Business Intelligence (BI) aims at making better business decisions through the use of a broad category of Management Information Systems, applications and technologies for gathering, storing, analyzing, and providing access to data. BI uses timely and accurate information to make decisions. BI is a set of theories, methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information for business purposes. BI can handle large amounts of information to help identify and develop new opportunities. Making use of new opportunities and implementing an effective strategy can provide a competitive market advantage and long-term stability.
Typical BI activities
Typically, BI activities include decision support, query and reporting, online analytical processing, statistical analysis, forecasting, and data mining. BI represents those systems that help companies understand what makes the corporation successful, and to help predict the future impact of current decisions. These systems play a key role in strategic planning process of the corporation.
Common functions of business intelligence technologies are reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics.
Typical Business Intelligence
Typical BI systems are: customer profiling, market basket analysis, anti money laundering, anti fraud, customer contact analysis, market segmentation, credit scoring, product profitability, inventory movement as well as certain risk related applications.
Business Intelligence Software and Big Data
BI software provides better steering information to managers, enabling them to make better business decisions, ultimately leading to increased shareholder and stakeholder value creation. BI systems play a key role in strategic planning process of the corporation.
Big Data is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications. The challenges include capture, curation, storage, search, sharing, transfer, analysis, and visualization. The trend to larger data sets is due to the additional information derivable from analysis of a single large set of related data, as compared to separate smaller sets with the same total amount of data, allowing correlations to be found to “spot business trends, determine quality of research, prevent diseases, link legal citations, combat crime, and determine real-time roadway traffic conditions.”
Many large software companies with BI solutions offer Big Data analysis tools.Business frameworks like Business Intelligence are invaluable to evaluating and analyzing various business problems. You can download business frameworks developed by management consultants and other business professionals at Flevy here.