Business Intelligence: How Netflix, IKEA and Maybank Do It
As a leader in an organisation, your role is akin to the captain of a ship, navigating the ever-changing seas of commerce. Your success hinges on understanding the currents, the weather patterns, and the location of hidden reefs. But unlike a traditional seafarer of old relying solely on intuition and experience, you have the modern advantage of real-time, data-driven insights – a navigational chart continually refreshed with invaluable information.
This, in essence, is the power of Business Intelligence.
What is Business Intelligence?
Business Intelligence (BI) refers to the technologies, applications, strategies, and practices used to collect, integrate, and analyse data, as well as present business information.
It transforms raw data – sales figures, customer demographics, website traffic – into useful information and actionable insights that empower decision-makers at every level. This allows you to make informed decisions based on evidence rather than intuition.
The demand for Business Intelligence is growing: the combined market size of the BI and analytics market worldwide is expected to reach $17.6 billion in 2024.
The Power of Data: How Business Intelligence Works
BI employs a multi-step process:
Step 1: Data Collection
Information is gathered from various sources, including company databases, customer interactions, and social media.
Step 2: Data Cleaning and Integration
Raw data is meticulously cleaned of errors and inconsistencies, and then integrated into a central repository like a data warehouse.
Step 3: Data Analysis
Experts leverage powerful tools and machine learning to analyse the data, uncovering trends, patterns, and hidden correlations.
Step 4: Data Visualisation
Insights are transformed into easy-to-digest formats like charts, graphs, and dashboards for clear communication – especially key for decision-makers.
Why Business Intelligence is Crucial for Success
The importance of BI cannot be overstated. It provides clarity in an increasingly complex world, offering up-to-date insights on internal and external factors affecting a company.
Here are 5 reasons why BI is crucial for an organisation’s success:
✔ Empowering Decision-Making
BI equips leaders with a clear picture of the company's health, enabling them to make data-driven decisions on everything from marketing campaigns to resource allocation.
✔ Identifying Opportunities
By analysing trends, BI can uncover hidden opportunities for expansion, product development, and market segmentation. It can even create more job opportunities.
✔ Improving Customer Experience
Using company data and other sources of data, BI helps businesses understand their customers better, allowing for targeted marketing campaigns and improved customer service strategies.
✔ Boosting Efficiency
Data analysis can reveal operational inefficiencies, leading to streamlined processes and cost savings.
✔ Enhancing Risk Management
BI helps businesses proactively identify and mitigate potential risks based on historical data and market trends.
Unlocking the Power of Business Intelligence: Key Benefits of BI
The advantages of BI are vast and multifaceted. Take a look at these 15 top benefits of BI:
Real-World Examples: How Companies Leverage Business Intelligence
BI isn't just theoretical; it's a game-changer across industries. Here are several examples of well-known companies that have leveraged Business Intelligence to enhance their operational efficiency, customer experiences, and overall business outcomes.
1. Netflix
BI is used for: Content Strategy and Viewer Engagement
Netflix's success with original content is largely driven by its sophisticated use of BI. By analysing vast amounts of data on viewer preferences, watching habits, and content performance, Netflix not only decides which new projects to greenlight, but also personalises recommendations for viewers.
By applying BI, Netflix is able to not only predict what you’re likely to watch next, but arrange selections based on an individual’s viewing preferences.
2. IKEA
BI is used for: Product Placement and Store Layouts
IKEA uses BI to analyse customer behaviour and sales data, which helps in optimising product placement and store layouts to maximise sales. Insights from BI tools allow IKEA to design store layouts that facilitate a smoother shopping experience while encouraging more purchases.
Through data analysis on customer navigation patterns, dwell times, and purchase history, IKEA identifies areas that are most engaging for customers and those that might require a redesign.
3. DiGi
BI is used for: Identifying Optimal Network Locations
In the fiercely competitive telecommunications landscape, companies must have an edge to enhance the customer experience. One of Malaysia’s largest telco providers, DiGi (now CelcomDigi) not only used BI to analyse customer call detail records and customer communications management extensively, but it also employed BI to help it identify optimal network locations for future expansions.
4. Maybank
BI is used for: Integrated Marketing Solutions
Maybank developed a framework with scalability in mind to systematically add new information to its database for a better understanding of its position in the market. As a result, Maybank's integrated marketing solution now provides a single, centralised view of its customers.
This allows marketing personnel to communicate more effectively with consumers, resulting in improved customer acquisition, retention, loyalty, and profitability.
5. Aspire Systems
BI is used for: Identifying Growth Opportunities
Offering IT infrastructure support, Aspire System has offices in India, Singapore, and 13 other countries. The company uses BI to navigate daily market changes while identifying growth opportunities quickly. By automating its financial processes, the business has a more timely and accurate view of the sales performance of its 20 entities in 11 countries.
6. Emma & Tom’s
BI is used for: Optimising Supply Chain
Emma & Tom's, an Australian healthy drinks and snacks producer, integrated its supply chain, financial, CRM, sales, marketing, order management, warehouse, and inventory management processes to optimise its in-house distribution processes. This allowed the company to maintain its trademark customer service while scaling to accommodate global plans, resulting in the distribution of its products to over 5,000 outlets in Australia and export to China, Jordan, Malaysia, and Hong Kong.
Top Business Intelligence Tools: Your Data Arsenal
Several powerful BI tools are readily available. Here's a comparison of 6 popular options:
Other popular options include Sisense and Zoho Analytics. Depending on your organisation’s specific needs, budget, and technical expertise, you may find that different tools are the best for different functions.
How to Become a Business Intelligence Analyst
The demand for skilled BI professionals is increasing. If you're fascinated by the world of data and passionate about uncovering insights, a career as a BI Analyst could be the perfect fit.
Here are some tips on how to get started as a Business Intelligence Analyst:
1. Leverage Your Experience
Start by assessing the business knowledge and management experience you already possess. Understanding the business context in which BI operates is key and gives you an advantage.
Identify areas within your current role where BI could have, or has had, a significant impact. This helps in framing your learning and application of BI in real-world business scenarios.
2. Training in BI Tools and Technologies
While you may not need to start from scratch, gaining a deep understanding of specific BI tools and technologies is essential. Enrol in advanced courses that focus on the high-level use and strategic implementation of tools like Power BI, Tableau, or SAS.
These courses should also cover advanced data analytics, data visualisation, and data management. Executive training programmes or specialised workshops designed for senior professionals are particularly beneficial.
3. Participate in Strategic Projects
Apply your BI training by leading or participating in strategic projects within your organisation. This could involve overseeing the implementation of a new BI system, leading a team in a BI-driven project, or initiating pilot projects that leverage BI for business improvements.
Practical application not only solidifies your skills, but also showcases your ability to drive value through BI. By having experience in these projects, you can use it as a stepping stone towards a career as a BI analyst.
4. Consider a Postgraduate Degree
A master's degree in Data Science can significantly enhance your skill set and career prospects.
The Master of Data Science programme offered by Sunway University Online equips you with expertise in data mining, big data management, and analytics – all crucial tools for a successful career in Business Intelligence.
Harness the Power of Data: Make Your Move Today
Business Intelligence is revolutionising how businesses function. By acquiring the necessary knowledge and skills, you can become a data-driven leader and harness the potential of information in today's dynamic business environment.
Interested in learning more about how a Master of Data Science fits your career goals as a future leader in all things BI? Get in touch with our Education Counsellors for a free eligibility check and discover how the Sunway University Online Master of Data Science can get you to where you want to be.
This fully online programme offers flexible entry options, including direct entry, a prerequisite pathway, and an APEL (Accreditation of Prior Experiential Learning) pathway. For more information, contact us today.
