Business Intelligence and ERP are often confused to do the same job. Should companies prefer either ERP or Business Intelligence or both together ? This question can be common nowadays as people start to explore more technologies for their business growth. So lets see the connection between these two software and the right way to implement the tools to drastically enhance the operations.
Difference between ERP and Business Intelligence :
ERP and BI both serve a strong purpose in the business process. ERP software serves as the operations management as it deals with various departments like production, inventory, finance, purchase, supply chain etc. It creates centralized data and increases efficiency of business processes. This data is further processed by BI to organize, analyze and contextualize the information to generate actionable insights.
Both tools support different levels of decision making. ERP systems add value at the operational level giving business views on current functions. BI analyzes that data helping the companies to dig deeper into the metrics and used to fine tune the strategies at a high level.
BI system provides dashboard management, visualization and reporting capabilities. It allows users to view data from different sources on a single screen. Whereas ERP provides transactional data with respect to all the on going functions in real time.
The BI tools help with future oriented business strategies with its in-depth predictive analytics with respect to market conditions. ERP solutions establish good communication between departments, reduce cost, and enhance the overall business performances with real time data.
Integration of ERP and BI :
For any business decision making the two important factors are data and analysis. Data is nothing but given by the ERP system and that data is processed and analyzed into useful information with the help of BI tool. Hence the integration of ERP and BI brings everything together helping consolidate a wide range of historical data into actionable insights. Once both these tools are integrated the business can expect a futuristic view and ways beyond the regular strategies. You can find patterns of demand and sales which helps in laying plans for strong future strategies.
Benefits of Business Intelligence in ERP :
Data driven decision-making – With ERP giving the accurate and standardized data, the BI makes faster and better decisions. Without a reliable overview of data it is impossible to generate insights for the business. Hence ERP and BI together function for greater good.
Better understanding of business performance – The BI helps organizations track the performance over the period of time. It identifies the areas that need improvements. Having a better understanding of business paves way for stronger business strategies.
Predictive analysis – With an integrated ERP system the BI generates a complete view of past, present and future outcomes of business possibilities. This is greatly helpful for project handling.
Improved efficiency – By identifying the areas of improvements, the BI tool provides more opportunities for employees to work strategically resulting in increased productivity.
Accurate reporting – Reports are something that conveys important business information. Hence any human error can lead to disasters. Having a BI tool with ERP generates accurate reports on current progress, past performance and even future predictions.
Future of Business Intelligence in ERP
As increase in competition is challenging each and every business to sustain in the market, the organizations have started to explore and adapt to new technologies. Businesses seek more data driven methodology with accurate analytical tools. This helps them in optimizing their business process, save cost and compete effectively in the economy.
All these can be achieved with ERP and BI becoming intertwined with each other. Data and analytics both play a bigger role in shaping the business strategy. The decision makers can rely more on the tools to make the right and fastest decisions.
Business intelligence and ERP together makes a big difference in the business process. It is the most valuable tool for an organization in every aspect. Data plays a vital role when it comes to business and interpreting it efficiently leads to powerful business strategies.