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Business Intelligence BI In Short

Clogged data

Companies have large amounts of data in-house that are needed to make reliable and informed decisions. However, in practice it appears that a lot of data isn't used. There are two important explanations for this. Firstly, many companies don't have a good picture of the nature and extent of all data present. As a result, the necessary connections can't always be made between different data. The result is that a company can't draw reliable conclusions. Secondly, a lot of data is hidden in various automated systems, making it difficult to make available and usable. Business intelligence offers the solution to these problems.

Information as a success factor

The purpose of business intelligence is to translate existing data into information on the basis of which your organization makes decisions and with which you manage your business. Such a translation results in analyzes and reports. A characteristic of a BI system is that it retrieves data at various places in an organization. With modern BI softwareIs that possible. Business intelligence makes it possible to analyze and optimize business processes. This allows you, for example, to make better decisions about your purchasing, the management of your production, the way in which you hold stocks or the distribution of your products and services. But business intelligence also helps you make strategic decisions. For example: in which markets can you best go, to which customer groups do you earn the most money, what is your competitive position and what are the consequences of a price change for your market position and profit?

Business Intelligence, data mining and data warehousing

Business intelligence bases analyzes and reports on data that's already present somewhere in your company. Such data originates, for example, from software applications for relationship management (CRM), your financial software, integrated business software (ERP), logistics software or planning software. A BI application extracts the relevant data from all these systems. This process is called data mining, or the 'extraction' of data. To be able to relate the data to each other, they are stored in a central location. This place is the data warehouse, the 'information warehouse'. Although data mining and data warehousing were originally inextricably linked to business intelligence, it's becoming increasingly common for relatively small BI applications to skip the data warehouse.

At every level

It's not only top management who makes many decisions every day using business intelligence. Business intelligence also assists employees in making decisions in management layers below and nowadays also at operational level. Applications for this lie in areas such as customer contact, financial assessments, production or logistical issues. The ever-broader possibilities in particular make the application of BI software very interesting for more and more companies. The question is therefore not so much whether business intelligence can be a valuable tool for your company, but how and when you use it. The information on this website will help you on your way.

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