Explore business intelligence systems, including relevant tools and processes, and consider how they can support your business or organization by improving decision-making.
Business intelligence (BI) systems comprise the tools and methods you use to collect, analyze, prepare, and action data to inform business decisions. The BI process for businesses includes collecting data from various sources, analyzing it, and preparing data visualization reports and dashboards to make the information accessible.
A BI system is important to any business that relies on data-driven decision-making. BI is seeing rapid adoption in various sectors worldwide, with the global BI market projected to grow at a CAGR of 9 percent from 2024 to 2032, according to Fortune Business Insights [1].
Discover BI systems, the tools and processes these include, and the pros and cons of adopting a BI system.
Your BI system will involve collecting, storing, analyzing, and using data to drive your business. BI systems are also known as decision support systems (DSS) as they can analyze current and past data to generate easy-to-understand reports that can be easily disseminated. BI systems can perform three types of business analytics to produce actionable insights:
Descriptive analytics: Analyzes the business’s past data to understand its current performance better.
Predictive analytics: Uses existing data and statistical modeling to predict a business’s future trends.
Prescriptive analytics: Provides insights into the next steps a company should take to achieve its objectives.
The exact specifications of your BI system will depend on several things, including the category of data you’re working with, your business objectives, and the BI features you need. However, a BI system will likely follow these four stages to convert your data into business insights:
At this first stage, you’ll use tools to collect data from various sources, either manually or using the extract, transform, and load (ETL) method.
At this juncture, you’ll use data mining tools, which are automated tools that work through large volumes of data to find patterns and trends. You might use online analytical processing (OLAP) tools to analyze data according to different areas of the business and their main objectives.
You’ll find many ways to present your findings. Data visualization tools are very effective for turning complex data into visual representations such as graphs or charts, making it easier to understand. Consider visualization tools like SAP, Tableau, Power BI, and Microsoft Excel.
Once you have your data, you can use reporting software to prepare, display, and disseminate it. This allows executives to make important business decisions.
BI systems support you to use business data in a way that allows you to make informed decisions. You can use the data insights from BI to inform strategic decisions in various areas, from business operations to financial projections to performance monitoring. Some common uses of BI are as follows:
Comparing business performance metrics against benchmarks.
Analyzing trends in customer and employee behaviors to provide customized experiences.
Visualizing complex data on a BI dashboard provides a real-time performance overview.
Professionals use BI systems in various industries to incorporate data into their business strategy. Examples include the following:
Operations: Streamlining processes, automating repetitive tasks, and managing inefficiencies through data insights.
Finance: Assessing financial health, analyzing financial risks, and making financial projections.
Marketing: Analyzing previous campaigns, customer behavior, and competitors to plan future promotions and campaigns.
Security: Using a dashboard to quickly recognize security threats or inconsistencies and remain compliant.
You’ve discovered more about how BI systems benefit various sectors, from marketing to operations and finance. You’ll find common roles within these industries that specifically work with BI systems.
Average annual US salary (Glassdoor): $84,949 [2]
Requirements: Bachelor’s degree in computer science, statistics, or similar.
As a data analyst, you will use BI systems to collect and analyze data to support business executives and organizations in making data-driven decisions.
Average annual US salary (Glassdoor): $98,809 [3]
Requirements: Bachelor’s degree in math, computer science, information technology, or similar, with business courses.
As a BI developer, you will use BI tools to create software for extracting data insights, which you then share with companies to help them develop their business strategies.
Average annual US salary (Glassdoor): $81,128 [4]
Requirements: Bachelor’s degree in business, marketing, communications, or something similar, as well as relevant experience.
As a marketing manager, you will use BI systems to analyze data relating to sales, market trends, and consumer behavior and develop strategies and campaigns to increase brand awareness and drive sales.
Average annual US salary (Glassdoor): $77, 756 [5]
Requirements: Bachelor’s degree in business management or business administration.
As an operations manager, you will oversee production, planning, monitoring, and distribution, which may include BI systems to streamline processes and automate productivity.
Business intelligence systems can offer you and your organization many benefits when managing data, including options for better decision-making. However, you’ll also find some limitations you can address to obtain maximum benefit from using BI systems.
Advantages of using BI systems:
Improved data quality: BI systems allow you to gain deeper data insights by focusing on customer satisfaction. It helps you to understand market trends, consumer behavior, and competitor challenges.
More accurate reporting: Dashboards allow you to present information clearly for easy reporting and provide easy-to-understand answers to any questions that arise from the data.
Enhanced decision-making: Data obtained from BI tools can allow you to make faster decisions based on a solid foundation.
Limitations of BI systems:
Upfront costs: BI systems are expensive. However, your savings should be enough to offset this cost.
Complexity: BI is complicated, and you may find a skill gap within your organization. It’s important to onboard people with expertise in this area and train staff accordingly.
To start your career in business intelligence systems, you’ll need a solid understanding of data analysis, problem-solving abilities, and excellent time management skills. You’ll find positions in various industries, such as finance, health care, and supply chain management. Therefore, consider gaining some experience in an entry-level position, such as a junior BI analyst, and work your way up to more senior roles, such as BI developer or BI engineer.
To work in BI, you generally need a bachelor’s degree in a relevant subject, such as computer science or information systems. You could pursue a master’s degree to gain a competitive advantage, although it isn’t compulsory for all positions.
To further bolster your resume, you may consider taking some certifications in business intelligence, such as the following:
Certified Business Intelligence Professional
SAS Statistical Business Analyst
Business intelligence systems allow businesses to collect, store, analyze, and report data to support decision-making and improve business operations. You’ll find multiple roles that allow you to work with data intelligence systems.
A great place to start developing these skills is with an online course or Professional Certificate such as the Google Business Intelligence Professional Certificate or the IBM Business Intelligence (BI) Analyst Professional Certificate, both on Coursera.
Fortune Business Insights. “Business Intelligence (BI) Market Size, Share & Industry Analysis, https://www.fortunebusinessinsights.com/business-intelligence-bi-market-103742” Accessed December 4, 2024.
Glassdoor. “ Data Analyst Salaries, https://www.glassdoor.com/Salaries/united-states-data-analyst-salary-SRCH_IL.0,13_IN1_KO14,26.htm.” Accessed December 4, 2024.
Glassdoor. “Business Intelligence Developer Salaries, https://www.glassdoor.com/Salaries/business-intelligence-developer-salary-SRCH_KO0,31.htm.” Accessed December 4, 2024.
Glassdoor. “Marketing Manager Salaries, https://www.glassdoor.com/Salaries/united-states-marketing-manager-salary-SRCH_IL.0,13_IN1_KO14,31.htm.” Accessed December 4, 2024.
Glassdoor. “Operations Manager Salaries, https://www.glassdoor.com/Salaries/united-states-operations-manager-salary-SRCH_IL.0,13_IN1_KO14,32.htm.” Accessed December 4, 2024.
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