Have you ever wondered why there are so many business-intelligence-focused courses online these days? Do you know why ‘business intelligence analyst’ is a highly-searched keyword? The answer is simple; no 21st-century company can survive without proper insight and intelligence.
Hence, it’s no surprise that business intelligence is a broad field. So many variables play critical roles in a company’s success, and business intelligence (BI) anchors them all. So, ‘business intelligence isn’t just a buzzword; it can make or break an organization. Given this, let’s explore every vital info you need to leverage business intelligence.
WHAT IS BUSINESS INTELLIGENCE?
Business intelligence is a broad field encompassing business analytics, data infrastructure, data mining, data visualization, and data-based decision-making processes. Individually, these various concepts play essential roles in modern-day businesses. The combination of them all underscores what is referred to as business intelligence.
Hence, business intelligence can be defined as the array of processes leveraging technology in collecting, storing, and analyzing data and subsequently delivering actionable information, which aids decision making. Essentially, business intelligence involves everything from data collection to making decisions and implementing strategic plans.
THE STAGES OF BUSINESS INTELLIGENCE
Data is everywhere. However, turning data into valuable insight consistently over a business’ lifetime is complex. Different tools, methodologies, architectures, and technologies come into play in the various stages of business intelligence. Understanding the essence of the different business intelligence stages will decide the best infrastructures.
Sourcing Data
In today’s world, you can get data from anywhere. However, not all data is useful. Hence, the data sourcing stage has become incredibly important. Business intelligence starts with getting the correct information from social media, emails, websites, etc.
For 21st century business, vital data is sourced in the electronic format for easy storage and processing.
Analyzing Data
Raw data is useless. Big raw data is even more overwhelming, costly, and detrimental if not effectively and efficiently analyzed. Hence, your business needs to estimate trends, understand past actions, and predict future events beyond sourcing data. So, data analysis is critical to the business intelligence process.
Situation Awareness
Situation awareness is a critical stage in the business intelligence process. It involves identifying the context in which your business exists concerning the insights from data. You should set the correct information as is peculiar to your company and its environment. Situation awareness includes understanding market forces, government policies, local community trends, etc. New technologies aid situational awareness for businesses.
Risk Assessment
The fourth stage of business intelligence is figuring out the subsequent necessary decisions. Furthermore, risk assessment involves weighing the impact of decisions on your business; cost, benefits, alternatives foregone, etc. Hence, as a business, the aim is to make the best decisions possible.
Decision Support
Using insights and information wisely is the crux of business intelligence. Without the right intelligence, decision-making in business is synonymous with walking blindfolded. Business intelligence informs takeovers, market changes, staff performance, etc. Business intelligence provides the needed data and insight to support every decision. When done right, such decisions have a higher chance of contextual success.
IMPORTANCE OF BUSINESS INTELLIGENCE
Running a successfully efficient business intelligence program has several benefits. Though costly, BI has become a pertinent operational expense for the following reasons:
- First, it speeds up efficient business decision-making.
- Optimizes internal business operations
- Enhances efficiency of operations, subsequently improving productivity
- Prompt identification of viable business and market opportunities
- Development and integration of better business strategies
- Improve chances at better sales and generating new revenue streams
- Having a better competitive advantage over competitors.
CONCLUSION
Business intelligence’s influence on modern business cannot be overstated. Setting up needed infrastructures can be costly, but it can mark a turning point for your business when done right. There are many options on the market today, each platform is unique with features with varied implementation ease and complexity, and cost. So get started with business intelligence today!
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