What is Business Intelligence

An Introduction to Business intelligence

Business intelligence, often referred to by the initials BI, is a computer based method used by organizations for analysis. It is a broad category of technology,  and commonly thought of as a subset of competitive intelligence that focuses on a company’s interaction with information. BI takes into account information storage, development, research, access, and uses within organizations.

Business intelligence software programs provide companies with three forms of information they can utilize to make decisions:

1. Current data: Information about current business practices
2. Historical data: information and data about past business transactions, market conditions, and business strategies
3. Future trends and forecasting data: Predicting future business practices based on current and historical data

Six Uses for BI technologies There are multi important functions that BI technologies can offer organizations:

1. Identifying and extracting important business information and data: pulling specific sets of data based on specific information and decision making needs
2. Data reporting: Providing reports based on specific information needs
3. Setting organization goals and objectives: Using data to support goal setting and benchmarking
4. Data mining: Examining data from multiple perspectives
5. Performance analysis: Examining current performance to identify areas to improve efficiency
6. Forecasting: Using data to predict future actions and strategies

Goal of business intelligence

The main function of business intelligence is to support decision making at all levels in the organization. The greater amount of data and information that can be compiled about business operations, trends and competitor business operations, the more accurate and appropriate decisions can be made by key stakeholders.

For this reason BI systems are also thought of as decision support systems. They analyze business data and processes and merge this information with competitive intelligence efforts to output predictive actions and strategies that support organizational direction and strategic decisions.

Business intelligence is about extracting as much data and information possible within your company. Companies have to work through facts and statistics to make the best possible decision. Information must be presented in a format that allows for connections to be drawn about data sets, facts, and information.

BI initiatives

Business intelligence applications are used primarily for three types of initiatives:

1. Project or department specific initiatives
2. Enterprise wide business strategies
3. Special operations that are important to an organizations day to day operations

Business Intelligence and Web 2.0 Technology

Business intelligence applications have grown by leaps and bounds in the new millennium. Many new tools and software applications have hit the market to help organizations get better quality information to aid with organizational decision making. These new tools allow companies to:

• Utilize dynamic querying
• Access real time data and information

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