Business Intelligence is literally making the business intelligent. It combines business analytics, data mining, data visualization, data tools, and infrastructure to help organizations make data-driven decisions.

In simple words, business intelligence utilizes the accumulated data perfectly. And this correct way implies using data to drive change, be more efficient, and quickly adapt to changing market conditions. Business Intelligence has made business endeavors successful by assisting in making informed decisions.

So what exactly is business intelligence, and how do we implement it successfully?

Here are the answers to all your questions.

What is Business Intelligence

Business Intelligence is a technique used by organizations to organize, evaluate and transform raw data into actionable information. This collected data can be harnessed and implemented accordingly to gain a competitive advantage.

BI has four parts.

  • 1

    A centralized data collection warehouse

  • 2

    Data management tools to analyze data

  • 3

    Performance management tools to sync data with the business progress.

  • 4

    An interactive dashboard for quick and real-time access to data.

The tasks included in BI are:

  • Quantitative analysis.

  • Measuring performance against business goals.

  • Obtaining customer insights and sharing data to identify new opportunities.

Post these tasks; the defined BI system gives information by working on historical, present, and potential future data.

For example, a company sells product A and product B. Based on its sales and response, data is accumulated on both products. The information consists of the following;

  • When were the products launched?

  • Which product sold more?

  • What time were customers buying actively?

  • What is the type of customer? (age, sex, time spent browsing, etc.)

  • Which advertising strategy worked the best?

  • Which product made a profit, and what was the selling price?

  • And more.

Now, you have the reasons for which product worked, why, when, and how. Based on the accumulated data, you can make informed decisions and make changes in the product, advertising strategy, selling time, and other related approaches.

You have descriptive, prescriptive, and predictive analytics from the derived data to transform your business.

Descriptive Analytics:

It analyses information about what is happening currently and what has happened. This allows us to have room for improvement and learn from past mistakes.

Predictive Analytics:

As the name suggests, predictive analytics forecasts how the current projections will impact the business. This analytics uses tools like business modeling and machine learning to give close-to-perfect analytics.

Prescriptive Analytics:

The prescriptive analysis depicts the ‘why’ factor of a business’ decisions. It transforms data to provide reasoning information for business decisions.

Now that we have provided an overview of BI, let us dive deep into how to implement it for informed business decisions.

BI Implementation

Do not fear if you find BI tools and AI to be intimidating. It is difficult to grasp so much data at once. Therefore, there are companies to help you to set up BI tools that exactly fit your business needs. But before you outsource or utilize their services, here are some essential BI tools you must know.

Analytics

This tool analyses current and past data findings to amplify data-driven decisions.

Data Mining

This process uses stats, data, and machine learning to create patterns. These patterns reveal what is working, why, and how.

ETL

The Extract Transfer Load cleans data and prepares it for reports and analysis.

Dashboards

They provide the information in the form of charts, graphs, visualizations, KPIs, and other analytics to give a data overview.

Predictive Modeling

This ensures that data is used in the best way to plan businesses. It allows us to make error-free decisions and not repeat past mistakes.

Reports and Scorecards

Observations, suggestions, KPIs, and all results are generated with visual reports and scorecards. These reports and scorecards precisely present the information on the company’s progress.

These are the main concepts of BI that you need to look into when you are implementing a BI trend. Let us quickly make you understand the evolving BI trends.

BI Trends

The Business Intelligence market is continuously evolving. Currently, there are four major BI trends that you can implement according to your business requirements.

AI

Artificial Intelligence uses machine intelligence to analyze and generate data.

Cloud

Organizations implement BI tools on the cloud for real-time analysis and zero data loss to save the burden of physical machinery.

Embedded BI

BI software is integrated with the current software to boost sales and provide precise analysis for business needs like customer retention.

SaaS

Companies provide BI tools on demand to serve as Software as a Service. This saves infrastructure costs and allows businesses to get experts’ best services and knowledge.

And We Conclude

Here is a real example if you need proof of BI’s success.

The New York Shipping Exchange (NYSHEX) is a shipping-technology company that works to improve shipping processes globally. They used various apps and cloud data to extract and manually filled them in excel sheets. This task put a tremendous load on the engineering team to decode the data. Also, the data could be accessed by a limited number of people.

To overcome this hurdle, they implemented BI to provide centralized data for storage and access of data. Now, even the ‘non-engineered’ staff could access and analyze data.

As a result, in 2019, the company more than tripled its volume shipping between Asia and U.S.

The use of BI positively impacts your business. The large amounts of data your business collects can make significant changes to improve and make it profitable. Therefore, invest in BI and give more power to your data!

That’s All, Folks

Business challenges emerge in every sector, but the actual game is experimenting with the latest technologies. This lets you know what works best for you, your organization, and your work culture.

If you still have questions, contact IT experts to drive better business outcomes and support priorities.

By Categories: BI, Uncategorized

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