A Business Intelligence System is a set of analytical tools in a business information system that is used to integrate, analyze, store and access a lot of data in the context of business processes that lead to making decisions and actions with the aim of improving business or business performance.
Business skills provide a way to gain the knowledge needed to make good decisions. A business intelligence environment includes all the development, information processing and support activities required to provide reliable and highly relevant business information and business analysis capabilities for an organization’s business operations and decision making.
Business intelligence defines the concept and methodology of how to improve the quality of business decision-making based on data-based systems.
Collections of raw data can be turned into information by analyzing and collecting based on the relationship between the data by knowing the data to collect and in what context it is desired.
What Are The Benefits of Business Intelligence System?
According to Turban, Rainer and Potter (2011), the advantages and benefits obtained by using business intelligence in an organization or company include the following:
Increasing the value of organizational data and information
By building business intelligence, all data and information can be combined to provide conclusions from business situations that are easy to access and understand to help managers make better decisions.
Facilitating organizational performance measurement
In measuring organizational performance, a measure called a Key Performance Indicator (KPI) is often used. Business intelligence can easily demonstrate the achievement of organizational KPIs easily, quickly and accurately.
So it will be easy for the parties involved in making decisions to prepare anticipatory measures if there are indicators that indicate a problem or the goal has not been reached.
Maximize the value of existing information technology investments
Business intelligence does not always change or replace existing information systems, but only adds services to these systems so that data and information can be better represented.
Improve cost efficiency
Business intelligence can increase cost efficiency because it can increase a person’s speed in working to save time and simplify consumption.
The time required to search for data and obtain the required information is reduced and the method of obtaining it does not require special skills.
Several Types of Business Intelligence
According to Turban (2007), there are five types of business intelligence, namely:
- Business Report, used to generate static reports that are distributed to many people. This type of report is perfect for operational reports and dashboards.
- Cube Analysis, used to provide multi-dimensional OLTP analysis intended for business managers in constrained environments.
- Ad Hoc Query and Analysis, used to provide access to users so they can query the database, and drill down to the most basic level of transaction details. This query is used to examine the information made by the user.
- Statistical Analysis and Data Mining, used to perform predictive analysis or determine the causal relationship between two variables.
- Delivery Report and Alerts, used actively to send full reports or issue alerts to a large or large number of users.
Use of Business Intelligence
According to Darmawikarta (2003), business intelligence increases the value of an organization’s data and information.
The presence of business intelligence facilitates the monitoring of the organization’s performance, increases the value of existing investments, creates employees who can access good information (well-informed employees) and increases cost efficiency.
Here are some applications of using business intelligence to drive business value:
- Metrics, a plan that creates a series of performance and benchmarks that inform business leaders about progress toward business goals.
- Analytics, a program that creates a quantitative process for businesses to reach better decisions and make Business Insights Discovery. It often includes data mining, statistical analysis, predictive analytics, forecasting, business process modeling.
- Reporting/Business Reporting, software that creates a Strategic Reporting infrastructure to serve strategic business management, not Performance Reporting. It often includes data visualization, information systems manager, OLAP.
- Collaboration/Collaboration Platforms, programs that enable different areas (inside and outside the business) to work together through data sharing and Electronic Data Interchange.
- Knowledge Management, a program to make business data operational through strategies and practices to identify, create, display, distribute, and facilitate the adoption of knowledge and experiences that are true business knowledge. Knowledge Management Compliance leads to Learning Management and Regulatory Compliance.
A Business Intelligence System is a very important aspect in today’s business world and also in the future. Without BI, companies will have problems in identifying problems that occur and it is also difficult to measure the company’s performance.
If poor performance is not detected, it will be difficult to correct it, which will end up hurting the company and making it difficult to gain market share even though the business strategy is sound.
Business Intelligence continues to grow along with business development and is supported by ever-evolving technology and of course must be supported by good resources.
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