Question

Briefly describe the importance of using business intelligence to make decisions within an accounting, finance, or marketing organization. Provide an example of how you have used business intelligence in your current role. If you do not use business intelligence in your current role, explain how you can use it in a business.

Answer 1

Business intelligence is a technique that analyzes, review and presents the data in a better way to take smart decisions. Importance of using business intelligence to make decisions within an accounting, finance, or marketing organization is explained below –

• Business intelligence helps in gathering data using various charts, graphs, etc that makes it easily understandable. So, in financial organisation data related to finances of the company can be analysed with the help of these formats more easily and accurately.
• It provides the data to plan the activities and helps in quick decision making.
• Business intelligence helps in forecasting the future and indentifying the opportunities and improvements that are required depending upon the latest trends of the market.
• Business intelligence helps in boosting sales by adopting innovative techniques for promoting products and services.
• Accounting organisation can audit the records easily with well defined reports through business intelligence.

Business intelligence can be used in any business in following ways –

• Business intelligence can be used to gather the data regarding the latest customer needs and preference to boost the sales of company. Business intelligence helps in gathering data more easily and quickly.
• Business intelligence can be used by accounts department in auditing and analysing company’s records. As long spreadsheets and statements are difficult to analyse, business intelligence presents the data in understandable format that is easy to analyse and audit.
• Business intelligence can be used in research and development by analysing the market trends and offering new products and services in market.
• Business intelligence can be used to control inventory levels in organisation. With business intelligence future demands can be forecasted and decisions can be taken accordingly to save the inventory costs.