BI technologies provide historical, current, and predictive views of business operations. Common functions of business intelligence technologies are reporting, online analytical processing, analytics, data mining, business performance management, benchmarking, text mining, and predictive analytics. Business intelligence (BI) aims to support better business decision-making. BI and data warehousing applications often use data gathered from a data warehouse or a data mart. However, not all data warehouses are used for business intelligence, nor do all business intelligence applications require a data warehouse.
A broad definition of BI by Forrester suggests that: “Business Intelligence is a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information used to enable more effective strategic, tactical, and operational insights and decision-making.”
Benefits of Business Intelligence:
Enforce access to data for the entire organization. In this way even a small benefit, such as a few minutes saved, will make a difference when it is multiplied by the number of employees in the entire organization. Some of the benefits of implementing Business Intelligence are:
- Faster reporting, analysis or planning
Get timely insights and make more accurate business decisions. BI enables you and your team to make decisions based on the latest available data. You will be able to analyze data in real-time and make more-informed choices.
- More accurate reporting, analysis or planning
Gather data from various databases and resources and have the complete overview at once. Increase the accuracy of your day-to-day reporting and deliver timely reporting.
- Improved operational efficiency
Successfully track KPIs by getting on-time alerts and notifications everytime the data changes on your pre-selected indicators. Then you can drill down and see what was the cause and take timely action.
- Improved customer satisfaction
Get a 360” view of your customers. Understand their behavior better and use to tailor custom offers for them. Knowing what your customers demand more of will enable you to turn the data into profit.
- Reduced costs
Now you can use the insights form BI and make more accurate resource allocation. You know which areas of the business need more resources and which ones need less. BI allows you to analyze how each of your business units is doing and how to optimize your resource allocation.
- Increased revenues
Using BI can help you identify new revenue opportunities. Using the latest data will help you obtain insights for potential opportunities and trends you might have missed in the past.
- Increased competitive advantage
Improve efficiency. Long gone are the days of reporting that took weeks to complete. Your team can now get answers on the go.
- Saved headcount
Automate processes and save human power for more valuable tasks.