Every day the volume of data increases, multiplying as the minutes and hours go by grouping in different places. Companies must not only collect this data to be informed, but also need to identify among all those data which are really important.
Currently there are various tools or platforms to manage information very efficiently, but we must not settle for just that, we must have a broader vision, ensuring a much faster and safer distribution.
In such a way, that when we collect data from the various sources of information we are able to analyze and detect the relevant information that gives us the necessary knowledge to make decisions that achieve specific objectives in the company.
Nor should we forget that when we manage company data in one place in an organized way, it means providing quick access to information to clients, collaborators and employees. The information provided is not only cataloged internally, but today we can control various sources of information from anywhere on the planet where we are in real time.
We can say that smarter software collects data quickly and then applies it to any area of the company.
This article will explain the definition, interpretation and application of business intelligence, which, as described above, is a very useful tool for companies that wish to have an impact on their customers.
HISTORY
Business intelligence is not a novel concept, it has been implemented for approximately 20 years in organizations around the world, although it is true, the information technologies on which it is based have had an exponential evolution that is the same as has followed the Business Intelligence as it is nourished by it.
Currently a democratization stage is underway, so it is a mistake to affirm that business strategies can only be used by macro companies or that a medium or small company does not have the capacity to implement this type of strategies, more at the same time. On the contrary, if a company does not have the vision to implement strategies, it will be stagnant and invaded by the uncertainty of disappearing.
WHAT IS INTELLIGENCE IN BUSINESS?
A definition for business intelligence or BI for its acronym in English is that they are the processes, technologies and tools necessary to turn data into information, information into knowledge and knowledge into plans to turn business into profitable businesses.
It is not only about generating balances to see a result, but it requires reports and operations that must be delivered in a timely manner and to the appropriate people, so that solutions can be worked on.
In this case, the data acquires a primary value since its value is of great importance for the strategy in organizations is when it faces a very common problem in companies, Big Data.
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 possesses 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.
WHY BUSINESS INTELLIGENCE?
The ailments of companies have evolved as the technologies and tools they use evolve, so we must consider the needs they currently have.
- You have data but you lack information: It is important to store data from various data sources. When you want a company to have a higher degree of competitiveness, good management is not enough Fragmentation: There are independent applications across all departments but there is no global vision of the company Manual manipulation: The need to generate analysis of Business and reporting has led to the use of BI and / or reporting tools that are not the most reliable. Little agility: Due to the lack of information, fragmentation and manual manipulation remain low.
BIG DATA CONCEPT
The term Big Data was popularized in the 90s by the American John Mashley, a theoretical computer scientist who published an article whose title was "Big Data and the Next Wave of Infrastress", that is, Big Data and the next wave of Infrastress.
We can define Big Data as the storage of massive amounts of information and data as all the necessary procedures to find repetitive patterns in them that facilitate their manipulation.
Due to the existence of Big Data, two types of information analysis are created: Business Intelligence and Business Analytics.
Comparison of Business Intelligence and Business Analytics
Now, there are also two important points to consider a great contribution
Different levels of BI
Internal level: Help with personnel management
External level: Produces Advantages over competitors.
Making use of this tool gives us a much broader picture than was initially believed.
CHARACTERISTICS OF BI (BUSINESS INTELLIGENCE).
According to the author Peña (2006), to understand how Knowledge Management (BI, Business Intelligence) is formed, it is necessary to consider three key concepts:
- Data: It is the symbolic representation, either through letters or numbers, isolated facts or objectives without meaning or explanation. Information: it is the result of organizing and treating a set of data that is applied to produce an additional meaning to that provided in isolation. Knowledge: this represents a greater degree of abstraction and synthesis of the meaning of the information by associating the context in which it is inscribed.
To have a clearer idea towards the approach in a company with the previous concepts, the following table is shown.
Information value chain
BI PROCESS
The BI process can be classified into five phases.
PHASE 1: DIRECT AND PLAN
At this stage, questions such as What does the company require? What are your needs?
The needs of the company are deduced and the objectives to which you want to reach are outlined
Phase 1 BI Procedures Cycle
Fig4 Cycle of phase 1 procedures
PHASE 2: INFORMATION COLLECTION.
All the information that is stored is collected regardless of the source, remembering that the data is not collected as an end in itself, but as a means to describe the facts behind the data.
BI Information Systems
PHASE 3: DATA PROCESSING.
At this stage, all the information previously collected is classified and processed and then analyzed, in most cases specific tools are created depending on the needs of each company to process the data.
Basic Cycle BI Processing
PHASE 4: ANALYSIS AND PRODUCTION.
This verifies the result of information obtained carried out by the analysts after a certain time.
Some commonly used techniques are:
- Block diagramProcess flow diagramAnalytical coursegramThread diagram and path diagramIconogramSynoptic diagram
PHASE 5: DISSEMINATION.
Reports are generated for their interpretation and validation.
Characteristics of a BI results report
CURRENT BI Currently a new concept called Agile BI Governance is being proposed, which proposes architectures, methods and tools necessary to implement an infrastructure for BI.
This definition allows knowing how to control a system of these characteristics, the policies to apply, control methods to implement and the governance of BI systems (Fernández 2008).
Agile BI Governance establishes 4 basic values, but depending on each organization it can include those that are related to its own strategy.
- Continued adaptability. Uncertainty and continuous change are the natural state of decision-making systems.. Joint Work. The operational user of the software must be an active part within the IT groups that develop the BI systems. Flexible hierarchies. The working groups within Agile BI Governance should be structured with flexible hierarchies that encourage the exchange of information: People Before Processes. Prioritize the delivery of information to the people who control the processes and not so much in defining the processes that people have to control. (Fernández 2008)
conclusion
We can conclude that Business Intelligence is a methodology of computer applications that gather and homogenize data from various sources internal or external to the company and transform it through a predefined architecture to give it a capacity for analysis and that the decision-making process is optimal.
It is configured as a strategic factor that gives companies a competitive advantage.
Currently business intelligence is no longer a luxury for companies, becoming a necessity to be competitive.
We can summarize that Business Intelligence tries to give adequate information to the right person at the right time.
Bibliographic references
- Fernández J. 2008. The 4 Values of Agile BI Governance. Available at http://sistemasdecisionales.blogspot.com/2008/01/los–4–valores–del–agile–bi html 2002. The 5 Styles of Business Intelligence: INDUSTRIALSTRENGTH BUSINESS INTELLIGENCE, 2002.Bellaachia A., Guven E. 2006. Predicting Breast, Cancer Survivability Using Data Mining Techniques. 2006. Fernández J., Mayol E. and Pastor J. 2008. Agile Business Intelligence Governance: Its justification and presentation.
