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• 2007

S&T: Business Intelligence Comes to the Mass Market

Cost reductions up to 20% possible

With Business Intelligence companies can recall strategically important information out of extensive quantities of data. Often the system is also used to track and increase business performance, to analyse customer relationships and products, to carry out marketing analyses or to improve the daily running of the company. Government authorities can target savings in the region of several hundred million Euros, if they use Business Intelligence for analysis of the efficiency of state administration. “Whilst in the past a large proportion of our Business Intelligence project transactions were for large and international companies in particular, we now also receive with increasing frequency orders from local medium-sized firms from different market sectors. In addition, the maturity level of the BI market is increasing. Whilst earlier it was mainly pure reporting solutions that were requested, now orders for progressive analysis systems and analytic applications are clearly increasing“, says Christian Rosner, CEO S&T AG. S&T successfully offers consultation, solutions and services in the Business Intelligence field in all 23 S&T countries, for local and international customers, and is constantly expanding this area of business.

Clear Advantages

For example banks, where Business Intelligence was first used, can identify suspicious transactions which may indicate money laundering. By means of BI, companies can track where and for what purpose different expenditure is carried out, or identify important customers and recognise their behaviour patterns. A frequent need is that of obtaining a comprehensive description of company performance and observing this long-term, to extract information which is necessary for strategic decision making or for improved understanding of the customer and his behaviour patterns. Business Intelligence can also be successfully used for identification and elimination of various costs, which would otherwise remain hidden.

Legal Regulations

Furthermore, Business Intelligence methods are often used to produce reports and analyses which are needed by government authorities, e.g. regulations within the context of the Sarbanes-Oxley Act, the Basel II directive, various EU directives or International Accounting Standards (IAS). “Without Business Intelligence the creation of such detailed reports would be impossible – it would require weeks of relentless work. With the help of Business Intelligence solutions, all the information which is necessary for producing the reports can be recalled instantly, effortlessly and cheaply“, explains Rosner.

High Savings Potential

Several hundred million Euros can be saved, for example in public finance. Business Intelligence can be used to determine how certain government subsidies or monies in the state benefits sector are spent. BI can ascertain and describe the relationship between the subsidies distributed, the regional economic indicators, the demographic composition of the population and its educational background. The data can contribute to deciding which projects are failing and for which no subsidy can therefore be guaranteed, and which projects merit a subsidy. In similar ways Business Intelligence can support health insurance companies which detect fraudulent or inefficient use of health service money by hospitals or patients. Thus, state administration based on clear and consistent data can monitor and analyse the management and operation of health insurance companies.

Broad Scope

The areas of use for Business Intelligence are unlimited. However, Business Intelligence is most frequently used for analysis of procedures in connection with the “main business“, i.e. with processes which directly influence the performance of a company. BI tools can be used in particular for monitoring and increasing profitability, for analysis of customer relationships and products, for development of marketing strategies or for tracking of the daily course of business. Rosner: “The customer merely needs to establish what information should be recalled. Experts in the field of Business Intelligence can also link different business information systems such as CRM, SCM or other databanks with each other and present the results to the customer in a comprehensive and easy to understand graphic format.“