BI and BAM: understand the difference between these two concepts

BI and BAM are terms that are very present in most companies. They are not necessarily independent terms, but neither the two tools are required to operate simultaneously in the same company: each is independent. There are still many doubts about the difference between these two terms and in today’s article we will talk about the main differences between BI and BAM.

What is a BAM system?

BAM stands for Business Activity Monitoring and is a tool that defines the process and technologies to be able to put information about the company’s KPIs in real time on a dashboard. What BAM does is only show in one place all the information coming from the most varied sources of data of the company, eliminating the need to consult several databases to know what is happening in the company at that time.

What is Business Intelligence?

BI is a technique that helps managers plan the company’s strategy by collecting and analyzing a large volume of data to understand the company’s performance and from there to decide more consciously about the future.

Relationship and differences between BI and BAM

Business monitoring tools facilitate the process of extracting information and making conscious and thoughtful operational decisions. Both tools use information to improve performance. The data analysis that the BAM tools provide is very efficient because it presents the information in a simple and concise way, allowing the manager to quickly be informed about the actual and current state of the business.

Unlike Business Intelligence, BAM systems don’t talk about past or future: they focus only on the present. The BAM system will integrate all the company information in one place so that the data can be consulted anytime, anywhere. BI will add an analytical culture across all sectors of the business so that everyone is aware of the state of the business. Real-time updated and analyzed information will provide improvements across all sectors of the organization.

 

These two concepts work very well if applied together in the company, so that you can understand all the information of your business in a simple way. The life of your company happens now and you must know at every moment what is going on with the business. Likewise, you must equip yourself with the right tools so that you can make the most appropriate decisions for the future!

Everything you need to know about ROI

All companies aim to make a profit and reduce expenses. Throughout a year of work, several investments are made with the purpose of obtaining financial gains. However, when it comes to investing in some stock, we are not sure if we will get the desired return, so there is always a risk associated with all the decisions. ROI – return on investment – is a very important concept for companies and in today’s article we’ll cover everything you need to know about ROI!

What is ROI?

ROI is the acronym for return on investment. This value represents the profit obtained after a certain investment and is commonly used in the evaluation of operational investments, such as acquisition of equipment, computer equipment, participation in events and marketing actions.

How to calculate ROI?

The formula for calculating ROI is very simple:

ROI = ((Revenue – Costs) / Costs) * 100

When calculating a return on investment, only costs and income related to the investment should be included, not the overall results of the company. The following example shows us how ROI applies in practice: a company will participate in a marketing event that costs € 10,000. During the event, they will generate leads that will become customers and in the next 5 years these customers will make a profit of € 20,000 to the company. The return in this case is 100%.

Advantages of calculating ROI

One of the main advantages of this calculation is the reduction of expenses and the increase of profit. It is essential to calculate the return on all actions performed, because only then managers can realize what actions result and which do not add value to the company. Thus, the company will be able to eliminate the investments that generate only expense. However, it must be borne in mind that some investments generate profit only after a considerable period of time. The manager must evaluate all the repercussions of the investment not only in the immediate but also in the long term.

The calculation of the ROI allows to improve progressively, because the company is able to follow the evolution of the investments, identifying standards and allowing to improve its performance. More than identifying the importance of each investment, the calculation of ROI also contributes to a positive evolution of the business.

Calculating this figure allows managers to make decisions faster because they often follow the status of the company and its investments. In this way, when choosing a particular investment, they will know the history of past actions and feel safer to decide.

It is increasingly important to keep track of the state of the business in real time as the markets are increasingly competitive. Multipeers is a BAM tool that allows you to track everything that goes on in your business through the connection to the information systems you use. Through a simple and intuitive dashboard, you’ll be able to instantly see what’s happening so you can make the best decisions for the future of your business!

Find how to use KPIs for the benefit of your business

KPIs and business goals: allies of success

We have already talked about the importance of KPIs for business success, but we must always remember that having defined KPIs is a fundamental part of a company’s management strategy. These business metrics allow for closer monitoring and better management of the level of success of the actions performed. In this article, we’ll give you some tips on using KPIs for the benefit of your business!

Availability of information

A KPI is only good if it can be measured. All metrics you want to evaluate must be scalable and available for evaluation. Otherwise, the KPI doesn’t make sense because it cannot be measured and loses its purpose.

True business relevance

Many managers make the mistake of choosing business indicators only for vanity, that is, numbers that show no effective results but look beautiful in reports. For example, likes and comments on Facebook are not as important as conversions to the website. It is essential for managers to focus on what really matters for the most important goal.

Frequently evaluate

A KPI should be analyzed frequently because it is only with constant monitoring that it is possible to understand whether we are moving in the right direction or not. You should always opt for indicators that can be measured easily and frequently so that you can make day-to-day decisions based on reliable and up-to-date information.

Dynamic indicators

An indicator that yesterday was quite important, today may have lost some of its importance. Companies are living and dynamic organisms and as such the changes must be monitored in all areas of the company. Evaluate at least every three months whether the indicators are the most appropriate given the period the company is going through.

Do not complicate!

A KPI needs to be simple so that the whole team is able to understand it. If you use too many technical terms and want to evaluate relationships between highly complex values, you will confuse the team, which will work without knowing well the purpose. A simple KPI is understandable for all employees, making it easier to achieve goals and evaluate performance.

Defining performance indicators is essential to succeed in your business. Working without knowing which way the business is going is the first step to failure. It is essential that you be aware that defining indicators is a function that deserves your attention and dedication, because only in this way will you be able to involve the entire work team in pursuit of global business objectives!

Download our free e-book about the relationship of KPIs and the achievement of objectives. Get to know all the advantages of a monitoring tool for your business!

Everything you need to know about the relationship between BAM and KPI’s

Get to know the relationship between BAM and KPI’s

We have already talked on the blog about BAM tools and their importance for business continuity. In this article, we’ll cover the relationship between business monitoring tools and KPIs!

What is a KPI?

KPI stands for key performance indicator. In the business world, KPIs are quantifiable measures that serve to understand whether the company’s goals are being met or whether the strategy needs to be modified to achieve them. For example, productivity KPI is very important to measure the productive capacity of a collaborator. This indicator shows us the relationship between the work produced by a collaborator and the resources used for this purpose. For example: a worker installs 20 m2 of floor in an hour. His colleague can install only 17 m2 of floor in the same time, being less productive than the first.

Relationship between BAM and KPI’s

Companies that decide to invest in a BAM system must have mechanisms to continuously measure the business, because only with constant analysis does investment make sense.

In order for a BAM system to be well implemented and to present practical results it is necessary to follow some good practices, of which the following stand out:

– Survey of critical business processes

– Define which metrics you need to analyze

– Find the best way to compile the information present in the various systems

– Present the information in an intuitive dashboard and adapted to the needs of each user

– Ensure historical data and make projections based on real-time data analysis vs. historical data

– Constant analysis of results

Analyzing performance consistently ensures that more attention is paid to meeting the objectives. An efficient process must be planned and controlled.

Continuous performance monitoring plays a key role in planning and subsequent control because it provides information on processes developed by the organization. The effectiveness of any control strategy depends to a large extent on the correct suitability of developed performance metrics and KPIs.

 

If you want to know more about the importance of monitoring tools download our free ebook and understand how a BAM system can change the whole management of your business!

 

Learn about key metrics to measure your performance on social media

It is no longer a novelty that social media play an increasingly important role in the business world. The current consumer “lives online” and it is very important that your brand/company be present in social networks where your target presence. To ensure the success of your presence on social media, it is not enough to create content and publish it frequently: you must continually evaluate the success of your actions. In this article we’ll introduce you to the key metrics to evaluate your performance on social networks!

Number of followers/likes

This is the most basic metric for any social media, is very important because it shows us the growth of a page over time and the audience we have available. However, this is a metric that alone does not have great relevance, because if there is no interaction with the followers, in concrete terms nothing is gained. A large number of followers is still important to create a credible image for anyone who visits the profile for the first time. A company that has thousands of Facebook followers will surely make a better impression than one that has few followers.

Publications Reach

The reach of the publications is nothing more than the number of people that see your posts. On Facebook, for example, this range is getting smaller, due to the new algorithm. At this point it is important to distinguish between organic reach and paid reach. Organic reach is the reach you get for free, only through publication and eventual interaction with it on the part of followers. Already the reach paid is the reach achieved through sponsored publications and after defining the intended target reaches a large number of users.

Engagement

Having a high audience is not very significant if you look at the metric in isolation. More important than the number of followers is the interaction these followers have with your brand/company. Measuring engagement (number of reactions to publication, comments, sharing) is crucial to being able to keep track of the effectiveness of your content. In all social media this engagement is very important.

Conversions

Conversion is one of the most important aspects of all the actions we take on social meia. No company creates content for Facebook, Instagram or Linkedin just by creating: the goal is always to achieve a conversion, be it the download of an e-book, a visit to the website and even the sale. Evaluating the number of conversions per week on social media allows us to perceive the performance and effectiveness of our publications as well as to define a new strategy if necessary.

Multipeers is a business monitoring system that allows you to analyze your business at any time, including its performance on social meia. Keeping track of what happens to your brand every second is essential so you can make assertive and timely decisions.

The biggest mistakes in indicators definition

Avoid the biggest mistakes in defining business metrics

Defining business indicators in a conscious way is fundamental to be able to analyze the business objectively. It’s essential that the indicators can show managers solutions in order to correct errors and implement new strategies. There is still much difficulty in defining indicators and in this article we present the biggest mistakes that happen when it comes time to decide what indicators we are going to analyze.

Wrong monitoring solutions

The team that has responsibility for choosing management software often has no enough knowledge of the real needs of the users of these tools. Therefore, the people who should choose the most appropriate software are the managers themselves because they are the ones who know in detail the problems they face daily. Increasingly, monitoring software is simple and intuitive, allowing anyone, even without technical knowledge, to understand how it works.

Using Excel as an indicator management platform

Excel is probably the most widely used tool in the world in business and it’s appreciated for presenting a simple interface to perform some much-used functions such as calculations and spreadsheets. However, Excel has weaknesses that reside in the quality and consistency of the information generated. Excel’s manual processes are very likely to fail. Therefore, it’s necessary to reduce the manual work done in Excel. Excel should be looked at as a data viewer and not as an information generator.

Look at database as the solution to all problems

Databases are a key part of many analytical systems, but shouldn’t be regarded as the solution to all information problems. Databases shouldn’t be deployed before analyzing in detail the actual needs of the organization. To avoid this error, it’s necessary to identify the best method of integration and to know the access to information.

Acquiring management products for general analysis

When the business has no specific objectives, any tool is useless because it will be useful only if you can analyze the business in an integrated way. Business monitoring software should be applied when the organization is aware of its real needs and when it knows which indicators should be analyzed to improve its performance.

 

Learn how to build relevant metrics for your business

How to create metrics relevant to your business?

For a company to achieve success and positive results, it’s essential that the most important metrics that allow us to evaluate the profitability and productivity of the business are defined. Nowadays, with the possibility of having data in real time, it’s easier to have access to information. But do you know how to create relevant to your business? In this article, we leave you some tips!

Collect data: With solutions like Multipeers, you can aggregate all company data in one place, presenting them in a simple and appealing way. In this way, the time spent searching for the information is shorter and the decisions taken are more conscious and informed.

Make the data important: the data collected must have an objective, otherwise they lose all their importance. Thus, it’s fundamental that when we collect data we already know what we want to analyze with them.

Create your own definition of success: each department must clearly define where they reach the level of success, and they must be realistic because putting too unrealistic values ​​can increase the level of frustration. The metrics you analyze in each department must be in accordance with this definition of success.

Each business has its own particularities, but there are metrics that should always be analyzed as they give us a good insight into the current state of the business.

We highlight the conversion rate which is the accounting of how many conversions were made in relation to the total traffic that the company website had and the cost of acquisition of each customer that is the sum of the total spent on marketing and sales to be divided by the total number of customers.