What is Business Intelligence?

Nicole Leung

Aug 8, 2022

What is Business Intelligence?
What is Business Intelligence?

Image: pexels.com

Data

Data is everywhere. As defined in the Webster Dictionary, data is “factual information (such as measurements or statistics) used as a basis for reasoning, discussion, or calculation.” Almost every aspect of a business has some type of data – whether it be images, numbers, or text. Consumer data, workplace data, efficiency data, etc. the list is never ending. 

 

But why is keeping this data important? 

 

Business Intelligence

That is where business intelligence (BI) comes into play. BI is the process of analyzing, organizing, and presenting data using different technologies to inform current decisions within a company. A BI analyst would be expected to gather data and interpret its value, produce visualizations and reports from said data, and efficiently communicate related findings. Different technologies used in BI include spreadsheets such as Microsoft Excel, reporting software to display data, data visualization software, data mining tools for finding patterns in large quantities of data, and online analytical processing (OLAP) tools.

 

Real World Applications of BI

The implementation of customer experience analytics helped http://Lotte.com , the number one online marketplace in Korea, understand why consumers were abandoning shopping carts. By modifying their website to accommodate for the identified issues (a lengthy checkout process and unclear delivery times) the company was able to increase sales by $10 million.

 

The transportation service, Uber, uses BI to maximize profit with dynamic pricing based off of real-time customer demand and route traffic. Algorithms are implemented to monitor a variety of data prevalent to the customer’s prospective journey.

 

Artificial Intelligence and BI

Artificial intelligence (AI) references the teaching of computer systems to solve problems and modify decisions based on past experience. Some examples include machine learning, predictive analytics, and natural language processing. Looking towards the future of BI, its intersection with AI will likely flourish. 

 

Not only does AI improve the efficiency and functionality but it also expands the capabilities of BI. AI can make the most of any dataset due to its ability to understand the value of tiny data components. It can also scale BI for large data sets operating in a fraction of the time a human expert would take. Furthermore, applying AI to BI allows BI to optimize AI’s features. For example, natural language processing allows users to communicate with BI tools as if they were having a conversation. This eliminates the need for every BI professional to understand the code and mechanics behind the operation, allowing them to focus on the data’s purpose and importance.

 

Summary

Business Intelligence (BI)  utilizes data to inform current decisions for a company, whether it be related to the workplace, consumer, efficiency, employees, etc. The implementation of BI can lead to new company features that increase profit by millions of dollars. With the introduction of artificial intelligence (AI) BI’s possibilities are limitless.

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Jersey City, New Jersey

(213)536-7956

contact@thelegionai.com

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© 2023 Ra Labs, LLC.

Legion AI