An introduction to Business Intelligence
We can define Business Intelligence (or BI) as simple as a set of tools and technologies to analyze the past and improve the future.
Companies generate data during normal operations. Employees add, review, and save data all the time. Data presented by itself is rarely enough to make business decisions.
Let’s define the differences between these concepts:
- Data- entities and transactions stored as structures and codes.
- Information- the outcome of processing the data in a form that will have specific meaning to those who access it.
- Knowledge- it happens when Information is used to make decisions and take actions often at the point when all data starts to make sense
It is necessary to transform raw data generated by everyday operations into meaningful information. Just as importantly, is using the data and information to make informed decisions. A company’s goal will often be to increase their profitability (increased revenue, reduction in costs) but that cannot be achieved without use of past success and failures through use of data from the company’s systems.
See examples below:
Information will help companies better understand customers, identify and target the best customers group for marketing programs, predict which customers are at risk of leaving and retain them, maximize lifetime value, personalize up-sales and cross- sales offers, and provide the knowledge to push the company in the right direction.
Do you need help on transforming your raw data into valuable information for your business? Send us an e-mail and request more information about our Business Intelligence services. We can help you! [email protected]
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