“The analysis of quantitative data to deliver insight and perspective to the business”
In fact, it was Howard Dresner (of Gartner Group) who originally coined the phrase (business intelligence) and Howard today remains one of the most recognized experts in this area.
Let's me explain more about Business Intelligence.
Business Intelligence is a process to monitor key performance indicators (KPI) about business environment, customers, investors, partners, suppliers, regulators, competitors, industry trends, and their impact on business strategy to help define and improve profitable business model
Today, We have many source of data in organization. It's come from every business units. Main sources are come from core business application such as ERP systems. Some informations may be personal data source like as spreadsheet for budgeting, sales target include of financial consoliation sheets. Some is come from an internat informations such as market segment, competitor information. see below for sample of data source
Where does the data come from?
It's come from every process of operation in organization It' a Operational Data and/or transaction systems such as
External sources
- Enterprise resource planning (ERP) : PeopleSoft, SAP, Oracle …
- Customer relationship management (CRM) : PeopleSoft, Siebel …
- Supply chain management (SCM) – i2, Manugistics …
External sources
- Worldwide web
- XML data interchange
Other databases anddata stores
- RDBMS: Oracle, DB2, Sybase …
- OLAP: MS Analysis Services, EssBase …
Personal Files: Excel,MS Access …
- In-house and departmental applications
- Mainframe applications
- UNIX and NT applications
Unstructure Data Contents
- Multi Media file (Video, Audio, Images Files)
- Electronic Document like a Portable Document Format (PDF) Files.
So, We have a huge data for making decision. The problem is "How can choose the right data in the right time from the right source for decision each of business issues"?
Business intelligence came about because of a problem. That problem is how to make the best decisions based on the growing mass of information available in an organization.
The Gartner Group calls this problem the BI Fact Gap. So what is the Fact Gap?
Since the 1980s we have been using and extending systems that automate and track processes (e.g., ERP applications and more recently clickstream data). These systems generate huge amounts of information.There is also an upward trend in the number of critical decisions that the average business person must make each week. As more and more people are empowered to make decisions, and as competitive markets force shorter and shorter decision cycles, the volume of critical decisions has risen steadily over the last few years.However, the overall ability of the workforce to use the mass of information to make decisions (the business intelligence aptitude, including the aptitude of each individual plus the total number of experts) has been growing far more slowly.That gap between the information available and the ability to use it to make decisions is the business intelligence Fact Gap.
Source: Howard Dresner PDF “Gartner Symposium ITxpo 2000” (and previous Gartner publications) SSP
Next time, I'll say about Business Intelligence Framework. Component of Business Intelligence and How Business Intelligence (BI) can help you make decision?
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