Business Intelligence Profit Impact

car dealer business intelligence profit impact

What is business intelligence? It feels like it's a term that became popular in the last decade and in many minds it is simply reporting. In reality, it is a field of study driven by market demand that has been developing for the past 30 years and it is reaching its culmination point in this era of technological boost. Business intelligence can be defined as: "Asking and answering questions about a business process that will lead to actionable items and improvement in terms of business values like profits, revenue increase, cost reduction, etc."

Why should it matter to you? You may be thinking, "I already am profitable and know how my business is doing." First of all, there is always room for improvement. If there is a way for you to make more money, why wouldn't you do it? Knowing how your business is doing is only one aspect of business intelligence. Business intelligence is not simply asking the questions you "wonder" about your business. It is asking the right, actionable, strategical questions like:

  • What is my most profitable marketing channel?
    So that I can put more money towards it.
  • Which of my staff is making the best decisions at auctions?
    So that I can use him more for that task.
  • What is my sales forecast? How many cars should I buy?
    So that I can plan my car lot space usage.
  • Is there an increase in our costs? If so, in which category?
    So that I can take action to decrease costs.
  • Which models and brands take longest to sell?
    So that I will not buy them in the future.

Most of the time the goal of a business intelligence question in the context of car dealers is to increase the profits - short term or long term (occasionally it may be something else like legal compliance, opportunity analysis or competitive analysis). When you ask the right profitability questions, answering them and taking actions about them will increase your profits. It has resulted in solid profit impacts for many other companies and that is why business intelligence has become such a popular term.

A common mistake in business intelligence efforts is to ask the wrong questions. One key guideline about the right question is asking another question about it: Why would I answer this question? Why should it matter to me? What do I hope to accomplish by knowing the answer to this question. Once you start doing that, you will steer clear of this common mistake. Mostly you just need to stay focused on profit.

The reason business intelligence has not gained popularity up until the 1990's, is because it needed technological advancements. Many companies provide business intelligence and reporting products that are sold for thousands of dollars. Some of them are extremely sophisticated and bring great value to your organization but it is important to use the right tool for the right job. Carsinia provides most of the business intelligence you would ever need with a fraction of the costs of other companies and consultants. We provide ample reports and support for your queries. In terms of ROI (Return on Investment), Carsinia is unbeatable. Please see our Carsinia Dealer Business Intelligence Page for more details and contact us for more information and demonstration.

Carsinia.com © 2017