limited access to precise information about ongoing operations. This is particularly problematic when quick access to financial results, forecasts or statuses of ongoing projects are required.
Business Intelligence provides executives with real-time access to key statistics and data. BI tools are designed for, among other things, processing and presenting data details, depending on the user’s needs and setup. Data filters ensure clear and accurate data views for each department and employee.
Equipping employees with advanced tools for automatic data analysis not only boosts their efficiency, but also supports reaching operational goals by better utilizing resources.
5. Use Business Intelligence to eliminate faulty analyses
Recurring errors in business analyses are the symptom that indicates the need to adopt new technologies. This issue has several main root causes: using multiple data sources, the application of various processing methods by different users, and the increasing complexity of analyses.
The main problems include employees generating reports in Excel, making manual changes, and communicating them through various channels such as paper documents, emails, or verbally. This inevitably leads to the loss of control over information coherence.
BI system users can create advanced analyses, dashboards and interactive reports on their own within a user-friendly, intuitive environment. Regardless of the employee’s position and location, data changes are automatically synchronized in real time. A key principle of integrating Business Intelligence tools with the ERP system is consolidating data from different departments, distributing it within the organization, and enabling users to create their own overviews. This ensures process transparency.
6. Provide users with constant access to essential information
When analytical data is only accessible to a narrow group of analysts, IT department or management, the organization misses the opportunity for comprehensive optimization of daily operations. Usually, this access limitation results from the fact that specific technical skills are required to analyze reports correctly. In such cases, employees in different departments are unable to respond quickly to current outcomes or issues. Although, it may be helpful in the case of a cross-department collaboration, they are not authorized to analyze data in the scope that is broader than their scope of responsibilities.
BI implementation allows for analyzing all business aspects with relation to each other. For example, sales data can be immediately compared with production costs, marketing efficiency, or customer satisfaction levels, and made visible to the relevant employees directly from the ERP system. All within accessible dashboards, visualizations, and reports.
Microsoft Power BI in Dynamics 365 Business Central
As a business solution operating in Microsoft’s ecosystem, the Microsoft Dynamics 365 Business Central ERP system offers integration with Power BI – an advanced business analytics tool that is part of the Power Platform suite. It includes services designed to support users in performing independent data analysis.
The platform provides an intuitive user interface combined with powerful analytical capabilities. The tool is versatile and can be used across various areas of the enterprise – from analytics and finance, through marketing and operations, to IT departments. The solution offers support for a wide group of professionals: from product managers, through marketing and accounting specialists, to senior management teams that require immediate access to key indicators and reports in order to make informed strategic decisions.
Additionally, with AI support, users can obtain even more detailed information such as data on irregularities, trends, and KPI analyses.
