What is Business Intelligence?
Business Intelligence (BI) refers to the suite of technologies, processes, and architectures that are employed by businesses to extract meaningful information from raw data. In today’s competitive business environment, BI gives businesses the key insights into the business processes and systems to help them stay relevant and profitable. The business intelligence suite comprises of various related software and techniques, which act together to squeeze actionable intelligence and knowledge for businesses.
Business Intelligence directly influences the operational and strategic decisions of businesses, unveiling the hidden intelligence and helping executives make well-informed decisions backed by data, rather than gut feelings or norms. The process includes running data analytics to create summaries and interactive reports with maps, graphs, and charts to deliver insightful and meaningful intelligence about business performance.
Why is BI important?
- Business Intelligence helps businesses in creating Key Performance Indicators (KPIs) and measure the success based on historic data
- It helps businesses to ascertain and set targets for different business processes
- BI helps businesses to understand the prevailing market trends and take necessary actions to address low performing business aspects
- It helps create interactive data visualization reports that offer a better understanding of the business performance and improve the quality of decisions
Advantages of Business Intelligence
Some key advantages of business intelligence for businesses include:
- Business Intelligence helps businesses improve overall efficiency, by enabling single-touch reports for key performance indicators and assigning employees with the right tasks
- It helps improve the overall visibility for business health and identify any low-performing business aspect for quick fixes
- Business Intelligence improve accountability within businesses, as it highlights the deficiencies and someone should be accountable for failure to achieve set goals
- It offers executives and key decision-makers to have a bird’s eye view of business health performance through dashboards and interactive reports
- Business Intelligence offers democratization of data analytics, by enabling even non-technical staff to get quick and interact predictive analysis, benchmarking and create modeling scenarios
What is a Data Warehouse?
Data warehouses denote the central data repository of business, where data from various sources is stored and complies for analytics purposes, which subsequently adds to the data insights and practical business decisions.
In simple terms, data warehouse acts as the data store for “Business Intelligence systems”, from where data analytics is performed and decisions are taken.
A data warehouse primarily acts as a centralized and secure data storage space. Secondary, it acts as the data repository for the business intelligence system to access key business data from various systems and operations in one place. It also acts as the central repository for data analytics, from where analysis can be performed to understand hidden trends and assess the performance of different business systems/processes.
Why businesses need Data Warehouse?
- There are various benefits of keeping a data warehouse for businesses. Firstly, a data warehouse acts as a safe and secure data storage space, where you can store and retrieve key data from different business processes for analytics and decision-making purposes. Moreover, the data warehouse also helps businesses gain insight into key performance indicators (KPIs), as well as, observe performance related to business operations including suppliers, customers, and other key business components, all of which contribute to the overall business health and performance.
- The data warehouse also enhances business efficiency by reducing the response time to address any challenge by improving the data quality and streamlining the data access. Businesses can also exploit faster access to information to improve the quality and response time for decision making. And to top it off, the data warehouse unburdens the operational system and adds to the sense of professionalism to the business processes.
Advantages of Data Warehouse
- Maintaining a data warehouse offer businesses a high return on investment (ROI) by helping them to make the right decisions at the right time
- The data warehouse can help managers and business strategists to make market predictions more precisely using business intelligence and data analytics, enabling faster and better planning for key staff members
- Data warehouse act as a massive repository for historic data, which can be exploited to identify key trends, as well as, analyze the prevailing historic trends for better and precise future predictions
- The availability of data at the central repository also help in lowering the cost of decision making
What Is Data Analytics?
Data Analytics refers to the process of finding hidden information and unveil key patterns from large data sets. The process of data analytics is all about identifying the otherwise unsuspected information within the data.
In essence, data analytics is a multi-disciplinary field that exploits the power of artificial intelligence, business intelligence, statistical modeling, and database technology to make insightful predictions from data. The insights squeezed through data analytics help businesses in making well-informed, market-based and data-backed decisions.
Why use Data Analytics?
- Data analytics help businesses to generate high relevance relationships from large datasets, which can be used as key business insights for well-informed strategic business decisions.
- It enables businesses to make quick decisions and address any potential challenge before it impacts the business operations adversely
- Data Analytics also help improve the customer service by offering personalize and individualistic offers to customers
- Data analytics also help businesses to identify any suspicious behavior and detect fraudulent activities/processes within the systems
Advantages of Data Analytics
- Data analytics help businesses to extract data from massive datasets which are typically maintained in the data warehouse
- It helps in the identification of errors and loopholes in the business systems and processes
- Data analytics enable businesses to create predictions for several important factors; like identifying the customers’ preferences, understand the sales pattern, and others to help companies adjust to the market realities and make well-informed decisions
- Data analytics help business identify low-performing processes and address the issue in time
- Data analytics tools and methods are cost and time efficient as compared to other statistical-based modeling methods
- It also helps businesses to generate high precision actionable strategies