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Business Intelligence (BI) plays a critical role in assisting organizations to make informed decisions and gain a competitive edge in todays dynamic business environment. With the increasing significance of e-commerce as a business medium, BI has undergone continuous transformation to meet the evolving needs of the industry. The evolution of BI started from its roots in Management Information Systems (MIS) and progressed to the integration of external data and advanced analytical capabilities. The goal is to provide current and relevant information for businesses to thrive in challenging economic times.

A Business Intelligence process involves transforming data into information and subsequently into knowledge that can be used for decision-making. Technology and human capital both played pivotal roles in leveraging data to gain a competitive advantage. BI is a diverse field encompassing data analysis, data mining, querying, and management reporting. Its primary purpose is to support a wide range of business applications and aid strategic decision-making in organizations.

Personalized Marketing: Customer segmentation is essential for delivering tailored marketing strategies that result in higher conversion rates and customer satisfaction. BI tools like Tableau, Power BI, Quik Sense, Google Analytics, Adobe Analytics, RapidMiner, and Domo allow businesses to segment their audiences based on buying behaviour, demographics and preferences.

Inventory Management: Effective inventory management is essential for ensuring that a business has the right amount of inventory on hand to meet customer demand while minimizing carrying costs and preventing overstock or stockouts. By analysing previous sales data and market patterns, BI solutions like as Microsoft Power BI, Oracle BI, Looker, Sisense, and Zoho Analytic aid with future trends and demand forecasting.

Conversion Rate Optimization: Google Analytics, Adobe Analytics, Mixpanel, Heap Analytics, Crazy Eggs, and Hotjar are some of the most popular tools for identifying bottlenecks in the purchasing process by analysing user behaviour on e-commerce platforms. These insights aid in the optimisation of websites for improved conversion rates, converting users into consumers.

Competitive Insights: The macro environment like competitors is equally crucial in driving the business. SimilarWeb, SEMrush, SpyFu, Alexa, and Crayon are BI tools that provide eCommerce organisations with insight into their competitors' strategies. Businesses may stay competitive by keeping track of competitor pricing, product offerings, and customer reviews.

The success of BI initiatives depends on several factors which include user access, cross-functional integration, data quality, leadership commitment, analytical decision-making ability, flexibility, and user satisfaction. A holistic approach to BI implementation is crucial for transforming business processes and achieving organizational goals.

With the constant evolution of BI technologies and the availability of large data resources, organizations can gain a competitive edge by harnessing data-driven insights and enabling them to respond quickly to market shifts. As the business landscape continues to change rapidly, BI will continue to be the driving engine for e-commerce businesses, enabling them to adapt, innovate, and excel in their endeavours.

(Ashish Kumar Biswas is assistant professor at NMIMS, Hyderabad)

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Business intelligence technology and e-commerce | Mint - Mint