Business intelligence concepts refer to the usage of digital computing technologies in the form of data warehouses, analytics and visualization with the aim of identifying and analyzing essential business-based data to generate new, actionable corporate insights. BI technologies offer present real-time , historical, and predictive views of internally structured data relating to all departments within an organization, which exponentially enhances operational insight and improves the decision-making process.
Put simply: Business intelligence is the process of discovering valuable trends or patterns in data to make more efficient, accurate decisions related to your business goals, aims, and strategies. As pattern recognition is a decisive part of BI, artificial intelligence in business intelligence plays a pivotal role in the process. When approached correctly, pattern recognition is one of the key hallmarks that distinguishes BI experts from BI amateurs.
By helping users to discover integral insights autonomously, AI technologies assist tremendously in pattern recognition, making the process more intuitive, more streamlined, and ultimately — more accurate. A host of business intelligence concepts are executed through intuitive, interactive tools and dashboards — a centralized space that provides the ability to drill down into your data with ease. But more on that later. In his book, Waitzkin states that the best chess players are those that can take in the most information in a short span of time.
Let us explain. As laid out by the Nobel winning psychologist Daniel Kahneman in his book Thinking, Fast and Slow , your brain has two different learning and decision making systems:. You have a slow thinking system which you can think of as a spotlight of attention. You use this system when you really focus on and think about a problem step by step.
This slow thinking system is very accurate. However, it can only process so much information at any one time and requires a lot of energy.
Instead, we use our fast system, otherwise known as our intuition. Your fast thinking system can take in massive amounts of data at once. It can also make snap decisions very quickly, with pretty high accuracy. However, your fast thinking system has one big disadvantage. It is prone to logical fallacies and perceptual biases. Similarly to how most people can only hold so many digits in their short term memory at once, your slow thinking system appears to have some biological limits.
As Waitzkin writes about it in "The Art of Learning," a chess grandmaster can look at a board for a split second, and take in more useful information than an amateur can in minutes. Due to this greater informational processing ability, experts are able to use their slow thinking spotlight where it counts: on critical thinking and checking their biases. You can view business intelligence as an extremely powerful data discovery tool that is an extension of your fast thinking mind.
This makes sense because business intelligence allows you to process exponentially more information than you would be able to otherwise. The importance of business intelligence is growing at the same pace the data is produced — which is becoming less and less fathomable for the normal human brain.
As mentioned: We live in a world rife with digital data, and without using it to your advantage, you will quickly fall behind the pack, which will render your empire obsolete in a matter of years. Regarding to increase data in organizations, today, using these data and analyzing that has become one of the most modern management tools.
Management Dashboard, because bringing all of data together on one page and easily interpreting those using charts and forms for managers and employees, is a valuable tool in today's competitive environment. Managers of organizations that utilize dashboards, instead of wasting time to read the contents of complex and incomprehensible reports, and extracting information from them, allocate their time to achieve to simple and accurate decisions also they use their competitive advantage which implies through rapid reaction and changes to conditions.
Nowadays the organizations that realized the value of getting on-time information, using this modern and valuable technology and that is way this phenomenon is utilized increasingly. There are three approaches in use BI that depends on the goal of usage BI and the required focus, these approaches are: 1.
Managerial approach with focus on improving management decision making. Technical approach by focusing on tools supporting the processes associated with intelligence in management approach. Enabling approach by focusing on value-added capabilities in support of information. In the first and second sections of this paper the concept of business intelligence is introduced.
Section 3 -Research method- systematically reviews the research process and research papers covering areas of Business Intelligence and in section 4 definitions and approaches are reviewed and shown in tables 1 and 2. In section 5 -Researches' review and analysis- Business intelligence papers are categorized and studied in three approaches: the managerial, technical and enabler view.
BI definitions are extracted and regarding available approaches, each definition is assigned in related approach category. Also, exploring published papers in the field, descriptive data analysis is conducted in terms of frequency and percentage of each approach, published year and etc, illustrated in a schematic scheme using pie and bar charts.
In the last part of this paper, an attempt has been made to express BI concepts and its different approaches in organizations. Classifying definitions and different managerial approaches supports creating positive thinking in organizations, extolling levels of attention assigning tasks and etc.
Finally, by accomplishing this review research, concepts related to business intelligence are classified in three groups: Managerial with focus on excellence of decision-making, Technical with focus on tools supporting business intelligence and Enabler with focus on value-added capabilities in supporting shared information.
Business Intelligence Business Intelligence, often referred to as BI, is a popularized, umbrella term introduced by Howard Dresner of the Gartner Group in to describe a set of concepts and methods to improve business decision making by using fact-based computerized support systems Nylund, The term is sometimes used interchangeably with briefing books and executive information systems. A business intelligence system is a data-driven DSS that primarily supports querying of an historical database and production of periodic summary reports.
Business Intelligence BI is a set of abilities, tools, techniques and solutions that help managers to understand business situation. BI tools get a view of previous, now and future situation to people. With implementation BI approaches the existing contact information gap between top managers and middle managers will disappear and managers required information in each levels and any time acquire with high quality, also experts and analysts can improve their activities with simple tools and obtain better results.
When the manager's view to organization data is comprehensive can be certain of made decisions and sure that these decisions keep organization in competitive environment, also the defined goals will gain. But for complete usage of BI capabilities, BI must be flexible and can provide various facilities for employees, teams and total organization levels.
Also BI must be uses all structured and unstructured data to make decision. Fast access to data and analysis them regarding to users need is critical for modern organizations. BI is a new approach in business and organization architecture. BI means identification and grouping hidden concepts relevant to decision and mass of business data to improve aware of business environment and help to organization decisions.
BI is an organized and systematic process by which organizations acquire, analyze, and disseminate information from both internal and external information sources significant for their business activities and for decision making. The BI term refer to: 1. Relevant information and knowledge describing the business environment, the organization itself, and its situation in relation, to its markets, customers, competitors, and economic issues.
An organized and systematic process by which organizations acquire, analyze, and disseminate information from both internal and external information sources significant for their business activities and for decision making. In North American literature, the term CI is frequently used and the external environment and external information sources are emphasized Cottrill, ; Fuld, ; Kahaner, ; Vibert, In European literature, the term BI is considered a broad umbrella concept for CI and the other intelligence-related terms mentioned above.
Nevertheless, almost all the definitions share the same focus, even if the term has been defined from several perspectives Casado, , and they all include the idea of analyzing data and information. The purpose of BI is to aid in controlling the vast flow of business information inside and outside of organization by first identifying and then processing the information into condensed and useful managerial knowledge and intelligence.
As such, the BI task includes new topics, addresses very old managerial problems and it is one of the basic tasks among the many management tools: analyzing the complex business environment in order to make better decisions. The real revolution is in the efforts to institutionalize intelligence activities. BI presents business information in a timely and easily consumed way and provides the ability to reason and understand the meaning behind business information through, for example, discovery, analysis, and ad hoc querying.
However, applying BI takes resources, and the benefits actually occurring in practice are not always clear. The measurement of business performance has long traditions in organizations. According to a recent survey, only a few organizations have any metrics in place to measure the value of BI. Research Method Definitions and approaches related to business intelligence, in order to help make better organizational decisions and enhance efficiency in a number of papers which published in journals surveyed, grouped and after determined instances and search terms research process on the basis of figure 1 has been carried out The research papers collected in 3 phases, in gathering papers step step1 after studying the sources, the bases were targeted by the relevant articles were extracted.
In extraction and classification definitions step step2 selected articles and definitions related to the study of intelligence were extracted and then classified and similar articles were extracted and in final step classification of approaches. First to introduce this approach to classification definitions, approaches and ultimately we analyze the results and conclusions, and eventually paid. Also by using of tools such as data mining and data warehousing, helps to make decision and achieve competitive advantage, and by coordinating personal and organizational goals leads to create synergy and improved performance.
BI process increases customer value, those processes are only increasing expenses. Frolick, ; Porter, Describe a set of concepts and methods to improve business decision making by Dresner, 9 using fact-based computerized support systems A business intelligence system is a data-driven DSS that primarily supports querying Power, 10 of an historical database and production of periodic summary reports.
This naturally leads to the requirement of incorporating unstructured data—but Negash, 14 without focusing on concrete components and solutions for the relevant integration tasks.
The management of transferring internal messages in the enterprise environment, BI is to provide users with the best possible assistance in the process of decision-making. Review Study: Business Intelligence Concepts and Approaches 67 Table 1: Business Intelligence; Enterprise Systems; Review Study; Approaches - continued BI as their highest rating technology issue; as they focus on projects that enable Gartner Group, 18 users to positively affect financial and business performance.
BI is a set of concepts, methods, and processes to improve business decisions. Maria, 19 Business Intelligence enables the comprehension, understanding and profit from experience. Business data and information is the soil that grows Business Intelligence, which provides the capability to reason, plan, solve problems, Green, 20 think abstractly, comprehend ideas and language, and learn from business data and information.
Business intelligence is fueled from the utilization of information aligned with business performance Better decision making; better customer handling; faster response to key business issues; improved employee skills; improved productivity; increased KPMG, 21 profits; sharing best practices;.
Reduced costs; increased market share; creation of new business opportunities; and. So, management can take some strategic or operation decision easily.
BI is used for reporting, online analytical processing, data mining, process mining, complex event processing, business performance management, benchmarking, text mining and productive analysis. By using BI, management can monitor objectives from high level , understand what is happening, why is happening and can take necessary steps why the objectives are not full filled.
Business intelligence aims to support better business decision-making. Before going to launch any product, company need to understand of market trend. Company uses BI to analyze market data and understand which product or which business is suitable for the current time in the market.
In a word, BI gives you right information, right time in right format. Suppose a software company wants to develop an ERP. Management need to understand that will it protect margins. To understand the above factors they have to have consolidated views of business. BI provides this visual and consolidates view. From this reports, company can take necessary action and can take decision whether they should develop an ERP or not.
Now suppose your ERP is developing and your management can see the current situation of the project. They have no time to see all the documents. They want to view the current status of the project from the top.
This may be dashboard, BI provides this. So management can understand whether the product is developing cost effective way or not. BI can suggest corrective action against the data. Before implementing a BI solution, it is worth taking different factors into consideration before proceeding. According to Kimball et al. BI uses technologies, processes, and applications to analyze mostly internal, structured data and business processes. Often BI applications use data gathered from a data warehouse or data mart.
However, not all data warehouses are used for business intelligence, nor do all business intelligence applications require a data warehouse. In order to distinguish between concepts of business intelligence and data warehouses, Forrester Research often defines business intelligence in one of two ways:. Therefore, Forrester refers to data preparation and data usage as two separate, but closely linked segments of the business intelligence architectural stack.
In this definition, business analytics is the subset of BI based on statistics, prediction, and optimization. In addition to above, Business Intelligence also can provide a pro-active approach, such as ALARM function to alert immediately to end-user. There are many types of alerts, for example if some business value exceeds the threshold value the color of that amount in the report will turn RED and the Business Analyst is alerted.
Sometimes an alert mail will be sent to the user as well.
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