Business Intelligence is the key to transform data into information and information into knowledge, so as to optimize the business decision-making process. A set of strategies and tools focused on knowledge creation and management through the analysis of existing data from an organization or business. However, the ultimate goal is to make the decisions effective enough in order to carve the path of profit for the organizations. Hence, successful plans is the foremost need of every business and Business Intelligence proves helpful in this context.
Sorting & analysis of relevant data is carried out by software solutions, to ensure superior speed and accuracy of the data collection and analysis procedure. Any and all software solutions aiding the process of generating Business Intelligence for an enterprise are termed as Business Intelligence Tools. Business Intelligencedata can helpwith changing business as well as correctly identified and reported to facilitate a streamlined decision-making process. In the case of historical data, BI tools usually sort and analyze data, which was previously stored in the enterprise database.
Significance of Business Intelligence:
Business Intelligence plays a significant role in the working of organizations and helps them to continue with the progression. Following is the significance of Business Intelligence:
• BI helps in studying the changing demands; therefore, a company can have accurate and updated information about customer preferences.
• It aids the Managers to remain informed about the competitors' behavior and their actions.
• It assists the analysts in knowing the adjustments that need to be done for maximizing profits.
• It helps organizations to make future plans based upon relevant data organized to give better results.
Most of these Business Intelligence technologies and tools apart from spreadsheets are available as part of software suitable for a specific industry, standalone solutions, ERP system components or as a BI software suite. These solutions are developed by custom development company, according to requirements specified by a client or detected after a thorough analysis of the company's business model. A few open-source business intelligence tools are also available, however, most enterprises prefer to use proprietary business intelligence technology to ensure adequate protection of critical data.
Business Intelligence serves in sending the information to the right decision makers at the right time. BI is preferred by a lot of users, as it leads them in reaching the facts based on conclusion or more commonly known as 'single version of the truth'. This gives the best end product and leads an organization to convert the raw data into useful information; thus, bringing profits.
Stages of a Business Intelligence Process:
Business Intelligence process gathers raw data and converts it into useful information; and further transforms it into knowledge that must be used with intelligence. The BI process is based on five major stages mentioned below:
• Data Sourcing:-
This stage works on gathering the data from different sources, including, E-Mail messages, images, formatted tables, reports, sounds and other relevant sources. The major role of Data Sourcing is to gather the data in digital form; therefore, the sources for collecting data are computer files, digital cameras, scanners etc.
• Data Analysis:-
The next stage is to arrange the data collected from Data Sourcing and estimating the data depending upon the current and future trends. Also known as Data Mining, this stage also predicts the information that will be needed in future.
• Situation Awareness:-
This stage of the Business Intelligence process helps in filtering the relevant data and using it in relevance to the business environment. The users compile the data by keenly observing the market forces or Govt. Policies, so that it becomes easier to take decisions. Combinations of different Algorithms are used to aptly identify the Situation Awareness.
• Risk Assessment:-
Taking risks is part of every business; but, if one can take precautions, it turns extremely helpful. Risk Assessment stage helps in identifying the current and future risks, including cost benefits; choosing the best options; and comparison between two decisions to identify which one will turn beneficial. It summarizes the best choice amongst varied options.
• Decision Support:-
This last stage in the BI process aids in utilizing the information with intelligence. The aim of this stage is to warn the users about various crucial events like poor performance by staff, takeovers, changing trends in the market, sales fluctuations and much more. It aids in taking better business decisions for improvising staff morale and customer satisfaction.
LinksPro help clients gain insights from client data using a holistic approach built upon not only data and technology, but also effective business process, organization alignment and talent. The usual problem is that a business owner doesn't know the detail of what the project is going to deliver until it starts the process. In many cases, the incremental effort in some projects can lead to significant financial loss. We assess their present analytic capabilities: What do you have? What do you need to acquire? What don’t you know that you need to know? Leveraging our deep experience developing executable strategies for customers across a wide variety of industries.
We conclude that to thrive in a competitive marketplace is staying ahead of the competition. Making sound business decisions based on accurate and current information take more than intuition. A Business Intelligence system, thus becomes a determining factor for the success of the business.