What is Business Intelligence?
BI(Business Intelligence) is a set of processes, architectures, and technologies that convert raw data into meaningful information that drives profitable business actions.It is a suite of software and services to transform data into actionable intelligence and knowledge.
Business Intelligence has a direct impact on organization’s strategic, tactical and operational business decisions. BI supports fact-based decision making using historical data rather than assumptions and gut feeling.
Business Intelligence tools perform data analysis and create reports, summaries, dashboards, maps, graphs, and charts to provide users with detailed intelligence about the nature of the
The main purpose of Business Intelligence in a business is to help corporate executives, business managers and other operational workers make better and more informed business decisions. Companies also use BI to cut costs, identify new business opportunities, and spot inefficient business processes ripe for re-engineering.
Why is Business Intelligence important?
The potential benefits of BI tools include accelerating and improving decision-making, optimizing internal business processes, increasing operational efficiency, driving new revenues and gaining competitive advantage over business rivals. Business Intelligence systems can also help companies identify market trends and spot business problems that need to be addressed.
Business Intelligence data can include historical information stored in a data warehouse, as well as new data gathered from source systems as it is generated, enabling BI tools to support both strategic and tactical decision-making processes.
Initially, BI tools were primarily used by data analysts and other IT professionals who ran analyses and produced reports with query results for business users. Increasingly, however, business executives and workers are using BI platforms themselves, thanks partly to the development of self-service BI and data discovery tools and dashboards.
How Business Intelligence systems are implemented?
Here are the steps:-
Step 1) Raw Data from corporate databases is extracted. The data could be spread across multiple systems heterogeneous systems.
Step 2) The data is cleaned and transformed into the data warehouse. The table can be linked, and data cubes are formed.
Step 3) Using BI system the user can ask quires, request ad-hoc reports or conduct any other analysis.
Advantages of Business Intelligence:-
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
Business Intelligence 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
Business Intelligence 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
Business Intelligence takes out all complexity associated with business processes. It also automates analytics by offering predictive analysis, computer modeling, bench marking and other methodologies.
6. It allows for easy analytics.
Business Intelligence 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.
Disadvantages of Business Intelligence:-
Business Intelligence can prove costly for small as well as for medium-sized enterprises. The use of such type of system may be expensive for routine business transactions.
Another drawback of BI is its complexity in implementation of data warehouse. It can be so complex that it can make business techniques rigid to deal with.
3. Limited use
Like all improved technologies, BI was first established keeping in consideration the buying competence of rich firms. Therefore, BI system is yet not affordable for many small and medium size companies.
4. Time Consuming Implementation
It takes almost one and half year for data warehousing system to be completely implemented. Therefore, it is a time-consuming process.