Business Intelligence
- Consolidates data from multiple sources using tools, technologies, and processes to generate actionable insights.
- Core components include data mining (pattern discovery and forecasting), reporting and visualization (dashboards and KPIs), and data warehousing (centralized data repositories).
- Supports decisions such as product selection, pricing, marketing strategies, and real-time performance monitoring.
Definition
Section titled “Definition”Business intelligence (BI) refers to the use of data and analysis to make informed business decisions. It involves the use of various tools, technologies, and processes to gather, store, and analyze data from multiple sources to provide insights and support decision-making.
Explanation
Section titled “Explanation”BI combines methods and systems that let organizations collect and consolidate data, uncover patterns, present results clearly, and store integrated information for analysis. Key elements described in the source are:
- Data mining: the application of algorithms and statistical techniques to uncover patterns and trends in large datasets, enabling identification of trends, forecasting of future events, and predictions about customer behavior.
- Reporting and visualization: the use of tools and techniques to present data in understandable and actionable formats, for example dashboards that display key performance indicators (KPIs) in real-time to help managers monitor performance.
- Data warehousing: the creation of a central repository for a company’s data so that information from multiple sources—such as sales, customer, and financial data—can be combined to form a comprehensive view and support cross-organizational analysis.
Overall, BI enables businesses to gain insights into operations, identify trends and patterns, and make predictions that inform better business decisions and can improve performance.
Examples
Section titled “Examples”Data mining in retail
Section titled “Data mining in retail”A retail company might use data mining to identify patterns in customer purchasing habits. By analyzing data on customers’ purchase history, demographics, and preferences, the company can identify trends and make predictions about future buying behavior. This information can be used to make decisions about product selection, pricing, and marketing strategies.
Reporting and visualization with dashboards
Section titled “Reporting and visualization with dashboards”A company might use a dashboard to display key performance indicators (KPIs) in real-time, allowing managers to monitor the performance of their business and make decisions based on the most current data available.
Data warehousing across departments
Section titled “Data warehousing across departments”A company might use a data warehouse to combine data from its sales, marketing, and finance departments to create a comprehensive view of its business. This allows the company to identify trends, make predictions, and make informed decisions based on data from across the organization.
Use cases
Section titled “Use cases”- Informing product selection, pricing, and marketing strategies.
- Real-time monitoring of business performance through dashboards and KPIs.
- Combining sales, marketing, and finance data to create a comprehensive organizational view for trend identification and forecasting.
Related terms
Section titled “Related terms”- Data mining
- Reporting and visualization
- Data warehousing
- Dashboards
- Key performance indicators (KPIs)