Business Intelligence (BI) is one of those terms that raise an air of convert operation. However, the core role of technology is to facilitate decision-making. sort of a good spy, once deployed, it assists its “handler” in making informed decisions. Until recently, applications of business intelligence were limited to large and mid-size enterprises, but the technology is gaining popularity. BI promises the sort of data support every business manager or decision-maker could use. this text provides a summary of this potentially powerful business tool.
What is business intelligence?
The simple answer is there’s no single universally used definition for BI. Developers may define the technology in ways in which favor the features of their own brand of business intelligence software. no matter the precise wording of a definition, the subsequent applies across BI brands:
BI isn’t one tool. most often, it’s a set of related technologies, tools, and functions. These components explain why technology is usually characterized as a system.
The core function during a BI system is to collect, coordinate, and transform data into information efficiently. Not surprisingly, the more integrated the software, the more diverse its data analysis capability.
BI deployment is customizable to suit enterprise and industry needs.
In essence, business intelligence is what your enterprise makes of it – counting on usage and functionalities.
What are the key components of a business intelligence system?
What constitutes a BI system varies by developer. However, most integrated systems have subsequent tools and functionalities:
Data management tools for collecting, cleaning, integrating, and analyzing transactional and operational data from multiple sources;
A query tool for asking questions from the database;
A reporting tool for generating unplanned reports supported a question or series of queries;
An analytical tool for generating projections, conducting forecasts, and creating alternative scenarios;
A search tool for locating information, discovering underlying patterns, and augmenting analysis;
A dashboard functionality providing for quick viewing and sharing of results.
What are desirable qualities during a business intelligence system?
Given the relatively high cost of deploying, running, and maintaining a BI system, it’s important that the merchandise you decide on possesses the subsequent qualities:
Ease of use, especially from the purpose of view of the intended primary users within the enterprise.
The flexibility of customization, to enhance the simplest chance of adoption success
The best-fit enterprise needs and existing systems, to reinforce the ROI of the technology
Today’s competitive environment requires enterprises to be agile altogether aspects of business operations. Few will debate the advantages of getting business intelligence technology as a part of the performance management toolkit of an enterprise. Properly deployed, BI tools and functionalities improve the timeliness, objectivity, and transparency of business decisions. However, realizing these benefits hinges on how well the chosen product fits the precise needs of the enterprise.