What are BI Tools?Business Intelligence (BI) tools are proprietary or open source application software that are used to collect, process, analyze, sort, filter, and report large quantities of data from internal and external systems, for the purpose of transforming raw data into useful information for business purposes. Show
What is Business Intelligence?Business intelligence is the process by which enterprises use strategies and technologies for analyzing current and historical data, with the objective of improving strategic decision-making and providing a competitive advantage. Business Intelligence leverages BI reporting tools to transform data into actionable insights that improve business decisions. A Brief History of BI ToolsThe concept of business intelligence, a term coined by historian Richard Miller Devens in 1864, began with the most rudimentary tools for information visualization: pen and paper. Devens noted the improvement of a successful 17th century banker’s business strategies with the use of empirical data rather than gut instinct. Frederick Taylor, an American mechanical engineer and leader in the Efficiency Movement of the late 19th/early 20th century, developed the “Stopwatch Time Study” and combined it with follow engineer Frank Gilbreth’s Motion Study methods to develop greater efficiencies that boosted industrial production. Taylor would go on to act as a consultant on the Ford Model T assembly line. In the late 1950s, IBM researcher Hans Peter Luhn, recognized as the Father of Business Intelligence, theorized about a Business Intelligence system that would employ what we know today as Machine Learning. Then in the 1970s, IBM computer scientist Edgar Codd’s paper “A Relational Model of Data for Large Shared Data Banks,” would usher in the next generation of relational databases that would support the development of modern Business Intelligence software tools. Larry Elison and his partners would release the first true relational database management system onto the market in the late 1970s, guiding in better databases and lower storage prices, and paving the way for the user-friendly business intelligence tools we use today. The 1990s would introduce OLAP (Online Analytical Processing), a data warehousing approach to dealing with multi-dimensional analytical queries, and ETL (Extract, Transfer & Load), which is the process by which data is cleansed and prepared for OLAP. The new millenia would introduce social networking, big data analytics, and self service business intelligence tools like Google Analytics. And the last decade has shown the growing power of Business Intelligence and analytics tools. Business intelligence concepts, methodologies, tools, and applications are currently used in a wide variety of sectors and applications, including politics, science, and advertising. How do Business Intelligence Tools Work?Business intelligence platforms employ a variety of different methodologies, procedures, technologies, and architectures to enable the extraction and ingestion of large amounts of raw, disparate data into data warehouses, from which information can then be queried. BI tools process and prepare raw data for analysis, and facilitate the generation of reports, data visualizations, and dashboards. BI and visualization tools feature customizable dashboards that ensure the most relevant information is presented first. Business managers can explore what-if scenarios, which can help mitigate risk and inform real-time decisions. Machine Learning algorithms can help predict future trends, while historical data can be cross-referenced to identify recurring trends. Centralization of data sources helps managers get a complete, full-picture view of the business, and data integration with mobile interfaces helps business users view reports at any time, from anywhere in the world, which helps with real-time decision making. BI data visualization tools aim to streamline the analysis process so that the average user can visualize, understand, and draw conclusions from their data. The results empower businesses to inform and accelerate decision making, identify trends and revenue potential, increase efficiency, determine KPIs, and reveal business opportunities. Types of Business Intelligence ToolsSome of the most common business intelligence tools include Dashboards, Visualizations, Reporting, Data mining, ETL, and OLAP. Business Intelligence tools features can include any combination of the following:
Why are Business Intelligence Tools Important?BI tools give businesses a competitive edge in several ways. Taking advantage of Machine Learning algorithms and analyzing historical data can reveal future consumer trends and markets before the competition catches on. Managers can reduce manufacturing costs by analyzing data from inventory systems to identify and eliminate excess stock. And data analytics dashboards can improve the employee experience, providing clear, result-oriented tasks, and defined parameters in which to work. The enormous volumes of raw data to which we now have access are only as useful as our ability to understand it well and understand it quickly. Modern businesses are ingesting data for every avenue of their organization, from workflows and productivity to marketing and profitability. BI tools can help connect the dots for every aspect of a business, visualize relationships with visual data, and draw conclusions in a timely manner. Another advantage of BI tools is their ability to make data more “human friendly” and enhance exploratory data analysis. Humans are visual creatures, and one of the most common ways that BI tools show data is through data visualizations. BI tools help transform cryptic, tedious, big data into visually colorful, interactive data visualizations from which business users can track trends, patterns, and anomalies, and make better, data-driven decisions. How to Choose Business Intelligence ToolsChoosing the best business intelligence tools for your business depends on a variety of factors, including budget, reporting criteria, target audience, storage needs, security requirements, and more. While each platform offers a diverse range of tools, all of the best BI tools and platforms consist of functionalities that help businesses focus on the most relevant information by presenting it in an actionable way. Below find a BI Tools Comparison list of some of the most common business intelligence solutions from which to choose:
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The preceding BI tools list consists mostly of subscription-based, proprietary solutions. There are also open source BI tools and free BI tools available for smaller teams with smaller budgets. Some of the top BI tools that are open source or free to access include: Apache Hive, BIRT Project, D3.js, KNIME, Orange, Pentaho, R, TACTIC, Superset, Grafana, JasperReports, Palo, Pentaho, BILM, Datacopia, icCube, InetSoft, and Splunk. Business Intelligence has grown exponentially in the last decade and shows no signs of slowing. BI tools are now leveraged in nearly every major industry, including Automotive, Public Sector, Pharmaceutical, Oil and Gas (see Energy Business Intelligence), Utilities, Media and Advertising, Telecom, Investment Management, Logistics and more. BI tools are a fixture of modern businesses and will continue to be developed and improved as business competition continues to grow. Learn more about how HEAVY.AI's visual analytics platform enables effortless BI on billions of rows of data, or see it for yourself with our interactive visual analytics demos.
Which of the following is a purpose of a business intelligence system?The purpose of business intelligence in a business is to help corporate executives, business managers, and other operational workers make better and more informed business decisions. Companies also use business intelligence to cut costs, identify new business opportunities, and spot inefficient business processes.
What is Business Intelligence in Data Mining?Business intelligence combines business analytics, data mining, data visualization, data tools and infrastructure, and best practices to help organizations make more data-driven decisions.
What is Business Intelligence quizlet?Business Intelligence (BI) the use of information systems to gather and analyze information from internal and external sources in order to make better business decisions. BI Involves. Continuous Planning at all levels of the business.
What is a data warehouse used for?A data warehouse is a central repository of information that can be analyzed to make more informed decisions. Data flows into a data warehouse from transactional systems, relational databases, and other sources, typically on a regular cadence.
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