Business Intelligence & Data Analytics
Business Intelligence
Business intelligence (BI) is a data-driven decision support system that integrates data collection, storage, and information processing with analysis to provide insights into decision-making. The concept was introduced in 1989, and many of its elements were already present in organisational information systems (Salomon & Gray, 2008). The term implies providing a detailed understanding of all the variables that impact the company. Therefore, to make efficient and high-quality strategic decisions, companies must have an in-depth awareness of variables such as clients, competitors, business partners, the economic climate, and internal processes. (Ranjan, 2005-2009)
Business intelligence focuses on the study of vast amounts of information about a company and its activities. (Salomon & Gray, 2008). BI is a wide category of software and technology for collecting, delivering, and processing data to help corporate customers make smarter business decisions. (Ranjan, 2005-2009)
BI is now commonly used to describe analytic applications, especially in the business sector (Salomon & Gray, 2008). BI is currently the primary concern for many companies worldwide and has rapidly become an essential strategy for chief information officers and business leaders, providing innovation and creativity as an essential asset to drive effectiveness to the organisations. (Watson J & Barbara, 2007)
BI Components
BI is a mechanism that consists of two key activities: data in and data out. Getting data in, also known as data warehousing, requires transferring data from a set of source systems into an interconnected data warehouse
Business Intelligence & Analytics
Many businesses are implementing Business Intelligence techniques and programs to learn from the past and predict the future. Companies have recognised the significance of using market intelligence principles to enforce the objectives identified by their business strategies. It examines the market needs to provide insights into the role and need for real-time BI. (Ranjan, 2005-2009)
Business Intelligence and Analytics (BI&A) have grown in importance in both the academic and business communities. Companies have focused their efforts on the opportunities that data and analytics can bring to them to comprehend their market better and make decisions as quickly as possible, impacting e-commerce, market intelligence, social media, e-government, healthcare, security. (Chen et al., 2012)
Marketing experts agree that social media analytics offers a remarkable opportunity for companies to approach the competition as a "conversation" between businesses and consumers, rather than the conventional one-way, business-to-customer "marketing" (Lusch et al. 2010). The web and e-commerce cultures have arguably created the majority of the interest around BI&A and Big Data. Leading e-commerce retailers such as Amazon and eBay have greatly changed the industry with their creative and highly efficient e-commerce services and product recommender schemes. Google and Facebook continue to be leaders in the advancement of web analytics, cloud computing, and social media networks.
Chen, H., Chiang, R. H. L. C. & Storey C, V., 2012. Business Intelligence and Analytics from Big Data to Big Impact. MIS Quarterly, 25 March, 36(4), pp. 1165-1188.
Ranjan, J., 2005 -2009. Business Intelligence: Concepts, Components, Techniques, and Benefits. Journal of Theoretical and Applied Information Technology, 9(1), pp. 60-70.
Salomon, N. & Gray, P., 2008. Business Intelligence. In: F. H. C. Burstein, ed. Handbook on Decision Support System 2. Berlin: Springer, pp. 175-193.
Watson J, H. & Barbara, W. H., 2007. The Current State of Business Intelligence. Computer, 17 September, 40(9), pp. 96-99.
Lusch, R. F., Liu, Y., and Chen, Y. 2010. The Phase Transition of Markets and Organizations: The New Intelligence and Entrepreneurial Frontier,” IEEE Intelligent Systems 25(1), pp. 71-75.
I agree with the author totally. Business intelligence has become the major tool in businesses that experienced transformation in recent years. The big giants of the worlds industry have all been investing heavily on their data generation, acquisition, processing and output. Gathering the data is good but we can agree that is only a small quarter of the work, what you do with the data is what will make you stand out. Take a que from big giants like Amazon, Facebook, Google and more. You need data to back your strategy and to reassess your strategy when it seems to not be working.
ReplyDeleteVery well presented. Since business intelligence is constantly evolving in response to changing business needs and technological advancements, many tech giants define current trends each year to keep users informed about new developments. Recognize that artificial intelligence and machine learning will continue to advance, and that other companies should also incorporate AI-derived insights into a larger Business Intelligence strategy. Companies' attempts to exchange data and collaborate will grow as they aspire to become more data-driven. Data visualization will become much more important as teams and departments collaborate. It’s almost surprising to see the gap between business and technological skills has decreased so rapidly in the past two decades.
ReplyDeleteIt is a great content to understand BI and Data Analytics.
ReplyDeleteEspecially the software used by restaurant chains and retail stores recently. It uses Business Intelligence to make strategic decisions, such as identifying new products to add to restaurants' menu content. However, stores that do not work as expected benefit from business intelligence tools when making decisions such as which services to remove. Business Intelligence can also be used in situations such as re-signing contracts with food suppliers, developing inefficient processes. Because restaurant chains are heavily dependent on their operations. Restaurant chains are among the companies that benefit from Business Intelligence systems among all other industries.