Business Intelligence – Essential to Success 

 

 

The Marketing & Sales director glanced at his System Report and told, “Our ideal customer would be medium to large size turnkey contractor in private sector whose requirement for building material is in the range of 150 to 200 tonnes”. A sign indicating that the company has active internal intelligence gathering system in place. Data mining and statistical technique are used here to make assumption for high probability clients but the company goes beyond this stage to ensure that its intelligence is dynamic. The assumption would be validated on a regular interval against the actual result to check the need for any modification required in its intelligence system.

 

However, the same can not be said for many other companies since they are so much engaged in day to day activities, meeting immediate deadlines and completing short term quotas that they fail to recognize intelligence as a vital part of marketing and, consider this intelligence as an additional burden to their regular work. Paradoxically, this intelligence, if acquired over a long period, can help them in such regular works and meeting short-term targets more efficiently.

 

Although the academics and practitioner have continuously recommended the use of intelligence as an important foundation stone on which business strategy can be built, the industrialists consider marketing and associated intelligence as cost centre and naturally, it is the first victim of cost cutting drives whenever forced on their company. Contrary to this, the intelligence should be considered as investment centre and like a seed that will grow as a tree full of fruits.

 

Why the industrialists fail to recognize the importance of a formal system for intelligence? Firstly, they do not work in an environment where it has given appropriate value therefore a suitable system, customized to their business, is difficult to develop. It is long and monotonous exercise that needs persistence and passion before it can be used advantageously in the business strategy. Also, the areas where this can be helpful are not always known. Above all the analysis part (of the intelligence) is very likely not to hit bull’s eye in the initial phase due to inexperience and shortage of data. No matter how much money and effort spent on it, the accuracy of the analysis has to be tested against time and people are mostly short-sighted to make money in no time. Sometime the results of analysis cannot be acted upon due to constraints.

 

Till now the industrialists relied on their own memory and intuition to develop strategy. As the market parameters are dynamic in nature and human nature is complex, the use of human brain can be limited with high probability of having prejudices. With the use of computer, it is much easier to complete most parts of Business Intelligence like data collection and storage however the analysis part depends on expertise and historical experience nevertheless, it can be improved with trial and error method.

 

While incorporating the Business intelligence system, the nature of the business will be the crucial factor that will determine the form, the procedure and the importance of such system. A Storekeeper of a neighbourhood grocery store may rely on his memory to recognize repeat clients, their common purchase and any product with special offer that may be interesting to the clients. A big Consumer goods company would be using its own resources as well as external agencies to develop such system. The company doing industrial marketing will have to carry out this part on its own with little support from outside. An external consultant can offer limited help. The company starting fresh with intelligence can hold analysis part temporarily and, should focus its effort on recognizing important and pertinent data. Once data are collected over a long period, it start showing trend in-built.

 

The information received from the system can be external or internal. Internal information has to do mainly with the performance, interaction and integrity of the processes. The deficiency can be spotted by Exception Reporting System whereas the recurrence of common events can be identified by Repetition (Range Based; Reporting events that fall in certain range) Reporting System of the company’s internal data. The user of Intelligence system like entrepreneurs, Engineers, Manager can envisage the system and subsequently a programmer can develop a corresponding system. Afterwards, it is a job of a secretary to do necessary entry and compilation of the records. This does cost significant time and effort but only in the beginning, afterwards it is much easier and friendly. The help of outside consultant is limited in case of internal information system. They can primarily pinpoint the different important stages worth monitoring but the actual arrangement will have to be conceived by the company itself in consultation with the experienced consultant. Once the company finalizes the concepts of internal information, the system can be developed in piece meal fashion. At initial stage, the form of information, degree of details and timeliness has to be approximately decided. With increased experience, the user of the system can ascertain these parameters more accurately and any special new requirements can be added subsequently. But at the beginning stage, the developer and more importantly the designer should try to avoid a very sophisticated system that will cost fortune, will be a regular pain in the neck to collect that detailed information and will have less value compared to its cost.

 

The external information provides the market nature, future trend and the position where the company is currently occupying. This part is little complex and will not come within the budget of the company all the time. It is also not easy to start envisaging a plan to do this. However, as the company grows, matures and gains experience of that industry, it can plan for it more effectively with the help of a seasoned consultant in this field.