Business optimization is a buzzword that gets thrown around quite a bit. As a result, some falsehoods and misnomers are likely to develop.
One way to optimize your business is through improving business intelligence.
Let’s look at some myths regarding BI, and why they don’t quite hold water.
1. Everyone Is Doing It
Despite peer pressure, not every company is using business intelligence tools for optimization.
In fact, the BI Survey reports that only 17 percent of organizations are using a specific list of BI tools. They note that each initiative requires different types of users and activities—such as planning, product suitability, and business function—that affect implementation.
Speaking of business functions, the survey notes that finance, management, and sales departments are leading in BI tool usage. While usage is trending upward in other departments, there is still room for growth, particularly in production and operations departments.
2. Only Certain Teams Need To Be On Board
Politics are one of the most serious challenges companies in North America face when implementing business intelligence solutions, according to the BI Survey.
To maximize your organization’s potential for success, all teams and business units must buy in to data analytics. Their systems are the ones that will be linking to your tool or tools, and your insights and decisions hinge on the success of the data being collected.
3. Optimization Is Only For Certain Industries
Your business, no matter your vertical, could likely see some benefits of optimization.
Take a look at how three industries saw improvements with predictive analytics, which combs existing data for patterns and makes predictions about the future:
- Healthcare - Lowering rehospitalization by analyzing risks.
- Manufacturing - Forecasting demand to improve the ordering process.
- Retail - Managing inventory better by predicting faulty products.
Predictive analytics is just one way to optimize your business.
4. Business Optimization Is Expensive
This is just not true.
In 2014, Nuclear Research found that analytics paid back $13.01 for every dollar spent. This was a 22-percent increase from 2011.
One can assume the ROI has gotten even better in the past few years, as the analytics market has progressed.
5. All BI Platforms Are The Same
The final myth is that business intelligence or data analytics only do one thing.
However, these platforms are flexible enough to be used in a variety of ways.
Once again, the BI Survey illustrates this point.
The top three uses for business are:
- Sales planning and forecasts
- Customer behavior and analysis
- Unified view of customers
The survey lists more than a dozen other use cases for BI tools.
The next time you hear one of these myths about business optimization, you’ll be ready to have an intelligent debate.