DO SMEs NEED A BI SYSTEM?
For a long time, it was said that ‘BI systems are only for large and multinational corporations’. In the meantime, the perception of this statement has changed considerably. Small and medium-sized enterprises (SMEs) also need to be able to adapt quickly to new and changing business requirements. A lack of information and an incomplete database inevitably lead to situations being misjudged, even in SMEs, resulting in damage to the company. The use of a BI system makes it possible to automatically analyse large amounts of data and prepare them in an appropriate visual format - and this is becoming increasingly important in SMEs.
A BI system provides access to comprehensive and accurate information that enables companies to make well-founded decisions. Accurate and timely decisions are often the deciding factor between success and failure. According to a study by BetterBuys, companies that use BI tools make their decisions five times faster than those that do not use BI systems. This is particularly important for SMEs that need to be flexible and responsive to market changes. Companies that use BI tools report significantly improved decision-making. A survey by Deloitte shows that companies whose CEOs make data-driven decisions are 77% more successful.
However, this ability to make decisions quickly is only one aspect of the benefits offered by a BI system:
Analysis of customer behaviour
A BI system enables in-depth analysis of customer purchasing behaviour. According to a survey, 52% of companies use BI tools to grow their business and find new revenue streams. With these insights, SMEs can better tailor their products and services to their customers' needs, increasing customer satisfaction and loyalty. For example, analysing buying patterns can help identify trends and develop personalised marketing strategies, which increases customer loyalty and boosts sales.
Processing real-time data
A BI system processes real-time data, making it possible to react immediately to new developments and adapt business processes accordingly. This is particularly relevant as 54% of companies consider real-time analyses to be crucial for their current and future initiatives. The ability to analyse real-time data means that companies can react more quickly to market changes, minimise risks and exploit opportunities more efficiently. By optimising business processes and eliminating inefficient practices, BI systems can also lead to significant cost savings. Companies report a 40 to 60 per cent improvement in process efficiency after implementing BI tools.
Centralised data collection
BI systems aggregate data from various sources and display it on centralised dashboards. This makes it easier to analyse data and promotes a holistic view of the company. According to a study, an average of 67% of the global workforce uses BI tools, which shows how widespread these technologies already are. By centralising data, companies can avoid redundancy, increase the accuracy of data and create a single source of truth that can be used to make strategic decisions.
Core building blocks of a BI system
ETL process (Extract, Transform, Load)
A BI system begins with the ETL process, in which data is extracted from various sources, transformed and loaded into a data warehouse. The ETL process is crucial for ensuring data quality, accuracy and consistency. In the extraction phase, data is collected from various systems. During the transformation, this data is cleansed and converted into a standardised format. Finally, the transformed data is loaded into the data warehouse. This process enables companies to create a solid basis for data analysis by reducing data errors and improving data integration. The ETL process helps to improve data quality by identifying and correcting errors and inconsistencies. This is particularly important for SMEs that rely on accurate and up-to-date data to make informed business decisions.
Data Warehouse / Data Mart
After the ETL process, the data is stored in a data warehouse or data mart. A data warehouse serves as a central repository that contains large amounts of structured data from various sources. It enables efficient storage and retrieval of data, which is essential for analysing and reporting. A data mart is a specialised version of a data warehouse, often optimised for specific business areas or departments. Storage in a data warehouse or data mart provides a consolidated view of the data, supporting detailed analyses and informed business decisions. According to a study by DataChannel, the use of a data warehouse improves data quality and makes data visualisation and analysis much easier.
Analysis and presentation tools
Tools such as Power BI Desktop are crucial for the visualisation of data. These tools make it possible to transform complex data into understandable reports and dashboards that serve as the basis for informed business decisions. Power BI, for example, offers a wide range of visualisation options and allows users to create interactive dashboards that can display up-to-date data in real time. According to a study by Hevo Data, the use of such tools makes data analysis much easier and helps companies to gain deeper insights into their business processes and react more quickly to market changes.
How can Power BI provide concrete support?
Power BI enables real-time data from various sources to be analysed, ensuring that decision-makers always have the most up-to-date information available. This is particularly important as real-time analyses help companies to react quickly to changes and adapt their business processes. Real-time dashboards and automatic updates allow problems to be recognised early and opportunities to be exploited immediately. According to Lancom Tech, Power BI can display live data from your most used tools without manual intervention, speeding up decision-making.
Visualisation capability
Power BI offers an extensive library of visualisation options that make it easier to present complex data in an understandable and meaningful way. This significantly improves decision-making. With interactive dashboards, users can analyse data in different dimensions and create appealing reports that are easy to understand.
Self-service approach
Power BI is designed so that even employees without extensive data knowledge can carry out analyses. This self-service approach encourages collaboration and enables different departments to gain data-based insights. Power BI's user interface is designed to be user-friendly and offers features such as natural language processing, which allows users to make data queries in simple language. This makes it particularly attractive to SMEs, as they do not need specialised IT resources to create reports and analyse data. According to a report by Lancom Tech, Power BI facilitates access to data and reports by allowing live reports to be embedded directly into web pages, eliminating the need for email reports.
STEP-BY-STEP GUIDE FOR THE INTRODUCTION OF POWER BI
The introduction of a BI system requires careful planning and structured steps to ensure that the ensure maximum benefit for your company. This guide will help you to proceed systematically and ensure that all important aspects are taken into account:
Identification of the key figures
Start with workshops to concretise the metrics you need. Identify the key metrics your organisation wants to track and make sure they are clearly defined. A clear definition of metrics is crucial to capture relevant data and create meaningful reports.
Dashboard design
Create mock-ups to visualise the desired dashboards. These mock-ups should contain the most important reports and visualisations that are relevant to your decision-making processes. By creating prototypes, you can ensure that the final dashboards meet the requirements of your decision-makers.
Analyse the existing data landscape
Identify relevant data sources and interfaces. Check which data sources need to be integrated into the dashboards and how the data can best be extracted and transformed. A thorough analysis of the existing data infrastructure helps to recognise and overcome technical challenges at an early stage.
Data integration: ETL process with Power BI Dataflows
Carry out the ETL process (extraction, transformation, loading). Use Power BI Dataflows to extract data from various sources, cleanse it and load it into the data warehouse. This ensures that the data is consistent and ready to be analysed.
Creation of the data model
Link the various data sources and tables to create a consistent data model. This is the basis for creating meaningful reports and dashboards. A well-structured data model facilitates data analysis and improves the accuracy of reports.
Creating the dashboards
Implement the designed dashboards in Power BI Desktop. Use the visualisation functions of Power BI to create interactive and appealing reports that support your decision-making processes. The visualisations should be intuitive and easy to understand to facilitate decision-making.
BUSINESS INTELLIGENCE THE KEY TO THE FUTURE OF KMUS
BI systems will become even more important in the future. Advancing digitalisation and growing data volumes require ever more powerful analysis tools. Power BI will continue to play a leading role in helping SMEs to make sense of their data and make strategic decisions based on solid information.
Implementing a BI system is not a one-off project, but an ongoing process that requires continuous adjustments and optimisation. With the right strategy and the right BI system, you can sustainably strengthen your competitiveness and prepare for a data-driven future.
MTF: We make your data usable
Act now and take your SME to the next level with MTF! Take advantage of modern business intelligence and turn your data into valuable insights. With Power BI and the support of MTF, you can optimise your decision-making processes, increase efficiency and secure competitive advantages.
Contact us today to find out more about customised BI solutions and make your company fit for the future.
FAQs
What advantages does a BI system offer SMEs?
A BI system enables faster decision-making, in-depth analyses of customer behaviour, processing of real-time data and central data collection.
How does a BI system help to increase efficiency?
BI systems reduce the time spent processing and analysing data, allowing employees to focus on strategic tasks. They also help to eliminate inefficient practices.
What role does the ETL process play in a BI system?
The ETL process ensures that data quality, accuracy and consistency are guaranteed by extracting data from different sources, transforming it and loading it into a data warehouse.
How does Power BI specifically help SMEs?
Power BI supports SMEs with real-time analyses, extensive visualisation options and a self-service approach that enables employees without extensive data knowledge to perform analyses.
How can an SME maximise the benefits of a BI system?
An SME can maximise the benefits by setting clear goals, integrating relevant data sources, training employees and continuously adapting and optimising the BI system.