Business Intelligence – Questions and Answers
Business Intelligence (BI) is a powerful tool which transforms data into usable information for end-users. Here are some common Business Intelligence questions and answers.
What is Business Intelligence?
This umbrella term refers to all the processes and methods related to collecting, storing and analysing data from business operations which optimise overall performance. Business Intelligence involves all the technologies, applications and practices which are used to collect, integrate, analyse and present business information to allow for enhanced, data-based decision-making.
Read More: Business Intelligence Overview
What is Business Intelligence and how does it work?
Business Intelligence in the modern world is the implementation of computer software which assists in the collection, analysis and storage of related business data. With Business Intelligence, analysts are also able to spot trends which will serve to increase sales and revenue.
What are the Benefits of Business Intelligence?
There are many benefits associated with implementing Business Intelligence, including:
- Improve sales
- Accurate reporting
- Better decision-making
- Identify opportunities and trends
- Operational efficiency
- Reduce waste
- Better inventory
- Customer satisfaction
- Increased revenue
Read More: Business Intelligence Benefits
What are the Trends in Business Intelligence?
Organisations are now seeking ways to develop Business Intelligence for enhanced business processes. Here are some of the emerging trends:
- Self-Service Business Intelligence
- Artificial Intelligence
- Increased automation
What are the Business Intelligence Processes?
The processes that can be expected from Business Intelligence are:
- Data mining – this is the use of databases, statistics and machine learning to discover trend patterns.
- Data visualisation – data is represented as charts, graphs and histograms.
- Visual analysis – using storytelling to communicate data insights.
- Reporting – data analysis is shared for effective decision-making.
- Performance metrics / benchmarking – when performance data is compared to historical data to track performance goals.
- Descriptive analytics – preliminary data analysis determines what has happened in the past.
- Querying – BI will provide relevant data-specific information requested.
- Statistical analysis – when descriptive analytics’ results are analysed to understand trends.
What Industries Benefit most from Business Intelligence?
There are a number of industries that can benefit from Business Intelligence. Here’s a look at a selection of industries that will benefit most from BI:
- The food and beverage industry
- The retail industry
- The travel and transport industry
- The energy industry
- The agricultural industry
- The healthcare industry
Read More: What industries benefit most from BI?
What is The Difference Between Business Intelligence and Analytics?
Data is an incredibly valuable business tool and both Business Intelligence and business analytics are hinged on this data. While analytics is a sub-set of BI, both are effectively data management solutions which analyse business data for usable insights.
What is the Purpose of a Business Intelligence System?
The entire purpose of a business intelligence system is to help companies track operational efficiencies, control budgets and manage costs in real-time and ultimately make better business decisions. By connecting multiple ERP systems to BI tools you are able to get real-time visual data on mobile, PC or tablet.