Is Your Business Ready for the Future? How
Business Intelligence and AI Are Shaping the Next Era of Decision-Making?
What is Business Intelligence (BI)?
Business
Intelligence (BI) refers to the process of leveraging data from both internal
and external sources to make informed, data-driven decisions. A BI system is
essentially the “eye” that a business owner needs to stay informed about what’s
happening both inside their company and within the industry at large.
When Did BI Come Into Existence?
The concept of BI
emerged in the early 1950s, but it made its way to Kenya around the 2000s with
the rise of the internet and cloud computing. By the late 2010s, Kenyan
businesses began adopting BI solutions to enhance operations, increase
efficiency, and make more strategic decisions.
Does BI Have a Future in the Era of AI?
A major question
on the minds of business owners is whether BI will become obsolete as AI takes
center stage. Will it lead to:
- Redundant
investments in BI?
- New
investments in AI?
The
truth: BI and AI are
not competitors; rather, they complement each other. While BI analyzes
historical data and provides insights into past performance, AI uses
predictive algorithms to forecast trends and automate decision-making. Here’s
how the two compare:
|
Aspect |
Business Intelligence (BI) |
Artificial Intelligence (AI) |
|
Primary
Function |
Analyzes
historical data to provide descriptive insights (what happened). |
Uses advanced
algorithms for predictive analytics and automates decision-making. |
|
Focus |
Data
visualization, reporting, and basic analytics. |
Predictive
analytics, automation, and pattern recognition. |
|
Role in
Decision-Making |
Provides
foundational data for decision-making with real-time insights. |
Enhances
decision-making with intelligent recommendations and predictive models. |
|
Ease of Use |
User-friendly, and accessible for non-technical users. |
Requires
specialized knowledge for setup and optimization. |
|
Technology |
Primarily data
aggregation and visualization tools. |
Machine
learning, natural language processing, and AI models. |
|
Automation |
Automates basic
processes like report generation and data visualization. |
Automates
complex tasks like data cleaning, predictive analysis, and recommendations. |
|
Investment Need |
Less expensive
and requires minimal technical infrastructure. |
Requires
investment in AI models, infrastructure, and specialized expertise. |
|
Complementarity |
Provides
foundational insights for better decision-making. |
Enhances BI by
offering advanced predictions and automation. |
Conclusion: While BI is crucial for understanding past performance, AI augments it by providing deeper, more predictive insights and automating complex processes. Together, they create a comprehensive, data-driven environment in which businesses can thrive.
Who Needs BI Systems?
- Farmers: To track
which crops are performing best in the market and adjust farming practices
accordingly.
- Retailers: To analyze
customer purchasing habits and optimize inventory.
- Business
Owners:
To track expenses and sales, guiding decisions on expansion or
cost-cutting.
The History of BI in Kenya
Kenyan
businesses, across various sectors, began adopting BI tools in the early 2000s
to streamline operations and make data-backed decisions. Notable sectors
include:
- Retail: For
tracking sales and customer preferences.
- Banking
& Finance:
For customer data analysis, fraud detection, and personalized services.
- Telecom: For
customer segmentation and enhancing service delivery.
BI Tools Used in Kenya
Some of the most
popular BI tools in Kenya and the businesses that use them include:
|
Business |
BI Tools Used |
|
Safaricom |
Tableau, SAP
BusinessObjects |
|
Kenya Airways |
QlikView, Power
BI |
|
Co-operative
Bank of Kenya |
IBM Cognos
Analytics |
|
East African
Breweries Limited (EABL) |
SAP
BusinessObjects |
|
Jumia Kenya |
Google
Analytics, Tableau, Power BI |
|
Kenya Power
& Lighting Company |
Oracle BI, SAP
BusinessObjects |
|
M-Pesa
(Safaricom) |
Tableau, Power
BI |
|
Bidco Africa |
SAP
BusinessObjects, Microsoft Power BI |
|
Nairobi
Securities Exchange (NSE) |
Tableau, Power
BI |
|
Airtel Kenya |
Oracle BI,
Microsoft Power BI |
|
Kenya Revenue
Authority (KRA) |
SAP
BusinessObjects, IBM Cognos |
Ranking of BI Tools in Kenya (Most to Least
Popular)
- Power BI
- Tableau
- SAP BusinessObjects
- Oracle BI
- IBM Cognos
- QlikView
- Google Analytics
Why Power BI is the Most Popular Tool in Kenya
- Affordability: Power BI
is budget-friendly, especially for smaller businesses that want to start
with BI without a huge investment.
- Microsoft
Integration:
Many Kenyan businesses already use Microsoft products, making Power BI a
natural fit.
- Ease of Use: Power BI
is intuitive and user-friendly, making it accessible even for
non-technical teams.
- Cloud-based: This option offers flexibility and scalability at a lower cost, which is ideal for businesses in Kenya looking for cost-effective solutions.
Strategic Benefits of BI:
|
Role of BI |
Optimization Benefits |
Growth Benefits |
|
Data-Driven
Decision Making |
Informed
decision-making based on accurate data. |
Aligns
strategies with customer demands for better growth. |
|
Operational
Efficiency |
Identifies
inefficiencies and streamlines operations. |
Frees up
resources for growth initiatives. |
|
Customer
Insights & Personalization |
Improves
service by tracking customer behavior. |
Develops
targeted products/services for increased sales. |
|
Competitive
Advantage |
Helps
businesses adjust strategies based on market data. |
Positions
businesses for innovation and competitive edge. |
|
Risk Management |
Detects risks
early, minimizing financial and operational setbacks. |
Safeguards
growth by managing potential risks. |
|
Financial
Management |
Enables
effective budgeting and resource allocation. |
Ensures
sustainable growth through optimized spending. |
|
Performance
Tracking |
Monitors
business performance and key metrics. |
Adjusts
strategies to scale successful initiatives. |
|
Strategic
Planning |
Provides
predictive analytics for proactive decision-making. |
Supports
long-term planning and growth strategies. |
Estimated Cost of Investing in BI in Kenya:
|
BI Tool |
Business Size |
Cost Range (KSh) |
Cost Breakdown |
|
Power BI |
Small to Medium
Business (SMBs) |
KSh 0 – KSh
150,000 |
Free Version:
KSh 0 |
|
Tableau |
Medium to Large
Business |
KSh 90,000 –
KSh 2,000,000+ |
Tableau
Creator: KSh 90,000 – KSh 150,000/year |
|
SAP
BusinessObjects |
Large
Enterprise |
KSh 3,000,000 –
KSh 10,000,000+ |
Licensing &
Setup Costs: KSh 3,000,000 – KSh 10,000,000 |
|
QlikView |
Medium to Large
Business |
KSh 500,000 –
KSh 5,000,000+ |
QlikView
Personal Edition: KSh 0 |
|
IBM Cognos
Analytics |
Large
Enterprise |
KSh 4,000,000 –
KSh 15,000,000+ |
Entry-Level:
KSh 4,000,000 – KSh 6,000,000 |
|
Oracle BI |
Large
Enterprise |
KSh 5,000,000 –
KSh 20,000,000+ |
Licensing &
Support: KSh 5,000,000 – KSh 10,000,000 |
|
Google
Analytics |
Small to Medium
Business |
Free to KSh
150,000 |
Free Version:
KSh 0 |
Conclusion
Whether you're a
small startup or a large enterprise, business intelligence remains a valuable tool for driving data-driven decisions. Cloud-based solutions like Power BI and
Tableau are making BI more accessible to Kenyan businesses, while enterprise-grade
tools like SAP BusinessObjects and Oracle BI are well-suited for large
corporations. Embrace BI and optimize your business strategy today for a more
efficient and growth-oriented future.
Article
by; Florence Wairimu Ngugi
Florence Wairimu Ngugi is an
experienced business consultant with a strong background in both business
management and mathematical sciences. Holding an MBA, CPA,
and MSc in Pure and Applied Sciences (Mathematics), Florence combines
analytical expertise with strategic insight to help businesses achieve
sustainable growth and operational efficiency.
As the lead consultant at Finabell
Consultancy, she empowers businesses with customized strategies for financial
management, operational efficiency, and risk mitigation.
Florence specializes in driving sustainable growth, optimizing
processes, and ensuring compliance and stability, all while aligning with
long-term business objectives.
For consultations
or inquiries, visit www.finabellconsultancy.co.ke or contact Florence directly:
📞 +254 714 429 541
📧 ngugiflorence360@gmail.com
Our
Focus Areas:
• Drive Sustainable Growth
• Optimize Operational Efficiency
• Maintain Compliance and Stability