Example of using Business Intelligence

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Introducing Business Intelligence

Definition

Business intelligence can be defined as a collection of approaches for gathering, storing, analysing and providing access to data that helps users to gain insights and make better fact-based business decisions. It should be defined wider than just referring to BI software applications and analytics to incorporate a more strategic approach to better decision-making.

Business Intelligence

Business intelligence, or BI for short, is an umbrella term that refers to competencies, processes, technologies, applications and practices used to support evidence-based decision making in organisations. In the widest sense it can be defined as a collection of approaches for gathering, storing, analysing and providing access to data that helps users to gain insights and make better fact-based business decisions.

What is BI used for?

Organisations use Business Intelligence to gain data-driven insights on anything related to business performance. It is used to understand and improve performance and to cut costs and identify new business opportunities, this can include, among many other things:

• Analysing customer behaviours, buying patterns and sales trends.
• Measuring, tracking and predicting sales and financial performance
• Budgeting and financial planning and forecasting
• Tracking the performance of marketing campaigns
• Optimising processes and operational performance
• Improving delivery and supply chain effectiveness
• Web and e-commerce analytics
• Customer relationship management
• Risk analysis
• Strategic value driver analysis

The Basics of Business Intelligence

The basic components of Business Intelligence are gathering, storing, analysing and providing access to data (see Figure below).