How Business Intelligence Tools Can Improve Sales and Profitability

Introduction

This research investigates how business intelligence tools can improve sales and profitability. In the ever-changing business world, there is an increased need to make informed and consistent decisions. Business intelligence seeks to base business decisions on facts based on customer needs and preferences. Business organizations are utilizing these tools to meet customers’ needs, increase sales and improve productivity (Kiani Mavi & Standing, 2018).

Business intelligence tools are software applications that help organizations collect, store, access, and analyze data to make better decisions (Cheng et al., 2019). A business intelligence system consists of four systems: a data warehouse. Business analytic tools that manipulate, data mine and carry out data analysis, and business performance management, are essential in monitoring and analyzing the business performance and, finally, an interface for users and customers (Cheng et al., 2019).

The statement of the problem is the need for increased use of business intelligence tools. The tools must be more profitable and increase sales in any particular business. It is vital for businesses to critically evaluate customer data and plan ahead of their anticipation and expectations. For any business that wishes to stay ahead, understanding client trends using business intelligence is the only sure way to survive.

The research will aim to answer the following questions:

1. What are the most effective business intelligence tools?
2. How can these tools be used to improve sales and profitability?
3. What are the benefits and limitations of using business intelligence tools?

Popular data warehouse tools used in business intelligence include Microsoft SQL Server, Oracle Database, IBM DB2, and Teradata (Martins et al., 2020). Many data visualization tools are used in business intelligence, but some of the most popular ones include Tableau, Qlik, and Power BI (Azeroual & Theel, 2019). Examples of data analytic tools used in a business include google analytics, tableau, QlikView, Microsoft power bi, and sap business objects. The Business Intelligence vendors include Microsoft Corporation, Geo Analytics, Business Objects, CMC International, and Inc Information Builders, to name but a few.

There are many benefits to using business intelligence tools, including the ability to make better decisions, improve operational efficiency, and increase sales and profitability. However, there are also some limitations to using these tools, including the need for skilled staff, the cost of the tools, and the potential for data overload (Azeroual & Theel, 2019).

In order to answer this question, the following research objectives will be addressed:

1. To identify the main features of business intelligence tools associated with improved sales and profitability.
2. To understand how business intelligence tools can be used to improve sales and profitability.
3. To identify the benefits and challenges associated with using business intelligence tools to improve sales and profitability.
4. To develop recommendations for organizations on the best use of business intelligence tools to improve sales and profitability.

This research proposal will adopt a mixed-methods approach, using both qualitative and quantitative methods. Qualitative data will be collected through interviews with sales and marketing professionals, and quantitative data will be collected through surveys of sales and marketing professionals.

Background significance

The current global economic conditions have forced businesses to become more efficient and cut costs wherever possible. Business intelligence tools can help businesses improve their marketing efforts and better understand their customers (Tavera Romero et al., 2021). In order to stay competitive, businesses need to find ways to increase sales and profitability. Business intelligence tools can help businesses achieve these goals by providing insights into customer behaviour, identifying trends, and helping to target marketing efforts (Tavera Romero et al., 2021).

In conclusion, business intelligence tools are putting marketers on a higher pedestal. The intelligence can help the business focus its marketing efforts and strategies in the direction of its clients. The intelligence can help improve brand loyalty, which translates to more sales and, thus, higher profits.

References

Azeroual, O., & Theel, H. (2019). The effects of using business intelligence systems on excellence management and decision-making process by start-up companies: A case study. arXiv preprint arXiv:1901.10555.

Tavera Romero, C. A., Ortiz, J. H., Khalaf, O. I., & Ríos Prado, A. (2021). Business intelligence: business evolution after industry 4.0. Sustainability, 13(18), 10026.

Cheng, C. H., Chiu, C. M., & Hsu, M. H. (2019). The impact of business intelligence on organizational performance: A systematic literature review and research synthesis. Computers in Human Behavior, 92, 226-246.

Kiani Mavi, R., & Standing, C. (2018). Cause and effect analysis of business intelligence (BI) benefits with fuzzy DEMATEL. Knowledge Management Research & Practice, 16(2), 245–257.

Martins, A., Martins, P., Caldeira, F., & Sá, F. (2020, April). An evaluation of how big data and data warehouses improve business intelligence decision-making. In World Conference on Information Systems and Technologies (pp. 609-619). Springer, Cham.