What Is Business Intelligence And Analytics?

Business Intelligence is a combination of process, architectures, and technologies in which raw data is converted into meaningful information which results in business work profitable. It is a set of services that transform data into actionable intelligence and knowledge.

Business intelligence serves fact based decision making on the basic of historical data rather than assumptions it has direct impact on organisation strategic, technical and operational business decisions.

Data analysis, reports making, summaries, maps, graphs and charts are made by the tools of business intelligence which provide detail information to the users about the nature of business

Importance Of Business Intelligence 

  1. It creates key performance indicators by comparing present year data with the past one.
  2. Identify and set benchmarks for various process.
  3. Market trends and business problems are identify by the Business Intelligence systems
  4. organisation which need to be addressed.
  5. Business Intelligence system is not only used by enterprises, it can be used by small and medium enterprises also.
  6. It helps on data visualisation that increases the quality of data and results in quality of decision making.
  7. “A real time enterprise without real time business intelligence is a real fast dumb organization.”

How Business Intelligence Systems Are Implemented?

There are following steps

Step( 1) 

Initially, raw data is collected from the company database and it is spread across multiple heterogeneous systems.


The data is checked and transformed into the data warehouse the table can be liked, and data cubes are formed.


With the help business intelligence the user can ask queries and conduct any other analysis.

In the above example if a new product line is added in the product database and changes a product, price in OLTP then a query can be held for the change in revenue due to the new product line and price with the data warehouse.

In an advertising database of OLTP system queries that could be executed for changes in advertisement options and increased radio budget. In BI system query can be held how many new clients added due to change in radio budget.

Business intelligence is used in hotels by its owner to gather statistical information regarding average occupancy and room rate. It helps to find out total revenue generated per room. It collects statistics on market data from customer surveys from each hotel to decide its competitive position in various markets.

By analyzing these trends year by year , month by month and by day helps management to offer discounts on room rentals.

Four Types Of Business Intelligence Users 

The professional data analyst:

The person who analyses the data and drill deep down into data is called data analyst. BI systems helps them to get fresh insights to develop unique business strategies.

The IT users: 

A Dominant role is played  by IT users in maintaining the Business Intelligence infrastructure.

The head of the company:

Increase in the profit of the business can improve the operational efficiency of the business by its CEO.

The power

The power user can work with complex data sets, while the casual user needs will make him use dashboards to evaluate predefined sets of data.

Advantages of Business Intelligence

Enhance Productivity 

Business Intelligence increase the productivity of business as it create reports with a single click which saves lots of time and resources

To Improve Visibility

It improves visibility through which areas are identified which need attention for development.

Fix Accountability 

It means fix, accountability that should be answerable for a particular business performance against its goals.

It gives a birds eye view 

Decision makers get an overall birds eye view through typical business intelligence like dashboards and scorecards.

It allows for easy analytics 

Business Intelligence software has democratized its usage, helping even nontechnical users to collect and process data quickly.

Disadvantages Of Business Intelligence System 


BI is costly for small as well as medium sized enterprises. The use of this system may be expensive for routine business transactions.


It is complex to implement raw data in data warehouse. It makes business techniques right and it will difficult to deal with it.

Limited use

Business intelligence was first established keeping in consideration the  buy in competence of rich firms, so the BI system is only used by rich firms and not affordable for many small and medium size companies.

The consuming implementation 

Business Intelligence is a time consuming process which takes almost one and half years for implementation data is collected, classified and converted into information before sending to the data warehouse for implementation so it takes more time of organisation.

Trends in business intelligence 

The following are some BI and analytics trends .

Artificial Intelligence 

Artificial intelligence is based on Gartner’s report which indicates machine learning. Now humans become dependent upon machines, so it is complex, This capability is being leveraged to come up with real time data analysis and dashboard reporting.

Collaborative Business Intelligence 

Business intelligence software combined with collaboration tools, including social media, and other latest technologies enhance the working and sharing by teams for collaborative decision making.

Embedded BI

It allows to integrate the Business Intelligence software or some of its techniques into another business application for increasing and extending its reporting functionality. We can say that we apply the technique of competitors with our own BI for better response.

Cloud Analytics 

BI applications will be soon offered in the cloud, and more businesses will be shifting to this technology. According to predictions within a couple of years, the spending on cloud based analytics will grow 4.5 times faster


There is no use or raw data in business, it should be converted to meaning information or details. Bi does some work and it increases the productivity, visibility and accountability among the members of business in the ways business earn more profit than its normal profit. 

Business Intelligence can be used by data analysts, IT people, business users and head of the company. It also helps business to identify market trends and spot business problem. 

The drawbacks of Business Intelligence is that it is time consuming as it is complex process. Costly as only rich firms can afford this.

Leave a Reply

Your email address will not be published. Required fields are marked *