Your Guide to Cloud Business Intelligence

Suppose you engaged a group of people in a conversation about clouds — the cyber ones — and asked them to describe what they are. Many of them would probably say that clouds are simply virtual spaces that you can access wherever you are (provided you have an internet connection) and where you can safely store your data. These individuals would, of course, be correct… but the power of cloud computing goes way beyond its storage capabilities.

For example, you may already know that the cloud can give you much faster access to services and platforms, without the need to install additional software on your device.

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However, what has been more discussed in business communities recently — although still not as often as perhaps it should be — is that the cloud itself can have enough computing power to be able to process large amounts of data and help users make better business decisions. Let’s expand on that idea right now.

What exactly is business intelligence in the cloud?

Cloud Business Intelligence, commonly known as “Cloud BI,” is an approach to data analysis and decision-making that uses the power of cloud computing to provide businesses with valuable insights and strategic advantages.

In other words, Cloud Business Intelligence is a process that involves delivering business intelligence services through cloud computing models to provide organizations with a streamlined and scalable approach for collecting, analyzing and visualizing data from multiple sources.

Cloud BI eliminates the need for complex on-site infrastructure and  enables organizations to tap into abundant computational resources and valuable data insights from anywhere – as long as they have an internet connection. As a result, it streamlines the process of making informed decisions, encourages innovation and provides a competitive edge in today’s data-driven world.

How does Cloud BI work?

The way a Cloud Business Intelligence solution operates can be described as a sophisticated, yet highly accessible, ecosystem. First, it involves the integration of various data sources, which may include databases, spreadsheets and a wide range of online services. These data streams are then aggregated and harmonized in a centralized cloud-based repository. Why? To ensure consistency and accuracy. The goal here is to make the data suitable for analysis.

Once the data is ready, a cloud-based business intelligence solution uses the cloud’s computational power to perform a range of analytics. This can include anything from basic descriptive statistics to advanced predictive modeling and machine learning algorithms. The cloud’s scalability allows these operations to be performed efficiently, regardless of the volume and complexity of the data. The results are then visualized through intuitive dashboards and reports, which makes it easy for users to identify data trends, correlations and insights.

Cloud business intelligence use cases

To better explain why the use of cloud BI solutions is becoming more and more popular, let’s look at the 8 most common use cases:

1. Data Visualization and Dashboards
Cloud BI tools allow organizations to create interactive and visually appealing dashboards and reports. WIth their help, users can easily track key performance indicators (KPIs) and gain insights into their company’s performance.

2. Predictive Analytics:

Cloud BI can leverage machine learning and predictive analytics to forecast trends, identify patterns and make data-driven predictions about future business outcomes. This is valuable for demand forecasting, risk management and customer behavior analysis.

3. Customer Analytics

Cloud BI tools enable organizations to learn more about their customers and better understand their needs. To be more specific, companies can use Cloud BI to segment customers, analyze their behavior and personalize their products based on their findings.

4. Self-Service Analytics
Cloud BI enables even non-technical users to perform advanced analytics and create their own reports without relying on their IT teams.

5. Sales and Marketing

Businesses can use Cloud BI to analyze sales data, track marketing campaign performance and measure the effectiveness of their marketing channels. This translates into them being able to better optimize their sales and marketing strategies.

6. Financial Reporting

Finance departments can use Cloud Business Intelligence to improve their performance in the context of defining budgets, financial planning and real-time financial reporting.

7. Supply Chain Analytics

Cloud BI helps optimize supply chain operations by providing insights into inventory management, demand forecasting, supplier performance and logistics.

8. Human Resources

HR teams can use Cloud BI tools to analyze employee data, track workforce trends and improve talent management. This can include employee retention analysis, performance reviews and workforce planning.

9. Customer Relationship Management

Customer Relationship Management (CRM) enables businesses to gain real-time, comprehensive insights into customer behavior, preferences, and interactions. This allows for personalized marketing campaigns, improved customer service, and proactive identification of potential churn risks.

How is cloud computing influencing business intelligence?

Cloud computing has had an enormous impact on the field of business intelligence (BI) — especially in the past few years — by fundamentally changing how organizations collect, analyze and use data for decision-making.

One of the byproducts of merging these two worlds is the improved scalability and flexibility offered by cloud-based BI solutions. Companies can now easily adjust their resources to meet their ever-changing needs, which eliminates the burden of maintaining an expensive on-site IT infrastructure. This shift toward a pay-as-you-go model makes BI accessible to all businesses — no matter their nature, size, location, or technological maturity.

Additionally, cloud-based BI supports remote access and collaboration, which allows decision-makers to access crucial insights from virtually any location on the planet. This increased accessibility enables organizations to respond much quicker to market changes, while the integration of data from various sources allows them to uncover much deeper insights and gain a competitive advantage.

This is all to say that by embracing cloud computing, today’s organizations are not just adapting to the digital age but are using technology to get the most out of their data and drive growth.

What is ‘SaaS’ business intelligence?

SaaS Business Intelligence (SaaS BI) is an innovative, cloud-based framework for delivering business intelligence tools.

Here, instead of organizations taking care of the provisioning and maintenance of BI software through the use of their own servers, they go for a subscription-based model in which the software is hosted and managed by third-party providers in the cloud environment.

This approach offers enhanced accessibility and flexibility, as users can access BI tools and insights wherever they are (again, provided that they have an internet connection). 

SaaS BI eliminates the need for substantial upfront investments in infrastructure and software, making BI more cost-effective and accessible to organizations of varying sizes. Plus, because it’s the providers who take care of software updates, security and maintenance, users are free to focus on other aspects of their business. 

Processes and analytical functions in Business Intelligence

• Data analytics: This refers to the process of examining raw data to uncover meaningful insights, identify trends, and draw conclusions. By doing so, organizations can make better business decisions and optimize performance across various operations.
• Data storage: This term refers to the methods and technologies used to capture, retain, and manage digital information across various media. Effective data storage ensures that information is preserved for ongoing or future operations and analyses.
• Data warehouse: A data warehouse is a centralized repository designed to store large volumes of integrated data from multiple sources. It facilitates complex querying and analysis, supporting business intelligence activities and decision-making processes.
• Data integration: This involves combining data from various sources into a unified and consistent view. The process includes cleansing, transforming, and consolidating data to enable more effective analysis and reporting.
• Advanced analytics: This utilizes sophisticated quantitative methods, such as predictive modeling, machine learning, and statistical analysis. The goal is to uncover deeper insights, predict future outcomes, and recommend optimal actions.
• Reporting and visualization: This encompasses presenting data in understandable and actionable formats, such as dashboards, charts, and reports. This approach helps users easily interpret trends, patterns, and performance metrics, leading to informed decisions.
• Collaboration: Collaboration allows multiple users and teams to work together by sharing data, insights, and analyses. This fosters a data-driven culture and enhances collective decision-making through shared understanding.

What are the differences between cloud business intelligence (cloud BI) and traditional business intelligence (traditional BI)? 

There are a few essential differences between cloud BI and traditional BI: 

1. Cloud BI solutions are deployed in the cloud, with no need to embrace on-premises infrastructure. In contrast, traditional BI solutions require the suitable infrastructure (hardware) and software licenses installed on-premises.  

2. With cloud-based solutions, it is much easier to scale the needed tech to business needs, while traditional BI solutions are constrained by preexisting hardware limitations.  

3. Cloud business intelligence takes advantage of subscription-based pricing, and a company pays for the storage and chosen services if a contract does not state otherwise. Traditional BI contracts require an upfront payment to cover hardware and software license costs and ongoing maintenance expenses.  

4. The maintenance and updates of business intelligence solutions are typically managed by a cloud provider. And with easily applicable updates and security patches, the process is much more streamlined. Traditional BI mandates an in-house team install updates and patches, leading to more resource-heavy internal development operations.   

Case studies of cloud business intelligence implemented in different industries 

Cloud business intelligence can be applied in various industries. Here are some examples of industries where cloud BI is applicable, along with a description of what can be done with it.  

Manufacturing

Implementing custom analytics can enhance predictive maintenance capabilities, enabling proactive equipment monitoring and optimizing both manufacturing processes and supply chain operations. Cloud business intelligence (BI) enables manufacturers to integrate data from various production stages, which helps identify bottlenecks and potential areas for efficiency improvements. Additionally, it supports demand forecasting by analyzing historical data and market trends, leading to improved inventory management and reduced waste.

Retail:

Analyzing sales data from global stores provides real-time insights into sales trends, inventory levels, and customer behavior. This information allows retailers to tailor marketing campaigns and product recommendations, ultimately enhancing customer engagement and loyalty. Additionally, cloud-based business intelligence (BI) helps optimize pricing strategies and promotional activities by assessing demand elasticity and monitoring competitor actions across various regions.

Healthcare:

Enhancing patient care through data integration, analysis, and visualization facilitates informed decision-making, optimizes resource allocation, and reduces costs. Cloud-based Business Intelligence (BI) platforms can identify patterns in patient outcomes, leading to improved treatment protocols and the advancement of personalized medicine. Furthermore, these platforms facilitate better management of operational efficiencies, including staff scheduling and the optimization of the medical supply chain, ensuring that resources are available where they are needed most.

Financial services:

Upgrading risk management and customer experience through advanced analytics of large volumes of economic data to gain real-time insights into customer behavior, credit risk, and fraud detection. Cloud BI enables the creation of dynamic dashboards that monitor market fluctuations and portfolio performance, allowing for quicker responses to changing conditions. It also supports regulatory compliance by providing robust data governance and auditable reporting capabilities.

Entertainment:

Utilizing cloud business intelligence to analyze audience engagement, content performance, and subscription patterns across various platforms. This allows entertainment companies to make data-driven decisions on content acquisition, production, and targeted marketing efforts. Furthermore, cloud BI facilitates the understanding of viewership trends and preferences, enabling personalized recommendations and optimizing content delivery for improved user satisfaction and retention.

The future of cloud business intelligence 

Cloud BI transforms how businesses access, analyze, and act on data by enabling real-time, remote analytics through cloud platforms. Cloud BI empowers teams across departments to make strategic choices based on up-to-date insights, increasing agility and competitive edge. 

Key trends surrounding Cloud BI right now include integrating artificial intelligence and machine learning into its way of working, enhancing BI tools with predictive analytics, automating data discovery, and improving smart visualization capabilities. As BI platforms become more intuitive—with features like natural language queries, drag-and-drop interfaces, and mobile compatibility—data becomes more accessible to a broader, non-technical audience. 

When choosing a Cloud BI tool, companies should prioritize integration with existing systems, scalability, and strong data security. But don’t forget, support for real-time data, customization, collaboration, and compliance with standards like GDPR or HIPAA is essential. With the right platform, businesses can unlock data’s full potential and drive long-term innovation. 

Final thoughts

Based on what we have discussed in this article, it should be quite clear that the use of Cloud Business Intelligence (BI) tools is not just a fleeting trend, but rather one of the cornerstones of this digital business era we live and operate in.

Cloud BI is destined to shape the future of how organizations collect and use data, especially as more and more solutions use the latest AI and machine learning technologies to constantly increase the accuracy of analyses and expand the functionality scope.

Of course, there’s only so much that we can cover in one article about Cloud BI technologies. For example, we didn’t manage to touch on the issue of who can help with operating cloud-based Business Intelligence systems – and how?

This does not mean, however, that you have to try to find more information on your own. Those well-versed in both cloud computing and business intelligence can help you in this regard. 

Therefore, we strongly encourage you to connect with our cloud consulting services team, whose dedicated agents will be happy to answer all your questions related to Cloud BI.