BI(Business Intelligence) is a set of processes, architectures, and technologies that convert raw data into meaningful information that drives profitable business actions.It is a suite of software and services to transform data into actionable intelligence and knowledge.
Why is BI important?
- Measurement: creating KPI (Key Performance Indicators) based on historic data.
- Identify and set benchmarks for varied processes.
- With BI systems organizations can identify market trends and spot business problems that need to be addressed.
- BI helps on data visualization that enhances the data quality and thereby the quality of decision making.
- BI systems can be used not just by enterprises but SME (Small and Medium Enterprises)
How Business Intelligence systems are implemented?
Here are the steps:
Step 1) Raw Data from corporate databases is extracted. The data could be spread across multiple systems heterogeneous systems.
Step 2) The data is cleaned and transformed into the data warehouse. The table can be linked, and data cubes are formed.
Step 3) Using BI system the user can ask quires, request ad-hoc reports or conduct any other analysis.
Four types of BI users
Following given are the four key players who are used Business Intelligence System:
1. The Professional Data Analyst:
The data analyst is a statistician who always needs to drill deep down into data. BI system helps them to get fresh insights to develop unique business strategies.
2. The IT users:
The IT user also plays a dominant role in maintaining the BI infrastructure.
3. The head of the company:
CEO or CXO can increase the profit of their business by improving operational efficiency in their business.
4. The Business Users”
Business intelligence users can be found from across the organization. There are mainly two types of business users
- Casual business intelligence user
- The power user.
The difference between both of them is that a power user has the capability of working with complex data sets, while the casual user need will make him use dashboards to evaluate predefined sets of data. The power user.
The difference between both of them is that a power user has the capability of working with complex data sets, while the casual user need will make him use dashboards to evaluate predefined sets of data.
Advantages of Business Intelligence
1. 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.
2. To improve visibility
BI also helps to improve the visibility of these processes and make it possible to identify any areas which need attention.
3. 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.
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 datawarehouse. It can be so complex that it can make business techniques rigid to deal with.
3. 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.
4. 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.