Business intelligence is a complex autonomy of business management that involves increasing the state of competitive advantage of a corporation through intelligent and monitored use of the available business data for various disciplines of decision making. It refers to the wide set applications, practices and procedures that are used in the integration process, presentation, collection and analysis of various levels of business information aimed at increasing the standards of making business decisions. (http://www. cmis. csiro. au/bi/what-is-BI. htm)
Conventionally, business intelligence is a tool for use in providing predictive, current and historical views about business operations. It uses the concept of business data that are congregated into data warehouses or data in operation. The basic use of such information is aided by software support systems that help in its reporting, analysis or even extraction. The applicability of business intelligence is in a wide framework of operations within the corporation such as financial matters, sales schedules, production reports and other accompanying sources.
The managerial process of business intelligence involves the use of various sets of key performance indicators in assessing the state of present business situation and thus prescribing to various courses of action. It is a framework of five support issues that help to disseminate business data in the manner that is widely useful in providing competitive advantage. These are data sourcing, analysis, risk assessment, situation awareness and decision support. Data sourcing refers to the process of information extraction form different sources.
This could be from text documents such as email messages, reports, memos and photographs. The main aim in data sourcing is obtaining the most important information through electronic forms. Data analysis refers to the process of synthesizing sets of useful and complimentary knowledge from various data collections. It is the estimation process of the current business trends, summarization and integration of disparate information validation of models as well as prediction of any inadequate and missing sets of information. This is formally termed as data mining.
It uses various statistical tools in exploration of data into fine understandable terms (http://www. cmis. csiro. au/bi/what-is-BI. htm) Situation awareness implies the filtration of the relevant information from that which is irrelevant. Consequently, the relevant informant is set within limits of the existing business contexts. It involves the use of the key items by the user in summarizing and synthesizing the set of the important information for use in making sound business decisions. Situation awareness therefore refers to the process of grasping the right context of data in making such business decisions.
Risk assessment refers to making a conscious discovery into the plausible actions that can be taken over the data at different levels of the organization. It is the weighing procedure of the levels of risks that may be involved in the use of the data. It weighs the best option to take in decision making that arises from the use of certain business information (http://www. cmis. csiro. au/bi/what-is-BI. htm) Decision support is process of making a wise usage of the information. It gives warnings and challenges about futuristic events that are implied by the information such as employee turnovers and market changes.
It is therefore a tool for making the correct support decision that concurs with the event in question. Generally therefore, business intelligence is an important scope of business management whose importance has come in alignment with business information management. The scope of business intelligence framework is an important process that governs a corporation in its mining, exploitation, transfers and storage of information that would give the organization a competitive advantage in the market. Reference. What is Business Intelligence? Retrieved on 23rd August 2008 from http://www. cmis. csiro. au/bi/what-is-BI. htm