How industries use BI tools
In its 2020 Magic Quadrant report on analytics and BI platforms, consulting and market research firm Gartner said the number of people using them in organizations “is accelerating massively.” In addition to self-service BI and augmented analytics capabilities, the report cited lower software costs as a big reason for the increased usage. The per-user price of BI tools “is a fraction of what it was a decade ago,” Gartner said, pointing to factors such as more competition among BI vendors and the shift to the cloud with Business intelligence services.
Embedded BI deployments are another contributor to the growing adoption, according to Gartner, which said they often reach beyond internal users to include customers, suppliers and other business partners. Such deployments embed BI software in ERP, CRM and other business applications so end users can do data analytics within their usual workspace, without having to switch to a separate tool.
In an article on embedded BI and analytics uses, technology writer Maria Korolov reported that embedded tools are being used in sales and marketing, supply chain management, HR and other business operations. In addition, they’re increasingly being deployed in e-commerce systems, mobile apps, online portals and other consumer-facing applications to support data filtering and analysis.
Overall, examples of how business intelligence is used in different industries include the following:
Banks use BI to help assess financial risks in deciding whether to approve mortgage and loan applications. They and other financial services firms also analyze customer portfolios to help plan cross-selling efforts aimed at getting customers to buy additional products.
Insurers similarly rely on BI tools to analyze risks when considering applications for life, auto and homeowners insurance policies. In addition, they tap BI to analyze policy pricing.
Manufacturers use BI software to aid in production planning, procurement of materials and supplies, supply chain management and monitoring of manufacturing operations.
Retailers plan marketing campaigns and product promotions with the aid of BI and analytics tools, while also using them in inventory management and product replenishment.
Hotel chains use BI tools to track room occupancy rates and adjust pricing based on booking demand, and to help manage customer loyalty programs.
Airlines likewise employ BI to help track ticket sales and flight occupancy, and for things such as managing flight schedules, crew assignments and food and beverage ordering.
Transportation companies plan distribution schedules and routes with guidance from BI and analytics tools. They also use BI to monitor gas mileage and other aspects of fleet operations.
Hospitals use BI systems to analyze patient outcomes and readmission rates as part of efforts to improve patient care. In addition, doctors use the tools to analyze clinical data and help diagnose medical conditions.
Key functions of BI platforms
BI tools evolved from earlier decision-support systems that were developed starting in the 1960s. Those systems were designed primarily to funnel information to senior business executives — in fact, one product category was known as executive information systems. In contrast, modern BI platforms have broader functions and user bases that extend from C-suite executives to department heads, middle managers, business analysts and frontline operational workers.
These are the major business intelligence functions that are now prevalent in the enterprise:
Business monitoring and measurement. BI systems are widely used to track KPIs and other business metrics so executives and business managers can monitor the performance of an organization as a whole or individual business units on an ongoing basis. That helps them identify and address business problems in a more proactive way than they could in the past, when performance reports were less timely. For example, a BI tool could show that product sales were below plan in one region, enabling sales managers to take steps to boost them in time to meet the quarterly goal.
Data analysis. Beyond just tracking metrics, BI tools support more involved analytics via ad hoc querying of data sets. Business users and BI analysts run queries to analyze data for business insights that can be used to optimize business processes, marketing campaigns, corporate strategies and other enterprise elements. Querying and analysis also highlights business trends, allowing executives to explore ways to capitalize on new revenue opportunities that otherwise might be missed. This BI function is the linchpin of data-driven decision-making processes in organizations.
Reporting and information delivery. BI results must be distributed or made available to business users so they can put the information to use. Initially, that was primarily done via static reports, often sent out in printed form. Reports are still widely used, but BI dashboards have become increasingly popular. They offer a more visual and interactive interface with built-in data visualizations and the ability to drill down into the underlying data for more analysis. See examples of 12 types of data visualizations that can be used in dashboards, reports and online portals, another BI information delivery option.
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