We are living in the age of the connected world. Technology has changed our lives for the better, but it’s also created an ever-increasing amount of data. Data is collected by every aspect of our lives, from health care providers to social media platforms. Businesses can use these huge datasets to gain advantage over their competitors and improve customer service. Business Intelligence (BI) is the ability to analyze and make effective use of data to make better decisions and understand market trends.
It improves communication and collaboration between the different departments of the organization and enables better decision making. BI can help businesses become more efficient, which saves money and time. It can also help in problem solving when a problem arises, such as a faulty product or financial loss, by gathering information to determine the cause, then fixing it in the future.
Fomoco News says, the goal of Business Intelligence is to create value from data through analysis, which leads to improved business performance such as increased revenue and reduced costs. By analyzing a big data source in a systematic and organized way, BI leads to better decisions that can drive business growth.
To create Business Intelligence, there are five basic processes that must be followed:
Business Intelligence is not restricted to large companies with ample resources. The small business market can also take advantage of BI technology. Small businesses have the same demand for information as large companies, but due to their lack of resources, they cannot always use or access the same tools available to larger businesses. With BI applications available for both mobile and desktop devices, smaller companies can use different platforms depending on whether they need a smartphone app or a full blown desktop application.
Business Intelligence is now available for any size enterprise through cloud applications. Cloud applications offer their customers the ability to pay for only what they use, rather than make a large purchase. As technology advances, it has become easier for small companies to use BI applications. Cloud technology also allows companies to perform BI analysis on data that is not connected to the company network, making it more secure.
BI is used in almost all industries
It is particularly useful for businesses that operate in multiple countries or regions because it gives business leaders an opportunity to monitor performance and compare success rates globally. BI can also be used in healthcare where there are many patients and little time to see them individually. BI allows doctors to monitor their patient’s progress and make sure they are healthy, which helps doctors provide better patient care.
The healthcare industry has increased its use of BI software in many ways. A company named Quintiles sells what it calls “Clinical Analytics applications” to medical facilities. These applications give the doctor access to patient charts, electronic health records (EHR), and other data that is stored in the cloud. The hospital can use the information to see how specific drugs are working for each individual patient by examining anonymized population data across all other patients who received similar treatment over a specified time period.
BI tools are now used in almost every business process, whether it is an online shopper viewing product recommendations or a car manufacturer tracking vehicle assembly line processes. BI enables businesses to collect data, analyze it, and make sense of it. The information that is collected provides business leaders with the information they need to make decisions about how to improve customer service, enhance products and services, allocate resources, and increase revenue.
A business’s most important asset is its profit margin; measuring profit margin requires data mining. Data mining helps organizations find the answers to questions about their customers by helping them find patterns in large datasets. Data mining improves business intelligence by utilizing analytics to find profitable patterns in large datasets. Data mining allows companies to analyze their data better and identify areas that need improvement. The ability to recognize patterns in expedient ways allows businesses to increase profitability, but this capability does not come without the cost of computing power and data storage.
Business Intelligence is also known as business analytics or predictive analytics. There are many misconceptions surrounding BI, especially when it comes to the term “big data”. Big data is not just a buzzword; it’s an actual industry with its own set of challenges. Big data is a collection of mostly unstructured data sets that is too massive in volume and fast in velocity for a conventional system to handle. A standard computer cannot store big data efficiently, but there are many cloud solutions available to help with the cost.
In traditional BI, the goal is to dig into past data and find patterns from previous events, but predictive analytics goes a step further by identifying patterns that have yet to occur. Predictive analytics also helps businesses determine which actions will cause preventable problems in advance so they can take steps to correct them before they happen.
Examining historical data
One of the main challenges in predictive analytics is in obtaining accurate data, which comes from either human or computer sources. The truth is that no one company has all of the answers to questions that are asked. Life’s experiences, observations, and opinions are limited by individual perspectives and everyone hears what they want to hear.
A limited number of questions can be easily answered with facts but many others can only be answered by examining historical data or analyzing data from other people. Having the correct data is essential for forecasting where a company will be in three months or predicting what will happen next year. Businesses need access to accurate information before they make decisions about where to invest their money and how to allocate it across their organization.