Advantages of Business Intelligence
The term Business Intelligence (BI) refers to the technologies we use – applications, practices for collection of data, integration of data, analysis of data, and presentation or preparation of business information. The purpose of Business Intelligence is to provide better or unique business decision-making. These BI systems are Decision Support Systems (DSS) that are driven by data. Business Intelligence is sometimes used interchangeably with summarizing books, reports, and query tools, and executive information systems. In actuality, BI tools access & analyze the data sets and present it in analytical findings in the reports, dashboards, graphs, charts, and maps to provide visuals to the users with an in-depth intelligence on the condition of the business.
Application of BI:
- Sales Intelligence
- Performance Management
Models in BI:
Models play an important role in Business Intelligence for analyzing the goals. Depending on the business perspective, the views of the business process, the analysis of goals, and the availability of data, data modeling makes a number of things easier. For instance, it’s easier to integrate the high-level business process with data mart rules and data structures, and the technical implementation of physical data too. Data models provide a view to the business operates and how it uses the data in a way that everyone is able to understand it. Creating a good data model specifically for the business analysis is important for a business because the goal is different compared to a database that runs a transactional application. If anyone wants to record sales of their store or anything, they just need a database that is optimized to collect data in a safe, actual and accurate way. If a client wants to analyze sales, he/she needs a data model that is optimized to query and aggregate data in huge volume according to data.
Relationship Between BI and Data Warehouses:
Many vendors, who sell BI products or software, called Data Warehousing Software – Business Intelligence Software. But Business intelligence is where a company initiates various types of activities to gather current market value and other details, which also includes information about their rivals. Nowadays, BI systems are commonly used in a more systematic way of information gathering – in mining and crunching the data in the most minimalistic manner. We might also add, BI simplifies locating information and analysing it. The company will have a rival advantage of the business and intelligently use the available data in a strategic and effective way for decision making. It has the ability to bring disparate data under one section – a piece of meaningful and useful data that is ready for analysis.
Advantages of Business Intelligence:
- A BI system can be a most valuable asset to a company’s sales and analyst department because it provides access to each and every part of reports that illustrate sales trends, product enhancements or additions, current customer behavioral patterns and untapped markets.
- A BI system can pinpoint areas of profit or loss that otherwise go unnoticed (mostly in large companies). Since a BI system works as a one, unified entity, it has a tendency to analyze transactions between subsidiaries and departments to identify areas of overlap or inefficiency.
- Business intelligence can help a company assess its own capabilities; compare its relative strengths and weaknesses against its competitors; identify trends and market conditions; and respond quickly to change — everything to have a competitive edge, according to the Journal of Theoretical and Applied Information Technology.
- Business intelligence may help a company identify its most profitable customers, trouble spots within its organization, or its return on investment for certain products
Business intelligence tools like power BI, Tableau etc are helpful for IT companies to stay competitive and maximize revenue streams. An Organization at every size and stage uses BI software to analyze, manage, and visualize business data of their environment and also for managing the clients . Here are some benefits of business intelligence software can add to any business:
- Fast and accurate reporting
- Valuable business insights
- Competitive analysis
- Better data quality
- Increased customer satisfaction
- Identifying market trends
- Increased revenue
- Lower margins
- Increased operational efficiency
- Improved, accurate decisions