Know The Ways How Business Intelligence Can Improve Sales Forecasts

By Author: Bappaditta Jana
Total Articles: 87
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Business intelligence tools have transformed how organizations function and conduct their business. Its impact can be witnessed in different sectors.

Various departments like accounting, marketing, and budgeting can benefit from the key benefits of business intelligence, and sales forecasting is no different.

Business Intelligence offers data discovery, data gathering, and analytic capabilities that can elevate your sales forecasting abilities to a different level. The business has an immense volume of data generated at different points in the sales and marketing process. However, most of this data remains unstructured and does not serve the forecasting in any way.

Business intelligence tools help in collecting and processing large volumes of data originating from different functions in the organization. Let us discuss how Business intelligence can improve sales forecasts.

Predicting trends

Business Intelligence gathers a large volume of data from multiple sources. It takes past sales data from different points in the system and predicts upcoming trends and future ...
... sales. The data used by the system is timely, accurate, and up-to-date. Hence, it makes the predictions more usable.

Sales forecasts can be used to plan inventory levels and supply chain management. Moreover, a reliable figure will help you in optimizing your resources and better employee scheduling.

Manages vast amounts of data

The amount of data that an organization produces is very large. Also, this data originates at different points in an organization. Hence, a vast amount of data needs to be collected and processed before arriving at business decisions.

Business Intelligence tools process a vast amount of data and present it in a summarized report. You can also represent data in a pictorial form which makes analysis much easier.

Hence, using business intelligence tools helps in deriving insights on which sales forecasts are based. It also eliminates the possibility of human error.

Reliable information

Business intelligence tools gather, classify and organize data most effectively. Hence, it helps in reliable information. Since these tools capture data across the organization, the data is more reliable and can help in predicting the sales accurately.

Labor costs are one of the major expenses for an organization. Hence, minimizing these costs is a major objective for most businesses. Sales data allows you to know the peak business period so that you can utilize the labor resources effectively.

For example, a restaurant will need more labor during the peak seasons. Hence, contractual hiring for peak months can be done with accurate sales forecasts.

These are some of the ways business intelligence tools can help in sales forecasting. However, they can also help in other areas of business by providing timely, accurate, updated, and reliable information.

Bappaditta Jana is a blogger who loves to spend his free time engaging in sports or gardening. Based in Kolkata, he is currently working with EasyReports an IT firm that has developed a BI reporting tool that can easily integrate with Tally ERP and many other applications.