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Business Intelligence (BI) Is a Separate Matter
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Business intelligence remains one of the most important analytics applications linked to CRM It was important enough that in the years from 2007 to 2009, every mega-giant business intelligence application provider was snapped up by an even larger company So we saw Oracle snap up Hyperion, SAP snap up Business Objects, and IBM snap up Cognos Yum Why did they make these multi-billion dollar acquisitions Because it made sense to them to take the most sophisticated BI purveyors with the largest customer portfolios and add their tools and customers to their own offerings They were and are totally right about that
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To clarify what BI is, I m going to answer some questions I ve actually gotten and a few that I made up, thinking they might be important too
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What Is Business Intelligence
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Business intelligence is the use of an organization s disparate data to provide meaningful information and analysis to employees, customers, suppliers, and partners for more effective decision making It is a critical component of a CRM strategy
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Is Business Intelligence Strictly a CRM Thing
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Customer intelligence is not the only BI that exists Other BI that is frequently found includes product, services, supply chain, financial, and human resources intelligence In fact, BI extends along the entire enterprise value chain and, even though that value chain is organized around customers, the BI can be broken down to specific links in the chain The more information you have on each customer interaction throughout all steps of the value chain, the clearer and more innovative thinking you can do on how to treat those customers appropriately, either by segment or, if your information is granular enough, down to the individual
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Isn t BI the Same as Enterprise Reporting
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In a word, no Enterprise reporting is the combination of multiple reports from multiple systems using a standard reporting tool and a common delivery platform It reports the as is data that you want it to report from multiple places It is an impartial information aggregator that grabs already analyzed and interpreted data from multiple sources, and neatly (if it s working well) ties the data together in a format that makes it readable It s not more than that The analogy is sort of obvious When you wrote a paper in college, you handed in a Word document or if you re as old as my colleagues, a typewritten one Are the actual physical pages the same as the thought and content Nope The physical pages are just the delivery vehicle When I write a white paper, I usually have a clause in the contract with those hiring me that states that they own the work product, but I maintain my rights to use the ideas elsewhere If I didn t, there are parts of this book that couldn t be written The book, the white paper, the college term paper are all delivery formats to present the ideas The ideas are not the reporting of them
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Is BI the Same as Predictive/Descriptive Analytics
Not exactly It uses both predictive and descriptive analytics, particularly the former, but isn t the same thing The analytics features of business intelligence help present that actionable information and help you make decisions Business intelligence takes raw data and turns it into information It uses complex algorithms on captured data in the as is state and makes some interpretive sense out of it The information, once mapped, interpreted, and identified, is then presented through an enterprise reporting tool in a way that makes it intelligible to those of us with ordinary mathematical skills That information provides tremendously valuable input for developing the innovations and approaches to improve customer experiences Some of the general uses of business intelligence, according to the OLAP Report, are: Data warehouse reporting Sales and marketing analysis Planning and forecasting Financial consolidation Statutory reporting Budgeting Profitability analysis Other possible BI benefits are to help you determine what you are going to sell to whom and when that sale is going to occur For example, financial services companies might want to see what products will be appropriate for what segments during a certain time of year You might be interested in creating a scholarship-related instrument that would be sold to 35- to 49-year-olds with children during a school year while their children were between 3 and 15 years old The BI engine would help you decide whether or not this was a good time of year, a good segment, and/or a good product
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