Business Intelligence is the process of gathering all relevant data for business purposes. Many analytics believe that there is abundant data, both internal and external. The challenge lies in collating all this and working with it. This has found application in various fields and has been particularly helpful in the retail sector.
There are many benefits attached to business intelligence tools. Some of these are:
1. Optimise store operations: Business intelligence Tools can be used to streamline and bring innovation to all store operations. Better feedback and analysis can help in the optimum display of products and store layout. It also helps managers to take informed decisions on inventory, pricing and staffing. In effect it means decisions taken in real time and less wastage.
2. Improve financial performance: Comprehensive information gathered through business intelligence tools is used to improve the overall financial performance of the retail operation. Effective inventory control by eliminating stock outs or overstocks is one of the examples used to improve financial performance. Similarly, pricing and costing can be better controlled to improve the overall financial performance.
3. Increase supply chain effectiveness: The main elements of supply chain are transportation and vendors –– both of which can be effectively managed through business intelligence tools. Today you need real time information on what is happening in your supply chain as well as vendor performance. This can help you to streamline operations, keep a better track of unnecessary delays and drive better negotiations. It can help in improving supply chain performance as well as establishing better inventory control.
4. Risk management: Business intelligence tools are used to keep track of various operations –– from employee performance to vendor chain. This can be used to supervise performance and undertake periodic analysis. With real time tracking, managers can also identify weak spots quickly and move fast to plug them. Possible fraud channels are more easily spotted with constant supervision.
5. Customer analytics: The customer is the most important part of any retail store and business intelligence tools are the most effective means of gathering data on customers. Track effective sale campaigns, customer friendly tech interactions and overall customer satisfaction.