Business Intelligence Definition and Examples

Business Intelligence Definition and Examples

What is Business Intelligence?

Business Intelligence is a set of processes, architectures, and technologies that converts data into a treasure of Information that drives profitable business actions. It is a set of software and services to rework data into actionable intelligence and knowledge.

Business Intelligence features a direct impact on the organization’s strategic, tactical and operational business decisions. BI supports fact-based deciding using historical data instead of assumptions and gut feeling.

Business Intelligence tools perform data analysis and make reports, summaries, dashboards, maps, graphs, and charts to supply users with detailed intelligence about the character of the business.

In this tutorial, you’ll learn-

  • What is Business Intelligence?
  • Why is BI important?
  • How Business Intelligence systems are implemented?
  • Examples of Business Intelligence System utilized in Practice
  • Four sorts of BI users
  • Advantages of Business Intelligence
  • BI System Disadvantages
  • Trends in Business Intelligence

Why is BI important?

  • Measurement: creating KPI (Key Performance Indicators) supported historic data
  • Identify and set benchmarks for various processes.
  • With BI systems organizations can identify market trends and spot business problems that require to be addressed.
  • BI helps on data visualization that enhances the info quality and thereby the standard of deciding.
  • BI systems are often used not just by enterprises but SME (Small and Medium Enterprises)

How Business Intelligence systems are implemented?

Business Intelligence systems

Here are the steps:

Step 1) data from corporate databases is extracted. the info might be spread across multiple systems heterogeneous systems.

Step 2) the info is cleaned and transformed into the info warehouse. The table is often linked, and data cubes are formed.

Step 3) Using BI system the user can ask quarries, request ad-hoc reports or conduct the other analysis.

Examples of Business Intelligence System utilized in Practice

Example 1:

In a web Transaction Processing (OLTP) system information that would be fed into the product, the database might be

  • add a line
  • change a product price

Correspondingly, during a Business Intelligence system query that might be executed for the merchandise discipline might be doing the addition of latest line or change in product increase revenues

In an advertising database of OLTP system query that would be executed

  • Changed in advertisement options
  • Increase radio budget

Correspondigly, in BI system query that would be executed would be what percentage new clients added thanks to change in radio budget

In OLTP system handling customer demographic data bases data that would be fed would be

  • increase the customer credit limit
  • change in customer salary level

Correspondingly within the OLAP system query that would be executed would be can customer profile changes support higher product price

Example 2:

A hotel owner uses BI analytical applications to collect statistical information regarding average occupancy and rate. It helps to seek out aggregate revenue generated per room.

It also collects statistics on market share and data from customer surveys from each hotel to decides its competitive position in various markets.

By analyzing these trends year by year, month by month and day by day helps management to supply discounts on room rentals.

Example 3:

A bank gives branch managers access to BI applications. It helps the branch manager to work out who are the foremost profitable customers and which customers they ought to work on.

The use of BI tools frees information technology staff from the task of generating analytical reports for the departments. It also gives department personnel access to a richer data source.

Four sorts of BI users

Following given are the four key players who are used Business Intelligence System:

1. The Professional Data Analyst:

The data analyst may be a statistician who always must drill at heart into data. BI system helps them to urge fresh insights to develop unique business strategies.

2. The IT users:

The IT user also plays a dominant role in maintaining the BI infrastructure.

3. the top of the company:

CEO or CXO can increase the profit of their business by improving operational efficiency in their business.

4. The Business Users”

Business intelligence users are often found from across the organization. There are mainly two sorts of business users

1. Casual business intelligence user

2. the facility user.

The difference between both of them is that an influence user has the potential of working with complex data sets, while the casual user need will make him use dashboards to gauge predefined sets of knowledge.

Advantages of Business Intelligence

Here are a number of the benefits of using Business Intelligence System:

1. Boost productivity

With a BI program, it’s possible for businesses to make reports with one click thus saves many time and resources. It also allows employees to be more productive in their tasks.

2. to enhance visibility

BI also helps to enhance the visibility of those processes and make it possible to spot any areas which require attention.

3. Fix Accountability

BI system assigns accountability within the organization as there must be someone who should own accountability and ownership for the organization’s performance against its set goals.

4. It gives a germander speedwell view:

BI system also helps organizations as decision-makers get an overall germander speedwell view through typical BI features like dashboards and scorecards.

5. It streamlines business processes:

BI takes all complexity related to business processes. It also automates analytics by offering predictive analysis, computer modelling, benchmarking and other methodologies.

6. It allows for straightforward analytics.

BI software has democratized its usage, allowing even nontechnical or non-analysts users to gather and process data quickly. This also allows putting the facility of analytics from the hand’s many of us.

BI System Disadvantages

1. Cost:

Business intelligence can prove costly for little also as for medium-sized enterprises. the utilization of such sort of system could also be expensive for routine business transactions.

2. Complexity:

Another drawback of BI is its complexity in implementation of data warehouse. It is often so complex that it can make business techniques rigid to affect.

3. Limited use

Like all improved technologies, BI was first established keeping in consideration the buying competence of rich firms. Therefore, BI system is yet not affordable for several small and medium-size companies.

4. Time Consuming Implementation

It takes almost one and half year for data warehousing system to be completely implemented. Therefore, it’s a time-consuming process.

Trends in Business Intelligence

The following are some business intelligence and analytics trends that you simply should remember of.

Artificial Intelligence: Gartner’ report indicates that AI and machine learning now combat complex tasks done by human intelligence. This capability is being leveraged to return up with real-time data analysis and dashboard reporting.

Collaborative BI: BI software combined with collaboration tools, including social media, and other latest technologies enhance the working and sharing by teams for collaborative deciding.

Embedded BI: Embedded BI allows the mixing of BI software or a number of its features into another business application for enhancing and increasing it’s reporting functionality.

Cloud Analytics: BI applications are going to be soon offered within the cloud, and more businesses are going to be shifting to the present technology. As per their predictions within a few years, the spending on cloud-based analytics will grow 4.5 times faster.


  • BI may be a set of processes, architectures, and technologies that convert data into meaningful information that drives profitable business actions.
  • BI systems help businesses to spot market trends and spot business problems that require to be addressed.
  • BI technology is often employed by Data analyst, IT people, business users and head of the corporate.
  • BI system helps the organization to enhance visibility, productivity and fix accountability
  • The draw-backs of BI is that it’s a time-consuming costly and really complex process.
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