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Business Intelligence (BI) is using software to combine business analysis, data mining, data visualization, data infrastructure and tools, and best practices to help organizations make more data-driven decisions. In practice, you know you have modern business intelligence when you have a holistic view of your organization’s data and use it to drive change, eliminate inefficiencies, and quickly adapt to market or offering changes.

It’s important to note that this is a very modern definition of business intelligence, and BI, as a buzzword, has a long history. Traditional business intelligence, capital letters, and all emerged in the 1960s as a system for sharing information between organizations. It evolved with computer modeling for decision-making and data-to-intelligence in the 1980s before becoming a specific offering for BI teams with IT back-end service solutions.

Modern BI solutions value flexible self-service analytics, managed data on trusted platforms, empowered business users, and rapid insights. This article serves as an introduction to BI and is just the tip of the iceberg.

Why is Business Intelligence Important?

Business Intelligence can help companies make better decisions by displaying current and historical data in their business context. Analysts can use BI to provide performance and competitive benchmarks that help the business run more smoothly and efficiently. Analysts can also more easily identify market trends to increase sales or revenue. When used effectively, the right data can help from compliance to recruitment. Business intelligence can help companies make smarter, data-driven decisions:

  • Identify opportunities to increase profits.
  • Analyze customer behavior
  • Compare data with competitors
  • performance tracking
  • Optimize processes
  • predict success
  • Recognize market trends
  • Discover problems or problems

How Big Industries use Business Intelligence

Many different industries have embraced BI at the forefront, including healthcare, information technology, and education. All organizations can use data to transform their operations. Financial services firm Charles Schwab used business intelligence to gain a holistic view of its US operations to understand key performance indicators and identify areas of opportunity.

By accessing a central business intelligence platform, Schwab could combine all its store data into a single view. Now, branch managers can identify clients whose investment needs may be changing. Executives can track whether a region is performing above or below average and click through to view the industries driving that region’s performance. It leads to more optimization opportunities and better customer service for customers.

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