Top 5 Benefits of Using Business Analytics Software

5 Benefits of Business Analytics Software

With all of the business-related buzzwords out there, it's hard to know which ones are important. In the world of big data, industries are revamping practices and utilizing new language to describe their processes. One of the more critical terms to know is business analytics or BA.

So, how exactly does BA work? It helps to first know how data collection relates to BI tools and analytics solutions. With numerous online data sources, organizations have access to more information than ever before. Restaurants now use optimized intelligence software to harness this data and generate business intelligence, or BI. Essentially, BI is aggregated historical and current data that enables business users to know what's occurring in real-time.

BI helps restaurants identify inefficiencies, optimize collaboration, and streamline operations. Managers typically use interactive dashboards and data visualizations to see all data from one centralized location. This helps them make quick and reliable business decisions.

However, what if these managers need to drill down further into their codified business intelligence? What if they need to forecast sales or know which menu item will be popular in a few months? That's where analytics tools come in.

Restaurants can hire a data management specialist to answer specific questions about their data and optimize future decision-making. Specialists use a combination of intelligence tools, artificial intelligence, statistical analysis, and machine learning to extract valuable insights. These insights come with specific recommendations upon their delivery to management. Restaurants derive many advantages from in-depth data analysis and data mining. Read ahead to learn the top 5.

1. Business Analytics Software Enables Quick and Accurate Reporting

Managers utilize customized reports to track key performance indicators. They harness a variety of data sources, such as social media interactions, sales information, or inventory data. Reports use a combination of the most current real-time and historical data to ensure accuracy. This allows managers to quickly problem-solve and make the best business choices.

A report may include a data visualization to describe specific data sets. This enables even a non-technical employee to extract insights, as pictures and graphs are simple to understand. Many intelligence tools are interactive, so managers can drill down further to look at a specific data point.

Benefits of Reporting:

• Develop a vision and strategy on sustainability and long-term growth
  
• Improves internal processes and helps set goals
  
• Pinpoints weaknesses and strengths
  
• Help cut costs and manage waste
  
• Increases communication and collaboration
  

2. Business Analytics Software and Predictive Analytics

Of all the types of analytics available, companies love predictive analytics the most. Used by banks, retailers, restaurants, and more, PA forecasts the future. With effective BI software and a qualified data science specialist, restaurants can use historical information to predict future outcomes. For example, a specialist may use data discovery techniques to uncover patterns in inventory shortages. A manager will then use these insights to optimize future inventory management and cut back on waste.

Predictive analytics also helps forecast customer preferences and market trends. To illustrate, a restaurant may drill down into POS and social media data to identify customer food likes and dislikes. This information can then aid in curating better marketing campaigns and increasing sales.

3. Business Analytics Software Enables a Competitive Edge

The capacity to handle and manipulate large quantities of information is a competitive advantage in and of itself. Furthermore, an analytics platform enables restaurants to learn more about cash flow, inventory, customer preferences, and forecasts. Restaurants can also track what the competition is doing and pinpoint how to modify its menu. These are all powerful ways to remain one step ahead of the competition. A bonus is that any type of analysis is simple to conduct with the right business analytics software.

Stats Showing BA Creates a Competitive Advantage:

• 54% of companies are adopting BA platforms to gain a competitive advantage
  
• 90% of professionals plan to increase spending on BI tools
  
• Content analytics increased from 43% to 54% in the last two years
  
• Restaurants that use BA see an increase of 8-10% in profitability
  

4. Business Analytics Software Improves Customer Satisfaction

As previously mentioned, business intelligence software and BI analytics identify customer preferences and market trends. This allows restaurants to curate menu designs in a way that will showcase their brand. Businesses can also know what food trends are on the rise and order/ upsell items accordingly.

Another benefit of business analytics tools is that they can be used to drill down into social media interactions. Restaurants can discern which content is popular and then create new content to align with consumer needs. They can also use business analytics platforms to identify patterns in customer complaints and then make improvements. As a result of taking these steps, customer satisfaction and brand loyalty will increase.

5. Business Analytics Software Increases Operational Efficiency

An analytics solution allows restaurants to uncover inefficiencies in the supply chain and correct them. With tools to forecast future trends, restaurants can optimize existing processes and train employees accordingly. Fewer hiccups and greater worker efficiency will increase productivity and improve morale. Employees will know exactly where to find answers to questions and who to ask. This tends to improve collaboration and streamline connectivity.

Managers will have the correct set of tools and systems at their disposal to quickly accomplish tasks. With more automated solutions at hand and fewer inefficiencies, managers will have more time to focus on critical projects. All of these benefits result in greater operational efficiency. Furthermore, streamlined operations tend to make customers happier, and lead to higher sales and more return visits.

Collaboration, Efficiency, and Analytics: 26% of professionals claim there are collaboration bottlenecks at their place of work. Furthermore, 25% of executives say there are too many disparate data sources and BI systems. Combining systems into one business intelligence platform optimizes collaboration and increases operational efficiency.

Key Takeaways of Business Analytics Software

In conclusion, here are the top benefits of an analytics solution or business intelligence tool -

• Data analytics enables quick and accurate reporting, which helps managers make better business decisions.
  
• An intelligence platform can forecast future trends and identify customer preferences. It also drills down into what the competition is doing, enabling a competitive edge.
  
• An intelligence tool improves customer satisfaction and brand loyalty. Restaurants will know exactly what customers want with the help of business analytics tools. They can then curate menu designs and reordering habits accordingly.
  
• Cloud-based business intelligence tools help to streamline operations and minimize inefficiencies. This improves operational efficiency, which increases customer satisfaction and sales.