Leveraging BI in a Down Economy

Christian Ofori-Boateng, CEO of ChristianSteven Software, reveals three reasons why business intelligence could improve profitability and long-term growth even in a downturn.

“The root cause of most bad decision-making is the lack of good information to base decisions on”
-Christian Ofori-Boateng

First, the good news. Many economists predict the economic downturn will end soon, and businesses are seeing the light at the end of the tunnel. Now, the bad news.  Countless companies have made it this far, only to flounder as we near the end of this financial storm. For these businesses, and for all the rest who want to come out of this slump in a position of strength, business intelligence tools are a crucial piece of the puzzle.

In general, there are three main problems with the smooth running of companies. In a recession, these problems often become worse. Luckily, all three can be successfully addressed with business intelligence tools, which range from reporting software and online information dashboards to simple spreadsheets. 

The first of these problems is customer service. In business, you must know your customer inside and out: a business intelligence tool to capture and analyze customer data is essential. For example, use it to discover which customers you haven't been in touch with for three months, and follow up with them. While you're at it, examine the reasons for customer service requests. You'll find problems that can be eliminated and requests that can be automated – improving customer service while saving your business time and money.

The next problem is operational issues. Most often operational challenges stem from bad decision-making. The root cause of most bad decision-making is the lack of good information to base decisions on. Take a fast food restaurant as an example. With a business intelligence tool that tracks orders, the owner can learn most of his customers order a burger and soda. A second look reveals if you ask them, these customers will add a salad for two dollars more. So, the owner tells his staff to offer everyone who orders a burger and soda a salad as well, and sales increase significantly.

The third problem comes down to the bottom line: profits. By addressing the first two problems you're halfway there, because good customer service and informed decision-making drive profits. Business intelligence also boosts profits by allowing you to offer customers more of what they want. If you add a product or service customers have been asking for, they'll buy it. But the only way to know what they want is to know what they're requesting. Finally, business intelligence allows your company to operate ‘leaner and meaner’ – doing more with less in order to survive the downturn.

When selecting a business intelligence tool, define the information you need first. Too many companies choose a business intelligence program and then let the program determine what information they will track. They've got it all wrong. The first step is identifying the information you need to make smart business decisions and finding a system to meet those needs.

Don't forget that the effective use of business intelligence depends on automation. At many companies, valuable business intelligence festers in a database because no one bothers to create the needed reports. At countless others, well-paid workers sit at computers for a good chunk of their day completing the mindless task of generating reports and sending them out. It just doesn't make sense. A good automation tool can generate reports, print them, mail them, fax them, email them, send them to your cell phone, post them to the web or do just about anything else you can imagine. Putting key information within easy reach of decision-makers everyday without fail will improve your business.

When the economy recovers, the business intelligence tools you put in place now will allow your company to emerge stronger. Leveraging these tools will allow you to outlast your less ‘intelligent’ competitors – leaving you with greater market share. Plus, the information you now have at your fingertips will assist you in driving profitability and long-term growth.