What is Business Intelligence? Benefits, Examples and How it Work

What is Business Intelligence? Business Intelligence definition (BI) is a very important system today. The reason is that this system can make it easier for businesses to collect data and also perform real-time analysis.

The results of this analysis can later be used as considerations for making better business decisions.

Thanks to this incredible power of BI, many businesses decide to use business intelligence applications. Are you interested too?

To get more information, let’s learn a complete guide on Business Consulting, benefits, examples of implementation, and recommendations for the best use of Business Consulting in the following article!

Understanding Business Intelligence

What is Business Intelligence

Definition of Business Intelligence is a system used to collect, store, and analyze data generated by a company’s operations.

The collected data will be displayed in an easy to understand, comprehensive and accurate report format. These reports can be used to measure, analyze and monitor business activities.

In addition, the knowledge generated can also be used as a resource to consider in making more effective decisions.

Why Do Businesses Need to Build Business Intelligence?

The ability of Business Intelligence to collect and process the information required by the business is very important.

Because, thanks to this information, the business has a real and accurate picture of the state of the company. That way, businesses can easily identify the company’s level of success.

Thanks to BI, you can also avoid errors caused by incorrect data analysis. For example, you are responsible for production schedules for a number of beverage factories.

When sales show consistent month-over-month growth in a certain area, you can approve additional changes in near real-time to ensure your factory can keep up with demand.

Likewise, you can quickly stop or control the production of the same e.g. when the weather starts to affect sales. Controlling this production is one example of how business intelligence can increase profits and reduce costs when properly applied.

The Benefits of Using Business Intelligence

The main benefit for companies using business intelligence is to get faster and more accurate reports and analysis with better data quality.

In fact this can encourage increased employee satisfaction, reduced operating costs, and increased revenue, as well as the ability to make better business decisions.

In addition, there are many benefits that companies will get after implementing BI, including:

  • Encourage companies to achieve KPI goals by synchronizing all information so that the team can focus on doing their work.
  • Monitoring the company’s performance and identifying problems becomes easier.
  • It provides insight into the company on many levels.
  • Provide information about problems or obstacles that occur within the company.
  • Digging deeper into available data sources and using these data to improve the quality of the company’s performance decisions.

The Roles of Business Intelligence in Business

The main function of Business Intelligence is to gather information from various sources, and present it in an easy to understand report format. In addition, there are still BI roles or responsibilities that are important for businesses to know, including:

  • Perform data analysis: The system will automatically generate reports that make it easy to analyze business data. Such analysis is needed to improve company development based on accurate data.
  • Manage Data: The work of business intelligence is not limited to collecting data or various business information from various sources. Bi is also responsible for storing customer data in a safe place and it can only be accessed by interested parties of your company.
  • Assess business performance regularly: The results of the reports presented by BI can be used by businesses to make a detailed assessment. From this assessment, it is expected to generate the latest business trends that can be used to increase the profitability of the company.

How Does Business Intelligence Work?

Business intelligence applications work based on the data and information available in business databases.

Generally, this data is obtained from a CRM system that works by recording, storing, and managing customer and business information in a central database.

The database also combines all information and data obtained from different sources into one central system.

Then, the BI application will process this information and present the results to the users in the form of reports, charts or maps that are analyzed in real time and adapted according to business needs.

Business Intelligence Career Path is a career path for this profession is a good right, there are several positions that you can take, if later you already have experience.

But normally, to be promoted from this position, a minimum of 3 years of experience is required.

The first possible position in the BI field is a business intelligence manager. If you are already in this position, you will lead a business project.

This project is definitely based on business data, and you will be the person responsible for that. Such experience will also enable one to become better data services. Dealing with data every day certainly has an awareness of data trends.

In the end, it’s the manager. This profession puts forward what the customer wants, what the competitors are doing, then the economic situation through the data they have.

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