Question

Explain Business Intelligence in one page or less. Focus upon the concept that ‘BI’ is an umbrella term and explain what the components of a ‘BI’ system are and what its architecture and purpose are.

Answer 1

Answer :

Business intelligence(BI) refers to a framework created in order to support the process of decision making.
The business organisation has to collect and store the resources or data from various sources. This data is vital for the purpose of analysis and decision making process that will ensure success to the business organisation.

Business intelligence (BI) is an umbrella term as it includes the tools, applications, infrastructure and suitable methods that allows analysis of information so as to make an optimal decisions.
A various types of tools which fall under business intelligence umbrella are Visualizations, Dashboards, Data mining, OLAP, Reporting etc.

Components of Business Intelligence :
The main components of business intelligence are as follows :

1. Data warehouse : It stores data collected from different internal/external sources.
2. Business analytics : It helps in the process of data mining and also generated a report using queries.
3. Business performance management : It relates data to the business and acts as a main decision making block.
4. User interfaces.

Business Intelligence Architecture :

This BI architecture  integrates data warehousing, business analytics, performance and user interface. The collected data by Business organisation from various sources is stored and interpreted for processing . Only the authorized users are allowed access this data and manipulate it as per requirement. The outcomes after manipulation can shared to other executives through share points or dashboards for process of decision making.  

The purpose of Business intelligence system are as follows:

1. Business Intelligence technologies are very much capable to handle large volumes of data. It helps to classify and interpret these large volumes of data easily .
2. Business intelligence systems work accurately and are very fast to report any critical of uncertain information on timely basis.
3. Business intelligence ensures efficient decision-making process and thereby allows the business organisation to accept more new challenges.
4. Business intelligence maintains better customer relationships. More the number of customers, increases the company profits.