How does Business BI works with levels of information abstraction. The first level contains the data. It is in its raw form and therefore has no relevance or meaning on its own. On the other hand, it can be organized, and this is when information emerges.
This second level comprises the relationships specific database by industry by the data within a specific context. They are structured and, from this, insights are provided that would be impossible to achieve without grouping. Therefore, these are insights.
Then there is the highest level, that of knowledge How does Business
It requires the solidity of information and depends on the subjective aspect to add value. In other words, this level is only achieved when it is possible to understand and perceive the implications and patterns.
When using BI, the aim is to achieve these three levels of information abstraction. This is because it is from the insights obtained in the last level fill your pipeline and raise it becomes possible to direct business actions and make strategic and correct decisions.
Therefore, Business Intelligence does not provide quick answers nor does it indicate which path should be followed in a mandatory manner. In fact, this interpretation will be obtained by the human factor. What the tool does is generate reports that facilitate the analysis of data in order to understand trends and arrive at meaningful insights.
Process in practice
The first stage of BI is data warehousing, i.e., collecting data from operational and transactional systems. This data is then structured into a central database. This includes the economic, operational and technological aspects of the organization, market trends, consumer demands and the competitiveness index .
With this stage of work completed, it is time bgb directory the tools to mine and extract data from the central repository, also called a data warehouse. The process — called data mining — seeks to identify patterns in the data and detect new groups that can be mapped. This makes it possible to generate reports to detail the relevant information.
In addition to these techniques, there are others that can be used and that have positive effects. Two of the main ones are:
- business process reengineering (BPR): focuses on the analysis and representation of workflow to restructure internal activities;
- benchmarking: is aimed at identifying best practices to verify those that adapt to your company in order to optimize business performance.
How is BI transforming businesses?
Although many managers and experts focus their attention on Big Data , artificial intelligence and machine learning, it is important to recognize the value of BI. It can bring together useful aspects for your organization and management, and add technological solutions to achieve the best results.
The result is the ability to structure strategic planning in order to build sustainable competitive advantages. After all, data plus evidence equals strategic decisions. In this scenario, BI contributes to different purposes.
