The National Bureau of Economic Research officially put the start of the current economic decline in December 2007.   Since then a crescendo of media attention to interest rates, unemployment and the imminent and complete failure of key industries has reached a fever pitch.  Panic appears to be settling in the minds of most businesses, so it seems prudent to investigate the role Business Intelligence plays during the economic slowdown.

Business intelligence is the process of gathering and storing information about a business.  It includes a broad range of applications and technologies to assist in gathering, storing, analyzing, and distributing that information so decision makers can make more efficient and timely business decisions.  The over-arching purpose and goal of Business Intelligence is to provide the data and analysis necessary to the right people within the business or industry so timely action can be taken and the best-informed decisions can be made.  

A recession is a period of decline in the national economy characterized by a general business slump along with falling prices and unemployment.  For businesses, this means demand drops as consumers lose their jobs and lose faith in the economy and that naturally results in a decline in production and supply.  

Businesses need to persevere throughout this period of decline, which calls for a proactive strategy.  If a business cannot seize opportunities or maintain their customer base they will fail in the economic downturn; insight into key performance indicators is critical to survival in the current climate. A good business strategy starts with the right technology and includes components such as analysis, reporting and planning through the use of Dashboards, Scorecards and predictive analytics.  Aligning the strategy with Business Intelligence tools will provide visibility into key business drivers and maximize efficiency; it is essential that time be spent on analysis, forecasting and decision making rather than the compiling and reconciling of data.   

At the same time, some cost cutting is inevitable.   With a suitable Business Intelligence program, management can make tough calls regarding assets, resources, products or customer relationships that may no longer be sustainable.  The ability to assess how the downturn is affecting key performance indicators and adjust accordingly will keep the business healthy and will position the company to prevail when the economy eventually improves.

The bottom line is that when it comes to Business Intelligence programs, organizations should consider investing in or expanding an existing program rather than cutting back.  A Business Intelligence program is an essential business tool that will guide effective decision-making and success particularly during an economic slump.  The most reliable way to find trends and deviations from the norm and rapidly take action is with the help of an effective Business Intelligence program.  If you have the right tools, you will survive the recession.