Every business, regardless of industry, requires the basic ability to know whether or not they're operating profitably. Typically this is calculated as a post-mortem exercise, more often using a spreadsheet containing an income and an expenses column. There are two important items to take note of: first, a business can't proactively change its processes to generate higher profits until it's too late; secondly, data is usually inconsistent and inaccurate, take timesheets for example, when collected and reviewed at the end of the project. With some basic Business Intelligence or BI software, a business can utilize a Dashboard that displays the essential information they require in real-time to adjust and make improvements to their bottom line.
Much like a health monitor, the Dashboard shows your business' vital signs, such as gross revenue, gross profit, sales, top sales staff, etc. Layer this on top of an Analysis level where you can expand, collapse, sort and filter, and a Data level to allow you to check the details, and you’ve got a powerful business intelligence platform that can easily help you see profitability. BI software minimizes the two factors, Time and Data Accuracy, that prevent you from responding to changing conditions and increasing your business profitably.
Having the information you need at the right time is extremely vital to understanding the health of your business. With a BI tool that displays real-time information, you can tell if the data your rely on for decisions, such as time entries and expenses, are up-to-date. If time is money, then waiting on printed reports equals lost revenue. A BI tool lets you shift from reviewing out-dated reports to proactively tracking progress.
The second issue, data accuracy, relies on data integration of your business system, your accounting (e.g. QuickBooks), time-tracking (ask us about Time Dynamix) and sales (e.g. Saleforce.com) software. You shouldn't rely on manual time entries or copying and pasting numbers from one or more systems into a spreadsheet. There's no telling the number of errors that can be introduced using this method. By automatically merging your data into one central location, you eliminate uncertainties in your numbers. Consequently, by having a real-time dashboard and analysis tool, you can spot inaccuracies and anomalies in your data before they become a problem. What's more, by centralizing all of your data, you're able to export reports with real-time data and eliminate the confusion of multiple versions floating throughout your business.
The case for any business to have a dashboard to monitor the health of their business is fairly open and shut. But the biggest problem is finding the right software application, price point and support services that can help provide you with the solution. Billion dollar businesses rely on million dollar solutions such as SAP/BusinessObjects and IBM/Cognos and have massive budgets to spend on consulting hours for customization. Smaller businesses with under 500 employees, which make up more than half of the economy, aren't left with many options and tend to rely on cobbling together Excel spreadsheets, Access databases, and attempt costly experiments with SQL and freelance consultants to get the job done.
These are some of the reasons why we developed and continue to enhance Matrix for Business. Combined with our data integration services, we can provide SMBs with an affordable and robust alternative that fills in the gap between spreadsheets and million dollar BI solutions (or disasters). Learn more about Matrix for Business at http://www.matrixforbusiness.com
Also, an excellent source for innovative ideas can be found at http://www.smallbiztrends.com and editor Anita Campbell (@smallbiztrends) who is the inspiration for this post.
