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BUSINESS INTELLIGENCE 1

Business intelligence

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Business intelligence involves all the tools, applications, technologies and practices used by an

organization to collect and analyze data and provide adequate information. Business intelligence

comprises of data mining, querying, reporting and online analytical processing all these help in

collection of data both internally and externally. The major purpose of business intelligence is to

provide the organization with adequate information, enhance data security and increase the

profitability of the organization in the long run. Mostly, companies that use business intelligence

convert the data collected into business insight for the benefits of the business process.

The information collected is later applied and develop business strategies that increase the

profitability of the business hence speeding up growth. Besides that, there are other benefits that

result from use of business intelligence such as, Operational accuracy, having competitive

advantage, noticing business risks even before they happen and improved decision making

(Bisack, 2017). Business intelligence has its building block which are analysis and reporting.

Therefore, the process of business intelligence involves three major steps, collecting data and

organizing it via reporting and decision making.

The ingredients of business intelligence are the that records the transactions that happen every

day. The data may come from form customer interactions, employee management or finance

administration (Grossmann & Rinderle-Ma, 2015). In the traditional model, daily data

transaction records are in customer relation management, enterprise resource management, and

human resource management. In some instances, in the customer relation management you can

record the daily sales. Collected data needs processing and analyses into meaningful form.

After acquisition of required information, the next step is to analyze the data by asking questions

to obtain meaningful information. Then defines the goals of the organization for a successful

data analysis. In the analysis step, a business should mostly consider its financial strengths and
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financial metrics such as inventory turnover and revenue and assets. Secondly, define the

priorities of the business tool (Bisack, 2017). The outcomes of the business intelligence will

depend on the priorities you set for your system to avoid being overwhelmed by the variety of

opportunities. Determine the focus of the business daily, weekly, monthly or yearly. Will the

focus only major on increase in profits, customer experience or increase sales?

Every business has a desired objective; therefore, your business intelligence tool should propel

the organization towards achieving the targeted goals. Additionally, it is possible to benefit more

from your business intelligence tool especially when you define what you want your raw data to

reveal (Grossmann & Rinderle-Ma, 2015). Furthermore, business intelligence is useful in an

organization in different ways, first empowers employees through data access. Given employees

access to the information of the business with the help of business intelligence helps them make

informed decisions for the business. the organization is able to maximize its information for the

professional and personal growth of the employees. It also saves a lot of time when keying in

data and making reports. Manual data entry is time consuming and prone to many errors. Use of

well configured business information system helps the organization save on time spent on keying

data and get rid of all the errors. The saved time is applicable in other departments of the

organization improving productivity.

In conclusion, business intelligence is essential for the growth and progress of the business. those

organizations that are using it can tell the difference. Business intelligence process involves three

steps, data mining, analyzing and reporting. Use of business intelligence provide employee with

necessary information for decision making.

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References

Bisack, J. (2017). Business Intelligence: Finding Nuggets in The Noise. The Journal of Private

Equity, 20(3), 9-11.

Grossmann, W., & Rinderle-Ma, S. (2015). Fundamentals of Business Intelligence.