Business Intelligence (BI) is the data transformation process that combines business analytics, data mining, data visualization, data tools and systems, as well as best practices to enable companies to make fundamental decisions based on objective data and available in real time. Basically, you know you've mastered modern business intelligence when you have a comprehensive view of your organization's data and use it to drive change, eliminate inefficiencies, and rapidly adapt to market changes.
The concept of traditional Business Intelligence was created in the 1960s, to come up with a way to collect and share information within organizations. It developed further in the 80s, in parallel with IT models for decision making and the transformation of raw data into useful information. Modern BI solutions prioritize flexible self-service analytics, controlled data on reliable platforms, ease of use for non-tech-savvy business users, and speed of information.
Processes involved in Business Intelligence
In recent years, business intelligence has developed to include more processes and activities to enable performance improvements. These processes include:
·Data Mining: Using databases, statistics, and machine learning to uncover trends across large datasets.
·Report development: Sharing of data organized reports with stakeholders, so that they can draw conclusions and make informed decisions.
·Performance metrics and benchmarking: Comparing current performance data with historical data to track performance against target objectives. Usually, this is done using custom dashboards.
·Descriptive Analysis: Using preliminary data analysis to understand what is happening in the company.
·Query Execution: Querying the data with specific questions, for which BI extracts the answers from the datasets.
·Statistical analysis: Starting from the results of the descriptive analysis, further exploration of the data using statistics, for example in relation to how and why a certain trend has occurred.
·Data visualization: Transformation of data analysis into visual representations, such as graphs, charts, histograms and tables for easier use of data.
·Visual analysis: Exploration of data through visual representations, to communicate information on the fly and follow the flow of analysis.
·Data Preparation: Compiling multiple data sources, identifying their dimensions and measurements, and preparing them for data analysis.
To learn more about Business Intelligence, BI software, reporting tools, embeddable dashboards and more, get in touch with InetSoft.