The Role of Business Intelligence (BI) In Production Processes
What Is Business Intelligence?
Business intelligence (BI) combines business analytics, data mining, data visualization, data tools and infrastructure, and best practices to help organizations make more data-driven decisions.
Business intelligence (BI) can add value to virtually any business process, create a comprehensive view, and empower teams to analyze their data to find efficiencies and make better day-to-day decisions.
It uses software and services to turn data into actionable insights that inform an organization's business decisions. Digital transformation is now seen as an important strategic initiative, and business intelligence tools have evolved to help companies make the most of their data investments.
Why Is Business Intelligence (BI) Important?
Business intelligence can help companies make better decisions by showing current and historical data in their business contexts. Analysts can leverage BI to drive performance and competitive benchmarks to keep the organization running smoother and more efficiently. Analysts can also more easily spot market trends to increase sales or revenue. When used effectively, the right data can help with everything from compliance to recruiting efforts.
How Does Business Intelligence Work?
Businesses and organizations have questions and goals. They collect and analyze the data necessary to answer these questions and monitor performance against those goals, and determine what actions they will take to achieve their goals.
Technically speaking, raw data is collected from the business activities. Data is processed and then stored in data warehouses. Once the data is stored, users can access the data and initiate the analysis process to answer business questions.
The Role of Business Intelligence (BI) In Production Processes
Production processes are complex and it is difficult to manage the connection range alone. With the numerous aspects of the supply chain, machine operation, and logistics involved, it is essential to establish meaningful data links between each process to stay profitable. Business intelligence (BI) helps manufacturing companies bridge the gap between systems and supports a data-driven approach to process decision making.
What Can Business Intelligence Do for Production Operations?
1. Increases operational efficiency. Today's organizations generate enormous volumes of data, but it is not possible to say that all of this data is useful. Today's business intelligence (BI) solutions take all the data and turn it into an instantly understandable and actionable form. It allows to instantly reduce or correct errors. It also allows to forecast raw material demand and analyze processes along the supply chain to achieve optimum efficiency .
2. Provides oversight of financial processes. Business intelligence tools provide information on sales, profit and loss, raw material usage, and often allow optimizing resources to increase return on investment. Knowing your cost benefits helps manage production costs, monitor processes and better manage the value chain .
3. It helps manage the supply chain. Business intelligence (BI) tools help manage supply chain processes by providing more precise control over shipments, costs and carrier performance by providing information about shipments, freight expenditures and overall procurement .
4. Helps reduce inventory costs and errors. Excess stocks and burnouts are among the most important challenges to profitability. Business intelligence (BI) tools can help you track your inventory over time and location while highlighting issues such as product defects, inventory turnover and margins relative to individual distributors.
