What Is Business Intelligence Consulting?

In this changing world, companies of all sizes are relying on business intelligence (BI) consultants to provide tools, services, and techniques to stay ahead of the competition. BI provides leaders with the information they need to make informed, data-driven decisions and maintain an efficient, successful business. Data analytics software is the backbone of BI. These tools collect and use data from a business,  operate smoothly, are more effective, and meet its future goals. 

As the role of BI consultants becomes increasingly crucial, understanding the key characteristics and responsibilities can offer valuable insights into their contributions to a company's success.

Types of BI consulting

Companies of all sizes in various fields use BI data to gain insights on how to meet their goals.

Depending on the company's needs, BI consultants use this data to choose business management methods that will work best for their clients. In addition to a basic knowledge of what BI entails, such as predictive analysis,  BI consultants should focus on a narrow set of skills specific to a certain field or business type. The consulting a business chooses depends on what outcome they are looking to achieve. Some different types of consulting include:    

• Strategy consulting: Helps make decisions about a business’s operational and financial success by offering recommendations using analytics and industry insights.

• Technology advisory: Offers long-term, industry-specific options to a business, helping the company develop relationships with clients rather than consulting on individual projects.

• Operational analysis: Analyzes company data and other sources to identify and take a proactive approach to daily decision-making.

Read more: Key Consulting Skills for Success: Your Guide

What does BI consulting offer?

Some of the basic services business intelligence consulting offers include gathering, analyzing, and reporting on company data to improve business operations and company success. This information is useful for businesses to gain insight and make decisions. Companies can potentially deal with an enormous amount of unstructured data. Many businesses rely on consultants to come in and organize this information in a way that helps companies form useful, actionable insights. Consultants use a variety of tools to improve company performance, helping them respond to issues or challenges to ensure the business runs effectively. 

Identify key performance indicators

Key performance indicators (KPIs) are specific indicators that give a snapshot of the current state of success or failure of a business when meeting its goals. Prior to deciding which KPIs to implement, it’s important to define what your business goals are. Once it has a clear idea of its KPIs, the business can use BI tools to decide which metrics to prioritize for success.

Develop and manage BI solutions

When choosing BI solutions, choosing one that accounts for your unique business needs to make data-driven decisions in key areas is a good idea. Some features to consider include:

• Search-driven analytics, which allows a wide range of employees to have access to company data

• AI-powered insights, which provide data autonomously without inquiries

• A solution that easily integrates with systems and data sources your company already has in place. 

Facilitate data-driven decision-making

In addition to giving businesses real-time information they can use to make decisions for the benefit of the company, BI consultants also provide businesses with a competitive advantage by offering insights into market trends and any issues or opportunities for the company in the market. 

Who uses BI consulting?

Companies work with BI consultants to help them evaluate past and present company data, and suggest software options to help the company perform more efficiently and work toward company goals. BI offers value across industries, including finance, health care, sales and marketing, retail, and security and compliance. For example, Walmart uses BI to help sell needed products to their customers. It also relies on BI to track the current cost of purchases from competitors in the market, which Walmart can then use to gain an advantage by pricing out the competition. Other reasons companies rely on BI include:

• Optimize marketing strategies and enhance customer satisfaction: By analyzing customer data, you can learn how to use their interactions and purchasing history to create a more personalized experience. If your company’s data shows that a customer often purchases the same item, you can send them promotions or ideas for related items. These analytics allow companies to target specific customers so they know how to market to them.

• Streamline operations: BI can help your business work as effectively as possible. BI reviews KPIs and other data to provide insight into your current processes, allowing you to see what’s working and what needs changing. 

Becoming a BI consultant 

Many current employees may not have experience with BI solutions, and that is why companies hire consultants. BI consultants can choose which type of consulting they find most interesting before discovering the skills needed for that specialization. For example, strategic business consultants choose a decision-driven focus to gain insights from data and offer concrete recommendations and advice. Technical BI consultants focus on hardware and software applications to improve information technology (IT) systems.

A popular area to pursue in BI is analytics. In this area, consultants will use various tools, including BI software, business data, and focus groups, to develop a solid business plan by reporting customer feedback and making recommendations. 

BI consultant tasks and responsibilities

The main responsibility of BI consultants is to help companies understand BI technologies, so they have the tools to streamline their organization. This may require consultants to train employees and ensure everyone has working knowledge of the BI applications so they can help the business meet its goals. BI consultants collaborate with business leaders to do the following:

• Analyze gathered and filtered data

• Assess performance

• Identify strengths and areas for improvement

• Recommend methods and trends that could enhance the company’s market share

BI consultant skills

BI consultants need to be knowledgeable about both technical and workplace skills. Because markets are constantly evolving, some skills include staying on top of the latest trends, keeping abreast of any new information in the industry, and paying attention to what the competition is doing. 

Workplace skills 

To be a successful BI consultant, possessing the following workplace skills may be crucial.

• Problem-solving

• Creative thinking

• Effective communication

• Team player

• Strategic thinker

BI consultant salary and job outlook

With data analytics software being used by many businesses, companies rely on BI consultants to help them make decisions regarding all aspects of their company. Employees can expect a good income because of the high demand for BI consultants. The average salary for a BI consultant in the US is $108,424 per year, according to Glassdoor [1]. It also estimates that some consultants can earn an additional $28,714, which may include cash bonuses, commission, and profit sharing [1]. According to the US Bureau of Labor Statistics, the job outlook for management analysts is forecasted to rise 11 percent from 2021–2031 [2].

BI consultant career path

Many BI analysts choose consulting as the next step in their career path, taking on more responsibility and challenges as their experience grows. A background in a specific industry and knowledge of its practices is imperative. Once you have enough experience as a BI consultant, your next steps may include becoming a BI manager, a BI architect, or a BI director. You also have the option of opening your own BI consulting firm. 

Education and training

Most jobs dealing with BI require at least a bachelor’s degree. One in business, engineering, math, or computer science is ideal. An MBA or a master’s in a business-related area can give you a competitive edge. You can further enhance your educational skills by obtaining a certification, including one in Systems, Applications, and Products in Data Processing (SAP) or Statistical Analysis Software (SAS).

Experience

BI consulting is not an entry-level position, so many companies typically look for a candidate with five or more years of related experience. BI consultants must have knowledge and experience in data, including understanding how to use data analysis, modeling, visualization, and warehousing. They should also be familiar with BI tools and techniques. 

Getting started with BI consulting on Coursera

A BI consultant must have knowledge of BI practices and an understanding of the business's goals. Explore different areas and further your knowledge by earning a Professional Certificate, such as the IBM Business Intelligence (BI) Analyst Professional Certificate, where you can gain the in-demand skills and hands-on experience to get job-ready. Topics covered include BI essentials, data analysis, visualization, and more.