Real-World Examples of Business Intelligence in Action
Raw data are hardly meaningful until they are processed, analyzed, and leveraged to fuel your business’s growth. In recent years, Business Intelligence (BI) has been driving the economic growth of companies of all sizes by turning big data into useful analytics.
By turning to Business Intelligence, companies are able to make better decisions, increase productivity, reduce costs, and make significant improvements in day-to-day operations. Here are some text-book examples of how business intelligence works in the real world.
1. Amazon’s Personalized Shopping Experience
Amazon’s growth to the largest online retailer in the world isn’t pure luck. It relies on every single byte of data that comes its way to improve customer experience. On the frontend, Amazon increases revenue by recommending products based on the customer’s shopping behaviours and history.
One of the reasons why customers are sticking with Amazon is its fast shipping policy. It is no mean feat to pack, sort, and deliver millions of parcels each day. Amazon relies on business intelligence tools to ensure the supply chain runs without hiccups, including tracking and firing workers for productivity issues.
2. Starbucks’ Customer-Enticing Offers
Great coffee aside, Starbucks’ creative ways of enticing its customers to come back for more is the hallmark of BI applications. The secret lies in its loyalty reward app, which is used by more than 25 million users.
The app provides Starbucks with useful data on the customer’s preferences. Based on these data, the app entices the customers with targeted offers, which are likely to send them the nearest Starbucks outlet.
3. Twitter’s Doubling Its 140 Characters Tweet
In 2017, Twitter made a bold decision that could jeopardize its uniqueness as a social media platform. It decided to double its tweet size to 240 characters. While the move does worry some users and observers, it wasn’t made in haste.
Twitter has based its decision based on rigorous tests. It found that with the existing 140 characters editor, 9% of users are hitting the limit. Meanwhile, doubling the tweet size reduces the limit-bump to only 1% and results in increased user engagement.
4. Uber’s Balancing Act In Fare-Setting
Uber’s success in revolutionizing the transportation industry has plenty to do with its brilliant use of data. Not only it matches passengers and drivers, but its server calculates the prices based on various data.
Factors like distance, traffic condition, and supply/demand level are considered to set the fare that’s agreeable for both drivers and users.
5. Kraft Heinz’s Quest for Data-Driven Recipes
Kraft Heinz’s known for its tomato ketchup has been losing 64% of its market value since 2017. The company is turning to business intelligence to reclaim its spot in the industry. In 2019, Heinz appointed Corrado Azzarita, who has a passion for data analytics, as the global CIO.
In its bids to introduce new products that better satisfy the taste of some consumers, Kraft Heinz is turning to business intelligence to tweak the recipes. According to Azzarita, “It’s a data-driven recipe formulation”.
In an age where the use of data is increasingly prevalent, business intelligence is becoming more influential to companies’ success. Access to data is not an issue, but turning them into useful business insights requires the right solutions.
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