What is Business Intelligence and Examples of Companies That Use BI Strategically

In an increasingly digital and competitive world, understanding what Business Intelligence (BI) is and how to apply it has become essential for companies that want to stand out in the market. The strategic use of data is now one of the biggest differentiators for making accurate decisions, allowing organizations to transform raw information into valuable insights and direct their actions with greater precision.

The exponential growth of Business Intelligence in the corporate market reflects its importance. Companies of all sizes and industries have been investing in BI tools to improve operational efficiency, predict trends, and offer solutions more aligned with customer demands.

Investments in data and analytics have been at the top of large companies' priority lists, according to the Data and AI Executive 2024 survey conducted by the international consultancy Wavestone.

The study included interviews with data executives who held leadership positions in data, analytics, and AI across more than 100 diverse “Fortune 1000” companies. Among the participants were Mastercard, Zurich Insurance, Dell, John Deere, and Unilever.

According to the research, 82.2% of data/AI leaders stated that their organizations were increasing investments in data and analytics, with 87.0% reporting the successful delivery of measurable business value to the organization.

The benefits of Business Intelligence can be felt by professionals in all departments of a company, regardless of its size or industry. If your company has not yet invested in BI, it is time to reconsider.

In this article, we will explore what Business Intelligence is, how it works, and the advantages it offers. We will also highlight real examples of organizations that use BI strategically to achieve significant results. After all, in a world where data is becoming increasingly abundant, knowing how to leverage it can be the deciding factor for success.

What is Business Intelligence: definition and key components

Business Intelligence (BI) is the process of collecting, organizing, analyzing, and transforming data into useful and actionable information for strategic decision-making. It consists of a set of methodologies, processes, and technologies that allow companies to identify patterns, predict trends, and optimize operations based on concrete data.

Unlike analysis based on intuition or experience, BI relies on precise and structured information, offering a clear and reliable vision to support decisions at all organizational levels.

The pillars of Business Intelligence are:

1. Data Mapping and Collection

To have an effective BI solution, an organized data foundation is essential. This process starts with mapping internal procedures and data sources, including internal systems (ERP, CRM), online platforms, social media, IoT devices, and more. Once identified, data collection—or extraction—is carried out.

2. Data Storage (Data Warehousing)

After collection, data must be organized and stored in secure, centralized locations, such as data warehouses or data lakes. These repositories allow large volumes of data to be integrated and prepared for analysis, ensuring consistency, quality, and accessibility. Popular tools for this purpose include Snowflake, Amazon Redshift, and Google BigQuery.

3. Data Processing and Analysis

The core of BI lies in processing and analyzing stored data. Using advanced algorithms and models, BI tools transform raw data into valuable information. This stage allows organizations to identify patterns, predict behaviors, and even conduct predictive and prescriptive analyses, guiding strategic decisions based on evidence.

4. Data Visualization and Reporting

Data analysis only becomes useful when the results are presented clearly and comprehensibly. For this, BI tools provide interactive dashboards, dynamic charts, and customized reports that help decision-makers quickly interpret the generated insights.

Most popular Business Intelligence tools

The BI market offers various tools that differ in functionalities, costs, and ease of use. Some of the most well-known ones include:

• Tableau – Known for its intuitive interface and ability to create complex data visualizations effortlessly.

• Power BI – A Microsoft solution widely used for its easy integration with other Microsoft products, such as Excel and Azure.

• Qlik Sense – Focuses on associative data analysis, enabling users to explore hidden connections within the data.

• Google Data Studio – A free and versatile tool for creating dashboards integrated with Google products.

• SAP BusinessObjects – Ideal for large enterprises requiring a robust and customizable solution.

Advantages of Using Business Intelligence in Companies

BI offers a wide range of strategic benefits that directly impact organizational competitiveness and performance. Some of the main advantages of adopting Business Intelligence include:

1. Data-Driven Decision-Making

The primary advantage of BI is providing reliable and detailed information that supports informed decision-making. Instead of relying on assumptions or intuition, managers can access concrete data to base their choices. This includes historical analyses, forecasts, and customized reports that help reduce errors and identify the best approaches.

2. Improved Operational Efficiency

By implementing BI, companies can optimize internal processes, identify operational bottlenecks, and allocate resources more efficiently. Detailed performance analysis helps reduce costs, enhance productivity, and eliminate waste, fostering a more agile and efficient work environment.

3. Identification of New Market Opportunities

BI allows companies to analyze large volumes of data in an integrated manner, helping to identify patterns and trends in the market. This enables businesses to discover new customer segments, anticipate demand changes, and even create innovative products and services to meet emerging needs.

4. Enhanced Customer Satisfaction Through Personalization

Organizations using BI can better understand customer behavior and preferences. With this information, they can create personalized experiences, such as product recommendations, targeted marketing campaigns, and more efficient customer service.

5. Trend Forecasting and Risk Mitigation

BI is also a powerful tool for forecasting trends and identifying risks before they become major issues. Through predictive analytics and advanced algorithms, companies can anticipate market fluctuations, changes in consumer behavior, and even operational risks.This allows managers to plan proactive strategies and reduce exposure to unforeseen events.

By integrating Business Intelligence into their operations, companies can transform data into a highly relevant strategic resource. From more precise decision-making to continuous improvements in efficiency and customer satisfaction, BI is an indispensable solution for organizations looking to stay competitive and prepared for market challenges.

6. Management at Your Fingertips

One of the most immediate benefits of Business Intelligence is real-time access to critical company information, anytime and anywhere. With a 360-degree view of key processes, team performance, and business indicators, managers can monitor everything happening within the organization.

Without clear and updated information, managers often experience uncertainty and frustration, especially when trying to understand what is happening in the company and deciding where to focus their efforts. BI solves this problem by providing clear insights and prioritizing the most critical areas that require attention.

7. Empowerment and Confidence: Being in Control to Innovate

Having complete control over the organization’s data and processes brings empowerment and increases the manager’s confidence in their decisions. Knowing exactly how the company is performing allows for the identification of well-functioning areas and those that need improvement, freeing up mental space and resources to explore new opportunities.

This confidence in precise data opens doors for innovation and the development of new projects, as managers have the assurance that the core operations are under control.

Examples of companies that use BI strategically

Business Intelligence has been widely adopted by companies seeking a competitive edge in their sectors. Among the most notable examples are Amazon and Netflix, two giants that use BI innovatively to transform their businesses.

But BI isn’t only applied by multinationals – Brazilian networks are also heavily investing in the area, such as Stúdios Mormaii. Check out the case studies:

Amazon: BI Applied to E-commerce and Logistics

Amazon is one of the greatest examples of how Business Intelligence can be used to revolutionize an industry. The company uses BI in practically every stage of its operations, from analyzing consumer behavior to optimizing its complex logistics chain.

Amazon analyzes detailed data on customers’ browsing history, purchases, and reviews to create personalized product recommendations. Through BI and machine learning algorithms, the platform presents offers that are highly relevant to each user, significantly increasing conversion rates and customer loyalty.

Amazon’s inventory management is optimized based on predictive analyses. BI allows the company to forecast product demand based on market trends, seasonality, and purchasing behavior, ensuring that the right items are available in the right places while minimizing storage and transportation costs.

Logistics is another area where Amazon brilliantly employs BI. The company analyzes real-time data to optimize delivery routes, reduce transportation times, and improve overall operational efficiency. Technologies such as Amazon Prime and same-day delivery are made possible thanks to insights generated by BI.

Netflix: Business Intelligence in Content Personalization

Netflix is a global benchmark in using BI to offer a highly personalized experience to its users. The company collects and analyzes enormous volumes of data on its subscribers’ behavior to understand their preferences and optimize its platform.

Netflix’s recommendation system is one of the most advanced in the world. By utilizing BI, the company analyzes data such as the movies and series watched, the time spent on each piece of content, ratings given, and even viewing times. With this information, the platform suggests content that is more likely to appeal to each user, increasing usage time and customer satisfaction.

In addition to recommendations, Netflix uses BI to decide which original content to produce. The company analyzes global viewing patterns to identify themes, genres, and formats that are trending. For example, the success of series like Stranger Things and The Crown was partly the result of predictive analyses that indicated high interest in certain themes and audiences.

Netflix’s interface is also continuously refined based on BI insights. From the design of movie covers to the order in which content is presented, everything is adjusted to maximize user engagement.

Stúdios Mormaii: Agility and Efficiency in Network Management

The Stúdios Mormaii network, renowned for its exclusive physical training methodologies, implemented a Business Intelligence project in partnership with equal BI. The initiative began with the identification of the main business performance indicators and relevant data sources.

A customized solution was developed that automated the extraction and daily update of the network’s data, allowing for more in-depth and agile analyses. The adoption of BI transformed the management of Stúdios Mormaii, significantly reducing the time spent on manual tasks and increasing data accuracy.

With dashboards updated daily, the franchisor was able to quickly identify areas that required attention, such as units with low conversion rates. This agility in obtaining insights improved the relationship between the franchisor and its franchisees, as well as supporting the network’s expansion from 40 units in 2021 to over 100 in 2024.

The data-driven culture established with BI became essential for Mormaii’s continuous success in the competitive fitness market. For the complete case study, check it out.

Challenges and considerations when adopting Business Intelligence

The implementation of Business Intelligence tools and the adoption of a data-driven culture can bring numerous benefits to companies, but it is not a process free of challenges.

Many organizations face barriers that, if not properly managed, can hinder or even compromise the success of the project. Below are the main challenges and key considerations when adopting BI, along with suggestions on how to overcome them.

1. Organizational Culture Resistant to Change

One of the biggest obstacles to BI implementation is cultural resistance within the organization. Employees and managers are often accustomed to making decisions based on intuition or traditional methods, which can lead to skepticism about using data as a foundation for strategic decision-making.

How to Overcome It:

Promote clear communication about the benefits of BI at all levels of the company.

Offer training sessions and workshops to educate employees on how to use the tools effectively.

Involve key leaders in the implementation process to encourage adoption and set a positive example.

2. Data Quality and Integration

Another significant challenge is ensuring data quality and integrating information from different sources. Inconsistent, duplicate, or incomplete data can compromise analysis and lead to incorrect decisions. Additionally, consolidating information from multiple systems can be a technically complex task.

How to Overcome It:

Invest in robust ETL (Extract, Transform, Load) solutions to integrate and standardize data.

Conduct regular audits to verify the quality of information.

Implement a data governance policy that defines clear responsibilities and standards for data management.

3. Shortage of Qualified Professionals

The lack of specialized BI professionals, such as data analysts, data engineers, and data scientists, is another challenge many companies face. Without a well-trained team, BI implementation and effective usage can be compromised.

How to Overcome It:

Consider partnerships with specialized consultancies and providers with proven expertise in the field.

Foster a culture of continuous learning by encouraging employees to develop skills in data analysis.

Considerations When Adopting BI

In addition to overcoming challenges, it is essential to take some precautions to ensure that BI implementation meets expectations:

• Set Clear Objectives: Before starting, establish specific and measurable goals for the BI project.

• Choose the Right Tools: Evaluate the company's needs and opt for solutions that align with the business strategy.

• Monitor Results: Continuously track BI performance to identify areas for improvement and adjust strategies as needed.

By addressing challenges and adopting best practices, BI can become a transformative tool, enhancing organizational competitiveness and driving consistent results.

Why Investing in BI is a Strategic Differentiator

Business Intelligence is a game-changer for companies aiming to optimize operations, enhance decision-making, and stay competitive in an increasingly data-driven world.

Key Takeaways:

• BI enables data-driven decision-making, eliminating guesswork.

• It enhances operational efficiency by reducing costs and optimizing processes.

• Businesses using BI quickly identify market opportunities and develop personalized strategies.

• BI helps forecast trends and mitigate risks, strengthening strategic positioning.

If your company has not yet explored Business Intelligence, now is the time to act. Investing in BI means staying ahead of market changes and gaining a competitive advantage.

Discover how BI can transform your business! Contact our experts and take the first step toward smarter and more strategic management.