Introduction to Business Intelligence The strategy and the planning that is incorporated in any business is known as business intelligence. It may also include products, technologies, and analysis and presentation of business information. This chapter will provide an integrated understanding of business intelligence.
Business intelligence (BI) can be described as “a set of techniques and tools for the acquisition and transformation of raw data into meaningful and useful information for business analysis purposes”. The term “data surfacing” is also more often associated with BI functionality. BI technologies are capable of handling large amounts of structured and sometimes unstructured data to help identify, develop, and otherwise create new strategic business opportunities.
The goal of BI is to allow for the easy interpretation of these large volumes of data. Identifying new opportunities and implementing an effective strategy based on insights can provide businesses with a competitive market advantage and long-term stability. BI technologies provide historical, current, and predictive views of business operations.
Common functions of business intelligence technologies are reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics, and prescriptive analytics. BI can be used to support a wide range of business decisions ranging from operational to strategic.
Basic operating decisions include product positioning or pricing. Strategic business decisions
include priorities, goals, and directions at the broadest level. In all cases, BI is most effective when
it combines data derived from the market in which a company operates (external data) with data
from company sources internal to the business such as financial and operations data (internal
data). When combined, external and internal data can provide a more complete picture which, in
effect, creates an “intelligence” that cannot be derived by any singular set of data. Amongst myriad
uses, BI tools empower organizations to gain insight into new markets, assess the demand and suitability of products and services for different market segments, and gauge the impact of marketing