| > | | | | The ability to use computers to extract and analyze |
| | | | business intelligence data has completely changed the |
| Learn more about business intelligence. | | | | scope and capabilities of the concept. The first |
| In 1958, Hans Peter Luhn published an article in the IBM | | | | computers with business intelligence programs were |
| Journal entitled A Business Intelligence System. | | | | not necessarily effective, however. It took a few |
| Decades later Mr. Luhn’s concept has spawned | | | | talented companies to fine tune the collection and |
| a host of new companies and software programs | | | | analyzation process before the software could |
| dedicated to providing business intelligence that | | | | provide useful information to companies. Now with |
| companies can use to improve their decision making | | | | reporting, spreadsheets, visualization, and OLAP |
| process. The world and the market have changed | | | | capabilities the business intelligence software available |
| since Mr. Luhn published his paper and, although some | | | | to companies of all sizes is not only useful, it is vital to |
| of the fundamentals have remained the same, the | | | | remain competitive in a vast and ever-changing |
| advent of computerization has changed how business | | | | market. |
| intelligence is obtained. | | | | Even though the concept was created before the |
| Luhn’s Business Intelligence Concepts | | | | computer capabilities existed to make it |
| Luhn wanted to provide information about relationships | | | | comprehensive, the intellectual groundwork was set in |
| inferred from facts about a specific business to the | | | | 1958 for the business intelligence programs that are |
| owners and decision makers in a company so that | | | | used today. Companies that have the ability to set |
| they could use the intelligence to further their | | | | realistic, measurable goals and make decisions based |
| enterprises. He envisioned that business goals could | | | | on hard market evidence is creating a business |
| be created using this information and that companies | | | | environment that is more competitive, but more |
| could know what they should realistically strive for to | | | | importantly forward moving. Because decisions can |
| improve their long-term and short-term return on | | | | be made from a fact-based position, resources can be |
| investment. There were three questions that would | | | | used appropriately and time is saved that may have |
| need to be answered before a working business | | | | otherwise been wasted. Teams can focus on |
| intelligence system could be created and they were: 1) | | | | innovation instead of prevention. From its inception in |
| What is known, 2) Who needs to know, and 3) Who | | | | 1958, Luhn’s concept of business intelligence has |
| needs to know what? Once these questions were | | | | become a real-world tool that can be used by |
| answered, the right information could be extracted | | | | companies today to improve their products, business |
| from the system and the correct relationships drawn. | | | | practices, and profit margins. |
| Improving Business Intelligence | | | | |