What is Business Intelligence? Definition and Example
Business Intelligence is a whole set of architectures, processes, and technologies that usually convert raw data into valid and meaningful information that drives profitable business actions. It is a suite of software and services to transform data into actionable knowledge and intelligence. Business Intelligence has an impact on an organization’s strategy directly, tactical, and operational business decisions. Business Intelligence supports fact-based decision making using historical data rather than assumptions and gut feeling.
The tools of Business Intelligence perform data analysis and build reports, dashboards, summaries, maps, charts, and graphs to offer users with detailed intelligence about the nature of the business.
Why Business Intelligence is Important?
- Measurement: Creating Key Performance Indicators based on historic data.
- Identify and set benchmarks for various processes.
- With the BI systems organizations can identify the trends of market and spot business problem that needs to be addressed.
- The systems of BI can be used not just by enterprises but by small and medium enterprises.
- BI assists in data visualization that increases the quality of data and thereby the quality of decision-making too.
How Business Intelligence Systems are Implementing?
- Raw Data from corporate databases are extracted. The data can be spread across various system heterogeneous systems.
- The data is cleaned and transformed into the data warehouse. The tables can easily be linked, and data cubes may be formed.
- Using the system of Business Intelligence, the user can ask queries, request ad-hoe reports, or conduct any other analytics.