january 06, 2023
Business Intelligence systems: general information
The users’ credo regarding working with information sounds something like this: «Give me all the data I truly need, and only when I actually need it»
In other words, most users don’t want to spend extra time analysing data when there are no significant deviations that require attention. But when such deviations occur, they want immediate access to all reliable information, in a systematic and structured manner, so as not to miss important data.
A Business Intelligence (BI) system is a collection of technologies and tools designed to provide the right information at the right time, enabling the transformation, storage, analysis, modelling, delivery, and monitoring of information in the process of addressing tasks related to decision-making based on factual data. BI systems adapt to the business, unlike accounting systems, which structure it. Business Intelligence systems allow data scattered across various sources to be consolidated, build a unified information repository, and provide convenient tools for generating reports and conducting analysis. As a result, BI system users gain a comprehensive view of the enterprise’s operations, enabling them to make the most complex decisions in the shortest time possible.
The development of BI systems is linked to the expanding use of advanced predictive analytics—deep data mining, forecasting, and decision-making optimisation (see figure).
Key components of a BI system
1. Information integration and storage environment:
- Data integration and semantic layer creation: data extraction from accounting systems, validation, cleansing, data processing, and loading into the data warehouse.
- Data storage: data warehouses and data marts, multidimensional (OLAP) databases.
2. Information monitoring and analysis environment:
- Dashboards: integration of reporting and analysis tools.
- Reporting system: creation, management, and delivery of parameterised static and interactive (regulatory) reports to end users.
- Online Analytical Processing (OLAP) system: navigation through a predefined multidimensional data array in real-time.
- Data mining tools: searching for patterns or relationships in data (e.g., forecasting, segmentation, classification, etc.).
Misconceptions about BI systems
Some managers say: «If the accounting system contains all the necessary information, why do I need a Business Intelligence system? Why should I spend money if my accounting system can already generate reports, and the rest of the work can be done in Excel?»
However, reality ultimately proves otherwise. The processes of data collection and analysis in such companies become extremely inefficient, and decisions made based on the available information may be incorrect, as they are often based on incomplete, contradictory, or inaccurate data—leading to losses. This misunderstanding primarily stems from the absence of Business Intelligence systems in these companies. No accountant or auditor tracks how much money the company loses each day, week, or month because it fails to provide all employees with the necessary, up-to-date, and consistent data.
The current situation, characterised by increasing competition and high economic instability, imposes new requirements on the quality of management decisions. Such decisions must consider all aspects of the business, be based on reliable information, and, most importantly, be made in the shortest possible time.
