A History of Business Intelligence: Following the Development of Data-Driven Business – often abbreviated as BI, has become an essential element in modern business decision making. It’s an approach that leverages data, analytics, and technology to provide useful insights to companies. The history of BI has a long trail starting from the early use of computers to the digital transformation we are experiencing today. In this article, we will discuss the history of Business Intelligence in detail.
A History of Business Intelligence: Following the Development of Data-Driven Business
Business Intelligence, essentially, is about how companies collect, manage, and analyze data to support better decision making. It involves using technology and processes to transform raw data into valuable information.
Electronic Data Processing in the 1950s: The Start of the BI Era
The history of Business Intelligence, or better known by its abbreviation BI, began when computers were first introduced to the business world in the 1950s. At that time, the role of computers was not just modern technology, but also an early milestone in the transformation of the way businesses managed data.
The use of computers in this period was more focused on automating routine and repetitive tasks. One of the first applications that emerged was in preparing financial reports. Computers help companies automate calculation processes, prepare reports, and process financial data.
Even though at that time computer capabilities were still very limited compared to the technology we know today, this initial step later became the basis for the further development of Business Intelligence. In this early stage, computers were used to process data, but were not yet able to provide the deep insights or more complex analyzes we see in the modern BI era.
In these times, the terminology “electronic data processing” became the term that characterized these early efforts. Electronic data was an early attempt to utilize computer technology to convert data into an electronic form that could be more easily managed and processed. Although simple compared to today’s BI technology, the 1950s were an important first step in changing the way the business world interacts with data.
The further development of Business Intelligence continues to develop over time, and technology continues to improve its ability to process and analyze data more sophisticatedly and intelligently. The history of BI is proof of how technological developments have shaped the way companies make decisions and use data to support their business growth.
1960s Era: Development of Decision Support Systems (DSS)
In the 1960s, the business world witnessed significant developments with the emergence of the concept of Decision Support Systems (DSS). DSS is a system specifically designed to assist management in decision making by providing fast and efficient access to relevant data. The DSS concept was presented to meet business needs in facing an increasingly complex environment and increasingly important decisions.
In this concept, DSS has a main role in providing the insight and information needed by decision makers in the company. By using DSS, management can access key data, analyze it, and make more informed decisions. DSS integrates various aspects of information, including internal company data, external data, and even historical data.
Even though DSS is a significant step in the development of BI, it should be noted that in this era, DSS still has limitations in its capacity. This system is able to provide assistance in decision making, but its capabilities are still limited when compared to the modern BI technology that we know today. As time goes by, technological developments continue to expand DSS capabilities and become the foundation for more sophisticated BI innovations in the future.
1989: The emergence of the concept of Business Intelligence
In 1989, an industrial analyst named Howard Dresner played an important role in the history of Business Intelligence (BI). He first introduced the term “Business Intelligence” in a research report. This action seems to be the starting point for a paradigm shift in data management and analysis in the business world.
When the term “Business Intelligence” was introduced, the concept may not have been as fully known or understood as it is now. However, this opens the door for companies to begin to understand the importance of collecting, analyzing and utilizing data in the context of business decision making. Over time, this term began to permeate corporate culture, and BI became more and more necessary.
What makes the concept of Business Intelligence increasingly important is the evolution of technology. Computers are getting more powerful, analysis software is getting more sophisticated, and access to data is getting easier. All these factors support the development of BI and push it to become an integral part of a company’s business strategy.
With the term “Business Intelligence” introduced by Howard Dresner in 1989, the business world entered an era where data was no longer just considered a passive asset, but as a valuable resource that could change the way companies operate, make better decisions, and achieve competitive advantage. This was the beginning of a long journey that brought Business Intelligence to its esteemed position in today’s business world.
1990s Era: Data Warehouse and OLAP Era
In the 1990s, Business Intelligence (BI) entered an era marked by the introduction of the Data Warehouse concept and online analytical processing (OLAP). These two concepts have played a crucial role in the evolution of BI and the way business data is managed and analyzed.
Data Warehouse, or what is often called a data warehouse, is the center of attention in managing business data. It is a central repository specifically designed for business data to be analyzed. A data warehouse allows companies to integrate data from many different sources into one consistent location. In other words, data from different departments such as finance, sales, or human resources can be combined into one place, creating a single, consistent data source. It provides a solid foundation for in-depth and integrated BI analysis.
Online Analytical Processing (OLAP), on the other hand, takes data analysis capabilities to a higher level. OLAP allows users to perform in-depth multidimensional analysis of data. This means data can be viewed from many different angles and dimensions, allowing decision makers to gain deeper and more comprehensive insights. OLAP is a very important tool in translating data into valuable information that can be used to make strategic decisions.
With the adoption of Data Warehouse and OLAP concepts, companies can undergo a major transformation in the way they manage and understand business data. This provides an important basis for further developments in the world of Business Intelligence and further solidifies BI’s role in helping companies make better and more competitive decisions.
The 2000s: BI Software Innovation
In the 2000s, Business Intelligence (BI) experienced a period of very significant development. There has been an explosion of innovation in BI software that is changing the way companies manage and understand business data. This happened thanks to the efforts of various companies in developing BI software that is more user-friendly and more powerful.
One of the most striking developments is the improvement of data visualization tools. BI software is starting to provide tools that allow users to depict data in the form of tables, graphs, and other visualizations. This makes data analysis more accessible to various departments within a company. Previously, data analysis might only be performed by IT departments or specialized data analysts. However, with more intuitive visualization tools, a large number of staff across multiple departments can access the data and gain immediate insights.
BI software innovations also include the ability to integrate multiple data sources more easily. This allows companies to combine internal data with external data such as customer data or market trends. This is a major step in supporting more informed decision making.
In addition, advances in computing and data storage technology also support the development of BI. Companies can manage larger volumes of data and perform more complex analysis. All these developments make Business Intelligence a more powerful and relevant tool in business decision making. The 2000s were a time of transformation where BI became increasingly accessible, powerful, and important in companies’ business strategies.
Development of Big Data and Cloud Computing
In the last decade, there have been significant developments in the world of Business Intelligence (BI) thanks to the development of Big Data technology and cloud computing. These changes have transformed the BI landscape and given companies access to new capabilities in managing and analyzing their business data.
Big Data refers to very large volumes of data, including complex and varied data. Companies can now manage huge volumes of data quickly and efficiently. This allows them to analyze data in greater depth and gain more valuable insights. Big Data data can include customer data, transaction data, social media data, and more. In the world of BI, the use of Big Data provides the ability for deeper and more comprehensive analysis.
Cloud Computing has changed the way companies store and access their data. Previously, data was typically stored locally on corporate servers, which had limitations on storage capacity and accessibility. However, with cloud computing, data can be stored on external servers managed by the cloud service provider. This increases flexibility, as data can be accessed from anywhere with an internet connection. In addition, companies can store large amounts of data without having to manage complex storage infrastructure.
This development makes BI more dynamic and responsive. Companies can analyze data in real-time and get more accurate insights. This provides a huge competitive advantage in business decision making.
With the incorporation of Big Data and cloud computing in the world of BI, companies now have more powerful tools to face increasingly complex business challenges. They can dig deeper into their data, respond more quickly to market changes, and make more strategic decisions. This is the latest evolution in the history of Business Intelligence which continues to develop with modern technology.
Integration of AI and Machine Learning
The development of artificial intelligence (AI) and machine learning (Machine Learning) technology has brought a major revolution in the world of Business Intelligence (BI). Now, BI systems can provide smarter and more automated insights to users. Here are some examples of using AI technology in BI:
1. Predictive Analytics: AI and Machine Learning enable BI systems to predict future trends based on historical data. For example, an e-commerce company can use predictive analytics to predict what products customers are most likely to purchase in the future. This helps companies in stock planning, more efficient marketing and smarter decision making.
2.Text Analysis: AI technology is also used in text analysis to extract information from unstructured text, such as customer reviews, social media, and news. For example, a company can use text analysis to understand customer sentiment towards their products based on reviews spread across the internet. This helps companies respond quickly to problems or opportunities that arise.
3.Image and Sound Analysis: Apart from text, AI technology is also used to analyze images and sound. For example, in the healthcare industry, medical images such as MRI scans can be analyzed by AI-powered BI systems to detect diseases or health problems. Likewise, customer voices in customer service calls can be analyzed to improve service.
4.Business Process Optimization: AI is also used in BI to optimize business processes. For example, in the supply chain, AI-powered BI systems can help identify changes in demand and suggest actions that need to be taken to minimize risks and costs.
The history of Business Intelligence is the story of the evolution of the way companies manage and understand their data. From the early use of computers to the world of Big Data and AI that we enjoy today, BI has become an important element in business decision making. This allows companies to extract insights from their data and become more responsive to changes in the market and business environment. As technology continues to develop, BI’s role in business will continue to expand, helping companies face challenges and take advantage of opportunities in an increasingly complex world.
