What is Business Intelligence?
Business Intelligence (BI) refers applications and practices used to help businesses acquire a better understanding of their commercial context. The goal of BI is to help decision makers to easily view, analyse and understand business information so that they are equipped to make informed decisions that best benefit the business.
Organizations face various challenges in implementing Business Analytics practices. Some of the common challenges are listed below.
- Data Accuracy
- Data Interpretation
- Data Relevancy
- Ability to support/deny hypotheses
Valuable raw data generated by a particular group within an organization may need to be validated before being transformed into normalized or consistent content.
Information derived by one group may need to be mapped to a standard context in order to be meaningful to someone else in the organization.
The quality and value of knowledge depend on relevance. Knowledge that lacks relevance simply adds complexity, cost, and risk to an organization without any compensating benefits. If the data does not support or truly answer the question being asked by the user, it requires the appropriate meta-data (data about data) to be held in the knowledge management solution.
Does the information truly support decision-making? Does the knowledge management solution include a statistical or rule-based model for the workflow within which the question is being asked?
Careful application of Business Intelligence, like other assets, can result in better performance and profitability.
- Lower costs of operations
- Making informed business decisions
- Higher quality of products / services and better recommendations
- Increased productivity
- Proper retention of intellectual assets