With the explosion of Big Data, businesses are constantly leveraging data to provide better results & accuracy in the business workflow. Business Intelligence (BI) has become essential to enable an organization to run successfully.
Since we live in a data-driven era, all enterprises & organizations get swamped with data of all sizes & types. Extracting actionable insights & making sense of these data is the role of BI. This article will give you a quick walkthrough of what BI is and the six challenges of business intelligence (BI).
What is Business Intelligence (BI)?
Business Intelligence (BI) is a technology-driven method of extracting valuable insights from data. The BI analysts will use various tools and programs to collect, analyze, and present data to help top executives of the organizations make informed decisions. Through Business Intelligence techniques, companies & brands can also predict customer requirements and market trends, identify competitors’ positions and strengths, and monitor sales performance.
According to the Markets and Market research, the global Business Intelligence market cap will grow from 23.1 billion USD in 2020 to 33.3 billion USD by 2025. It will exhibit a Compound Annual Growth Rate (CAGR) of 7.6 percent from 2020 to 2025. Many companies do not have experts to perform Business Intelligence (BI). That is where Business Intelligence services become helpful for outsourcing BI operations.
Although the growth of BI and its demand is growing exponentially, it encounters specific challenges. The next section will guide you through the six challenges of BI.
6 Business Intelligence Challenges
Although the business and technological landscape is evolving by leveraging data, there are some challenges that Business Intelligence faces, which enterprises should pay attention to.
Businesses show top-notch concern for data security for data used in analyzing for better insights. As more and more data gets generated from myriad sources to the cloud, businesses should provide more security measures and set policies. However, many-a-times, organizations face the issue of data leakage and data breaches. It damages the brand’s reputation and drags the business to lawsuit.
Since businesses generate data from multiple sources, BI often struggles to logically combine them from numerous sources. Such a challenge often leads to data silos. It also leads to an incomplete view of data. It can hinder appropriate decision-making and lead to slow business growth.
Data Quality Lacking Due to Inaccuracy
Since data integration is a significant challenge, the quality of data stored for Business Intelligence analysis will also decrease. Poor data quality can lead to incorrect insights and can minimize decision-making power. The challenge with data quality grew even further with the increase in the data amount and its type. Organizations that need to leverage the data from diverse sources like customer feedback, website traction, social media engagement, etc., can outsource business analytics services.
Real-time analytics is another essential aspect of BI that is gaining momentum. It allows businesses to get insights dynamically and quickly to change plans according to market situations. However, real-time analytics can be challenging, especially when dealing with large amounts of data. In 2023, businesses should leverage more BI tools and cloud services that can quickly respond to market change.
Less Adoption of BI Tools
Various factors like non-skilled BI professionals & costly BI applications often lead brands to disregard the potential of BI tools. Investing in enterprise-grade BI tools is a challenge because they are expensive. Also, managing millions of terabytes of data, in cloud storage, augments the BI operational costs.
Poor Data Visualization
Another challenge that enterprises are facing is the poor implementation of data visualization. Insufficient data & poor visualization of data can lead to wrong decisions and loss in profit. Hence it is also a challenge that businesses should address in 2023.
We hope this article provided a quick guide on the top six challenges of Business Intelligence (BI). Businesses can leverage their data effectively and gain insights to drive growth and success by addressing these challenges.