What is business intelligence and why should you care?

What is business intelligence and why should you care?

Business intelligence makes use of all the data that is available in a company.

Business intelligence is a set of techniques that use data, technology and analysis to provide actionable insights into business performance. The goal of using business intelligence tools is for your organization to become more efficient, improve financial performance and beat the competition.

Most large companies can benefit from business intelligence solutions by gathering all their data that they have collected over time, preparing and analyzing it. Business intel allows you to learn what has happened in the past, what’s happening now and how your company can position itself better in the future. It's about leveraging information assets so you can make better decisions.

One of the main challenges with BI is dealing with high volumes of structured and unstructured data (data that isn't organized). Data comes in many forms: sales figures, customer reports, research findings, market trends and forecasts. Knowing which data to use and how to analyze it requires a good deal of experience as well as access to specialized software tools such as dashboards and BI platforms.

It uses a combination of technologies and applications, which are made to analyze the data.

Before we dive into the details, let’s define business intelligence. Business intelligence uses a combination of technologies and applications to analyze data in order to discover actionable insights that can be used to make better business decisions.

Database and data warehouse management systems are responsible for storing your data in an organized and structured format (as tables). When you need this data, it is retrieved using SQL queries. But what if you want to analyze your data to derive insights? That’s where statistical software comes into place. Using specialized statistical software like SPSS or SAS, you can analyze your data using a variety of different methods such as descriptive statistics, regression analysis, etcetera. And finally, you will use visualization software such as Tableau or QlikView to visualize your results by creating appealing visualizations such as bar charts, histograms, heatmaps and more!

This helps companies make better, more informed decisions.

To understand business intelligence, you first need to understand data. Data is everywhere—it’s the fuel that drives most of today’s modern applications and everyday decision making. It’s what online retailers use to suggest products for you to buy, it provides deep insights into your own behavior, and it can tell you who your next best customer will be. In fact, data is so important that some people refer to it as the new oil.

That said, understanding the ins and outs of data isn't always easy—it can be tricky just defining what “data” means! So let's start with a simple definition: Data is information that has been organized or presented in a formalized manner (usually in columns and rows). That sounds kind of straightforward right? Technically though we should probably expand on that a little further.

After all, there are different types of data—structured vs unstructured or qualitative vs quantitative—and there are different ways to analyze data (like predictive analytics). But don't get too bogged down in all these details now; suffice it to say that there's more than one way to look at information. What's more important is how businesses are using this information today.

The best way to get started with business intelligence is to ask questions and see what you can find out about your company using data.

You might be wondering how to get started, and the best way to explore this is through a question. For example, you might want to know about the profitability of your business or what customers are saying about you online. Once you have a question, gather the data you need from all the sources at your disposal. This might include sales data, operations data, and even social media feedback. You will then organize this data in one place and analyze it with tools like Power BI and Excel. Finally, make decisions based on your findings!

You need to gather all this data in one place and organize it so that it is easy to access.

You need to gather all this data in one place and organize it so that it is easy to access. Ideally, the information will be available when you make business decisions. That’s why your best bet is using a platform that gathers data in real time rather than once a day or week. Also, multiple sources of truth mean that people in your organization might pull different numbers from different systems, leading to confusion and mistakes. If different teams have different versions of spreadsheets with the same information, well…you know already how confusing and inefficient this can be!

The insights from business intelligence can help managers make better decisions.

In the new business landscape, the ability to make fast and informed decisions is critical to success. Business intelligence tools provide managers with vital insights that can help them make better decisions. These insights can be used in many ways, including improving decision making, increasing productivity and efficiency, improving customer service and developing new products or services. They include:

  • Data-driven insights that help leaders understand what's happening at a glance

  • Recommendations for action based on your historical data

These include more informed strategic planning, product pricing decisions and marketing campaigns based on customer's behavior patterns.

Knowing the data in the business and using it to make decisions are what business intelligence is all about. These include more informed strategic planning, product pricing decisions and marketing campaigns based on customer's behavior patterns.

Knowing that 80% of your customers use their mobile devices to browse your website will help you better understand why it was important to invest in a mobile-friendly website.

Business intelligence allows companies to use all of their data to make better decisions.

You already know that data is incredibly important to a business. Without it, you can't track your sales, and without sales, your company can’t survive.

But what are you doing with all that information once you've collected it? Business intelligence allows companies to use all of their data to make better decisions—no matter how much data they have or where it lives in the organization. For instance, analysts at an ecommerce company could use business intelligence tools to understand their customers and competitors better. By analyzing their own sales performance data and comparing it with the products and prices of competitors, the team might discover opportunities to reduce prices on certain items or create new product offerings based on gaps in the market.

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