NetSuite 
Sage Intacct 
QuickBooks 
Microsoft Dynamics 
Jira 
Ironclad 
DocuSign 
Asana 
Slack 
TravelPerk 
SSO 
ERP Integration API 
American Express Card 
Silicon Valley Bank Card 
Business intelligence is the process of collecting, analyzing, and interpreting data to make informed decisions within an organization. When well executed, business intelligence has the power to drive an organization’s strategic planning and support growth. Here are the essential components of business intelligence.
What is business intelligence?
In its simplest terms, business intelligence is the process of transforming raw data into meaningful insights for organizational decision-making.
To do this, business intelligence encompasses a broad spectrum of activities, from data collection and analysis to the presentation of actionable information.
The ultimate goal of business intelligence is to empower businesses with a comprehensive understanding of their internal operations, market dynamics, and competitive landscape.
What are the key components of business intelligence?
Data warehousing.
With so many operating units within an organization relying on their own digital tools and databases, finance teams often realize they need to centralize data somewhere to capture it all to get a full picture.
The resulting repository of all data from multiple sources is called a data warehouse, and as the term implies, data is stored there and available to be pulled into analytic tools.
Data warehouses contain both structured and unstructured data. They consolidate information from multiple sources within the organization, such as transactional databases, spreadsheets, and external data feeds.
Data integration.
Business intelligence involves the integration of diverse data sources to create a unified and cohesive dataset.
Data integration ensures that information from different departments and systems can be analyzed together, providing a holistic view of organizational performance.
Data analysis.
Data analysis helps identify trends, patterns, and anomalies within data.
Data analysis tools range from basic reporting tools to advanced analytics and machine learning applications.
Data visualization.
Business intelligence platforms often incorporate data visualization techniques to present complex information in an easily readable format.
Dashboards, charts, graphs, and interactive reports simplify the interpretation of data, making it easier to grasp key insights at a glance.
Reporting.
Ideally, reporting functionalities in business intelligence systems generate standardized reports and ad-hoc queries.
These reports provide summaries of key performance indicators (KPIs), operational metrics, and other relevant business metrics, aiding in monitoring and performance assessment.
Performance management.
Business intelligence extends into performance management. That is the process by which organizations set and monitor goals, track key metrics, and assess performance against predetermined benchmarks.
Business process management (BPM).
Integrating business intelligence with BPM helps organizations streamline and optimize their business processes. By analyzing data related to workflow efficiency and identifying bottlenecks, businesses can enhance operational effectiveness and overall productivity.
Take a tour of Airbase.
Explore Airbase with a self-guided tour.
The functions of business intelligence.
The primary functions of business analytics are:
- Descriptive analytics, which provides a retrospective view of historical data.
- Diagnostic analytics, which delves into the reasons behind past events.
- Predictive analytics, which forecasts future trends and outcomes.
- Prescriptive analytics, which recommends actions based on data analysis.
Through these functions, business analytics helps organizations improve operational efficiency, gain competitive advantages, and proactively address challenges.
As an example, consider a healthcare organization leveraging business analytics to optimize its supply chain.
By analyzing historical data on product demand, the company can use predictive analytics to forecast future demand patterns. This enables more accurate inventory management, ensuring that the right products are available at the right locations and at the right times.
Additionally, diagnostic analytics can uncover inefficiencies or bottlenecks in the supply chain, allowing for targeted improvements.
Prescriptive analytics can then recommend specific actions, such as adjusting inventory levels or optimizing transportation routes, to enhance overall supply chain performance.
Through the strategic application of business analytics, the organization not only improves operational efficiency but also gains a competitive edge by meeting customer demands more effectively.
Significance of business intelligence.
Informed decision-making.
Business intelligence provides decision-makers with timely and accurate information, empowering them to make informed decisions. The ability to access real-time data and insights enhances the agility of organizations in responding to market changes and strategic shifts.
Competitive advantage.
Organizations that effectively leverage business intelligence gain a competitive advantage by understanding market trends, consumer behavior, and emerging opportunities. BI enables proactive decision-making, allowing businesses to stay ahead in dynamic and competitive environments.
Operational efficiency.
Business intelligence improves operational efficiency by identifying areas for improvement, optimizing processes, and enhancing resource allocation.
Through data-driven insights, organizations can streamline operations, reduce costs, and improve overall efficiency.
Risk management.
Business intelligence plays a crucial role in risk management by identifying potential risks and vulnerabilities within an organization. Predictive analytics can foresee risks, so businesses can implement proactive measures to reduce potential challenges.
Strategic planning.
Business intelligence facilitates strategic planning with a holistic view of organizational performance. Through data analysis, organizations can identify growth opportunities, assess market dynamics, and align their plans with strategic business objectives.
How Airbase helps with business intelligence.
Accurate, up-to-date data is crucial for informed business intelligence.
Airbase’s automated procure-to-pay solution provides all stakeholders with direct access to the data they need, without relying on interim reports or the finance team.
Users can easily track actuals against budgets, with real-time syncing to the GL or the option to pull spending reports directly from Airbase. This means department heads and budget owners can view spending by department, team, or vendor — without having to bother the finance team.
Airbase provides stakeholders with direct access to the necessary information without relying on interim reports from finance teams. Users can easily track actuals against budgets, with real-time syncing to the general ledger (GL) or the option to pull spending reports directly from Airbase.
This includes comprehensive real-time reporting for both domestic and international payments, eliminating the need for cross-platform reporting and facilitating immediate insights into global activity.
Additionally, Airbase supports custom report creation and seamless data export for integration with FP&A models, providing the necessary data and control levers for making budget adjustments in response to market opportunities or risks.
