What is Business Intelligence?
Business intelligence refers to groups of tools and technologies that collects and organizes the data and presents it in an accurate, actionable and understandable format with some predefined logic thus providing reliable and relevant information easing the decision-making process. BI is based on the principles of providing reliable and relevant information to the right people at the right time with the goal of achieving better decisions faster.BI platforms collect and structure data according to the users required a specific type. BI harnesses the data generated by the target business. This data is analyzed, visualized, organized providing insights on the performance of the business.
Understanding Business Intelligence
Let us try to understand the significance of business intelligence with a simple example.
If we consider any e-commerce platform like Flipkart or Amazon, they receive demands from millions of users based on various geographies, age- group, culture and have separate requirements. The Business intelligence domain here helps the companies realize the customer demands based on various data like previous buys, previous searches, etc. The company can effectively recommend to the user about his requirement. Also, it allows the company to keep its inventory up to the customer requirement and also realize any improvements required.
Thus we can infer that BI lists the strategies, effective decision-making processes, technologies, etc. and supports the enterprise to make business operational decisions.
Business intelligence combines externally derived data and internally company sourced data to create data analysis and reporting and helps the enterprise for rational decision making.
How does Business Intelligence make working so easy?
The primary goal for business intelligence for any enterprise is to structure and analyze the historical data within a company smart insights providing scope for rational decision making. The BI provides information about performance hotspot and markers towards faulty or non-effective processes. Business Intelligence programme can provide tools which measure the activities and trends in customer behavior and help assign business goals in terms of sales and marketing strategies. It also deepens the knowledge of the enterprise about its customer and provides an opportunity to deliver overall outstanding customer experience. Business intelligence provides potentials to identify inefficiency bottlenecks and refine the existing business strategies and processes resulting in a boost to productivity. From the perspective of an enterprise, it aims to accelerate the return on investment across the company through effective data categorization, predictive modeling, sales forecasting, etc.
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What can you do with Business Intelligence?
Business intelligence can play a pivotal role in the strategic planning of any organizations decision-making process which includes performance progress, quantitative analysis, reporting, data sharing and understanding customer insights. The BI involves the use of computing technologies to identify, analyze and forecast or predict customer views. It can help in efficient a quick decision-making process by analyzing the vitality of the various parameters based on the legacy customer data and help the enterprise come up with effective solutions based on the performance indicators. IT enables data-driven decisions for increasing customer knowledge helping in the professional growth of trust and relationship between the customer and the enterprise. Also, BI removes the requirement for manual data entry and interpretations and provides with quick reporting features and data visualizations.
Working with Business Intelligence
Working with business intelligence tools reveals vital sales information thus uncovering the pain areas which need to be modified in order to increase the productivity of the process, It helps us to identify the areas where inventory cost can be reduced and thus helping in save the unnecessary loss towards any resources. BI tools also help us leverage social media intelligence to connect with existing as well as prospective potential customers
Advantages of Business Intelligence
Let us enumerate the advantages of BI
- Data-driven decisions
- Waste eliminations
- Identifies opportunity
- Get valuable insights about customer requirements
- data visualization capabilities
- benchmark productivity
- performance management
- streamline operations
The skills required to effectively analyze and make use of business intelligence are as follows:-
- Data analysis capabilities is a must have skill as the entire process of business intelligence is dependent upon how the data is being analyzed by the analyst. The ability to distinguish between good and bad data is a key aspect for business intelligence
- The problem-solving approach is required as the BI will only suggest the performance weak points however it is upon the analyst to determine the solution to such problem using the data-driven decision provided by the BI tool.
- Knowledge about the domain is an added advantage it helps us understand the customer needs in a better way.
- Good communication and presentation skill.
Why should we use Business Intelligence?
Business intelligence helps the enterprise to detect performance hot points and adapt quickly to changing the environment of customer needs.BI helps to monitor business trends and improves the strategic decision-making process. Apart from these, BI helps us to understand customer insights and maintain effective inventory as per the present requirements.
Business Intelligence is emerging as a fast-growing function, and every day the enterprises are using the BI tools to enhance customer interface. BI finds is viability in almost all major domains as it involves the use of legacy data to increase customer relationship.
Why do we need Business Intelligence?
BI has emerged as a hot topic in present market as it incorporates all the present technological improvements in data sciences field to design a predictive modeling interface as well as a data visualization environment providing scope for increasing the delivery management capabilities, boost productivity, identify opportunity, eliminate waste, increasing customer trust.
Who is the right audience for learning Business Intelligence technologies?
Business analyst and aspiring customer relationship managers are the ideal audiences for the BI technologies as these involves the problem-solving opportunities and customer oriented approach towards achieving a smooth and effective process
How this technology will help you in career growth?
BI can help in career growth as in today’s world of complex business operations there is very less time available for research and innovation. BI provides companies with a competitive edge from its opponents as the clients are more likely to move towards the solution having most insight towards its problem.
This has been a guide to What is Business Intelligence. Here we discussed the working, scope, skills, career growth and advantages of Business Intelligence. You can also go through our other suggested articles to learn more –