Business intelligence (BI) refers to the technology and data infrastructure of an organization. BI has become a broad term that encompassesseveral related technologies and processes, including:
- Data mining
- Process analysis
- Performance benchmarking
- Descriptive analytics
BI parses all the data generated by a business and presents easy-to-digest reports, performance measures, and trends that inform management decisions.
Key Takeaways
- Business intelligence is the technological toolkit used by a company to collect and analyze internal data.
- These technologies may include an array of IT solutions from hardware and physical sensors to software platforms and cloud computing.
- Data collected by BI systems are often displayed visually as charts or graphs on a graphical dashboard interface.
What Is Business Intelligence?
Although business intelligence technologies have severalfunctions, their main function is to support a company's decision-making process and to help knowledge workers, such as managers and research analysts, make better and faster decisions.
Business intelligence represents the scope of IT tools that a firm uses to gather and analyze internal, company-specific information in order to make informed data-driven decisions. These various tools and software platforms combine to comprise robust systems that allow a company to gather, store, and analyze raw business data in a way that helps it make the right decisions.
Business intelligence systems normally operate to collect data in the areas of customer support, market research, product performance, competitive intelligence, and other areas that benefit from statistical analysis.
How Business Intelligence Is Used in Different Industries
Functions of business intelligence technologies vary by industry. For example, they are used in manufacturing for order shipment and customer support, in retail for user targeting and profiling, in financial and banking services for claims and risk analysis, in transportation for fleet management, in telecommunications for understanding customer drop-off rates, and in power and utilities for power usage analysis.
The technology-driven process of business intelligence involves a variety of functions, technology tools, applications, and methodologies that help a company collect data, prepare analyses, develop and conduct queries of databases, and create reports. Every function is used to support business decisions.
Business Intelligence Data
The data used in business intelligence can include historical as well as newly gathered data obtained from novel sources. Business intelligence then takes all of that data and combines it into a broad set of data analysis applications and functions.
Specific business intelligence technologies may include:
- Ad hoc analysis
- Data querying & discovery
- Data warehousing
- Enterprise reporting
- Online analytical processing
- Data visualization software
- Dashboards
- Performance scorecards
- Cloud services
- Supply chain analytics
- Machine learning and artificial intelligence
The Bottom Line
Overall, business intelligence is a data analysis process aimed at boosting company performance in relation to its competitors by helping end-users within the company make more informed decisions.Business intelligence applications with unique and important functions can be bought separately from third-party vendors or as part of a single business intelligence platform.
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Now, let's delve into the concepts discussed in the provided article on business intelligence.
1. Business Intelligence (BI): Business Intelligence refers to the technology and data infrastructure of an organization. It is a broad term encompassing various technologies and processes such as data mining, process analysis, performance benchmarking, and descriptive analytics. The main purpose of BI is to collect and analyze internal data to provide easy-to-digest reports, performance measures, and trends for informed management decisions.
2. BI Technologies and Processes: BI technologies include a range of IT solutions, spanning from hardware and physical sensors to software platforms and cloud computing. The processes involved in BI encompass data mining, process analysis, performance benchmarking, and descriptive analytics.
3. BI's Main Function: The primary function of BI technologies is to support a company's decision-making process. It aids knowledge workers, such as managers and research analysts, in making better and faster decisions by providing insights derived from internal data analysis.
4. BI Systems Operation: BI systems operate by collecting data in various areas such as customer support, market research, product performance, competitive intelligence, and more. The collected data is then stored and analyzed to assist in making informed decisions.
5. Applications in Different Industries: The functions of BI technologies vary across industries. In manufacturing, it may be used for order shipment and customer support, in retail for user targeting and profiling, in financial services for claims and risk analysis, and so forth. The technology-driven process involves a variety of functions, tools, applications, and methodologies tailored to specific industries.
6. Business Intelligence Data: BI data can include historical and newly gathered data from diverse sources. Technologies involved in BI encompass ad hoc analysis, data querying & discovery, data warehousing, enterprise reporting, online analytical processing, data visualization software, dashboards, performance scorecards, cloud services, supply chain analytics, machine learning, and artificial intelligence.
7. Business Intelligence Bottom Line: Business intelligence is a data analysis process aimed at enhancing company performance compared to competitors. It helps end-users within the company make more informed decisions. BI applications with unique functions can be obtained separately from third-party vendors or as part of a comprehensive business intelligence platform.
In summary, business intelligence is a multifaceted field that combines technology, data analysis, and decision support to empower organizations across various industries to thrive in the competitive landscape.
