Business Intelligence examples
Business Intelligence refers to certain solutions, organizational changes, products, technologies and methods to organize key data to improve performance and profit.
Best way to understand how Business Intelligence works is to look closely at some examples. Such enterprises as a chain of hotels or/and casinos can benefit from well executed Business Intelligence means. BI is a long-term investment so results may not be seen right away.
Business Intelligence in practice (hotel and casino example)
In this case, let's have a look at a hotel with casino, which are generating rather a large income, but what should we do when we want to increase that income even more?
For the beginning, a customer-loyalty program will be good. Guests and customers who often stays in the hotel and use casino, can gain more advantage than those who make a once-in-a-while visit, and those customers are most valuable, because most of income is generated by them, not by those wealthy prominents, but exactly those who come and go frequently.
This customer-loyalty program gives the company a number of important information about their customers. Apart from clear advantages for customers – company owner can now draw more acute image of his target clientele. Information brought to company's owner's attention were that for instance only 33% of won cash was spent in the casino or hotel. Naturally, that percentage should be higher for the company's well-being.
Another fact is that only 25% of all customers generated most of casino's revenue and they were not those expected to be „high value” customers, those richest, but those middle-class ordinary men, looking for some time to relax, have some meal and rest during weekends.
In addition of Business Analysis to this valuable information, there is a certain outcome – business owner can identify his most valuable clientele and adjust any loyalty program especially for that group of customers. It can be the same loyalty plan but more personalized, dividing the old one into sub-groups – each for certain target group. Loyalty goal for those who provide smallest income may be „gold” program, those in the middle can achieve „platinum”, and those high value customers can reach for „diamond”. Sounds very easy – and so it is. Easy, very encouraging and most of all – profitable for both sides. To make each group eager to obtain those loyalty levels owner has to show what advantages will customer gain. Higher – diamond – will have best suites available, shortest servicing time, valet parking, always available seat at the restaurant and many more.
Similar advantages may be proposed to platinum card owners, but of course not all of them. Lastly, gold card owners will be treated with more minor advantages, just to encourage them to become higher-level customers some day.
Business Intelligence with the help from data warehouse can even establish how to arrange casino's interior to become more attractive. Analyses show that frequent customers should be able to use instant grant when hit a losing streak – anything to entice new and regular customers to stay, have fun and spend more money. This and even more could not been possible without gathered information through Business Intelligence resources – setting goals, analyzing, right decisions and actions. Combination of business information and analysis are „founding fathers” of accurate Business Intelligence investment. They are also the reason for success in generating repeatable formula for any kind of similar projects. In this example relationship management process was turned into a core business process – key to retain high income and company's success. From information to decisions and actions – measured, analytically rigorous and most of all – repeatable – these Business Intelligence means serve owner to achieve better performance and increase profit.
Adapt Business Intelligence to your branch
The example above represents Business Intelligence from a business point of view. Business Intelligence is mainly about profit and profit is not a technical term. In business everything else is not important beside being profitable. It is a simple truth and that is what Business Intelligence is all about. To get best perfomance and best results in any business, you must adapt Business Intelligence to your branch.
For hotels most important will be how many people stay in them as your guests, so „stays” are important, to someone who owns freight industry that will be "revenue per ton-mile".
There are no constants, just guidelines to achieve prosperity. Business Intelligence must be adjusted typically for certain industry to be successful and to get best return of the whole investment. Business information and analyses comes together to give the right Business Intelligence approach to any kind of industry.