Understanding business intelligence

What is Business Intelligence?

Posted by Judith Winkler MBA on December 15, 2023

Nowadays companies collect and store data from different sources, throughout the web, digital payments, companies’ spreadsheets, etc. Companies make reports from them to analyze the data. As humanity is evolving into an information era, understanding the data is a key asset to generate value for companies. That is why it is very important to understand the value of BI and how to implement it.

BI is an old concept that started in 1958, Hans Peter explains BI with the help of Webster’s dictionary as “the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal”. BI evolved from the decision support systems (DSS) in the 60s to what was described by Howard Dresner in the 90s as “an umbrella term to describe concepts and methods to improve business decision-making by using fact-based support systems” (Business Intelligence: History | Saylor Academy)

BI is the combination of business analytics, data mining, data visualization, data tools, infrastructure, and best practices to help organizations make data-driven decisions. The difference between traditional and modern BI is that traditional BI companies use reports and static queries to make decisions, however, modern BI companies use interactive methods to analyze data and make decisions. This is a comprehensive method that allows organizations to understand companies’ data comprehensively to drive change, identify patterns, and make the corresponding changes to quickly adapt to market and supply chain needs. In addition, modern BI provides interactive dashboards with the opportunity of performing data analysis by individuals, while using different platforms or software and making the decision accordingly.

A big question Arises: What can be done with BI?

What can be done with BI?

Throughout different dashboards, BI can help consult performance indicators, which can lead to evaluating performance, future decision making, analysis of competition, identifying trends and opportunities, improving internal processes, and identifying different marketing campaigns.

I have a small favor to ask, if you find this information useful, I ask that you share this blog with other business owners that might find this content useful as well. I will be setting a lot of effort towards posting regular content to help share knowledge about all things related to business and how data analytics can be used to improve companies. Thank you!