BI reporting versus traditional reporting

In the current CEO outlook report prepared by KPMG, the priorities to adopt generative AI and continue to digitize are common for most of the 1300 leaders interviewed. Digital transformation requires a business to move from manual data entry, data silos and traditional reporting to cloud technology. Usually the data collection, data integration and data validation happens in real-time so that reporting methods are fast and people can analyze large volumes of data from anywhere.  

Fast decision-making is paramount and the ability to turn raw company data into actionable intelligence is at the core of today’s successful businesses. 

In this post, we will discuss a few ways BI reporting is superior to traditional reporting practices.  

BI reporting offers one source of the truth 

Companies often have data stored in multiple sources such as ERP, CRM and excel spreadsheets. Traditionally, data must be combined manually into a single source to be effective and support business people’s reporting needs. While spreadsheets have their uses, they are notoriously error-prone and not a good option for reporting. A mistake in a single cell will invalidate the entire report. Additionally, multiple managers will often share a spreadsheet. However, when multiple versions of the same document are created, it’s nearly impossible to guarantee that everyone is using the most current version.  

BI reporting integrates company data from multiple sources, so users always have access to one source of the truth. Data is displayed on a BI dashboard in real-time so everyone works from the most current information usually with the headings and metrics of their choice included in their interactive dashboard.  

BI reporting is on demand 

As many executives know, traditional reporting is slow, rigid, and becomes outdated quickly. Long, and often frustrating, wait times for IT generated reports are all too familiar experiences. Yet, executives and managers must rely on weekly, monthly, and annual reports to make critical business decisions. This can lead to missed opportunities.  

In contrast, BI reporting enables everyone to access data, conduct analysis, and create personalized report formats without IT involvement. Self-service reporting eliminates the reliance on others to generate reports and instead, users can slice and dice the most current data whenever they need real-time, actionable insights. Also, standard reports can be generated on a designated schedule. For instance, reports can be set to generate on Monday mornings in anticipation of weekly staff meetings. If more information is needed during the meeting, a customized report can be created on the spot with just a few clicks.  

Finally, free of the continuous demand for reports, the IT department has more time to focus their attention on other important tasks such as maintaining security or managing extra data resources (like adding social media listening) so that the team can generate deeper insights.  

BI reporting gives granular insight 

Traditional reports are static, only providing a summary of information without much detail. This means you cannot investigate which underlying factors or transactional data are driving what you are observing. Furthermore, static reports only provide the information you request. Since you can’t probe information you don't know is there, you are only getting part of the story. A partial picture can lead to a wealth of missed opportunities.  

Conversely, BI reporting is dynamic allowing users to select a metric and drill down into the underlying data. In this way, users are empowered to ask questions of the data and follow their train of thought to discover the answers. For instance, overall sales figures may be on target. However, drilling down will display sales figures by region, product line and sales rep. This detailed analysis might reveal the one product is over-performing, and that this is masking the declining sales of another product. With this level of granular insight, the sales team can work to boost the sales of the underperforming product to increase sales revenue overall. 

BI reporting for data-driven decisions  

When data analysis is possible on both historical data and real-time data then this enables better decision-making across your business - from the CEO to the intern. For some BI providers, like Phocas Analytics, interactive reporting has become even faster and easier with the addition of AI natural language processing. New users can make immediate and informed decisions from their data by typing a question and then getting a fast response as well as the detailed steps to do the same query manually within the software. 

BI reporting offers data visualizations 

BI reporting presents data in the form of visualizations to help clarify complex information for decision-makers. A graphical depiction of numbers makes the information easier to digest, retain, and recall. Visualizations might be simple bar charts, pie charts, and maps. Or they might be more complex models such as waterfalls, funnels, gauges, depending on your needs. In either case, your team will be able to see all factors that are affecting performance. Visualization makes it easier to identify patterns, trends, and new opportunities. They offer the ability to see changes in customer behavior so your team can respond in ways that drive sales and enable you to stay ahead of the competition. 

BI reporting for month-end statements 

Finance teams using a BI tool combined with Financial Planning and Analysis (FP&A) software can report on month's close and review and analyze financial statements directly. A BI tool with financial statement capability makes month-end financial statements more accessible as financial reports can be created for many parts of the business and allows more people to understand financial performance. 

By adding financial statements to Phocas business intelligence software brings active analysis, data drill down and dashboarding to the finance and management team with fully controlled user-permissions. 

Financial statements are created in the same tradition as the accounting team recognizes, but the process is automated for each statement. The finance team can quickly build financial statements customized to users’ access, so branch managers can see information relevant to their branch, and management can see information across the whole business. The statements can also sit across one or many ERPs so leaders can view the individual company, branch, regional performance and even the consolidated performance when required. 

Now that preparing the financial statements is faster and simpler, the finance team has time to carry out in-depth analysis of the numbers. By preparing financial statements within a data analytics environment, you can quickly compare statements from one traditional period or outside of these timeframes - say one week to the next. 

Transitioning from traditional reporting to BI reporting will provide the ability to see the whole truth, make better decisions faster and uncover new business opportunities.