This is a guest blogpost by Phil Abbott, Director at ABS Limited.
Businesses often struggle with data overload. They have mountains of information stored in their ERP systems, from transaction records and customer interactions, to supply chain data and financial reports – but without proper business intelligence (BI) tools, this data remains just that: data. It’s like having a library full of books but no way to find the specific information you need.
Instantly accessible insights
The real magic happens when BI tools integrate seamlessly with ERP systems. Take, for example, sales forecasting. Traditional ERP systems can tell you what you sold last month or last year, and by plugging this into a BI tool businesses can also analyse historical data patterns, trends and seasonal variations to predict future sales with remarkable accuracy. Companies using these predictive insights can typically optimise their stock levels, reducing excess inventory while maintaining appropriate safety stock.
Real-time dashboards have revolutionised how business performance is monitored. Managers can now see key performance indicators (KPIs) instantly updated. This immediate visibility allows for quick responses to emerging issues or opportunities.
Modern BI tools make complex data accessible to everyone in an organisation, not just IT specialists or data analysts. These tools can accommodate both beginners and power users – from simple data visualisation to complex multi-dimensional analysis. Sales teams can track their performance against targets, operations can monitor efficiency metrics and executives can get a bird’s-eye view of the entire business.
Online branded clothing shop Screenworks, for example, was manually exporting sales data from its ERP system into an Excel spreadsheet. This was both time-consuming, susceptible to human error and generated poor quality visuals. Three dashboards were created, each with a specific sales niche, to reflect exact requirements. Gauge charts allowed the users to easily track progress against targets over a range of timeframes. In this case, Flex.bi software was able to both import the data with greater frequency and automatically email specific users on a daily basis. This has allowed the dashboards to be used proactively and track progress in near real-time.
Gone are the days of static, standardised reports. Today’s BI tools allow for dynamic, interactive reporting where users can drill down into specific data points, customise views and generate reports on the fly. This flexibility means different stakeholders can access the exact information they need, in the format that works best for them.
Proactive business planning
With integrated BI and ERP systems, scenario planning becomes more sophisticated and accurate. Companies can now run multiple ‘what-if’ analyses using real data from their ERP systems, helping them make more informed decisions about everything from resource allocation to market expansion.
A great example is a UK-based medtech organisation which wanted a report on delivery processes that was outside the scope of reports offered by the ERP system. An ‘On Time in Full’ report was created specifically for the industry. Flex.bi enabled the MDx language to calculate variables which allowed granular control over the calculations made by the BI software, so the customer’s exact specifications could be reflected in automated graphs. As well as automating the process, it helped in querying customer methodology, specifically how to handle certain edge cases, which led to highlighting particular erroneous practices and streamline business practices.
Looking ahead
Artificial intelligence (AI) and machine learning is becoming increasingly integrated with BI tools, making them even more powerful. These technologies will continue to help enhance BI predictive capabilities and automate more of the analytical process, allowing businesses to focus on acting on insights rather than just gathering them.
Recent developments in tools like flex.bi demonstrate how BI is becoming more sophisticated and user centric. Latest release features include custom cube building, which allows businesses to create tailored data structures without advanced coding skills, and innovative weather data integration that can help predict business performance based on environmental factors.
These tools are now incorporating machine learning models to forecast business KPIs with up to 95% accuracy in weather-dependent scenarios. Technology advancements, combined with automated alert systems that notify stakeholders when KPIs hit critical thresholds, showcase how modern BI solutions are becoming more proactive rather than reactive in supporting business decisions.
While ERP systems provide the foundation for business operations, it’s the integration of business intelligence that truly unlocks its potential. From improved decision-making and efficient operations to better customer service and increased profitability, the impact of BI on modern business cannot be overstated.
As we move forward in an increasingly data-driven world, organisations that effectively leverage BI within their ERP systems will have a significant advantage over those that don’t.