BI: the importance of metrics.

Business intelligence (BI) is a set of actions that, through the study and visualization of data, allows decisions to be made effectively and efficiently. Business intelligence is considered one of the key branches of companies, since it allows them to make decisions based on data from the company itself and the environment, being a tool that works through the digitization of data.

What is business intelligence?

The concept of business intelligence encompasses various processes and methods for collecting, storing and analyzing data from business activities or operations in order to optimize performance. Some of these processes are:

• Data mining: use databases, statistics, and machine learning to discover trends in larger data sets.
• Report generation: share data analysis with stakeholders so everyone can draw their own conclusions and make decisions.
• Data visualization: use graphs, tables, and other visual elements to present data in a clear and attractive way.
• Dashboards: Create interactive dashboards that display key performance indicators (KPIs) and other business-relevant metrics.
• Predictive analysis: use mathematical and statistical models to predict possible future scenarios and their impacts on the business.

Why are metrics and report interpretation important?

Metrics are numerical values that reflect the state or result of an activity or process. For example, the number of sales, profit margin, conversion rate, customer satisfaction level, etc. Metrics are essential for measuring business performance and establishing objectives and strategies.

Reports are the documents that collect and present the metrics and analyzes carried out on the data. Reports can have different formats and levels of detail depending on the audience they are aimed at and the purpose they pursue. Reports are essential for communicating the findings and recommendations derived from data analysis.

Report interpretation is the process of drawing conclusions and implications from the data presented in reports. Interpretation requires critical and analytical thinking, as well as knowledge of the context and objectives of the business. Interpretation is key to transforming data into useful and actionable information.

How to implement business intelligence in a company?

To implement business intelligence in a company, several steps are required, among which we can highlight:

• Identify business needs and objectives: define what problems you want to solve, what questions you want to answer and what goals you want to achieve with the use of business intelligence.
• Select data sources and types: determine what data will be used, how it will be obtained, how it will be stored and how it will be managed.
• Choose the right tools and techniques: choose the technological solutions that best adapt to the characteristics and requirements of the business, as well as the capabilities and preferences of users.
• Train the personnel involved: train the team in charge of business intelligence, as well as the end users who will consume the generated reports and visualizations.
• Evaluate and continually improve: monitor the operation and impact of business intelligence, as well as identify opportunities for improvement and innovation.

Business intelligence is a competitive advantage for companies that want to make the most of their data and make smarter decisions. However, achieving this requires strategic planning, technological investment, and a data-driven culture.