Business Intelligence

Business intelligence (BI) as a business process

Organizations collect data to extract information, valuations and estimates with respect to its business environment and market involving (market research and analysis of competitive scenarios). Organizations use information gathered through a business intelligence strategy to increase their competitive advantage.

Each business intelligence system has a specific goal that is derived from the company's vision and objectives for the strategic management of a company.

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The term Business Intelligence understood from the outset, both the more traditional methods of data collection in order to analyze the past or the present and to understand the phenomena, the causes of problems or the determinants of performance achieved and the systems aimed at more estimate or predict the future, to simulate and create scenarios with different probability of occurrence. The term Business Intelligence refers then to a very wide range of activities, business information systems and information technology in order to support, and in some cases to automate, process measurement, control and analysis of the results and performance (reporting systems and graphical display of various kinds, more or less dynamic dashboards, historical analysis systems, systems of "alarm" out of the norm or exceptions, etc..), and business decision processes under varying conditions of uncertainty (predictive systems, prediction, simulation and construction of alternative scenarios, etc..), all built in the classic general process of "measurement, analysis, decision and action."

These systems have always been made with a mix of different software tools (eg. Reporting, OLAP analysis, dashboards) and software applications, ie containing true logic and rules of application, addressed to the Performance Management (eg. Applications for Balanced Scorecards or cycle budgeting and forecasting company), the optimization of some operational decisions (eg,. in the field of transport and logistics or revenue management) or aimed forecasts and future predictions, using statistical functions very sophisticated, all these software applications over time have taken different names but similar meaning, such as Analytic Applications, Analytics, Business Analytics (see also Davenport, 2007, 2010, Turban, 2010; Pasini, 2004).

Generally, information is collected for internal purposes direction and management control. The collected data is well developed and are used to support concrete - on the basis of current data - the decisions of those who occupy managerial roles (see the trend of the performance of the company, generating estimates, suggest future scenarios and future strategies for response) .

Second, the information can be analyzed at different levels of detail for hierarchical and any other business function: marketing, sales, finance, personnel or other.

The sources of information, usually internal, are from the company's information systems and integrated with each other as needed. In the broadest sense can be used information from external sources such as the needs of the customer base, rated pressure of shareholders, cultural or technological trends to the limit of industrial espionage.

Each business intelligence system has a specific goal that is derived from the company's vision and objectives for the strategic management of a company.

Business intelligence (BI) technology

In the literature of business intelligence is referred to as the process of "transformation of data and information into knowledge." The software used is designed to allow people to make strategic decisions by providing accurate, timely and meaningful in context.

 

You can refer to the business intelligence systems with the term "decision support systems" (Decision support systems or DSS), even if the evolution of the techniques used terminology makes it susceptible to modernization. The term "business performance management" you can refer to business intelligence systems of new generation although the distinction between the two terms is often not perceived.

 

The data generated by various systems (accounting, production, R & D, CRM etc..) Can be stored in special databases called data warehouses, which maintain the quality of information. The people involved in the processes of business intelligence applications use software and other technologies to collect, store, analyze and distribute information.