A picture is worth a thousand words - and a thousand numbers. The latest BI (business intelligence) apps like Power BI can help you quickly achieve valuable insights. Here's how.
Today’s businesses have access to more data than ever, yet much of that information isn’t being put to good use. On average, between 60 per cent and 73 per cent of data in an enterprise goes unused for analytics, according to research firm Forrester.
In other words, most organisations are missing many potential insights into their business, customers and markets.
To be fair, the increasing volume of available data has resulted in greater complexity, adding to the difficulty for businesses to manage, process and interpret all that information.
It is why business intelligence (BI) applications are becoming more popular; they extensively use graphics, or visualisations. These allow executives and other decision-makers to more easily identify complex data trends and insights, and act on them. In fact, several BI applications are designed to be self-service, so you don’t have to be a data scientist to use them.
Spreadsheets and other traditional reporting tools still have their place. However, you could spend days immersed in them and still miss insights that are instantly available with modern BI applications. As data visualisation expert David McCandless commented at CPA Congress 2018: “It’s about distilling and making information digestible.”
Of course, the insights gained are only as good as the data itself. Once you’ve sourced the data, here’s how the new breed of BI applications can make it easier to analyse and apply the information.
We’re using Microsoft Power BI as an example because it’s one of the easier to use BI tools around. It’s available as a cloud-based subscription application or free desktop version.
Power BI lets you create and view relationships between the data tables you load.
The first step when using Power BI is to load some data. This can be as simple as loading an Excel file, but it also supports a wide range of data formats. It even connects to live sources, such as Salesforce, Google Analytics and QuickBooks Online for real-time insights.
You can also add multiple data sources to the one data project. For example, you can include data from both accounting and customer relationship management (CRM) applications.
Combining and shaping data
To combine data from two or more applications, you may need to rename fields and make other adjustments with Power BI’s Query Editor, which works like queries in Microsoft Excel or Access. This also allows you to “shape” data, by removing columns or filtering rows from loaded data tables.
Analysts wanting to build complex data models can load data from multiple sources and create relationships between tables, much as you would in Access. Power BI also supports data analysis expressions (DAX): a collection of functions, operators and constants that can be used in a formula to make calculations, like Excel.
Power BI’s key difference from Excel and other data reporting tools is in the powerful ways it allows data presentation. It offers a wide variety of data visualisations, ranging from basics such as bar and pie charts to maps, scatter charts and many others. You can also add a KPI (key performance indicator) which, for example, can simply display a year-to-date figure along with the budgeted equivalent.
Visualisations can also be interactive – a great feature for maps and complex charts that allows you to zoom into specific areas to view data points.
Within Power BI’s visualisations section is an analytics subsection. This powerful tool allows you to analyse and model data in visualisations though “dynamic reference lines”. For example, you can quickly see the minimum, maximum and average figures for a sales bar chart. There’s even a forecasting feature for identifying likely future trends, based on historic figures and other variables.
Choosing the right visualisations is crucial to obtaining the best insights, and McCandless’s Information is Beautiful blog is a great source in this respect.
Reports and dashboards
Each visualisation created is added to a report, but you can also pin a visualisation – or the whole report – to a dashboard, which is a key feature of BI applications.
The dashboard allows you to quickly see the latest and most important trends and KPIs. Power BI also permits creation of multiple dashboards for various needs or different people.