What is the definition of Business Intelligence? And how does it help your business grow?
These are some of the many questions that we will answer in this article, which will cover topics such as: What is Business Intelligence & what is Business Intelligence used for? Which BI tools are best? We’ll also explore the history of business intelligence, when it was first introduced to the market and more.
So, what is Business Intelligence (BI)?
The term business intelligence is defined as the analysis of data (data analysis) and business information which is designed to help make better decisions. In other words, BI is an assistive tool that helps you identify trends in your business and make informed choices going forward. You can use it for a wide variety of tasks including making marketing strategies, crafting decision support systems, understanding customer behavior or even adjusting pricing models.
History of Business Intelligence
The idea of business intelligence originated in the 1950s when a group of engineers attempted to create a machine that could make decisions and solve problems. The term was first coined by Jack Miner, an IBM employee who invented one of the earliest forms of Business Intelligence software called DataWatch.
Business intelligence is believed to have been first used in 1966 by General Electric Company as they created punch cards for their salespeople based on customer transactions so they knew what products were selling best at which price points and where inventory needed to be replenished more frequently (e.g., bathroom tissue).
What is Business Intelligence (BI) used for?
Business intelligence can be used in various ways. You could use it as data visualization tools to answer questions such as “what are the top five items I should be selling?” or investigate your business to find out where you need to improve.
It’s versatile and you should have a good idea of the best practices on how you would like to use this tool before buying one. The main purpose of business intelligence is to allow organizations to make data-driven decisions and also for realtime information sharing.
These data-driven insights can then be attributed to and used by the various decision makers in an organization.
For example, if a company has many stores and is looking to open up another one, they will be able to make sound business decisions with data-driven conclusions such as how much that store would need for inventory or what type of location would work best. It’s also used for making marketing strategy by analysing the business data to see what has been the most successful marketing campaign or to adjust pricing models like discounting tactics or to simply observe market trends.
BI is used by many different types of organizations, but it’s important for business intelligence to be something that suits your company so you can get maximum results from using this tool.
What do I need to know about business intelligence?
BI tools are designed so that they’re easy-to-use; the more knowledge you have going into using them, the better off you will be when making decisions on which ones best suit your needs and goals. One thing many people may not consider at first is whether or not there is a trial period available – some offer 30 days while others don’t provide any.
The biggest advantages of BI is that it can be used to evaluate past performance and compare against benchmarks in order to guide future decisions. It also offers an efficient way to make data-driven business decisions which makes this a valuable tool for any company.
BI tools offer more than just the ability to have insights into your business data, they’re designed with user experience in mind so you’ll find them easier and quicker to use as well. These are some of the reasons why businesses should consider using BI now!
In most cases, there’s no need for any prior knowledge or understanding when it comes time to implement these programs within your organization; all you need is access from a web browser like Chrome, Firefox, Safari etc.
When does an organization need Business Intelligence?
For most companies, the answer to this question is simple – BI should be a part of your company’s enterprise software suite. However, for some organizations it may not make sense and there are many reasons why that could be:
– The organization does not have any need for business analytics or data collection because everything has been working just fine up until now.
– Data management capabilities aren’t necessary since staff members manually update spreadsheets with new information from time to time .
– There isn’t enough funding in the budget to add these programs into an already tight IT spending plan.
What is a Business Intelligence (BI) strategy?
A BI strategy is a plan that can be used to help an organization make the best decision for its use of business intelligence. It’s important not only for businesses but also organizations and individuals who may have never considered using BI tools before.
– There are two main types of strategies: tactical or strategic .
– A tactical approach generally has detailed goals with short timelines, while a strategic one will define long term objectives without hard deadlines in place.
BI focuses on planning, collecting, storing and analyzing data related to day to time activities within the company so it can be useful when making operational decisions about how products are sold and what services they provide from year to year. The idea behind analyzing data is to measure performance levels and find areas that need improvement so the business can be more successful.
What are some real world examples of Business Intelligence? What Business problems can it solve?
– A retailer will want to know what products are selling the best or which ones need more marketing so they can allocate funds appropriately.
– BI is used by online marketers who may have different objectives such as trying to increase customer loyalty and encourage repeat purchases.
– Restaurants use business intelligence when it comes to menu planning, ordering supplies, and determining staffing levels for any given time of day.
– Another example is when a company that manufactures and sells clothing is planning on introducing a new line of products. Business intelligence can be used to research how the competition has fared in order to predict what types of items customers may prefer in relation to those offered by other companies.
– Logistics businesses also rely heavily on BI and this includes everything from routing packages, monitoring inventory levels, choosing an appropriate delivery service provider or vendor for each shipment, and determining which routes are most efficient.
– For some small business owners who work at home as freelancers: their goal might be generating more monthly income through online marketing activities such as advertising campaigns or social media influencer posts.”
“From year to year, various industries have found ways for using data analysis against their competitors. Logistics businesses are no different in this regard, and they have some of the most advanced tools for business intelligence.”
“With a little research on your own part, you can find information about what types of data to track as well where to get that data from. For example: if you want more insights into how clients interact with your site or app but don’t know which business analytics platforms will provide it – then search online for “best business analytics platform”. You’ll be able to evaluate features such as cost-effectiveness (ease of use), scalability (the number of end users an application can support) and security.”
“When reviewing these options, ask yourself questions like:
What kind(s) of data do I need to use?
What kind of reports would I like to create?
Which BI tool is best for my business?”
What are top Business Intelligence software?
BI or in some cases data analytics tools or data visualization software are used to organize data from many different sources so that it can be analyzed in a way that makes decisions more informed.
Some of the top business or data analytics and BI tools, ranked by popularity:
– Tableau (Tableau Software)
– MicroStrategy (MicroStrategy Inc)
– Qlik Sense (QlikTech International B.V.)
– SAP Crystal Reports
– Microsoft Power BI Premium (Microsoft Corporation)
– Qlik Sense (Qlik Technologies SE)
– MicroStrategy Analytics
– Google Data Studio
– Looker Enterprise (Looker Data Sciences, Inc.)
– Alteryx
– IBM SPSS (IBM Corporation)
– SurveyGizmo (Surveygizmo LLC.)
– Marketo
How much does the implementation of Business Intelligence (BI) cost?
A Business Intelligence tool implementation can vary in cost depending on many factors, including how much data you need to collect and how comprehensive your BI solution is. In general, a custom-built or bespoke solution will be more expensive than ready-made software because it needs to be tailored specifically for the company’s needs. A basic business intelligence system might only involve connecting data from two sources such as customer order records and bank statements – this would take less time and money upfront but may not offer all of the functionality that an organization requires. If you do want a full business intelligence system then some estimates suggest that it could cost anywhere between $100,000-$300,000 per year which includes both setup costs (such as hardware) and annual license fees.
What are some of the Business Intelligence jargon to get familiar with before getting started?
Key Terms:
– BI report – visual representation of data where end users can drill down and see more detailed information. This will often include charts, graphs and other visuals as well as metrics to compare such as the number of views or downloads for example.
– Data mining – process that uses algorithms to find patterns in large datasets (to identify a specific behavior). BI tools are used to help with this process by providing new ways for analyzing data which would not be possible without them.
– Dashboard – interactive screen, typically within a business application, which displays summary information about certain aspects of an organization’s operation at any given time; usually organized into panels containing different types of graphs or tables so it is easy for people who need to make quick decisions to find the information they need.
– Data Warehouse – A data warehouse is an enterprise’s repository of data. It may be kept in one large database or it may exist as multiple databases that are linked together via complicated queries and programming tricks to make the data easier for end users to explore, analyze, and report on.
– Statistical analysis – process that uses mathematics to draw conclusions about a population based on data gathered for a sample (to identify patterns). Business intelligence tools are used in this process as well by providing new ways for analyzing data which would not be possible without them.
What is Predictive Analytics?
Predictive analytics are a type of statistical analysis that measures the probability that an event will occur. It helps predict future events by looking at past data and making connections between it. Predictive analytics can be used in business intelligence to predict the likelihood of an end user responding positively or negatively based on that customer’s past behavior.
It is a process that uses mathematics to draw conclusions about a problem based on raw data gathered for a sample (to identify patterns). Business intelligence tools are used in this process as well by providing new ways for analyzing data which would not be possible without them. Predictive analytics can help predict future events by looking at past data and making connections between it. Predictive analytics can be used in business intelligence to predict the likelihood of an end user responding positively or negatively based on that customer’s past behavior.
While predictive analytics is not a new technique, it has become more popular over time due to software being available for the public use from companies like Google and Microsoft. These tools are able with large data sets to predict the likelihood of a customer responding positively or negatively to different marketing campaigns. The data is collected by using “behavioural” analytics, which looks at what customers have done in the past and how their actions might influence future behavior.
What is Data Mining?
Data mining is the process of exploring and analyzing data to uncover hidden patterns, correlations, or other useful information. Data mining techniques were originally used by businesses for targeted marketing, but can be applied towards any problem that requires understanding a large amount (and possibly unwieldy) volume of data.
– Business intelligence tools provide new ways for analysts to explore their datasets without the need to understand complicated programming languages or statistical analyses – providing them with an easier way to analyze their data.
– The use of business intelligence tools has greatly increased due in part because they are easy enough for those who have never programmed before as well as giving users access to powerful analytics capabilities which would otherwise not be possible without programming skills.
What is data visualization?
Data visualization is a way to represent data in order to perform analysis and gain insights about the information. It can be used for anything from making comparisons between two or more pieces of data, finding correlations between different variables, and gaining a better understanding on how your business is performing over time.
Businesses use these visual representations so they’re able to make business decisions that will benefit them long-term by looking at trends and patterns rather than just static numbers. For example, some companies may have an individual who’s job it is solely made up of interpreting all the different graphs and charts that come out of business intelligence solutions such as Tableau Software. These individuals then work with management teams in order to figure out if there are any areas where improvements need to occur .
Business Intelligence (BI) has the ability to provide insights that would otherwise be unavailable.
What is data warehousing?
Data warehousing is a way of storing data so that it can be analyzed. It allows for the gathering and reporting on business information in order to make important decisions about future business activities, as well as analyzing past business performance. Data warehouses comprise more than three-quarters of all BI systems today, because they are designed with scalability and flexibility in mind.
Historically speaking, large organizations have used traditional database management tools like Oracle or Microsoft SQL Server which allowed them store both transactional and analytic (OLAP) processing capabilities but these databases were not optimized for analytics workloads only. As such this led to the rise of standalone OLAP products like Business Objects whose sole focus was analysis through MultiDimensional Analysis (MDA).
What is Self Service Business Intelligence?
Self-service business intelligence (SSBI) is the ability for a user to perform data analysis without needing assistance from IT staff. This SSBI solution includes prebuilt and customizable dashboards that are easily accessed by your team or remote users, sharing of insights via dashboard widgets in email messages and reports, as well as group collaboration features like comments on reports and document templates. The latest release of Tableau Server enables you to share the BI tools with up to 2000 people who can collaborate in real time over their published workbooks on topics such as customer satisfaction, sales performance, product profitability etc.
This self service model allows more than just executives access to information because it is available at any level within organization so they can be connected not only through data but also through a shared understanding of what it means.
Final Thoughts on BI technologies
As I mentioned in the beginning of this article, modern BI solutions are a great way for entrepreneurs to track and better understand their business. With many different types of tools on the market, there is one that can best suit your needs. Hopefully after reading this article you have gained some valuable insight into what these technologies offer and how they may help you grow and improve your company’s performance!
Business Intelligence technologies can help your business grow and improve performance by giving you the right data and insights to make strategic decisions. With these technologies, businesses can better track their finances, monitor customer relations, analyze business processes, and measure progress towards goals – which in turn helps them reach success faster than ever before!