Business intelligence software can be a key player in your company’s quest to save money and cut down on bloat. No matter how big or small your organization is, it will likely contain multiple levels to handle workflow. Investing in business intelligence software allows all of these levels to share data and align efforts to weed out areas that raise costs.
Here are just some of the ways that a business intelligence platform can help reveal cost-cutting insights and strategies for your business:
Identify Budget Parasites
Do you know what the most costly activities and areas of your company are? Performing a simple budget analysis to answer this question is one thing, but using data to benchmark activities and look for patterns can reveal a deeper level of complexity within your budget.
Perhaps your logistics process is eating away at distribution costs? Maybe marketing is delivering a far lower ROI than should be acceptable? Scenarios like these are hard to identify when you are looking for sources of excess from under a microscope, but the top-down perspective that you gain from business intelligence software can make these issues plain. You can then target them and use BI capabilities to decide how to handle bringing costs back under control.
Reveal New Opportunities
Sweeping decisions are always tough to make, especially when you are focused on the day-to-day. BI software can help you leverage your data to make big decisions simpler and more obvious.
In the words of BT Global Services CTO Jason Cook, “Business intelligence provides data at the moment of value to a company.” This ability means that having to hash out tough calls over the board table can be made much more straightforward with data to point you in the right direction.
As an example, a company may realize that merging two product teams into one group will help them eliminate excess costs and reallocate wasted manpower into other areas of the business.
Find Out Where to Chase the Highest ROI
Marketing can be a tough job, especially for employees that would really just rather focus on the product. BI software can help ease the burden of making marketing decisions by revealing segments that have the highest opportunity. On the flip side, you can dial back your efforts pursuing client segments that have low ROI.
Business intelligence can actually help you break bad habits in this way. Some segments that are easy to capture and convert may actually not generate the revenue that makes the effort worth it, even if it feels good closing sale after sale.
Reconfiguring staffing levels can be a tricky prospect. Small and medium-sized companies would often rather teams govern themselves. Fiddling with the staff numbers can be something that the C-level would much rather avoid.
Similar to how business intelligence software can empower marketing insights, staffing levels can be adjusted and the outcomes measured to determine an optimal balance. Historical data can also allow you to predict staffing optimization based on demand forecasts, and it can also help you adequately staff new team launches.
Sound the Alarm
In addition to these capabilities, the real-time analytics component of business intelligence software can send out alerts when costly disasters are about to take place. For instance, monitoring the bandwidth on hosted servers can help you determine if service could drop off for your SaaS customers without an intervention. Business intelligence in this scenario helps you spare your customers anguish and prevents you from losing key clients and the revenue that came with them.
As you can see, business intelligence software can add tremendous value to an organization but eating away at excess. This ability helps drive instant ROI right out of the box.