Unit-1
Business Intelligence
Business intelligence (BI) combines business analytics, data mining, data
visualization, data tools and infrastructure, and best practices to help organizations
to make more data-driven decisions. In practice, you know you’ve got modern
business intelligence when you have a comprehensive view of your organization’s
data and use that data to drive change, eliminate inefficiencies, and quickly adapt
to market or supply changes.
Much more than a specific “thing,” business intelligence is rather an umbrella term
that covers the processes and methods of collecting, storing, and analyzing data
from business operations or activities to optimize performance. All of these things
come together to create a comprehensive view of a business to help people make
better, actionable decisions. Over the past few years, business intelligence has
evolved to include more processes and activities to help improve performance.
These processes include:
● Data mining: Using databases, statistics and machine learning to uncover
trends in large datasets.
● Reporting: Sharing data analysis to stakeholders so they can draw
conclusions and make decisions.
● Performance metrics and benchmarking: Comparing current performance
data to historical data to track performance against goals, typically using
customized dashboards.
● Descriptive analytics: Using preliminary data analysis to find out what
happened.
● Querying: Asking the data specific questions, BI pulling the answers from
the datasets.
● Statistical analysis: Taking the results from descriptive analytics and
further exploring the data using statistics such as how this trend happened
and why.
● Data visualization: Turning data analysis into visual representations such as
charts, graphs, and histograms to more easily consume data.
, ● Visual analysis: Exploring data through visual storytelling to communicate
insights on the fly and stay in the flow of analysis.
● Data preparation: Compiling multiple data sources, identifying the
dimensions and measurements, preparing it for data analysis.
Why is business intelligence important?
Business intelligence can help companies make better decisions by showing
present and historical data within their business context. Analysts can leverage BI
to provide performance and competitor benchmarks to make the organization run
smoother and more efficiently. Analysts can also more easily spot market trends to
increase sales or revenue. Used effectively, the right data can help with anything
from compliance to hiring efforts. A few ways that business intelligence can help
companies make smarter, data-driven decisions:
● Identify ways to increase profit
● Analyze customer behavior
● Compare data with competitors
● Track performance
● Optimize operations
● Predict success
● Spot market trends
● Discover issues or problems
How business intelligence works
Businesses and organizations have questions and goals. To answer these questions
and track performance against these goals, they gather the necessary data, analyze
it, and determine which actions to take to reach their goals. On the technical side,
raw data is collected from the business’s activity. Data is processed and then stored
in data warehouses. Once it’s stored, users can then access the data, starting the
analysis process to answer business questions
Business Intelligence
Business intelligence (BI) combines business analytics, data mining, data
visualization, data tools and infrastructure, and best practices to help organizations
to make more data-driven decisions. In practice, you know you’ve got modern
business intelligence when you have a comprehensive view of your organization’s
data and use that data to drive change, eliminate inefficiencies, and quickly adapt
to market or supply changes.
Much more than a specific “thing,” business intelligence is rather an umbrella term
that covers the processes and methods of collecting, storing, and analyzing data
from business operations or activities to optimize performance. All of these things
come together to create a comprehensive view of a business to help people make
better, actionable decisions. Over the past few years, business intelligence has
evolved to include more processes and activities to help improve performance.
These processes include:
● Data mining: Using databases, statistics and machine learning to uncover
trends in large datasets.
● Reporting: Sharing data analysis to stakeholders so they can draw
conclusions and make decisions.
● Performance metrics and benchmarking: Comparing current performance
data to historical data to track performance against goals, typically using
customized dashboards.
● Descriptive analytics: Using preliminary data analysis to find out what
happened.
● Querying: Asking the data specific questions, BI pulling the answers from
the datasets.
● Statistical analysis: Taking the results from descriptive analytics and
further exploring the data using statistics such as how this trend happened
and why.
● Data visualization: Turning data analysis into visual representations such as
charts, graphs, and histograms to more easily consume data.
, ● Visual analysis: Exploring data through visual storytelling to communicate
insights on the fly and stay in the flow of analysis.
● Data preparation: Compiling multiple data sources, identifying the
dimensions and measurements, preparing it for data analysis.
Why is business intelligence important?
Business intelligence can help companies make better decisions by showing
present and historical data within their business context. Analysts can leverage BI
to provide performance and competitor benchmarks to make the organization run
smoother and more efficiently. Analysts can also more easily spot market trends to
increase sales or revenue. Used effectively, the right data can help with anything
from compliance to hiring efforts. A few ways that business intelligence can help
companies make smarter, data-driven decisions:
● Identify ways to increase profit
● Analyze customer behavior
● Compare data with competitors
● Track performance
● Optimize operations
● Predict success
● Spot market trends
● Discover issues or problems
How business intelligence works
Businesses and organizations have questions and goals. To answer these questions
and track performance against these goals, they gather the necessary data, analyze
it, and determine which actions to take to reach their goals. On the technical side,
raw data is collected from the business’s activity. Data is processed and then stored
in data warehouses. Once it’s stored, users can then access the data, starting the
analysis process to answer business questions
