How does ERP & Business Intelligence go Hand in Hand?
Every day, many businesses generate vast amounts of data and information that are difficult to manage and evaluate. They adopted, and many continue to use, a variety of old software and manual spreadsheets such as Microsoft Excel to store data. The issue is that it is a time-consuming, labor-intensive, and error-prone procedure, and the data is available in different applications.
In order to overcome this issue, ERP software is used by organizations to integrate information and boost data visibility where it employs a centralized system to combine and simplify numerous elements of the organization, such as planning, procurement, sales and marketing, and so on.
But what good is having all the company’s data in one place if one can't use it to get deeper insights and make business decisions?
This is where Business Intelligence (BI) comes into play. It offers access to enormous volumes of data as well as effective analysis of business process information for better decision making.
So, what exactly is Business Intelligence?
Business intelligence (BI) software, like ERP systems, provides firms with a comprehensive view of their operations, allowing management to make data-driven business decisions. BI also plays a vital role in both high-level planning and tactical responses to market demands, supporting organizations in running more effectively, focusing on competitive advantages, and finally enhancing profitability.
In practice, BI leverages data from a centralized repository to generate dashboards, reports, customer-facing IT systems, and external sources to deliver a complete, transparent picture of the business's current situation. It creates extensive, detailed reports that help customers improve operations in both their front and back offices. For example, if a merchant is experiencing supply chain issues, BI analysis can uncover operational bottlenecks and devise a strategy to redirect goods via a more reliable way.
What’s the value of BI?
Businesses may use BI to enhance business performance by utilising excellent data obtained from diverse sources. Here’s how:
Tracks company performance across several dimensions using KPIs.
Analyzing customer behaviour.
Market trend identification
Points out problems or bottlenecks within the company
Considers measures to improve operations.
Looks for ways to boost profits.
Relationship between BI and ERP
BI functionality is frequently included into ERP systems. However, such an important feature may be insufficient for larger organizations that get massive volumes of data on a daily basis.
If this represents your company, comprehensive reporting tools may be required. In other terms, you may need to build and integrate a specialized BI tool into the ERP system.
BI, whether built into your ERP or provided by an integrated third-party solution, will assist the company in making the best use of every bit of data it receives. Without it, the massive amount of information flowing through your organisation would be too enormous to process in bulk, let alone extract meaningful insights from.
Benefits of integrating BI in ERP
BI improves ERP systems in a variety of ways, in addition to transforming data into visual analytics that influence organizational decision-making. Here are some of the most important advantages of ERP-BI integration:
Accumulation and analysis of Data: ERP systems generate huge quantities of dataset, and there's always additional value to be extracted from it. Businesses may receive in-depth analysis of their data right within their ERP platforms with BI integration.
Report Generation: Report compilation is the first stage in data processing. It depicts data at multiple stages of interaction, such as the ability to drill down, sort, and filter. There are also some extra options that allow the end-user to tailor the information for further insights.
Predictive and prescriptive analytics: An ERP system with BI capabilities enables effective historical data analysis and predictions of future trends. BI may also give predictive insights for future company decisions.
Accurate Predictions and Real-time Updates: Forget about switching between programmes or skimming through a multitude of spreadsheets. BI delivers a high-level view of your ERP data via interactive dashboards that make it easier to understand the facts at hand. You may then get as detailed as you like, even following down issues to their root causes.
Already BI software in ERP systems is a terrific tool for evaluating company business performance in real time, from top to the bottom of the organization, and BI features will only continue to grow in ways that promote smarter, data-driven decision-making.
If you're looking for an ERP software, look for one that has BI tools to help you optimize your company operations. Arure Technologies can assist you in developing a customized BI solution to meet the demands of your business.