In the business world in today’s modern technology era, the term business intelligence or BI is increasingly being used. However, what exactly is BI, and what are the benefits for your company?
Definition of Business Intelligence (BI)
Discussing the definition of business intelligence, this one term can be said as a term that does not need a long explanation. Because, of course, you already know what the words ‘business’, aka business, and ‘intelligence’, aka intelligence, mean, right?
However, actually the definition of BI is not as clear as “business intelligence” or “smart business” or other meanings that are drawn from the definition of the two words above. If so, what is the definition of BI?
Referring to the Google Cloud page, BI is the process of using the power of people and technology to collect and analyze data for use by organizations in strategic and daily decision-making processes.
Meanwhile, according to Search Business Analytics, BI is a technology-driven process for analyzing data and presenting actionable information, which helps executives, managers and employees make informed business decisions.
As part of the BI process, the organization (company) will collect data from internal IT systems and external sources. Then the company will prepare the data for business analysis, run queries against that data, and then create data visualizations.
Thus, the process that is carried out involves collecting data into a data warehouse or other data warehouses. Next, the company will use special tools to analyze the data. Examples of the data referred to are customer online shopping habits, business operational costs, and sales information.
Reporting from The Enterprisers Project, the essence of BI is the process of taking raw data that most people cannot understand, and then processing it by converting raw data into understandable information so that data users can carry out their work properly.
The main goal of BI is to drive better and quality business decisions. In this way, the company can increase its revenue, improve business operational efficiency, and gain a competitive advantage in the midst of market competition.
And to achieve this goal, BI uses a series of analyzes that are combined according to the purpose and needs of their use, data management tools and data reporting, along with various methodologies for managing and analyzing data.