In today's world, the volume of data is growing exponentially across the globe. Data has even become the new "black gold" of our century. The key challenge for businesses is to identify relevant information within this vast amount of data to extract value. This is where data intelligence comes into play, aiming to provide organisations with smart, relevant, and contextual insights. It is also a critical lever for driving business growth and standing out in the marketplace.
What is data intelligence?
Data intelligence involves exploring, analysing, and understanding data to extract value. In other words, it transforms data into a valuable resource for optimising decision-making.
The aim of organisations that use data intelligence to contribute to future strategies. This enables them to:
- Accelerate strategic decision-making;
- Mitigate risks;
- Analyse performance;
- Reduce costs;
- Improve their products and services...
"Companies that leverage data and analyse it gain a competitive advantage and see a strong return on investment," highlights Pierre Capelle, Partner in charge of Data Analytics and Artificial Intelligence at PwC France.
Businesses stand to benefit greatly from deploying a data intelligence strategy to integrate data management at the core of their ecosystem. This relies first and foremost on robust data governance, ensuring data quality and delivering reliable results.
Such an approach also requires equipping the organisation with the right tools:
- Data management systems;
- Data intelligence solutions;
- Data analysis tools powered by Machine Learning...
Finally, it involves fostering a strong data culture while recruiting experts such as data scientists, chief analytics officers, and data protection officers to strengthen the organisation.
Big Data & Artificial Intelligence
Data intelligence has emerged from the convergence of two rapidly evolving technologies: Big Data and Artificial Intelligence (AI). These two interlinked solutions pave the way for numerous business opportunities.
Big Data refers to the techniques used to collect, store, and analyse unstructured data found across the web. Over time, the production of data has become so massive that traditional analytical tools, software and technologies struggled to keep up.
Artificial Intelligence has revolutionised data analysis. With its advanced algorithms, AI can process virtually unlimited volumes of data in real time. This ever-growing wealth of information enables the identification of trends and the creation of increasingly accurate predictions to guide businesses in their strategic decision-making.
One key branch of Artificial Intelligence that contributes significantly to these advancements is Machine Learning. This tool is particularly effective for generating predictions, improving processes, and solving complex problems.
Data intelligence in procurement
Procurement departments handle vast quantities of data from both internal sources (such as expenditure and specifications) and external ones (including suppliers, databases, and the web). Businesses have much to gain by leveraging this data to make purchasing decisions faster and more effectively.
Data intelligence provides support for activities and decision-making throughout the procurement lifecycle, from cost forecasting to regulatory compliance and supplier contract management. According to consultancy firm McKinsey & Company, when data is effectively utilised, it can increase value-creation initiatives by up to 200%.
Cost forecasting
Data intelligence enables businesses to anticipate cases of price fluctuation before they occur. Through predictive models and real-time analytics, organisations can prepare for cost variations and adjust their procurement strategies accordingly. This leads to better resource allocation, not only optimising costs but also enhancing competitiveness in the market.
Risk management
Data intelligence can identify complex patterns and predict potential risks before they materialise, such as supplier failures or changes in market conditions. This allows businesses to implement preventive measures, mitigating risks proactively.
Supplier contracts
With data intelligence, businesses can assess supplier performance and compliance with greater precision and detail. This provides an opportunity to negotiate better deals based on concrete evidence while strengthening relationships with top performers in the market.
Inventory management
Data intelligence also plays a crucial role in optimising inventory. Companies can monitor stock levels in real-time and integrate predictive models to anticipate supply shortages, respond quickly to disruptions, and reduce logistical costs.
Regulatory compliance
In certain industries, businesses face stringent legislative and regulatory requirements. Data intelligence helps ensure that procurement practices comply with the latest regulations. This enables continuous monitoring to protect the company’s reputation and avoid potential penalties.
Data intelligence is therefore indispensable within the procurement function. By leveraging reliable data and meaningful analyses, it allows organisations to stay ahead in all areas of procurement, including cost management, risk mitigation, inventory control, and supplier contracts. By unlocking the potential of these technologies, businesses can transform procurement into a true lever for growth, sustainability, and innovation.
