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.
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.
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!