The Importance Of Business Intelligence

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For organizations, which maintain direct contact with huge customers, the increasing channel-oriented applications such as e-commerce and call center, pose great data-management challenge. This requires effective means of integrating application s in an organization. Many companies thus are adopting the tool of Business Intelligence for effective after understanding the need for enforcing the business strategies by means of business intelligence concepts and systems. This paper describes the concept of BI, its emergence, its main tools, which include data mining and data warehouses. BI has many advantages which influences companies to use the BI tools for data management. In the implementation of the BI tools, companies also face many challenges…show more content…
BI includes a set of technologies and methodologies such as OLAP, data mining, data warehouse, XML and web services, to improve the effectiveness of the business operations, support management, to gain competitive advantages. BI thus aims at providing integrated solution to organizations under which the business requirement is the factor that drives innovation in technology. (Turban, Sharda, & Delen, 2014)
Importance of Business Intelligence
According to Dave Lavinsky writer, from grow think website that Peter Drucker says: "With the right BI system, all the information from these applications and programs you already use automatically and in real-time is entered and analyzed. So, you can quickly see, manage and improve your performance" (Lavinsky, 2017).
Here are the importance of BI:
• BI tools can help employees to convert business knowledge by means of analytical intelligence to solve issues like responses from telephone, direct mail, e-mail and the internet.
• Organizations can identify the profitable customers along with identifying future customers.
• It helps to analyze the potential growth of customers and profitability which may help to reduce exposure risks by means of accurate financial credit
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In this regard, the application of BI data mining helps in the process to maintain the sales metrics and developing the prediction of the future performance. Data mining tools can be implemented on the existing hardware and software platforms to improve the value of the existing resources of information so that it can be integrated with the new systems. It can also help in fraud detection, analysis of market basket. It can also help in decision making and improvement in company’s revenue and reduced costs. It can help to track and improve the company’s performance and in modification of marketing campaign. It can help to review logistics, operations and increase the efficiency of product management. It can also enhance the customer relationships and forecast growth and
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