What Is Business Intelligence? 3 Business Intelligence Skills

Business intelligence, or BI, is an umbrella term for a range of technical business processes that collect and analyze data produced due to a company’s activities. Business intelligence tools leverage data analytics to make informed decisions about topics crucial to the business to help you set benchmarking targets and key performance indicators. Companies use descriptive analytics to look at historical data and produce business performance reports, and predictive analytics assess market trends to help companies make better decisions and gain a competitive advantage.

Business intelligence is essential to companies for many reasons. Some of the top benefits are:

• BI improves functionality. Many companies use data from BI systems to support various aspects of their business operations. BI data analysis helps companies with internal processes like hiring, performance metrics, and compliance regulation—any area where more concise information aids the flow of business.
• It allows for real-time action. BI gives businesses real-time, actionable information; the connectivity of BI software allows you to view current and historical data in one place. Access to timely actionable insights enables decision-makers to quickly respond to problems in production, supply chain issues, and fluctuations in market and customer behavior.
• These tools promote strategic thinking. Business intelligence systems help you make better business decisions in all areas. BI platforms provide improved data quality and accurate reporting, which gives you trend-forecasting insights and business strategy guidelines to reduce costs, improve employee satisfaction, and boost revenues through calculated pricing.

Companies use many data science and business analytics tools to inform their decision-making processes. BI tools include:

1. 1. BI software: Built with dashboards that make it easier for end users to read the information, business intelligence software uses the extract, transform, and load (ETL) method to sort through “big data,” or large volumes of business data from a wide variety of raw data sources. The software stores the information in a central data warehouse for access by other BI applications.
2. 2. Data mining tools: Also known as data discovery, data mining involves automation—such as artificial intelligence and machine learning—to find patterns and trends within the data.
3. 3. Data visualization dashboards: These tools translate the information in BI apps into reports and visual elements, like interactive charts, graphs, and spreadsheets that are easy to understand. Data dashboards are the most frequently used formats for reporting.
4. 4. Online analytical processing: Abbreviated as “OLAP,” online analytical processing gives business users a multidimensional data model that allows them to see the data from different viewpoints, such as hierarchical databases or navigational databases. The multidimensional model of the OLAP system gives companies the chance to post complicated ad hoc queries.

Business intelligence mastery involves hard and soft skills, such as:

1. 1. Communication: Arriving at business intelligence solutions requires breaking down large datasets into easy-to-understand takeaways and graphics for companies. Communication and presentation skills are a must. You also need experience with critical thinking and strategic planning, which is crucial when presenting the “big picture.”
2. 2. Data analysis: The most effective BI solutions uncover actionable information within data sets. Working in BI requires training and experience in data science, which includes knowledge of business analytics for data preparation and data integration, as well as expertise in database management, SQL programming, and data classification.
3. 3. Problem-solving: Once BI ascertains concrete metrics from data, data scientists must address and provide solutions for possible problems found in that data. Identifying problems, determining the factors that caused those issues, and proposing solutions are essential business intelligence skills.

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