january 3, 2023
How does business intelligence (BI) work?
Business Intelligence follows four key steps in order to transform raw, unedited data into easy-to-understand insights and analytics that can be used by anyone in the organisation. The first three ones determine what the final decision-making step will look like. Those three steps are – data collection, analysis, and visualisation. BI tools have changed the way businesses analyse data, as companies used to spend a great deal of time and effort to perform analysis manually.
Collection of data and remodelling data from various sources
There is a method by which Business intelligence tools use to process structured and unstructured data from multiple sources, which is called extraction, transformation and loading (ETL). Once this action is performed, the data is transformed and remodelled, and then stored in a central location, so that other applications could easily analyse and reference a data set.
Analysis of data to make predictions based on trends and inconsistencies
Business intelligence uses automation processes to analyse large data sets to discover trends and anomalies to provide an understanding of the current state of things for the business. BI tools use various types of data modelling to uncover data and make recommendations based on trends it can predict. The types of data include, but are not limited to – exploratory, descriptive, statistical, and predictive data modelling.
Present findings in interactive reporting
Business intelligence reporting offers a multitude of data visualisation techniques to present findings in an easy-to-digest form. Such reporting methods include interactive data dashboards, charts, graphs, maps and much more, which all help users see what’s going on in the business, presently or historically.
Helping users move from insights to action
Viewing current and historical data in context with company’s activities enables them to take action in real time. Thus, Business intelligence serves as a great way to perform real time adjustments and make long-term strategic changes. The possibilities are virtually endless: from adapting to market shifts or correcting supply chain problems, to solving customer issues and increasing profitability!