Business Intelligence Strategy with NAICS Code
In order for businesses to thrive and stay competitive in the marketplace, it’s essential to have a solid business intelligence (BI) strategy. A well-designed and executed BI strategy enables organizations to gather and analyze data from various sources to make informed decisions. One way to optimize your BI strategy is by using NAICS codes. In this article, we’ll discuss how NAICS codes can help you take your BI strategy to the next level.
What are NAICS codes?
NAICS (North American Industry Classification System) codes are used by businesses, governments, and researchers to classify establishments into industries based on their primary activity. NAICS codes consist of six digits and are organized hierarchically, with the first two digits representing the sector, the third digit the subsector, the fourth digit the industry group, and so on. For instance, the NAICS code for educational services is 61, and the subsector for colleges, universities, and professional schools is 611.
How to use NAICS codes in your BI strategy
Using NAICS codes in your BI strategy can help you to:
1. Identify your target market accurately
By using NAICS codes, you can identify your target market with precision. You can use NAICS codes to search for businesses that are within the same industry as your own, helping you to identify potential customers or partners.
2. Understand industry trends and benchmarks
NAICS codes can provide you with insights into industry trends, including identifying changes and shifts in demand. You can also use NAICS codes to benchmark your own performance against the industry or your competitors.
3. Analyze market data more effectively
NAICS codes can help you to analyze market data more effectively. You can filter and segment data by NAICS codes to gain a better understanding of market trends and consumer behavior.
Real-world examples
Let’s look at some real-world examples of how NAICS codes have been used to optimize BI strategies:
Example 1: Car manufacturer
A car manufacturer used NAICS codes to identify potential suppliers within their industry. By analyzing data based on NAICS codes, they were able to identify suppliers that were within their industry and meet their specific requirements.
Example 2: Retailer
A retailer used NAICS codes to benchmark their performance against their competitors. By comparing their sales data to the industry averages for their NAICS code, they were able to identify areas where they needed to improve.
Conclusion
Using NAICS codes in your BI strategy can help you to gain valuable insights into your target market, industry trends, and market data. By analyzing data based on NAICS codes, you can optimize your BI strategy and make informed decisions that will help your business succeed.
