Business Intelligence Apps Could Pay for Collectors

The use of business intelligence is expanding throughout organizations including into collections departments, according to Sanju K. Bansal, vice chairman and chief operating officer of McLean, Va.-based MicroStrategy.

MicroStrategy (Nasdaq: MSTR) is one of two remaining independent, publicly traded business intelligence firms (the other is Cognos), following SAP’s recent $6.8 billion acquisition of Business Objects. Clients use MicroStrategy’s 8 platform software to create reporting, analysis and monitoring programs.

Bansal discussed his views on the BI market in an exclusive interview with insideARM.com during MicroStrategy’s fall symposium in Chicago Tuesday.

Once primarily used for marketing, companies are expanding their business intelligence applications into collections, human resources, customer service, finance, and other departments throughout the enterprise, according to Bansal and other symposium speakers.

Bansal noted that American Express, Capital One, Visa and other major payments industry firms have used BI for years both in determining marketing campaigns, and in prioritizing collection efforts.

“Collections involve large numbers of people,” Bansal said, who recommended prioritizing collection activities by scoring for probability of recovery and finding customers with the highest amount of receivables. Prioritizing can lead to better collections results, he said.

Bansal credits the growth in business intelligence to applications becoming easier to use as well as better recognition of the value of BI to develop and support business strategies.

MicroStrategy reported 2006 net income of $71 million on net revenues of $314 million.