In recent years, the term Distinguishing Business Intelligence and Business Analytics (BI - Artificial Intelligence) has become a very popular keyword in the business world. So what is the definition of a BI system? What makes implementing BI for Businesses bring many benefits? The answer will be in Viindoo's article below.
What is Business Intelligence?
Business Intelligence (BI) is an intelligent management reporting system, a technology that helps businesses study raw data to make effective management decisions.
In other words, BI combines activities from data mining, business analysis, and data visualization. This helps business leaders have an overview of the business, and easily dig deep to exploit strengths and fix weaknesses in business digital transformation.
Data-driven decisions are the expected results of a BI system. These decisions have been adjusted to suit the practical needs based on the analysis of BI.
Business Intelligence Tools
Business Intelligence uses 3 main tools as follows:
- ? Benefits and how to build effectively
- Data Mining: The tool is responsible for data mining, digging, and analyzing to explore connections. In addition, data mining is meaning of data sets in the following ways:
- Classification;
- Clustering;
- Association Rule;
- Prediction;
- Etc.
- Data Analyst: The tool processes data and conducts data modeling for managers to make strategic decisions for business activities, production, and operations.
The mission of BI
Business Intelligence (BI) is responsible for helping businesses exploit and analyze important data, thereby making accurate predictions and decisions. Specific tasks of BI are:
- Decision support
- Query and reporting
- Online analytical processing (OLAP)
- Statistical analysis
- Forecasting
- Data mining
Who should apply BI?
Every business can benefit from applying BI. Those who can make the most of BI are:
- Executives
- Business Decision Makers
- Analysts
Technologies supporting BI
These technologies can significantly support BI:
- Data Warehouse
- Enterprise Resource Planning (ERP) systems
- Query and report writing technologies
- Data mining and analytics tools
- Decision support systems
- Customer relationship management
What is Business Intelligence?
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Benefits of using Business Intelligence for businesses
Benefits that a BI system can bring to businesses are:
- The BI system provides business leaders an overview of business health. Therefore, they can grasp the strengths and weaknesses of the operation and business processes.
- The system analyzes and gives reports quickly, ensuring the timeliness of the data.
- BI processes data to create reports that are easy to understand with visual images. Gartner's analysis shows that visual illustrations help business leaders grasp report content 60 times faster than numerical tabular data
- Businesses do not need an expensive complex analytics system and a team of data experts. BI systems provide SaaS software as a paid subscription. The software is easy to use and has an affordable price.
Benefits of using Business Intelligence for businesses
Distinguishing Business Intelligence and Business Analytics
In the growing trend of Digital Transformation lately, the two terms Business Intelligence (BI) and Business Analytics (BA) are well-known. The two concepts above have many similarities, but differences at the same time.
| Business Intelligence (BI) | Business Analytics (BA) | |
| Tools | Use these tools: - Data Warehouse. - Data Mining - mining and discovering data connections, and supporting forecasts. - Data Analyst - analysis and modeling. | Use these tools: - Data Mining. - Trends Forecasting - forecast business trends. - Optimization - create simulation scenarios to optimize the benefits in all possible cases. |
| Data objects | The data is collected through the operation, not yet analyzed and technically processed. | Data is technically processed (filtering & analyzing). |
| Purpose | Access an overall picture of the business health in real-time. Provide directions to optimize the business performance. | Create possible scenarios of business situations in the future. Promote business development in depth. |
| Supportability | Support decision-making to deal with current challenges. | Support visualizing future scenarios and necessary solutions for each case. |
As can be seen above, BI and BA both result in high-value and processed data sets. They help accurately determine the most effective situation and direction for an Enterprise.
Moreover, BI and BA software give users visualized data reports (graphs, charts, etc.), making it easy to access and understand all parameters and data trends for reasonable strategy building.
In general, BI and BA can support enterprises to build short and long-term strategies. BA uses the analyzed data warehouse of BI to calculate and predict business scenarios.
Distinguishing Business Intelligence and Business Analytics
The secret to success Business Intelligence
Using Business Intelligence is not difficult if businesses firmly grasp the following secrets:
Define the need to use BI before deploying
First, businesses need to define specifics feature and functionality needs before implementing Business Intelligence. For example, businesses need to identify prioritized features, tools, data sources, etc. Businesses when clearly defining their needs and goals can maximize the benefits of BI.
Collect data in a systematic way
Businesses should standardize customer information, sales, costs, etc. to ensure the best data source for BI. Data updated on problems arising is also important to have the most objective assessment.
Develop IT base
Deploying and adding new technology such as BI will complicate the existing IT infrastructure. Therefore, businesses should develop all IT infrastructure for BI to operate efficiently, optimally, and scalably.
Build a data culture
The data culture within the enterprise plays a key role in success. This is when everyone in the business understands the value of data and their role. From there, they will help achieve business goals by making data-driven decisions. However, data culture is a process of continuous construction and development.
Train personnel
Employees are important. Training employees to use the BI system will lead to a higher chance of successfully implementing BI. Business Intelligence will bring powerful and lasting benefits to employees’ work. Therefore, thorough and detailed BI training is indispensable.
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Use BI as a comprehensive management tool
Rather than a supporting tool, businesses should make BI a comprehensive management tool. This will help employees easily update information and effectively apply BI. At the same time, businesses need to create specific procedures for regular evaluation of the BI operational status. Therefore, the administrative department can identify the weak points for updates and improvement if necessary.
Combine BI with ERP
Data and analytics play a key role in business decision-making. However, the amount of data is large and complex these days. As a result, businesses need to ensure consistent data collection and analysis processes. The integration of BI and ERP will make it easy to simplify large data files and group information. Therefore, businesses can come up with an effective strategy.
It can be said that Business intelligence brings huge advantages to all businesses if leaders know how to make use of the collected data in a reasonable way. Businesses can prepare a reliable data source with modern data-integrated Enterprise Management systems such as Viindoo EOS to support effective BI.
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