7 Essential Reasons for SMEs to adopt Business Intelligence
“Is the deployment of Business Intelligence necessary in my business?”
“I don’t think my business is ‘big enough’ for Business Intelligence.”
Are these your questions too? If Yes, this blog is for you.
SMEs have now adopted technology and digitized their business to some extent. Sometimes even they don’t realize that they generate so much Data, but they are not using it to their advantage.
The questions that keep popping up in their mind are what needs to be analyzed, the correct technology to use, and which tools are best for an organization? Striking for a correct answer can be painful, especially when you do not have a team and knowledge about the right tools.
Business Intelligence proves to be immensely helpful in such a scenario.
Irrespective of the size of the business, actionable Business Intelligence with the right tools and strategy helps to meet the business goals. It provides an essential insight into the company, which helps in business growth and tracking your Business health.
While there are numerous Benefits of Business Intelligence let’s look at why SMEs should adopt Business Intelligence.
Why SMEs should adopt Business Intelligence?
Types of sales reports
- Track your Revenue, Profits, and KPIs (Key Performing Indicators)
Even if your business is limited to one state, it generates humungous data. To analyze such Data manually takes a lot of time and energy. To hire an expert for the same increases the overall cost. With the simple deployment of Business intelligence, Data is measured and analyzed thoroughly. It gives an insight into the generation of revenue and profits. Also, it makes it easy to identify which area has the unwanted expense and which size is gaining more profit. It also provides an insight into where the cost-cutting is required and where you can achieve greater profits by spending more. All the critical Performance Indicators [KPIs] are thoroughly examined, providing detailed information on how each indicator functions, which one needs to pay more attention to, and which is working simply fine. This helps you make correct decisions regarding expenses, cost-cutting, and improvisation of the Key Performance Indicator.
- You can analyze the Performance of Every Sales Element
Sales are the principal factor of any business, so it becomes essential to analyze every element of sales performance, such as salesperson, products, cities, vendor, and Gross Profit Ratio.Business Intelligence shows you which salesperson is performing well in a particular area and his contribution to the total gross profit. This will help you decide which salesperson should be pushed further and which needs more training. You can know which product’s high demand in a particular city and which area generates the highest Gross Profit. You can also track the performance of a specific product in any Territory (City/District/State). You can try out various combinations like what is the performance of a product in a particular city or say how is the performance of a specific salesperson with a particular product in a territory. It helps you make correct decisions regarding sales area, product improvisation, recruitment, and retainment of the salesperson.
- Customer Movement Analysis
Data analysis gives knowledge of customer buying patterns. How many customers are active, inactive, billed, and lost? Based on their status, you can decide on the Customer retention strategy. Also, not all your customer buys all your products. Let us suppose you are selling bread and butter. Now your customer is buying bread from you and not butter. Which means he is buying butter from somewhere else. With Bi, you can know which customers are buying X product from you, not Y. So this will help you to pitch the right product to the customer just when needed. You can customize the offer as per their preferences. Insights into the customer behavior can lead to a decrease in Customer Churn Rate.
- Do not just set Targets; Track them as well
You can not only set targets but can also track them. Set and tracking target plays a significant role in increasing sales. With Bi, you can set the target and compare it with actual results. You can also track the process. In which area sales are more and where more efforts are required. With the sales figure and their profitability ratio, you can gauge the details like which site is giving more profit and which salesperson is doing better with a particular product.Such valuable insights enable you to make the right decision to achieve the set target
- Know Gaps and Opportunities
When the generated Data is viewed from a 360° perspective, insights on where you are lacking and where you have an opportunity to grow become apparent, and cross-selling and Up-Selling become easier.Despite spending more where you are not gaining the desired result and just by spending a little more, sales can be increased with a considerable amount that can be known. Which salesperson is good with a particular product, and which customer needs rigorous payment follow-up reminders. In which state your product is in high demand, and which territory has a scope of increased product sales.All these and more can be availed by simply deploying Bi into your organization.
- Streamline the Process
Suppose you want to optimize your sales process; you can use BI to automate sales performance reporting. Analyzing sales data in real-time allows you to maximize your sale and lead generation strategies. Based on the Roles of every salesperson, you can assign him the right to view their data. They will not be dependent on another person to send them the reports.Also, you can easily send auto-reminders to outstanding debtors, payment follow-ups are done, reports are made, and by setting it, you can get them in mails. It takes much time to do these things manually, while with Bi, you can do it quickly. It saves time and money. Streamlined processes make an organization efficient and increase productivity.
- It Presents Data in a way that is easy to understand
Bi tools present the data in a way that a layperson can understand. It analyses the data and comes out with valuable insights which otherwise would not have been possible to understand. It looks at the data from a 360° view and generates outcome which increases overall business productivity and profitability. Also, it presents the data in a visual format such as charts, graphs, and infographics, making it easy to understand.
Business Intelligence is helpful to all organizations, irrespective of their size. The product can be installed and used by non-tech SMEs in a few hours.
BI should be deployed into your system to gain all the valuable insights for the above reasons. It makes your work easy and business more productive.
MagentaBi, an online Business Intelligence platform, provides one-click analytics from your business data by integrating directly to your ERP including Tally, BUSY, SAP, B1, etc. Magenta generates Intelligent MIS reports on both web browsers and mobile app.
Visit MagentaBi for a free demo today.