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Encyclopedia > Business intelligence

The term business intelligence (BI) dates to 1958.[1] It refers to technologies, applications, and practices for the collection, integration, analysis, and presentation of business information and also sometimes to the information itself. The purpose of business intelligence is to support better business decision making. D. J. Power explains in "A Brief History of Decision Support Systems,"[2] The ASCII codes for the word Wikipedia represented in binary, the numeral system most commonly used for encoding computer information. ...

BI describes a set of concepts and methods to improve business decision making by using fact-based support systems. BI is sometimes used interchangeably with briefing books, report and query tools and executive information systems. Business Intelligence systems are data-driven DSS. Decision support systems are a class of computer-based information systems including knowledge based systems that support decision making activities. ...

BI systems provide historical, current, and predictive views of business operations, most often using data that has been gathered into a data warehouse or a data mart and occasionally working from operational data. Software elements support reporting, interactive "slice-and-dice" pivot-table analyses, visualization, and statistical data mining. Applications tackle sales, production, financial, and many other sources of business data for purposes that include, notably, business performance management. A data warehouse is the main repository of an organizations historical data, its corporate memory. ... A data mart (DM) is a specialized version of a data warehouse (DW). ... Business performance management (BPM) is a set of processes that help organizations optimize their business performance. ...

Contents

BI technologies

For a BI technology system to work effectively, a company should have a secure computer system which can specify different levels of user access to the data 'warehouse,' depending on whether the user is a junior staffer, a manager, or an executive. As well, a BI system should have sufficient data capacity and a plan for how long data will be stored (data retention). Analysts should set benchmark and performance targets for the system.


Business intelligence analysts have developed software tools to gather and analyze large quantities of unstructured data, such as production metrics, sales statistics, attendance reports, and customer attrition figures. Each BI vendor typically develops Business intelligence systems differently, to suit the demands of different sectors (e.g., retail companies, financial services companies, etc.). For other uses, see Data (disambiguation). ... A vendor, or a supplier, is a supply chain management term that means anyone who provides goods or services to a company. ...


Business intelligence software and applications include a range of tools. Some BI applications are used to analyze performance, projects, or internal operations, such as AQL - Associative Query Logic, Scorecarding, Business activity monitoring, Business Performance Management and Performance Measurement, Business Planning, Business Process Re-engineering, Competitive Analysis, User/End-user Query and Reporting, Enterprise Management systems, Executive Information Systems (EIS), Supply Chain Management/Demand Chain Management, and Finance and Budgeting tools. In 1992, Robert S. Kaplan and David P. Norton introduced the balanced scorecard, a concept for measuring a companys activities in terms of its vision and strategies, to give managers a comprehensive view of the performance of a business. ... Business Activity Monitoring (BAM) is software that aids in monitoring of business processes, as those processes are implemented in computer systems. ... Business performance management (BPM) is a set of processes that help organizations optimize their business performance. ... A business plan is a formal statement of a largely enforced business goal, the reasons why they are believed attainable, and the plan for reaching those goals (Fiifi Essel). ... This article is about reengineering business processes. ... only joking Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. ... End User Computing (EUC) is a group of approaches to computing that aim at better integrating end users into the computing environment or that attempt to realize the potential for high-end computing to perform in a trustworthy manner in problem solving of the highest order. ... Enterprise Project Management, in broad terms, is the field of organizational development that supports organizations in managing integrally and adapting themselves to the changes of a transformation. ... An Executive Information System (EIS) is a computer-based system intended to facilitate and support the information and decision making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. ... Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. ... Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ... Budget generally refers to a list of all planned expenses. ...


Other BI applications are used to store and analyze data, such as Data mining (DM), Data Farming, and Data warehouses; Decision Support Systems (DSS) and Forecasting; Document warehouses and Document Management; Knowledge Management; Mapping, Information visualization, and Dashboarding; Management Information Systems (MIS); Geographic Information Systems (GIS); Trend Analysis; Software as a service (SaaS) Business Intelligence offerings (On Demand) — which is similar to traditional BI solutions, but software is hosted for customers by a provider[3]; Online analytical processing (OLAP) and multidimensional analysis, sometimes called "Analytics" (based on the "hypercube" or "cube"); Real time business intelligence; Statistics and Technical Data Analysis; Web Mining; Text mining; and Systems intelligence. Data mining is the principle of sorting through large amounts of data and picking out relevant information. ... A data warehouse is the main repository of an organizations historical data, its corporate memory. ... Decision support systems are a class of computerized information systems that support decision making activities. ... Look up forecast in Wiktionary, the free dictionary. ... A document warehouse tells you why things have happened, instead of what has happened as in data warehousing. ... A document management system (DMS) is a computer system (or set of computer programs) used to track and store electronic documents and/or images of paper documents. ... Knowledge Management (KM) comprises a range of practices used by organisations to identify, create, represent, and distribute knowledge. ... Information visualization is a complex research area. ... A digital dashboard, also known as an enterprise dashboard or executive dashboard, is a business management tool used to visually ascertain the status (or health) of a business enterprise via key business indicators. ... Management Information Systems (MIS), are information systems, typically computer based, that are used within an organization. ... GIS redirects here. ... It has been suggested that this article or section be merged into Trend estimation. ... Software as a service (SaaS) is a model of software delivery where the software company provides maintenance, daily technical operation, and support for the software provided to their client. ... Online Analytical Processing, or OLAP (IPA: ), is an approach to quickly provide answers to analytical queries that are multidimensional in nature. ... In statistics, multidimensional analysis is a data analysis process that groups data into two basic categories: data dimensions and measurements. ... Real time business intelligence the process of delivering information about business operations without any latency. ... This article is about the field of statistics. ... Data analysis is the act of transforming data with the aim of extracting useful information and facilitating conclusions. ... Web mining - is the application of data mining techniques to discover patterns from the Web. ... Text mining, sometimes alternately referred to as text data mining, refers generally to the process of deriving high quality information from text. ... Systems intelligence is a concept developed in the fields of engineering sciences and applied philosophy. ...


Other BI applications are used to analyze or manage the "human" side of businesses, such as Customer Relationship Management (CRM) and Marketing tools and Human Resources applications. Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer, vendor, partner, and internal process information. ... For the magazine, see Marketing (magazine). ... This article is about human resources as it applies to business, labor, and economies. ...


History

Prior to the start of the Information Age in the late 20th century, businesses had to collect data from non-automated sources. Businesses then lacked the computing resources to properly analyze the data, and as a result, companies often made business decisions primarily on the basis of intuition. A university computer lab containing many desktop PCs The transition of communication technology: Oral Culture, Manuscript Culture, Print Culture, and Information Age Information Age is a term that has been used to refer to the present economic era. ... (19th century - 20th century - 21st century - more centuries) Decades: 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s As a means of recording the passage of time, the 20th century was that century which lasted from 1901–2000 in the sense of the Gregorian calendar (1900–1999... Intuition is an unconscious form of knowledge. ...


As businesses started automating more and more systems, more and more data became available. However, collection remained a challenge due to a lack of infrastructure for data exchange or to incompatibilities between systems. Analysis of the data that was gathered and reports on the data sometimes took months to generate. Such reports allowed informed long-term strategic decision-making. However, short-term tactical decision-making continued to rely on intuition.


Thus we have business intelligence, a term and a definition that date to a seminal October 1958 IBM Journal article by Hans Peter Luhn titled A Business Intelligence System.[1] Luhn wrote, Hans Peter Luhn (July 1, 1896 in Barmen, Germany – 1964) computer scientist for IBM, creator of the Luhn algorithm and KWIC (Key Words In Context) indexing. ...

In this paper, business is a collection of activities carried on for whatever purpose, be it science, technology, commerce, industry, law, government, defense, et cetera. The communication facility serving the conduct of a business (in the broad sense) may be referred to as an intelligence system. The notion of intelligence is also defined here, in a more general sense, as "the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal."

In modern businesses, increasing standards, automation, and technologies have led to vast amounts of data becoming available. Data warehouse technologies have set up repositories to store these data. Improved Extract, transform, load (ETL) and even recently Enterprise Application Integration tools have increased the speed of collecting the data. OLAP reporting technologies have allowed faster generation of new reports which analyze the data. Business intelligence has now become the art of sifting through large amounts of data, extracting pertinent information, and turning that information into knowledge from which actions can be taken. A data warehouse is the main repository of an organizations historical data, its corporate memory. ... ETL also means Express Toll Lanes, see Express Toll Lanes. ... Enterprise Application Integration (EAI) is defined as the uses of software and computer systems architectural principles to integrate a set of enterprise computer applications. ... Online Analytical Processing, or OLAP (IPA: ), is an approach to quickly provide answers to analytical queries that are multidimensional in nature. ...


Business intelligence software incorporates the ability to mine data, analyze, and report. Some modern BI software allows users to cross-analyze and perform deep data research rapidly for better analysis of sales or performance on an individual, department, or company level. In modern applications of business intelligence software, managers are able to quickly compile reports from data for forecasting, analysis, and business decision-making.


In 1989 Howard Dresner, later a Gartner Group analyst, popularized BI as an umbrella term to describe a set of concepts and methods to improve business decision-making by using fact-based decision support systems.[4] Year 1989 (MCMLXXXIX) was a common year starting on Sunday (link displays 1989 Gregorian calendar). ... Gartner, Inc. ...


Key intelligence topics

Business intelligence often uses key performance indicators (KPIs) to assess the present state of business and to prescribe a course of action. Examples of KPIs are things such as lead conversion rate (in sales) and inventory turnover (in inventory management). Prior to the widespread adoption of computer and web applications, when information had to be manually inputted and calculated, performance data was often not available for weeks or months. Recently, banks have tried to make data available at shorter intervals and have reduced delays. The KPI methodology was further expanded with the Chief Performance Officer methodology which incorporated KPIs and root cause analysis into a single methodology. This article does not cite any references or sources. ...


Businesses that face higher operational/credit risk loading, such as credit card companies and "wealth management" services, often make KPI-related data available weekly. In some cases, companies may even offer a daily analysis of data. This fast pace requires analysts to use IT systems to process this large volume of data. Credit risk is the risk of loss due to a debtors non-payment of a loan or other line of credit (either the principal or interest (coupon) or both). ... Look up credit card in Wiktionary, the free dictionary. ... Information and communication technology spending in 2005 Information technology (IT), as defined by the Information Technology Association of America (ITAA), is the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware. ... For other uses, see System (disambiguation). ...


Trends

Currently organizations are staring to see that data and content should not be considered separate aspects of information management, but instead should be managed in an integrated enterprise approach. Enterprise information management brings Business Intelligence and Enterprise Content Management together. Interesting signs in this direction are recent acquisitions by SAP and IBM in the Business Intelligence Area. IBM for example earlier bought a market-leading ECM vendor. Enterprise information management - Wikipedia, the free encyclopedia /**/ @import /skins-1. ...


See also

Analytics is the study of business data using statistical analysis in order to discover and understand historical patterns with an eye to predicting and improving business performance in the future. ... Business intelligence tools are a type of application software designed to help the business intelligence (BI) business processes. ... It has been suggested that symbiotic intelligence be merged into this article or section. ... // Competitive Intelligence (CI) is both a process and a product. ... A digital dashboard, also known as an enterprise dashboard or executive dashboard, is a business management tool used to visually ascertain the status (or health) of a business enterprise via key business indicators. ... This is a list of articles on general management and strategic management topics. ... Location Intelligence is the capacity to organize and understand complex phenomena through the use of geographic relationships inherent in all information. ... Online Analytical Processing, or OLAP (IPA: ), is an approach to quickly provide answers to analytical queries that are multidimensional in nature. ... The OODA Loop is a concept originated by military strategist Col. ... On Line Analytical Processing, or OLAP, is an approach to quickly provide answers to analytical queries that are dimensional in nature. ... Predictive analytics encompasses a variety of techniques from statistics and data mining that process current and historical data in order to make “predictions” about future events. ... The term Business Intelligence (BI) refers to technologies, applications, and practices for the collection, integration, analysis, and presentation of business information. ... Screenshot of a spreadsheet under OpenOffice A spreadsheet is a rectangular table (or grid) of information, often financial information. ...

References

  1. ^ a b http://www.research.ibm.com/journal/rd/024/ibmrd0204H.pdf
  2. ^ http://dssresources.com/history/dsshistoryv28.html
  3. ^ Industry Analyst Think Strategies & it's SaaS Showplace
  4. ^ http://dssresources.com/history/dsshistoryv28.html

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