Definition, Advantages, Types, Architecture, and Use of Business Intelligence – Business intelligence (abbreviated as BI) is a set of analytical tools in the form of business information that is used to consolidate, 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.
Definition, Advantages, Types, Architecture, and Use of Business Intelligence
Business Intelligence (Definition, Benefits, Types, Architecture and Use)
Business intelligence provides a way to gain the knowledge needed to make good decisions. The business intelligence environment includes all the development, information processing, and support activities required to provide reliable and highly relevant business information and business analytical capabilities for the organization’s business activities and for decision making.
Business intelligence explains a concept and method for improving the quality of business decision making based on data-based systems. Raw data collections can be converted into information by analyzing and organizing them based on the relationships between the data by knowing what data you want to collect and in what context you want it.
The function of business intelligence is as a decision support system where this system and application converts data in the organization (operational data, transactional data, or other data) into the form of knowledge with the general aim of providing various information tailored to the needs of each user.
The following is the definition and meaning of BI from several book sources:
According to Laudon and Jane (2007), BI is an analytical tool used to consolidate data, analyze, store and access lots of data to assist in decision making, such as software for database queries and reporting tools for multidimensional data analysis, and data mining.
According to Vercellis (2009), business intelligence is a set of mathematical models and analysis methodologies that exploit available data to produce information and knowledge that is useful for complex decision-making processes.
According to Yulianton (2008), business intelligence is all about extracting business capital to gain benefits from available data, whether spread across different systems, or integrated in a centralized storage area.
According to Williams and Williams (2007), BI is a set of business information and business analysis in the context of key business processes that leads to decisions and actions with the aim of increasing information assets in key business processes to achieve increased business performance.
Benefits of Business Intelligence
According to Turban, Rainer and Potter (2011), the benefits and advantages obtained by using BI in an organization or company include the following:
Increase the value of organizational data and information.
By building business intelligence, all data and information can be integrated to produce a conclusion about the business situation that is easy to access and understand so that it can help managerial parties make better decisions.
Makes it easier to measure organizational performance. In measuring the performance of an organization, measures called Key Performance Indicators (KPI) are often used. Business intelligence can easily show an organization’s KPI achievements easily, quickly and precisely.
This will make it easier for parties involved in decision making to prepare anticipatory steps if there are indicators that indicate there is a problem or that a target has not been achieved.
Increasing the value of existing information technology investments. BI does not always change or replace existing information systems, but only adds services to these systems so that data and information can be represented better.
Increase cost efficiency. Business intelligence can increase cost efficiency because it can speed up someone’s work, thereby saving time and making it easier to use. The time needed to search for data and get the information needed is getting shorter and the way to get it does not require special knowledge.
Types of Business Intelligence
According to Turban (2007), there are five types of business intelligence, namely:
Enterprise Reporting, used to produce static reports that are distributed to many people.
This type of report is very suitable for operational reports and dashboards.
Cube Analysis, is used to provide multidimensional OLTP analysis aimed at business managers in constrained environments.
Ad Hoc Query and Analysis, is used to provide access to users so they can perform queries
