Business Intelligence (BI) is the ability to rework data into information and knowledge into knowledge, so on optimize the business decision-making process. a group of strategies and tools focused on knowledge creation and management through the analysis of existing data from a corporation or business.
From the purpose of view of data technology, we will say that BI may be a set of methodologies, applications, and technologies that allow a business to the group and transform the info obtained from structured information systems to try to analysis and knowledge generation and improving the method decision-making of the business. It covers both current understandings of the functioning of the business also as an anticipation of future events, so as to supply a body of data to support business decisions.
Referring to business intelligence, we will differentiate the concepts of knowledge, information, and knowledge. Data are some things that are vague, for instance, the amount 10, while the knowledge is more accurate, like April sales were 10.
Data are the minimum semantic unit and are the first elements of data. These alone are irrelevant to the decision-making process. A telephone number or the name of an individual are samples of data.
The data can come from external or internal company sources, are often objective or subjective, qualitative, or quantitative.
Moreover, knowledge are often defined as a group of processed data, which are relevant and have a purpose and context. the knowledge is beneficial for decision-making because it allows reducing uncertainty. the info is transformed into information to feature value.
The information is capable of adjusting the way the receiver perceives something, impacting on their value judgments and behaviors.
Information = Data + Context (value added) + Utility (reduce uncertainty)
Knowledge is often defined as a mix of experience, values, information, and know-how, that form a framework to include new experiences. The knowledge derived from the knowledge and knowledge from data. so as that information becomes knowledge is important to perform actions such as:
- Comparison with other elements.
- Prediction of consequences.
- Checking out connections.
- Talk with other carriers of data.
Business Intelligence is the broader concept of the utilization of intelligence in organizations. This has emerged from the contributions of the varied areas of data like market intelligence, competitive intelligence, and business intelligence.
Market Intelligence corresponds to the strategic management discipline within companies that allow a more deeply know of the market and therefore the company’s performance within it, through a continuous flow of data.
Competitive Intelligence is defined because of the process of collecting and analyzing information on the activities of competitors, so on support the achievement of the goals of the business. Through the endless flow of data, allows a business to understand what the competitors do within the commercial, financial, and organizational aspects.
Finally, Business Intelligence refers to the set of tools to extract business experience. a group of systems to delineate a dynamic customer base, like sales trends, niche value, customer churn, profitability segments.
Intelligence tools are supported by the utilization of data systems that compile data from production processes, information concerning the business and economic data.
Using the techniques to extract, transform, and cargo (ETL), data extracts from different sources, are purified and ready for a load them into a knowledge repository.
This toolkit has the subsequent features:
- Access to information. the info is the first source of this process. Systems need to ensure user access to data no matter the source of those.
- Support the decision-making process. Beyond the presentation of data, users need access to analysis tools and choose the info that interests them.
• Orientation to the top user. Independent expertise of users, these systems, must provide facilities that allow users to use these tools.
Business intelligence acts as a strategic factor for a business to create competitive advantage, by providing privileged information to reply to business problems: entering new markets, product promotions or offers, eliminating islands of data, control finances, cost optimization, production planning, customer profiling analysis, the profitability of a specific product.
The main business intelligence products that exist within the market are:
- Balanced Scorecards (BSC) are tools to determine and monitor the objectives of the business and its different areas or units.
- Systems Decision Support (DSS) corresponds to interactive information systems that help companies make decisions, using data and models to unravel unstructured or semi-structured decision. Supports deciding by generating a scientific evaluation of various alternatives or scenarios for decision.
- Executive Information Systems (EIS), are systems that provide top executives with quick access to internal and external information that’s relevant to their critical success factors. the chief Information Systems support the decision-making process of senior executives of a corporation, presenting relevant information and using visual aids and straightforward to interpret, so as to stay them informed.
In regard to the origin of the info , existing components are Datamart and Datawarehouse.
A Datamart may be a departmental database, especially in storing the info that’s specific to the business area.
Moreover, a knowledge warehouse may be a corporate database, characterized by integrating and debug information from one or more sources so as to permit analysis from many perspectives.
On the opposite hand, a Business Intelligence solution establishes a cycle from the subsequent activities:
- Observe: what happens?
- Understand: Why is it?
- Predict: what is going to happen?
- Collaborate: what actions you ought to take the team?
- Decide: which way forward?
Why is it so important Business Intelligence?
For a business to achieve success, it’s vital the power to form accurate and quick business decisions. Traditional information systems tend to be inflexible structures, making it difficult to adapt to the info capture processes of the business, and therefore the rapid generation of data for decision-making.
To overcome the restrictions of those systems, business intelligence relies on a group of tools that facilitate the processes of extraction, purification, analysis, and storage of knowledge, with appropriate speed so as to support the choice making the method of the business.
Business Intelligence solutions enable companies to:
- Process requirements quickly, intelligently, and efficiently.
- Respond quickly and efficiently to changing conditions affecting the corporate.
- Establish information because of the main asset of the business.
- Transform business data in intuitive graphical reports which will be analyzed quickly and simply.
Intelligence is that the Key to Success. The Business Intelligence systems are now available to everyone. The well-designed BI applications offer employees the power to form better business decisions quickly, understand the varied “information assets” in their business, and the way they interact.