BI Basics – Why do we need Business Intelligence

In the previous post, we learnt What is Business Intelligence (BI). In this post, I will explain the need for a BI system.

Why do we need BI?

This is a very important question that needs to be addressed before one can work towards building a BI Solution. In fact, this is the first question that any management guy would ask the Engineering Team before funding any new project. Let’s try to address this question in simple terms.

A BI system helps businesses analyze the past, understand the present, and predict the future. It helps answer few important questions about Past, Present, and Future of Business. Below is a quick snapshot of some of the important questions that a BI System can answer about Past, Present, and Future.

Why BI - Past-Present-Future

A BI System helps businesses at every stage of a Business Process. A typical business process involves few common phases – Planning, Execution, Measurement, Evaluation, and Improvement as shown below.

BI Basics - Backbone of BI

This cycle of Planning, Execution, Measurement, Evaluation, and Improvement repeats and with every cycle, businesses Improve, Grow, and Mature. A BI system helps businesses during each of these phases and acts as a Backbone of a Typical Business Process.

Hope this post helps in understanding the need for a BI System. Until next time, happy learning!

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About Dattatrey Sindol (Datta)

Datta is a Microsoft BI Enthusiast, passionate developer, and a blogger. View Full Profile

Posted on April 15, 2013, in Basic Concepts and tagged , , , , , , , . Bookmark the permalink. 4 Comments.

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