What is business intelligence ( BI Definition )?
Well, it’s quite important to understand the importance of business intelligence for all business graduates. Okay, I m going to describe what is business intelligence and why it is important for business people.
Business intelligence is the process of technology for analyzing data and interpreting actionable information. It helps executives, managers, and corporate end users to make informed business decisions.
BI encompasses a wide range of technology, tools, methodologies, and applications. With the help of these tools and technology, organizations collect data from internal and external sources. After that, the organizations prepared it for analysis and develop and run queries against the data. finally, it creates reports and data visualization to make the analytical result available to the corporate decision-makers and operational workers.
Importance of business intelligence:
The role of business intelligence is to improve the operational activities of a company. Besides, it improves the firm’s data and then uses that data to increase profitability. Almost all companies enjoy using business intelligence. With the help of business intelligence, companies create strategic business decisions. These decisions increase profitability, and revenue and accelerate growth.
There are some other benefits of business intelligence. Such as –
- Optimizing internal business growth
- Increasing business efficiency
- Accelerating and improving business decision
- Increase revenue
- Improve productivity
- Gaining competitive advantages against business rivals
- Identify the market trends
- Spotting business problems that need to be addressed
Business intelligence collects data and stores it in a data warehouse. There, new and old data are kept separate for further use that enables business intelligence tools to support both tactical and strategic decision-making processes.
Primarily, business analysts and IT professionals produced reports based on past data. They collect query results from business users. Sometimes, they also asked business executives and workers who are using business intelligence platforms themselves. business intelligence is also expected to experienced competitive intelligence and artificial intelligence and machine learning.
In addition, business intelligence technology includes –
- Data visualization
- Key performance indicators
- Identify and set benchmarks for varied process
Different types of business intelligence are –
- Ad hoc analytics
- Online analytical processing
- Mobile business intelligence
- Real-time business intelligence
- Operational business intelligence
- Software as a service
- Open source business intelligence
There are four types of business intelligence users. They are –
- The professional analysts
- IT users
- Head of the company
- Business users
Some advantages of business intelligence.
- Boost productivity
- To improve visibility
- Fix accountability
- It gives a bird’s eye views
- It streamlines business processes
- It allows for easy analytics
Some disadvantages are –
- Limited use
- Time-consuming implementation
Trends in business intelligence
- Artificial intelligence
- Collaborative business intelligence
- Embedded business intelligence
- Cloud analytics