Question

Define business intelligence and BI systems.

Your response should be at least 200 words in length.

Answer 1

Business Intelligence or BI is a system of collecting business information along with integration & analysis to present in the form which helps in business decision making. It is also referred as data driven decision making system.

There are three types of BI Tools:

• Reading tools to read data, process them and properly structure for users
• Data mining tools which uses statistical tools, patterns to predict basis the assumptions
• Knowledge management tools which are available to employees as repository to enhance knowledge or skill as and when required

The BI system in one which contains five components: Hardware, Software, Data, People, Procedure which helps to process the information and deliver results to users as and when required.

The advantages of BI system are:

• It helps in data driven decision making increasing the chance of success
• It helps to enhance employee productivity
• It helps to build business environment
• It helps to effectively use data which can further be stored for future use

In order to have BI system, it is important to have hardware in place along with latest software and programs which helps to present the reports in readable form. Also, it is essential to protect from external threat and risk which can otherwise damage entire system.