Understanding the Concept of Business Intelligence

Business competitions are getting tougher with each passing day and data analysis is one of the main important factors that determine a business’s success. Companies will need to analyze company data accurately if they wish to thrive in their business. Data analysis that is made by the company will be crucial when making decisions. Nowadays, making decisions can’t just rely on intuition, seeing as how the business environment keeps getting more and more complicated by the day. Factors such as the quality and price of a certain product determine the sale of a product, but many other factors play a huge role as well, such as customer preferences, geographical factors, and many more. Because of those factors, Companies will undeniably need a tool that can be used to process data to become information that will later become knowledge and can be used by companies in decision making. One of the available solutions is to use business intelligence (BI).

Business Intelligence can be defined as a technology-driven process that helps businesses to convert the available data into knowledge that is delivered to the stakeholders in order to help them analyze and take appropriate decision at the right time. In other words, Business intelligence (BI) is a form of implementation that can be used by companies to process available data into information, which will then be processed again into knowledge that will help the process of analyzing company data more effectively and accurately. With Business Intelligence, companies can find out the company’s sales forecast in the near future so that the company can start making plans to increase the company’s profit.

In order to build a good business intelligence system, there are quite a few things that must be considered, starting from the stage of developing business intelligence, the environment of business intelligence, and the tools that will be used. There’s still a lot of companies in Indonesia that don’t use business intelligence to help them make decisions when their business could’ve benefit from using it. An example of these cases are companies that provide loans for car loans that still use traditional methods in determining the feasibility of their customers’ loans. By utilizing business intelligence, a company providing loans for car purchases can easily determine which customers are eligible to be given loans with faster results that are more precise. To put it simply, business intelligence makes a job more efficient and effective.

To sum it all up, Business Intelligence is the collection of company data that will later be analyzed for decision making. Business Intelligence’s main purpose is to aid an organization in obtaining information which will later become the company’s knowledge about matters related to the company that can affect the performance of the company so that it may be used by organizations to help them make decisions.