Businesses fail to derive optimal benefits from BI tools: Study

BI tools aim operational efficiency, Organizations still lack actionable insights.

Adoption of BI tools have become mainstream across organizations. Like most other automation tools, BI tools too have contributed significatnly to enhance operational efficiency of organizations while making data management a bit easier. Yet, the primary expectation from such tools - getting actioanble insights - remains a far cry, according to a research by clutch, a B2B research firm.

While a quarter of the respondents in the research admitted to have gained from BI tools in terms of achieving improved efficiency and better data management, only 12% said they got customer behavior insights. And just 6% reported that they have been successful in tracking KPIs. 

Accordingly, most respondents reported that it is Logistics/Operation functions that gained most from BI toold, followed by Marketing. Customer Service, Finance and HR benefitted much less, according to the survey. 

 

For example, collecting data about online behavior reveals how customers interact with a particular brand. Without this information, there is gap in how a business understands its audience, according to Dean Abbott, Co-founder and Chief Data Scientist at Smart HQ.

BI tools, however, have helped organizations create a data pool. But a significant number of BI analysts said that BI data poses a challenge in identifying the relevance and ability to analyze it efficiently. According to another report by Blazent, most of the organizations could access to only 20-39% of their data for analytics.

This brings out the need to create infrastructure that can transform BI data into an actionable asset for business. The clutch report suggests ‘data-driven’ infrastructure to be the solution.  Data oriented or data driven infrastructure according to Clutch, is –

1)      A process for transforming data into a useful form

And

2)      Ability to visualize data in an interesting way.

 

 

Without a strategy in place to identify, collect, and apply data, as per the survey, BI data tools can be detrimental to a business. Apart from this, the major concerns in using BI tools for majority of organizations remain - security, administrative delays and data flaws, as per Clutch report.

However, Microsoft Power BI, Oracle, IBM Cognos, in that order, remain the most popular BI tools, despite the open source options, the survey found out.


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