History of business intelligence

The term BI refers to the use of data in a company to facilitate decision making. It covers both the understanding of the current operation of the company and the anticipation of future events, with the aim of offering knowledge to support business decisions…

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INTRODUCTION

In business there is a foundation in strategic decision making, which contrasts between a successful organization and a mediocre organization, is the correct and timely decision-making. In order to carry it out in the best way, it is essential to have the adequate and timely information that supports all the organization's operations management in an agile and fast way.

Today there are multiple tools or platforms to manage information, however we should not condescend with just that, it is necessary to have a more extensive vision, ensuring a much faster and safer distribution.

It is only enough to observe the valuable information that a self-service collects through cards, by a security camera on the streets or the way in which call centers obtain information to know the reason for the complaints and the abandonment of customers. Unfortunately for organizations, this type of data has become a weight that is difficult to deal with. All this due to the large volume of information that is available today, far from being useful, can turn into a failed attempt to put it to proper use.

History of business intelligence (Business Intelligence)

The term BI refers to the use of data in a company to facilitate decision making. It encompasses both an understanding of the company's current operations and anticipation of future events, with the aim of offering insights to support business decisions.

These decisions, both operational and strategic, are what make up the business of any company. It is the Business that provides economic solvency to any company; and it is the Technology that supposes a spectacular cost in the accounts of results. It is precisely here where the BI appears. It acts as an essential bridge between Technology and Business. It allows a multinational manager to see reports that explain and describe what is happening in their business instead of getting lost in black screen logs. (Martín, 2015)

Stages of the time frame

70's.

In addition to bell bottoms, database management systems were born in the 1970s and the first relational models began to be developed. Developments for information intake are slow and difficult to access. The interaction with the user begins to improve thanks to the possibility of interaction with the scroll, although it seems incredible this was an invention, even so

The reports were still static!

80's

The first PCs appear and this is a true business revolution. The use of databases is popularized, the SQL language is standardized and the eighties look is more than evident.

During these years, the main problem was that a high percentage of the projects failed due to a lack of understanding when designing and implementing a Datawarehouse (DWH). It was quite clear that it should not be compared with a transaction-oriented database system (OLTP), much less "adapt" models! It was becoming clear that specific tools were necessary, powerful databases were not enough, applications were needed to facilitate their exploitation.

End users begin to smile more thanks to the appearance of graphs and user-oriented interfaces, but above all due to the facilities of the famous spreadsheets. Lots of unlinked data! Does this sound to you

80's or the 21st century? Who has not been to a meeting in which after a great development the user only wants a list in Excel?

90s

While we were watching Friends, the Prince of Bel Air and playing the Game Boy, we found too much decentralized information and not connected to each other, but in this decade the correct integration of data is standardized and distributed BBDDs appear thanks to the client architecture /server. The Inmon and Kimball publications are the main point of reference for the implementation of DW and BI applications. You already know how to deal with past mistakes! It is the decade of Business Intelligence 1.0. Multiple BI applications appear still unable to analyze large volumes of data in an acceptable time and with important limitations such as a limited number of data sources and an "unattainable" price. It is clear that BI was not yet accessible to all companies.

2000s

Incredible, the air boom arrived and we can travel for € 25 to London, but it is not the only important thing, two concepts are those that mark this stage BI2.0 and Social BI, also appears the SW dedicated to BI (BI suites) and consolidation of BI applications on a few Business platforms

Intelligence.

BI 2.0: capacity of the end users themselves to generate content and share it. Decisions are made from the same analysis tools, they are executed, monitored and results are analyzed again to start with a new decision. Social BI: ability to integrate external data to our systems, crossing information with real-world data that comes from social networks; being able to better understand the market that is outside and see that we go online to it.

Apart from structured information, other types of information and unstructured documents are beginning to be considered, Hadoop is born and the price revolution arrives. There is massive storage capacity, high response speed and modularization of information.

Currently, we find multiple ways to design Business Intelligence solutions. From traditional BI still present in many companies to BI with Big Data solutions or Cloud BI that allows us a fully integrated solution in the cloud, regardless of where the data is located.

Cloud Computing and Business Intelligence are an ideal couple; it's about integrating the right information with the right people at the right time, offering a lightweight, agile, fast, and inexpensive way to access BI applications. This seems to solve all the problems of the past, right? (Martín, 2015)

Intelligence in business or Business Intelligence (BI)

Business intelligence (BI) is the transformation of data into information relevant to business decision-making.

The advantages of having this tool are shown below.

Increased efficiency: Organizations usually collect information with their departments but this collection of information is slow because they are carried out department by department, with this tool the ease is that it is a centralized platform where all the information is concentrated in one place, thus facilitating decision making so that it is faster and allows the organization to save time.

Answers faster. Due to its centralization system, it is much easier and faster to make detailed reports, since by centralizing all the information, it allows you to make reports that contain all kinds of details such as sales, inventories, costs, among other things.

It has accurate information. With BI, decisions are made with objective information, not with hunches or intuition. Well-structured, adequate information generated by the same company allows decisions to be made with precision.

Know the behavior of customers. This tool allows you to analyze consumer buying habits, with this information it is possible to carry out loyalty campaigns, build predictive models, carry out promotions and other strategies.

Better control over the functional areas of the organization. This type of business intelligence systems allows information to be collected from all the important areas of the organization, such as production, sales, inventories, marketing, among others, as it is a centralized tool, all that information is very broad and it is enough for what decision making is much faster.

The information provided by the BI can have different scopes such as:

Operational level: In this area it is used for making daily decisions about the transactions that are carried out when carrying out the operations of the company. Tactical level: It provides information for the middle managers in monthly analysis and decisions that are useful for follow-up reviews and action taking. Strategic level: At this level the decisions have the greatest impact on the company, the information being used by senior management.

It is worth mentioning that these tools are very useful for the different areas of the organization such as:

Marketing: In this area, BI can be used for market segmentation, trend analysis and customer analysis. Sales: Analysis of clients and their profitability, analysis by product, by segment, sales projections and forecasts. Finance: Detailed reports of expenses, costs and income as well as for financial reasons and financial analysis of the company. Logistics: Tracking shipments and monitoring orders to find out the cause of your loss. Production: Productivity report of production lines, inventory rotation, etc. (Castro, 2015)

Benefits of intelligence in business

Some of the advantages that an organization can obtain with BI are the following:

Increased efficiency

Quick responses to business situations

Control of the functional areas of the company

Improve your customer service

Present information through dashboards

indicators

By having the data in an accessible and agile way, you can generate centralized information that you can visualize on a single platform to optimally take advantage of it to carry out analyzes and make informed decisions on time. Having information readily at hand and not wasting time searching and consolidating data. Thanks to BI you can have the answers in minutes in a clear and concise way through indicator reports and data dashboards.In all areas of your company valuable information is generated day by day, you can take advantage of it in the best way to know trends, project data, analyze scenarios, etc.By having the most important information and in real time, you can offer your customers a higher quality service from ordering to after-sales service by learning more about them and their needs. Analyze purchasing habits, recognize the best-selling products, etc. for simpler and more direct communication of the company's situation. By having the possibility to create different dashboards you can focus on the most relevant data to display without having to review large amounts of information.By having the possibility to create different dashboards you can focus on the most relevant data to display without having to review large amounts of information.By having the possibility to create different dashboards you can focus on the most relevant data to display without having to review large amounts of information.

Actors in business intelligence

Multidimensional information: “The data can be found in spreadsheets, databases or individual files. A business intelligence tool must be able to gather information scattered across the enterprise and even from different sources to provide departments with the accessibility, power, and flexibility they need to analyze information. These tools allow the user to analyze the data from different angles or dimensions, also known as cubes. " (Rosa, 2010)

Data Mining: That is, the data mining application for the identification of trends and behaviors, discovering relationships in databases that can identify not very obvious behaviors. In a nutshell discovering non-trivial information hidden inside the data.

Agents: They are programs that "think" that is, they can perform tasks at a very basic level without human intervention.

Data Warehouse: Places information from all the functional areas of the organization in the hands of the decision maker and provides tools for search and analysis.

Classic BL: Stores data in MOLAP or ROLAP cubes

BL Operational: Analyze information taken directly from transactional data sources.

Query tools: They are the tools that allow the user to launch searches in SQUL against the database in an intuitive way and without knowing the language, obtaining immediate results. (Lagunes., 2016)

Business intelligence allows you to optimize the use of resources, monitor the fulfillment of the company's objectives and the ability to make good decisions in order to obtain optimal results.

Which enables?

Identify the knowledge that an organization owns or needs Solve a specific problem Implementation of internal mechanisms for the generation and implementation of such knowledge Build critical skills Increase the value of the organization (Hernández, 2017)

Tools used in business intelligence.

Obstacles to business intelligence.

Few organizations are doing what is necessary to shape their information. The environment of various organizations is still not conducive to information-based. Many organizations do not yet have the appropriate analytical and technological strength. Many organizations do not take full advantage of business to make decisions Difficulty calculating your return on investment

Advantages of business intelligence.

Income generation. Analyze employee productivity. Cost control and reduction of these. More updated information. It allows optimizing the use of resources. Time reduction in different activities of the company. Improving information integration. management.Reduce product returns.Help manage growth.Create new opportunities.Remove overproduction of products.You can monitor the fulfillment of company objectives.Understand better customers.Reduction of customer abandonment rate. Provides the ability to make good decisions. Grow market share.

Facilitate adoption of changes in strategy. (Lagunes., 2016)

conclusion

As we could see, intelligence in business or business intelligence is an extremely important tool for organizations today, due to its way of working with data in an updated and global way, today organizations with this tool can make decisions based on the data acquired, with this tool you can make decisions that directly impact the business and multiply the benefits of the organization, making business intelligence a fundamental part today of large global organizations and as an exemplary working model for smaller organizations that want to grow and enhance their economy.

Thanks

I thank my mother who is the strength to continue every day and who has made me get to where I am, my teachers who have given me their time and knowledge to continue my studies, Doctor Fernando Aguirre y Hernández since He has given us all his experience and knowledge in this matter of Fundamentals of Administrative Engineering, as well as CONACYT since it gives us its support to motivate us to move forward in our adventure for mastery.

Thesis proposal.

Implementation of business intelligence in a SME in the Córdoba - Orizaba region.

Goals.

Analyze the impact generated by the implementation of business intelligence in an SME in the Córdoba - Orizaba region in the sales department and propose ideas to increase its growth through the data obtained.

Bibliography.

Castro, J. (August 12, 2015). http://blog.corponet.com.mx. Retrieved on February 28, 2018, from

blog.corponet.com.mx/que-es-la-inteligencia-de-negocios

Hernández, AL (November 23, 2017).

Retrieved on February 28, 2018, from https://www.gestiopolis.com:

Lagunes., XA (June 9, 2016). https://www.gestiopolis.com. Retrieved on February 28, 2018, from https://www.gestiopolis.com:

Martín, B. (October 15, 2015). https://www.beeva.com. Retrieved on February 28, 2018, from https://www.beeva.com: https://www.beeva.com/beevaview/estrategia-negocio/un-viaje-en-el-tiempo-por-la-historia -del-businessintelligence /

Rosa, SL (2010). Business intelligence: Audit and control. Leganés: Carlos III University of Madrid.

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