Business intelligence is commonly defined as a methodology to analyze data and business information on the basis of certain strategy and technology. This technology is able to handle a great amount of well-structured data or even unstructured data to identify, develop, and even create new strategies of business chances.
Business intelligence is usually used by the company as a tool to analyze the market condition so it helps the company to make important decisions from the operational matters to strategies stuffs. Identifying new chances in the market and applying the effective strategies can give a good position for a company to have better position in the business. So it is important for a business man to know what is business intelligence.
Business intelligence jobs include the business reports, processing the online analytics, digging the business data, digging the process of the business, analyzing the complex activity in the market, benchmarking, predicting what will happen in the market, anticipating the market circulation and sort of things.
To answer the question: “what is business intelligence?” First of all, we need to look back on its history.
The term business intelligence was first used in Richard Milar Devens’ Cyclopedia of Commercial and Business Anecdotes (1865). He used the term to display the story of a banker, named Sir Henry Furnese. The banker was successful in his business and got a great profit by getting the early information he got about the market and applied the precise strategy based on the information that everyone didn’t get before. This certain ability, finding the data and react accordingly, is the main key of the business intelligence.
In 1958, When asked a question of “what is business intelligence?”, a researcher in IBM answered that the business intelligence is a smart decision from understanding the mutualism relationship from the facts provided to guide the business men to decide the next move so that he or she obtain the result which has been set up.
Then in 1989, Howard Dresner, then followed by an analyst Gartner, proposed the answer of what is business intelligence by saying that the intelligence business term is used as a common term to describe the concept and method of a company to enhance its ability to make business decisions by using supporting system on the basis of facts.
When the 1990 was about to over, people in the business started to use the business intelligence.
What is business intelligence?
Simply the term is defined as a tool to enhance the company performance for better profit. Business intelligence includes methodology, process, planning, and technology to process the data obtained by the company into the useful information that enable the company to decide the most effective business movements for a better profit.
What is business intelligence and analytics?
Though the term of business intelligence and business analytics are commonly exchangeable, the two terms have slight difference. Thomas Davenport, a professor of technology and information management suggested that business intelligence includes question, reports, online analytical process, and a warning in the business analysis.
The analytics of business is a set of methodology contains statistics, predictions, and maximizing of the company to enhance its performance. So, it is said that the business analytics is actually part of the business intelligence.
Business intelligence uses both well-structured data and unstructured data. The first data they try to find is the easiest data, which mostly unstructured ones. The last they find is the information which will affect the analysis and the business decision.
Because of the difficulty of finding and sorting the structured and the unstructured data, the company may not effectively use the collected data to help to make the precise business decisions. The company may end up in making decisions which based on the less-information.
After knowing what is business intelligence, now it is time to apply the method. The business intelligence will work for some parts as below:
Business process management
Business intelligence will inform the business men about the progress of its company to the business target
It includes the finding of the data and the process of the business, the statistics analysis, the flow of the data, and perspective analyst.
To repot the business, you can use the business intelligence to inform the strategy applied in a company.
It relates with creating, distributing, using, and business intelligence management in common. The knowledge management will lead to learning process and obeying the business rules.
In understanding what is business intelligence you need to know about the business data. There two kinds of data in business intelligence to analyze; the unstructured data and the structured data.
Usually the unstructured data can be obtained more easily then the structured data. The data can be in the form of documents, video, pictures, statistics, e-mail or any other digital data. The structured data will have more complete information, such as who write and when the documents were made. Who made the video or when it is recorded? So, it is easier to use this kind of data and they may be more accurate to apply in the business.
The unstructured data, however, is much easier to find. They may not be put in columns or lines which was provided before. Yet, this kind of data may give some insights for the business doers about the business trends in the future.
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There some challenges in processing the data in business intelligence.
- Some data are not put in the correct and specific format. They are just presented as it is randomly, so you need to identify and verify one by one.
- The volume of the data—most of data collected, almost 80%-90%, is unstructured ones. You need a lot of time to do the analysis here. Be patient, and make your time.
- Finding the data; today, try to find data is not as hard as a decade ago. Searching machines like Google and yahoo will help you a lot. Only, finding data by using this method can be weary for one keyword you type will bring you to thousands data.
Now, have you quite understood what is business intelligence? Have you set up yours?