{"id":1825,"date":"2023-04-04T07:10:03","date_gmt":"2023-04-04T07:10:03","guid":{"rendered":"https:\/\/blog.amt.in\/?p=1825"},"modified":"2023-04-04T07:14:10","modified_gmt":"2023-04-04T07:14:10","slug":"insights-on-business-intelligence","status":"publish","type":"post","link":"https:\/\/blog.amt.in\/index.php\/2023\/04\/04\/insights-on-business-intelligence\/","title":{"rendered":"Insights on Business Intelligence"},"content":{"rendered":"<p>Business intelligence\u00c2\u00a0(BI) comprises the strategies and technologies used by enterprises for the\u00c2\u00a0data analysis\u00c2\u00a0of\u00c2\u00a0business information. BI technologies provide historical, current, and predictive views of\u00c2\u00a0business operations. Common functions of business intelligence technologies include\u00c2\u00a0reporting,\u00c2\u00a0online analytical processing,\u00c2\u00a0analytics,\u00c2\u00a0data mining,\u00c2\u00a0process mining,\u00c2\u00a0complex event processing,\u00c2\u00a0business performance management,\u00c2\u00a0bench-marking,\u00c2\u00a0text mining,\u00c2\u00a0predictive analytics, and\u00c2\u00a0prescriptive analytics. BI technologies can handle large amounts of structured and sometimes unstructured data to help identify, develop, and otherwise create new strategic\u00c2\u00a0business opportunities. They aim to allow for the easy interpretation of these\u00c2\u00a0big data. Identifying new opportunities and implementing an effective strategy based on\u00c2\u00a0insights\u00c2\u00a0can provide\u00c2\u00a0businesses\u00c2\u00a0with a competitive market advantage and long-term stability.<\/p>\n<p>Business intelligence can be used by enterprises to support a wide range of business decisions ranging from operational to strategic. Basic operating decisions include\u00c2\u00a0product positioning\u00c2\u00a0or\u00c2\u00a0pricing.\u00c2\u00a0Strategic business\u00c2\u00a0decisions involve priorities,\u00c2\u00a0goals, and directions at the broadest level. In all cases, BI is most effective when it combines data derived from the market in which a company operates (external data) with data from company sources internal to the business such as financial and operations data (internal data). When combined, external and internal data can provide a complete picture which, in effect, creates an &#8220;intelligence&#8221; that cannot be derived from any singular set of data.\u00c2\u00a0Among myriad uses, business intelligence tools empower organizations to gain insight into new markets, to assess demand and suitability of products and services for different\u00c2\u00a0market segments, and to gauge the impact of marketing efforts.<\/p>\n<p>BI applications use data gathered from a\u00c2\u00a0data warehouse\u00c2\u00a0(DW) or from a\u00c2\u00a0data mart, and the concepts of BI and DW combine as &#8220;BI\/DW&#8221;\u00c2\u00a0or as &#8220;BIDW&#8221;. A data warehouse contains a copy of analytical data that facilitate\u00c2\u00a0decision support.<\/p>\n<p>According to Solomon Negash and Paul Gray, business intelligence (BI) can be defined as systems that combine:<\/p>\n<ul>\n<li>Data gathering<\/li>\n<li>Data storage<\/li>\n<li>Knowledge management<\/li>\n<\/ul>\n<p>with analysis to evaluate complex corporate and competitive information for presentation to planners and decision makers, with the objective of improving the timeliness and the quality of the input to the decision process.&#8221;<\/p>\n<p>According to\u00c2\u00a0Forrester Research, business intelligence is &#8220;a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information used to enable more effective strategic, tactical, and operational insights and decision-making.&#8221;\u00c2\u00a0Under this definition, business intelligence encompasses\u00c2\u00a0information management\u00c2\u00a0(data integration,\u00c2\u00a0data quality, data warehousing, master-data management, text- and content-analytics, et al.). Therefore, Forrester refers to\u00c2\u00a0data preparation\u00c2\u00a0and\u00c2\u00a0data usage\u00c2\u00a0as two separate but closely linked segments of the business-intelligence architectural stack.<\/p>\n<p>Some elements of business intelligence are:<\/p>\n<ul>\n<li>Multidimensional\u00c2\u00a0aggregation\u00c2\u00a0and allocation<\/li>\n<li>Denormalization, tagging, and standardization<\/li>\n<li>Realtime reporting with analytical alert<\/li>\n<li>A method of interfacing with\u00c2\u00a0unstructured data\u00c2\u00a0sources<\/li>\n<li>Group consolidation, budgeting, and\u00c2\u00a0rolling forecasts<\/li>\n<li>Statistical inference\u00c2\u00a0and probabilistic simulation<\/li>\n<li>Key performance indicators\u00c2\u00a0optimization<\/li>\n<li>Version control\u00c2\u00a0and process management<\/li>\n<li>Open item management<\/li>\n<\/ul>\n<p>Forrester distinguishes this from the\u00c2\u00a0<i>business-intelligence market<\/i>, which is &#8220;just the top layers of the BI architectural stack, such as\u00c2\u00a0reporting,\u00c2\u00a0analytics, and\u00c2\u00a0dashboards.&#8221;<\/p>\n<h3><span id=\"Compared_with_competitive_intelligence\" class=\"mw-headline\">Compared with competitive intelligence:<\/span><\/h3>\n<p>Though the term business intelligence is sometimes a synonym for\u00c2\u00a0competitive intelligence\u00c2\u00a0(because they both support\u00c2\u00a0decision making), BI uses technologies, processes, and applications to analyze mostly internal, structured data and business processes while competitive intelligence gathers, analyzes, and disseminates information with a topical focus on company competitors. If understood broadly, business intelligence can include the subset of competitive intelligence.<\/p>\n<h3><span id=\"Compared_with_business_analytics\" class=\"mw-headline\">Compared with business analytics:<\/span><\/h3>\n<p>Business intelligence and\u00c2\u00a0business analytics\u00c2\u00a0are sometimes used interchangeably, but there are alternate definitions.\u00c2\u00a0Thomas Davenport, professor of information technology and management at\u00c2\u00a0Babson College\u00c2\u00a0argues that business intelligence should be divided into\u00c2\u00a0querying,\u00c2\u00a0reporting,\u00c2\u00a0Online analytical processing\u00c2\u00a0(OLAP), an &#8220;alerts&#8221; tool, and business analytics. In this definition, business analytics is the subset of BI focusing on statistics, prediction, and optimization, rather than the reporting functionality.<\/p>\n<p>Business intelligence can be applied to the following business purposes:<\/p>\n<ul>\n<li>Performance metrics\u00c2\u00a0and\u00c2\u00a0bench-marking\u00c2\u00a0inform business leaders of progress towards business goals (business process management).<\/li>\n<li>Analytics\u00c2\u00a0quantify processes for a business to arrive at optimal decisions, and to perform business knowledge discovery. Analytics may variously involve\u00c2\u00a0data mining,\u00c2\u00a0process mining,\u00c2\u00a0statistical analysis,\u00c2\u00a0predictive analytics,\u00c2\u00a0predictive modeling,\u00c2\u00a0business process modeling,\u00c2\u00a0data lineage,\u00c2\u00a0complex event processing, and\u00c2\u00a0prescriptive analytics.<\/li>\n<li>Business reporting\u00c2\u00a0can use BI data to inform strategy. Business reporting may involve\u00c2\u00a0data visualization,\u00c2\u00a0executive information system, and\/or\u00c2\u00a0OLAP<\/li>\n<li>BI can facilitate\u00c2\u00a0collaboration\u00c2\u00a0both inside and outside the business by enabling\u00c2\u00a0data sharing\u00c2\u00a0and\u00c2\u00a0electronic data interchange<\/li>\n<li>Knowledge management\u00c2\u00a0is concerned with the creation, distribution, use, and management of business intelligence, and of business knowledge in general. Knowledge management leads to\u00c2\u00a0learning management\u00c2\u00a0and\u00c2\u00a0regulatory compliance.<\/li>\n<\/ul>\n<p>The above is a brief about Business Intelligence. Watch this space for more updates on the latest trends in Technology.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business intelligence\u00c2\u00a0(BI) comprises the strategies<\/p>\n","protected":false},"author":1,"featured_media":1826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[958,694,7],"tags":[959,696,18],"class_list":["post-1825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analytical","category-business-intelligence","category-techtrends","tag-analytical","tag-business-intelligence","tag-technology"],"_links":{"self":[{"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/posts\/1825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/comments?post=1825"}],"version-history":[{"count":1,"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/posts\/1825\/revisions"}],"predecessor-version":[{"id":1827,"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/posts\/1825\/revisions\/1827"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/media\/1826"}],"wp:attachment":[{"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/media?parent=1825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/categories?post=1825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.amt.in\/index.php\/wp-json\/wp\/v2\/tags?post=1825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}