Business Intelligence (BI) is the ability to transform data into information and information into knowledge in order to optimize the business decision making process. A set of strategies and tools focused on the creation and management of knowledge through the analysis of existing data from the organization or business.
From the point of view of information technology, it can be said that BI is a set of methodologies, applications and technologies that enable a group's business and transform data obtained from structured information systems to analyze and generate information and improve the decision-making process - creating a business. It covers both the current understanding of the functioning of the business and the expectation of future events in order to provide a wealth of knowledge to support business decisions.
Referring to business analytics, we can distinguish between concepts of data, information, and knowledge. Data is something uncertain, for example, the number 10, while the information is more accurate, for example, April sales were 10. Finally, knowledge is obtained by analyzing information.
Data is the minimum semantic unit and are the primary elements of information. Only they are not related to the decision-making process. Examples of data are a phone number or a person’s name.
The data may come from external or internal sources of the company, which may be objective or subjective, qualitative or quantitative.
Moreover, information can be defined as a set of processed data that are relevant and have a purpose and context. Information is useful for decision making because it reduces uncertainty. Data will be converted to information to add value.
Information can change the way a receiver perceives, affecting their evaluative judgments and behavior.
Information = Data + Context (value added) + Utility (reduces uncertainty)
Knowledge can be defined as a mixture of experience, values, information and know-how that form the basis for incorporating new experience. Knowledge gained from information and information from data. In order for information to become knowledge, it is necessary to perform such actions as:
· Comparison with other elements.
· Forecasting effects.
· Search for connections.
· Talk to other storage media.
After gaining knowledge of the business after receiving information from all areas of the business, you can set strategies and determine what are the strengths and weaknesses of the business.
Business Intelligence is a broader concept of using intelligence in organizations. This was the result of contributions from various areas of information, such as market intelligence, competitive intelligence, and business intelligence.
Market analysts are responsible for strategic management discipline in companies that allow more knowledgeable knowledge of the market and the company's business in it through a constant flow of information.
Competitive intelligence is defined as the process of collecting and analyzing information about the activities of competitors in order to support the achievement of business objectives. Thanks to the continuous flow of information, a business lets you know what competitors are doing in commercial, financial and organizational aspects.
Finally, Business Intelligence refers to a toolkit for extracting work experience. A set of systems for determining a dynamic customer base, such as sales trends, niche costs, customer outflows, profitability segments.
Intelligence tools are based on the use of information systems that combine data from production processes, information related to business and economic data.
Using extract, transform, and load (ETL) methods, extract data from various sources, clean it up, and prepare it for loading into the data warehouse.
This toolkit has the following features:
• Access to the information. Data is the main source of this process. Systems must provide users access to data regardless of their source.
• Support decision making. In addition to presenting information, users need access to analysis tools and select data of interest.
• Focus on the end user. An independent user expert, these systems, should provide the tools that allow users to use these tools.
Business intelligence acts as a strategic factor for business to create competitive advantages by providing privileged information for solving business problems: entering new markets, promoting goods or offers, eliminating information islands, management budgets, cost optimization, production planning, customer profiling analysis , the profitability of a particular product.
The main products of business intelligence that exist on the market are:
• Balanced Scorecards (BSC) are tools for defining and monitoring the goals of a business and its various areas or divisions.
• Support for system solutions (DSS) for interactive information systems that help companies make decisions using data and models to solve an unstructured or semi-structured solution. Support decision making by systematically evaluating various alternatives or decision scenarios.
• Executive Information Systems (EIS) are systems that provide top managers with easy access to internal and external information that is related to their critical success factors. Executive information systems support the decision-making process of the organization’s top managers, provide relevant information and use visual aids and easily interpret them to inform them.
In relation to the data source, the existing components are: Datamart and Datawarehouse.
Datamart is a departmental database, especially when storing data that is specific to a business area. It is characterized by the presence of an optimal data structure for analyzing information from all points of view that affect the department.
In addition, the data warehouse is a corporate database characterized by integration and debugging information from one or several sources to provide analysis from many points of view.
On the other hand, the Business Intelligence solution sets up a cycle of the following:
• Watch: what happens?
• Understand: why?
• Predict what will happen?
• Collaborate: What should the team do?
• Decide: in which direction?
Why is it so important to business intelligence?
For successful business it is very important to be able to make accurate and fast business decisions. Traditional information systems, as a rule, are inflexible structures, which makes it difficult to adapt to the data collection processes in business and quickly generate information for decision-making.
To overcome the limitations of these systems, business intelligence relies on a set of tools that facilitate the processes of extracting, cleaning, analyzing and storing data at the right speed to support business decision making.
We cannot say that BI products are better than traditional applications, but they are designed for a different purpose, and they are more efficient for the decision-making process.
Business Intelligence solutions allow companies to:
• Process requirements quickly, reasonably and efficiently.
• Respond quickly and effectively to changing conditions affecting the company.
• Create information as the main asset of a business.
• Transform business data into intuitive graphical reports that can be analyzed quickly and easily.
Intellect is the key to success. Business Intelligence systems are now available for everyone. Well-designed BI applications can offer employees the ability to quickly make business decisions, understand the various “information assets” in their business and how they interact.
We conclude that the key to prosperity in a competitive market is ahead of the competition. Creating informed business decisions based on accurate and relevant information requires more than intuition. A business intelligence system that becomes a determining factor in business success.
