Guide: Business Intelligence and Tools for Small Businesses
Business intelligence has been around for a while, but it hasn’t become mainstream in small businesses until fairly recently. There’s a good reason for that.
As data has become the new currency, those who can make sense of it have a distinct advantage over those who can’t. This is especially true in business, where the ability to make informed decisions based on reliable data can mean the difference between success and failure.
Business intelligence has traditionally been used by large organizations with deep pockets and access to vast amounts of data. But thanks to the rise of big data and advances in technology, BI is now within the reach of small businesses.
There are a number of different small business intelligence tools available, but they all share a common goal: to help you make better decisions. No matter the size of your business, BI can give you the insights you need to achieve success.
Let’s dive in by looking at what business intelligence is and what it can do for your small business.
What is business intelligence?
Business intelligence (BI) is a term that is used for a variety of different tools and techniques used to collect, store, analyze, and visualize data. The goal of BI is to help business leaders make better decisions by providing them with insights into their business operations.
While BI has been around for decades, it has only recently become popular with small businesses due to advances in technology and the explosion of data. These events have driven down the cost of BI, making it an affordable option for small businesses with tight budgets.
With new advances in BI tools and techniques, businesses of all sizes can now take advantage of BI to improve their decision-making.
How has BI evolved over the years?
BI has come a long way since it was first introduced. In the early days of BI, the focus was on gathering static data and generating reports. While these tools are still in use today, they are no longer the primary focus of BI.
These early tools were useful for getting a high-level overview of what was going on in a business, but they didn’t provide much in the way of actionable insights. And it was too cost-prohibitive for small businesses to use.
Over time, BI has evolved to become more focused on analytics. This means that instead of just collecting data, BI tools now help your small business analyze that data to uncover trends and patterns. This information can then be used to make better decisions about your business.
The latest generation of BI tools takes this one step further by incorporating artificial intelligence (AI) and machine learning.
This means that small business BI tools can now not only help you collect and analyze data, but they can also provide predictions about what might happen in the future. This is extremely powerful information that small businesses can now access. It can help you make decisions about your business that are based on data, not guesswork. Leading to more sustainable growth.
What are the benefits of using BI for small businesses?
Small businesses have usually been at a disadvantage when it comes to data-driven decisions. This is because they typically haven’t had access to the robust data analytics tools that larger enterprises are able to purchase and use. But thanks to advances in BI, that is no longer the case.
Small businesses can now take advantage of the same BI tools that larger businesses are using. This level playing field gives small businesses the ability to make better decisions and compete with larger businesses on a more equal footing.
There are a number of benefits that small businesses can reap from using BI, including
- Improved decision-making
With BI, small businesses can now make decisions that are based on data. This means that they can avoid making costly mistakes and instead confidently make decisions that will help their business grow.
For example, companies that use BI can make data-driven decisions about where to allocate their resources. This can help them focus on areas that are most likely to generate a return on investment, instead of blindly throwing money at different projects.
- Increased efficiency
BI tools can help small businesses automate tasks that were previously done manually. This frees up time and resources that can be better used elsewhere.
BI tools can be used to automate the process of generating reports. This means that instead of manually creating reports, businesses can now use BI tools to do it for them. This can save a significant amount of time and money in the long run.
- Greater insights
Small businesses can use BI to gain insights into their customers, their business processes, and the market. This information can be used to make better decisions about how to run their business.
For example, businesses can use BI to track customer behavior. This information can then be used to improve the customer experience and increase sales.
- Competitive advantage
With BI, small businesses can better compete with larger businesses. This is because they have the ability to find the caliber of insights that larger businesses have.
- Improved financial performance
In the end, all businesses want to improve their bottom line. BI can help them do just that.
Studies have shown that businesses that use BI tools tend to outperform those that don’t. This is because BI provides the insights that businesses need to make informed decisions about where to allocate their resources. This can lead to improved financial performance and higher profits.
The different types of small business BI tools available
If you are ready to take advantage of the benefits of BI, the next step is to choose the right BI tool for your small business. There are a number of different types of BI tools available, each with its own strengths and weaknesses.
To help you choose the right BI tool for your small business, understanding the various features of the different types of BI tools is essential. Here are some of the most popular types of BI tools:
- Data visualization tools
These tools help you visualize data in a way that is easy to understand. They can be used to create charts, graphs, and other visualizations that make it easier to see trends and patterns.
These tools enable you to see your data in a new light and can help you uncover hidden insights.
- Data mining tools
These tools enable you to mine data for insights. They work by analyzing large data sets to find patterns and relationships.
Data mining tools can be used to predict future trends and behaviors. This information can then be used to make better decisions about your business.
- Dashboard tools
These tools help you track key metrics and performance indicators and display them in an easy-to-understand format. They allow you to see how your business is performing at a glance.
Dashboards can be customized to show the information that is most important to you. This makes it easy to spot problems and opportunities so that you can take action.
- Reporting tools
These tools generate reports based on data from your business. They can be used to track progress, identify trends, and make decisions about your operations.
Reporting tools can be used to generate both real-time and historical reports. This information can then be used to improve your business.
- Scorecard tools
These tools help you track and measure key performance indicators (KPIs). They allow you to see how well your business is performing compared to its goals.
How to choose a small business BI tool
The right BI tool for your small business will depend on your specific needs. To choose the right BI tool for your business, determine your needs and identify which BI tool features will best meet those needs.
Consider what you ultimately want to do with your data and choose the BI tool that is best suited for that task.
Who offers small business BI tools?
- Domo
Domo offers comprehensive cloud-based data analysis tools for small businesses that integrate all your data sources. Our no-code, intuitive reporting dashboards allow every member of your small business to access and understand your most critical business information.
With our plug-and-play connectors, you can connect with hundreds of your data sources, like Excel, Google Analytics, and other business, marketing, and financial data, with just a few clicks.
Domo’s easy-to-use visualization and dashboard tools are fully customizable, so you can see the exact metrics needed to help meet your small business goals. With the latest advances in AI, technology, and security, Domo’s small business BI tools are hard to beat.
- Looker
As part of the Google Cloud family, you can be assured that Looker connects with your small business’ top Google data sources. It also easily integrates with many third-party applications. Looker offers embedded analytics and updates in real-time, so you’re making decisions based on your most current data.
While it is easy to use, Looker’s pricing isn’t the most transparent, and you may end up paying more than you initially expected after factoring in integrations and other costs.
- Sisense
This cloud-based business intelligence for small business tool offers customizable dashboards to manage and monitor all your key small business metrics. Their dashboard features interactive widgets, visualizations, and reports and can connect to on-premise, cloud, and in-app data sources.
While Sisense does offer low and no-code options so business users of all skill levels can use the tool, users have reported a “buggy” user experience and dashboard errors.
- Tableau
This visual analytics platform helps small businesses translate raw data into images and visualizations to improve their data-driven decision-making. This platform’s mobile-friendly dashboards make it easy to share data with others or while you’re on the go. However, the cost of this tool may make it unaffordable for some small businesses.
- Datapine
This all-in-one interactive small business BI platform connects with multiple data sources and enables users of all skill levels to perform more advanced data analysis. Small business users can quickly develop insights or forecast trends with the tool’s multiple data filters and visualization modes. Datapine is optimized for SaaS businesses, so small businesses in other industries may not benefit as much from their features.
- Microsoft Power BI
Microsoft’s Power BI offers a variety of tools to enhance your data-driven business decisions. Your small business can access their web-based self-serve data analytics tools from anywhere to help you spot trends in real time.
Small business users can integrate apps and create data visualizations to share with clients, customers, or stakeholders. Since Power BI is on the Azure platform, you need to check your ability to integrate with all your essential data sources before committing to this tool.
The bottom line
Business intelligence is revolutionizing the way we make decisions. With the right BI tool, you can gain insights into your business that will help you make better decisions and improve your bottom line.
Don’t wait for your competitors to get ahead. Use BI to make better decisions and improve your small business today.