What is Business Intelligence?
Business Intelligence is the talk of a new changing and the growing world that can be defined as a set of concepts and methodologies to improve decision making in business through the use of facts and fact-based systems. The Goal of Business Intelligence is to improve decision making in business ideas and analysis. Business Intelligence is not just a concept it’s a group of concepts and methodologies. Business Intelligence uses analytics and gut feelings for making decisions.
Process Used in Business Intelligence: BI(Business Intelligence) uses a set of processes, technologies, and tools (such as Informatica/IBM) to transform raw data into meaningful information and then transform information to provide knowledge. Then afterward some beneficial insights can be extracted manually and by some software then the decision-makers can make an impactful decision on the basis of insights.
To be sound short and clear – Business Intelligence about provides accurate information in the right and ethical format to the decision-makers of the organization. Some Important features of Business Intelligence are:
- Fact-based decision making.
- 360 degrees perspective on your business.
- Virtual team members on the same page.
- Measurement for creating KPI (Key Performance Indicators) on the basis of historic data fed in the system.
- Identify the benchmark and then set the benchmarks for different processes.
- Business Intelligence systems can use to identify the market trends and also to spot business problems that need to be identified and solved.
- Business Intelligence helps in data visualization that will increase the quality of data and then also increases the quality of decision making.
- Business Intelligence systems can be used by large enterprises, organizations along with Small and Medium Enterprises, because it is quite affordable.
Types of Users of Business Intelligence:
- Analyst (Data Analyst or Business Analyst): They are the statistician of the company, they used BI on the basis of historical data priorly stored in the system.
- Head or Manager of the Company: Head of the company uses Business Intelligence used to increase the profitability of their company by increasing the efficiency in their decisions on the basis of all the knowledge they discovered.
- IT Engineer: For his company.
- Small Business Owners: Can be used by a small businessman because it is quite affordable too.
- Government Officials: In the decision making of the government.
Types of Decisions Supported by Business Intelligence:
- Strategic Level: The strategic level is the level where the Heads of the company decide the strategies of any business.
- Tactical Level: Once the strategy is made though for handling all the details and matters have a tactical level where all the technologies and methodologies come under one umbrella. This level is further responsible for continuously updating the data.
- Operational Level: Operation decisions are made at this level. Operational decisions help in operating the system.
Applications of Business Intelligence:
- In Decision Making of the company by decision-makers of the organizations.
- In Data Mining while extracting knowledge.
- In Operational Analytics and operational management.
- In Predictive Analytics.
- In Prescriptive Analytics.
- Making Structured data from the unstructured data.
- In Decision Support System.
- In Executive Information System (EIS).