Business Intelligence Definition
Business Intelligence Definition – Business Intelligence is a set of techniques and tools to transform from raw data into useful and meaningful information for business analysis purposes. BI technology can handle large amounts of unstructured data to help identify, develop, and otherwise create new business strategy opportunities. The purpose of BI is to facilitate the interpretation of the large amount of data. Identifying new opportunities and implementing an effective insight-based strategy can provide businesses with a competitive market advantage and long-term stability.
Business Intelligence technology provides history, current views and predictions of business operations. Common functions of business intelligence technology are reporting, online analytical processing, analytics, data mining, process extraction, complex event processing, business performance management, measurement, text extraction, predictive analytics and prescriptive analytics.
Business Intelligence can be used to support a large number of business decisions ranging from operations to strategic. Operating decisions include product placement and prices. Strategic decisions include priorities, goals and directions at a broader level. In all cases, BI is more effective when combined with data obtained from markets where the company operates (external data) with data from internal sources of the company’s business such as operating and financial data (internal data). When combined, external and internal data can provide a more complete picture, the effect of which is to create “intelligence” that cannot be derived from any single data set.
Advantages of Business Intelligence
here are some of the advantages of using Business Intelligence System:
1. Boost productivity
With a BI program, It is possible for businesses to create reports with a single click thus saves lots of time and resources. It also allows employees to be more productive on their tasks.
2. To improve visibility
BI also helps to improve the visibility of these processes and make it possible to identify any areas which need attention.
3. Fix Accountability
BI system assigns accountability in the organization as there must be someone who should own accountability and ownership for the organization’s performance against its set goals.
4. It gives a bird’s eye view
BI system also helps organizations as decision makers get an overall bird’s eye view through typical BI features like dashboards and scorecards.
5. It streamlines business processes
BI takes out all complexity associated with business processes. It also automates analytics by offering predictive analysis, computer modeling, benchmarking and other methodologies.
6. It allows for easy analytics.
BI software has democratized its usage, allowing even nontechnical or non-analysts users to collect and process data quickly. This also allows putting the power of analytics from the hand’s many people.
Business intelligence and data warehouse are two different things, but each other has interrelated relationships. The data warehouse is data that is owned by a company that is large and of high quality that has been used since the company was founded. So that the relationship between data business intelligence and data warehouse is when the delivery of intelligence business data as the technology used to present the data warehouse makes it easier for company officials to make decisions.