| Increasing competition and over flowing data can | | | | Key Stages of BI |
| sometimes be tough on the decision-making system. | | | | BI tools simplify the data gathering process by |
| The need for filtering and using relevant data is an | | | | providing precise information packets relevant to a |
| integral part of targeting any business strategy. | | | | particular user or group of users. Following are the key |
| Compiling huge data from various sources and setting | | | | stages of a BI application life cycle: |
| boundaries for relevancy is the primary necessitate of | | | | Data Sourcing: Gathering data from different sources |
| most business types like banking; retail marketing; hotel | | | | like databases, media files, images, text documents |
| industry or information technology. | | | | and web pages. |
| What is Business Intelligence | | | | Data Analysis: Deriving useful information from the |
| Business Intelligence is a set of applications and | | | | gathered data through various analyzing techniques. |
| technologies which facilitate gathering, analyzing, filtering | | | | Situation Analysis: Forming relevant information |
| and storing relevant data for an organization. This | | | | packets depending on the type of decision-making |
| fact-based information is further used for several | | | | requirement. |
| decision-making support systems in a business | | | | Risk Analysis: Weighing the data on various risk |
| enterprise. The decisions made can be for | | | | factors to derive at a decision. |
| mission-critical operations; individual departments or | | | | Decision Support: Implementing the BI software for |
| generated on user demand. Business Intelligence | | | | good decision making.Significance of BI applications |
| applications are hence designed based on the nature | | | | Helps the managers to understand the new market |
| of desired output. | | | | trends; analyze the changing customer needs and |
| Consider a business scenario for a textile retailer. This | | | | derive savvy service or product based on the study. |
| organization has to bridge databases from various | | | | Enables to gather and analyze large unstructured data |
| departments in order to produce a rich data source for | | | | and transforms them into relevant information cubes |
| generating analytical reports for all decision-making | | | | supporting "use only what you need" concept. |
| exercises of the company. The data could be coming | | | | Provides data for multi-dimensional analysis helping the |
| from divisions like sales; customer relationship; supply | | | | managers to visualize various economic trends, |
| chain management; human resource and others. The | | | | changing market share and probably anticipate the |
| challenge is to use the right data at the right time! | | | | competitor's action. |