Business intelligence (abbreviated as BI) is a set of analytical tools in the form of business information that is used to consolidate, analyze, store and access a lot of data in the context of business processes that lead to making decisions and actions with the aim of improving business or business performance.
Business intelligence provides a way to acquire the knowledge needed to make good decisions. The business intelligence environment includes all the development, information processing, and support activities needed to provide reliable and highly relevant business information and business analytical capabilities for the organization’s business activities and for decision making.
Business intelligence describes a concept and method of how to improve the quality of business decision making based on data-based systems. The collection of raw data can be transformed into information by analyzing and structuring the relationship between the data by knowing what data you want to collect and in what context you want it to be.
The function of business intelligence is as a decision support system where these systems and applications transform data within the organization (operational data, transactional data, or other data) into knowledge with the general purpose of presenting various information tailored to the needs of each user.
Benefits of Business Intelligence
The benefits and benefits obtained by using business intelligence in an organization or company include the following:
- Increase the value of organizational data and information.
- Make it easy to measure organizational performance.
- Increase the value of existing information technology investments.
- Increase in cost efficiency.
Types of Business Intelligence
There are five types of business intelligence, namely:
- Enterprise Reporting, used to generate static reports that are distributed to many people. This type of report is perfect for operational reports and dashboards.
- Cube Analysis, used to provide a multidimensional OLTP analysis aimed at business managers in a limited environment.
- Ad Hoc Query and Analysis, used to provide access to users in order to perform queries on the database and extract information to the most basic level of transactional information. This query is used to explore information performed by the user.
- Statistical Analysis and Data Mining, is used to perform predictive analysis or determine the causal correlation between two matrices.
- Delivery Report and Alert, used proactively to send complete reports or provide warnings to large or large user populations.
The explanation of each component and stage in the business intelligence architecture is as follows:
a. Data Sources
This section functions to collect data and integrate stored data from various primary and secondary sources, this data is data that is owned by the operating system but can also include documents that are not structured.
b. Movement Data and Streaming Engines
Movement data and Streaming Engines are data that display data from each variation of integrated data that is obtained from various sources.
c. Data Warehouse Servers
Data warehouses are subject-oriented, integrated, time-varying, and non-volatile collection of data to support the decision-making process.
d. Mid-tier servers
Mid-tier servers provide specific functions for different BI scenarios and include OLAP servers, Enterprise Search Engines, Data Mining Engines, and Reporting Servers. An efficient OLAP server provides a multidimensional model for front end applications or directly to users.
e. Front-end Application
Front-end applications are applications that are used directly by business users in making decisions.h