The term business intelligence often also refers to a range of tools that provide quick, easy-to-digest access to insights about an organization’s current state, based on available data.
BI (Business Intelligence) is a set of processes, architectures, and technologies that convert raw data into meaningful information that drives profitable business actions.
BI has a direct impact on organization’s strategic, tactical and operational business decisions.
Business Intelligence technology can be used by Data analyst, IT people, business users and head of the company.
BI system helps organization to improve visibility, productivity and fix accountability
Business Intelligence tools perform data analysis and create reports, summaries, dashboards, maps, graphs, and charts to provide users with detailed intelligence about the nature of the business.
In the past, IT professionals had been the primary users of BI applications. However, BI tools have evolved to be more intuitive and user-friendly, enabling a large number of users across a variety of organizational domains to tap the tool
Business Intelligence systems can be used not just by enterprises but SME (Small and Medium Enterprises)
The purpose of business intelligence in a business is to help corporate executives, business managers, and other operational workers make better and more informed business decisions. Companies also use business intelligence to cut costs, identify new business opportunities, and spot inefficient business processes.
If you are starting your journey into the world of business intelligence (BI), this helpful guide is for you.
Business Intelligence Applications in the Enterprise
BI, as a discipline and as a technology-driven process, is made up of several related activities, including:
Data mining is the process of discovering patterns in large datasets and often incorporates machine learning, statistics, and database systems to find these patterns. Data mining is a key process for data management and pre-processing of data because it ensures proper data structuring.
End users might also use data mining to construct models to reveal these hidden patterns. For example, users could mine CRM data to predict which leads are most likely to purchase a certain product or solution.
Many business intelligence tools are used in measurement applications. They can take input data from sensors, CRM systems, web traffic, and more to measure KPIs. For example, solutions for a facilities team at a large manufacturing company might include sensors to measure the temperature of key equipment to optimize maintenance schedules.
Analytics is the study of data to find meaningful trends and insights. This is a very popular application of business intelligence tools since it allows businesses to deeply understand their data and drive value with data-driven decisions. For example, a marketing organization could use analytics to determine the customer segments most likely to convert to a new customer.
Report generation is a standard application of business intelligence software. BI products can now seamlessly generate regular reports for internal stakeholders, automate critical tasks for analysts, and replace the need for spreadsheets and word-processing programs.
For example, a sales operations analyst might use the tool to produce a weekly report for her manager detailing last week’s sales by geographical region—a task that took far more effort to do manually. With an advanced reporting tool, the effort required to create such a report decreases significantly. In some cases, business intelligence tools can automate the reporting process entirely.
Trends in Business Intelligence
The following are some business intelligence and analytics trends that you should be aware of.
Gartner’ report indicates that AI and machine learning now take on complex tasks done by human intelligence. This capability is being leveraged to come up with real-time data analysis and dashboard reporting.
BI software combined with collaboration tools, including social media, and other latest technologies enhance the working and sharing by teams for collaborative decision making.
Embedded BI allows the integration of BI software or some of its features into another business application for enhancing and extending it’s reporting functionality.
BI applications will be soon offered in the cloud, and more businesses will be shifting to this technology. As per their predictions within a couple of years, the spending on cloud-based analytics will grow 4.5 times faster.
Advantages of Business Intelligence
Here are some of the advantages of using Business Intelligence System:
- Boost productivity
With a BI program, It is possible for businesses to create reports with a single click thus saves lots of time and resources. It also allows employees to be more productive on their tasks.
- To improve visibility
BI also helps to improve the visibility of these processes and make it possible to identify any areas which need attention.
- Fix Accountability
BI system assigns accountability in the organization as there must be someone who should own accountability and ownership for the organization’s performance against its set goals.
- It gives a bird’s eye view
BI system also helps organizations as decision makers get an overall bird’s eye view through typical BI features like dashboards and scorecards.
- It streamlines business processes
BI takes out all complexity associated with business processes. It also automates analytics by offering predictive analysis, computer modeling, benchmarking and other methodologies.
- It allows for easy analytics
BI software has democratized its usage, allowing even nontechnical or non-analysts users to collect and process data quickly. This also allows putting the power of analytics from the hand’s many people.
BI System Disadvantages
Business intelligence can prove costly for small as well as for medium-sized enterprises. The use of such type of system may be expensive for routine business transactions.
Another drawback of BI is its complexity in implementation of data warehouse. It can be so complex that it can make business techniques rigid to deal with.
- Limited use
Like all improved technologies, BI was first established keeping in consideration the buying competence of rich firms. Therefore, BI system is yet not affordable for many small and medium size companies.
- Time Consuming Implementation
It takes almost one and half year for data warehousing system to be completely implemented. Therefore, it is a time-consuming process.
What is business intelligence software?
Business intelligence software is a set of tools used by companies to retrieve, analyze, and transform data into useful business insights. Examples of business intelligence tools include data visualization, data warehousing, dashboards, and reporting. In contrast to competitive intelligence, business intelligence software pulls from internal data that the business produces, rather than from outside sources.
As Big Data has gained in prominence, so has the popularity of BI software. Companies generate, track, and compile business data at a scale never before seen. But all this data is nothing if we can’t make sense of it and use it to improve business outcomes.
To make informed choices, businesses need to base their decisions on evidence. The mountains of data that businesses and their customers produce contain evidence of purchasing patterns and market trends. By aggregating, standardizing, and analyzing that data, businesses can better understand their customers, better forecast revenue growth, and better protect themselves against business pitfalls.
Business intelligence has traditionally taken the form of quarterly or yearly reports, but today’s software-backed business intelligence tools work continuously and at light speed. These insights can help a company choose a course of action in a matter of minutes.
BI software interprets a sea of quantifiable customer and business actions and returns queries based on patterns in the data. BI comes in many forms and spans many different types of technology. This guide compares the top business intelligence software vendors, breaks down the three major stages data must go through to provide business intelligence, and provides considerations for purchasing business intelligence software for different sized businesses.
Make sense of your data through Faremco BI solutions
Business intelligence (BI) solutions from Faremco help any organization transform data into intelligent, easy-to-understand visualizations that are surfaced wherever decisions are made.
We’ve researched the best business intelligence software according to user popularity and major features.