What is Business Intelligence?

The definition of Business Intelligence

Business Intelligence refers to all the processes and tools through which a company collects various types of data for analysis and strategic decision-making. Every day, companies and organizations produce an incredible amount of data, which often remains useless unless utilized for their original purpose. However, with the advancement of BI tools such as Business Analytics, companies can use the collected data to make faster and more effective strategic decisions.

For example, imagine managing a hotel. You would have access to customer information, including personal data, a history of their previous visits, all the services and products they have acquired, their arrival and departure dates, and much more. In addition to this, you would also have all the data related to your hotel, such as expenses, inventory, and staff management. With this data, you can predict measures to be taken in terms of staff hiring and management, food inventory, and costs.

IT ALL SOUNDS TOO COMPLICATED... I'M NOT A TECHNICIAN!

One of the most interesting advantages of Business Intelligence platforms is that they are designed to be user-friendly even for people without technical knowledge. This is achieved through the use of business dashboards and easy-to-understand performance indicators, including diagrams and charts, allowing anyone without data analysis knowledge to have an instant snapshot of various activities within seconds. The ability to provide reporting through visual dashboards is a fundamental feature of many BI platforms and has been specifically developed to be understood by decision-makers.

WHAT IF I WANT TO USE DATA FROM MULTIPLE DIFFERENT SOURCES?

Many Business Intelligence platforms have the capability to integrate different types of data from any format and source. Some of this data doesn't even need to be coded; you can simply drag and drop it into the platform. It's also not necessary for the data to come from saved files or other platforms; it can come from different sensors as well, as many of these sensors are connected to the Internet, and the generated data can be collected and interpreted, even in real-time, using a BI platform.

Of course, some platforms are more capable than others, so you just need to ensure that the platform you choose has the ability to read all the types of data you want to integrate and analyze.

CAN I REALLY PREDICT THE FUTURE WITH THESE PLATFORMS?

Some Business Intelligence systems are capable of providing predictive analysis functionalities, such as forecasting the number of customers or the demand for specific products. It's even possible to predict the effectiveness of marketing campaigns. Furthermore, you can identify and manage risks, such as monitoring specific keywords on Twitter, which can help predict fraudulent intentions. Predictive analysis with BI is highly reliable because it is based on continuously updated data models.