In current environment businesses are increasingly looking towards analyzing data to get competitive advantage from others in their industry. Data analysis process allows businesses to make informed and profit driven decisions through the information gleaned from the Business Intelligence tools.
However the metrics of success for Microfinance institutions (MFIs) are different from regular businesses. So how could Business Intelligence Reporting be of use to MFIs? To understand this first there is a need to understand the objectives of MFIs. Firstly, their focus is to finance poor communities helping them attain basic necessities in life such as sustainable living, better housing and the ability to acquire basic education. The second purpose of MFIs is to find efficient use of funds and the financial stability of the microfinance institution.
With MFIs having to make trade-offs in real world situations in order to further their mission. Business Intelligence Software for MFIs must have the capability to measure both the social and economic impact.
As studies have shown the MFIs doing well financially will also be scoring highly on the social impact they are having on their communities. This positive correlation also underlines the fact that the MFIs that are struggling financially would be unable to meet their social uplift commitments.
Therefore, it is of paramount importance that MFIs chose the business intelligence software after devising a strategic approach and appropriate evaluation metrics to go along with it, in order to correctly interpret results and glean actionable data that can help in achieving its strategic goals.
Whatever might be the strategy the MFIs might adopt it is important that they include the following five measures to evaluate their performance:
- Internal Business Processes
- Learning & Growth
- Social Impact
Once the necessary metrics have been identified for these categories, the business intelligence software will be ready to provide actionable data that will help to bring in favorable financial and social results.