Business Intelligence guide

Business intelligence can be defined as a set of business processes designed to garner and analyze business information. It is a vast category of application of programs that includes providing access to data to help an entrepreneur in his business decisions, task of query and reporting, online analytical processing (OLAP), statistical analysis, forecasting and data mining.

Big and small companies collect information to assess the business environment i.e. to acquire a sustainable competitive advantage in the business environment and also cover the areas of marketing research, industry research and competitive analysis. Every business intelligence system has a particular purpose (be it short term or a long term purpose) based on a vision statement or organizational goal.


Business intelligence involves different strategies. The BI task can be handled with the aid of application software. Application software is broadly categorized under class of computer software that enables a computer to function in accordance with what the user desires. The application software is different from the system software that integrates different capabilities of the computer but these are not directly applied to the benefit of the user. The application software is designed to help people be prudent in taking decisions by imparting them accurate, current and requisite information. This is precisely the reason that business intelligence is also referred to as ‘decision-support system' or DSS.

While framing and implementing a business intelligence program there are several crucial points to be borne in mind.
a) The goal or the purpose of the program, in simple terms the goal of the organization that the program will address should be considered. There should be a rough idea of how can the program will lead to better results.
b) Secondly the expense of adopting a new business intelligence program should be estimated. Along with this the risk involved in the business intelligence program should also be calculated and so planning should be done accordingly.
c) A person should also know that who all will be direct and indirect beneficiaries and who will pay for the initiative. Also see what will be the quantitative and qualitative benefits and about employees, shareholders, distribution channels etc.
d) The information so gathered must be tracked into well-defined metrics. A person should be sure of the kind of metrics adopted, its standardization and its performance.
e) A person should establish a procedure to reach the ideal way of measuring the requisite metrics. In this you must also acknowledge what methods to be adopted and the pace at which the organization will collect the data. Make sure that you know about existing industry standards if any and the best way to do the measurements.
f) The business intelligence program should be carefully governed to ensure completion of the desired targets. You may have to make several adjustments or modifications in the program from time to time. The business intelligence program should also be tested for accuracy, reliability and validity. One should also know that how the business intelligence initiative entails a variation in results and how much change was a chance product.

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Mansi Gupta

Mansi gupta recommends that you visit http://www.businessintelligencelowdown.com/business_intelligence/index.html for more information on Business Intelligence.

Why Companies Need Business Intelligence

"We need information but all we have is data!"

This is the message managers often complain about. If there is anything that IT has ever done right it is the ability to collect nearly every single bit of data imaginable -- from data that is written or keyed-in to a computing device, to images like signatures and X-rays. We even record voice and video these days.

One manager told me over coffee: "I've got data coming out of my ears. I don't know how to make sense of it!"

Part-time solutions have been around for many years. I say "part-time" because the solutions solve only "part of the problem, part of the time." Product marketers have labeled these as business intelligence (BI) tools.

Wikipedia defines business intelligence as applications and technologies which are used to gather, provide access to, and analyze data and information about their company operations.

The goal of BI tools is to allow anyone using the information provided to make better business decisions. But there are a few problems with traditional BI tools.

BI is mostly associated with report delivery. Usually there are few people within an organization who actually know how to use BI tools. These users hold on to this 'control' because they probably get a kick out of the power they have over others.

More importantly, such specialty creates job security. But the net effect has been dissatisfaction with what was purchased, and concern over making further investments in the future.

BI tools' failure rests in the business unit's failure to communicate their needs and IT's failure to ask the right questions. The result is solutions that fail to deliver expectations.

"Previous perceptions of BI didn't factor the value provided in managing and making sense of the information assets contained within every enterprise," says V.R. Srivatsan, vice president of Asia South for Business Objects.

"However, this is changing as both technology and the business will with which to use it are maturing resulting in BI becoming a key business process driver within today's enterprise," Srivatsan adds.

BI wish list

Suganthi Shivkumar, managing director for ASEAN & India at Hyperion Solutions, notes that business managers want tools that give them increased insight into the dynamic nature of the global marketplace and allow them to identify areas of profitability.

They expect IT to unlock information that is potentially trapped between silos of applications scattered throughout the enterprise.

"Today's regulatory institutions and business climate are very unforgiving towards any kind of expectation variances or financial discrepancies that may be construed as malfeasance or misconduct. This forces companies to put a lot of rigor in their planning and reporting processes. To produce reports with confidence is critical in the choice of BI tools," Shivkumar says.

Having a single version of the truth is also just as important. Finally organizations want to have clear visibility of their operations including accurate demand-revenue-expenses forecasts to better deploy resources and capitalize on opportunities.

Business intelligence has emerged as a strategic initiative and investment priority for companies. But because departmental objectives vary, it would be easy to lose sight of the core objectives of the company and to deploy BI tools (sometimes from different vendors) to satisfy those needs.

The net result of such a strategy is a proliferation of disparate systems that not only do not effectively inter-operate with each other but complicate the matters.

The good news is that despite all the not-so-glorious past of BI tools, CEOs still believe that BI tools play an important role in today's competitive environment.

Global competitive pressures, and mergers and acquisitions are putting constant pressures on restructuring and finding additional sources of profitability. CEOs want insight to help them steer the business through these turbulent times.

For decades companies have been spending millions on enterprise resource planning (ERP), customer resource management (CRM) and data warehousing (DW) tools. With so much information locked in repositories, CEOs are putting pressure on IT to unlock information trapped in those systems.

After Enron, it's no longer enough to produce reports on time. Accuracy and consistency of reporting have become paramount and discrepancies can mean jail time for even the rich and powerful.

Who is responsible?

Changing the way things get done

Business intelligence has emerged as a top strategic initiative and investment priority for CEOs, but not surprisingly department objectives vary. Having learned from the past, IT is working to standardize on the type of tools it will deploy across the organization.

Users from across the business, not just managers, want quality information on demand, and are no longer willing to wait for IT to serve it. They also want the flexibility and ease of use in engaging tools that they are familiar with (the nearly ubiquitous use of Microsoft Office). And they want their information delivered consistently.

Business users need tools and solutions which not only can deliver information, but can manage information and produce information by integrating with their current systems. Finally they need to be able to tie operational information to financial information.

Minimizing the risk of failure

Business author and management expert Peter Drucker said there is nothing worse than doing the wrong thing well. Why does this happen? Because people don't understand the company plan or have visibility into how the business is performing.

It happens because people are not accountable for their part of the strategy, or can?t rely on their information to make good decisions.

One of the greatest failings of BI has been in how it gets deployed. Intelligence demand often starts out at a specific department where the scope is tactical and thus deployment is departmental in scope.

The result is a proliferation of tools serving the unique needs of specific departments. Unfortunately, the lack of consistent visibility across the enterprise means that these tools will have limited impact and may not even be aligned with the corporate objectives.

Have you read through a BI tool manual lately? You will notice that it isn't designed to be used by a layman? Many of today's BI tools are used by so-called power users who act as gatekeepers of the information. The result is BI tools do not get widespread adoption.

"BI tools must not be limited to those within an organization based on technical skills or of a certain department. To maximize the adoption of the BI tools within the organization, all employees should be given access to the information they need to make business decisions," advises Shivkumar.

BI is no longer just about the report, but what's IN the report. Just as business dynamics are constantly changing, BI tools must evolve from a report-centric to information-centric approach that delivers "actionable" insight.

Therefore, it needs to be universally recognized within the organization that BI supports improving performance. BI is a tool that is able to deal with the past, present and future and is the power to provide insight that leads to true competitive differentiation.

The only way to maximize the value of BI is to focus on the total picture -- information management, production and delivery that ensures consistent information, and the ability for users to analyze and re-purpose data.

Only then can a standard be identified and adopted across the entire enterprise.

Peep at the future

The current software trend is that of Software as a Service (SaaS) and BI tools are not immune to this trend. In addition, search and web collaboration are functionalities embedded in what vendors are calling the Business Intelligence 2.0 revolution.

Srivatsan cites the example of an emergency room doctor who could use search within BI to scour a broad set of data sources to find out how many instances of food poisoning have been reported in the past 24 hours, where people are affected, and determine common causes.

This real-time access to trustworthy data could help medical professionals spot and prevent widespread outbreak of food-related illnesses.

Companies can also look forward to more collaborative BI such as instant messenger BI where a sales team could have an IM discussion over a dashboard that shows sales performance below objectives, thereby speeding the process for establishing the next steps for addressing the situation.

Imagine being able to call upon BI tools to provide analysis of data as it comes in. This is, after all, what business managers want -- the ability to analyze and perform "what if" scenarios with data as it comes in from the field. No waiting for periods to close. What you have is the ability to make decisions at the right time, right place and in the right context.

Final advice

Gartner's vice president for research, Andreas Bitterer believes that business intelligence needs to be a continuous process for it to be of value. So stop thinking of it as a project.

Srivatsan: "Few organizations have a comprehensive enterprise BI strategy or clearly defined BI standards. Companies with a patchwork of disparate BI technologies are facing the consequences, including, rising deployment, maintenance and training costs, inconsistent information, and frustrated employees who cannot get timely answers to business questions.

By reducing the number of BI tools, companies can save money, have confidence in and control over business data, and give employees the information they need to do their jobs well, he adds.

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Jose Allan Tan

Jose Allan Tan is a technologist-market observer based in Asia. A former marketing director for a storage vendor, he is today director of web strategy and content director for Questex Asia Ltd. He also served as senior industry analyst for Dataquest/Gartner and was at one time an account director for a regional PR agency.

Business Intelligence – What, When and Why?

Increasing competition and over flowing data can sometimes be tough on the decision-making system. The need for filtering and using relevant data is an integral part of targeting any business strategy. Compiling huge data from various sources and setting boundaries for relevancy is the primary necessitate of most business types like banking; retail marketing; hotel industry or information technology.

What is Business Intelligence

Business Intelligence is a set of applications and technologies which facilitate gathering, analyzing, filtering and storing relevant data for an organization. This fact-based information is further used for several decision-making support systems in a business enterprise. The decisions made can be for mission-critical operations; individual departments or generated on user demand. Business Intelligence applications are hence designed based on the nature of desired output.

Consider a business scenario for a textile retailer. This organization has to bridge databases from various departments in order to produce a rich data source for generating analytical reports for all decision-making exercises of the company. The data could be coming from divisions like sales; customer relationship; supply chain management; human resource and others. The challenge is to use the right data at the right time!

Key Stages of BI

BI tools simplify the data gathering process by providing precise information packets relevant to a particular user or group of users. Following are the key stages of a BI application life cycle:

? Data Sourcing: Gathering data from different sources like databases, media files, images, text documents and web pages.

? Data Analysis: Deriving useful information from the gathered data through various analyzing techniques.

? Situation Analysis: Forming relevant information packets depending on the type of decision-making requirement.

? Risk Analysis: Weighing the data on various risk factors to derive at a decision.

? Decision Support: Implementing the BI software for good decision making.Significance of BI applications

? Helps the managers to understand the new market trends; analyze the changing customer needs and derive savvy service or product based on the study.

? Enables to gather and analyze large unstructured data and transforms them into relevant information cubes supporting “use only what you need” concept.

? Provides data for multi-dimensional analysis helping the managers to visualize various economic trends, changing market share and probably anticipate the competitor’s action.

When do you need Business Intelligence

? Lack of business analysis or standardization processes

? Lack of skilled staff or inefficient optimization of skill

? Absence of effective project management system

? No understanding of garbage-data and business development relationship

? Absence of distributive work methodology

Business Intelligence provides fresh and updated information for all cross-organizational initiatives making critical business decisions possible across all domains

Maia Intelligence offers various business intelligence reporting software solutions as per client’s requirement. For more information visit here - http://www.maia-intelligence.com.


About the Author
Author Name: Sanjay Mehta

Designation: CEO, MAIA Intelligence

Website: http://www.maia-intelligence.com/

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Know the Best Business Intelligence Strategy for your Investment

When you are investing your money on a certain business, you would want it to be successful. You would not want something which you have worked hard for to go down the drain within a matter of time. In order for you to make sure that you will rise above the challenges when setting up a business, you need to come up with an effective business intelligence strategy. But before you develop a strategy, you have to know more about business intelligence. In general, business intelligence is learning how the minds of your clients work. This way, you will be able to determine the right things to do in order to serve them well. On the other hand, it is also about sizing up your competitors so that you will get to emerge amidst great competition. What is more, business intelligence is about knowing the weaknesses of your organization and strengthening those weaknesses. When you are able to learn more about business intelligence, you will know how to come up with a business intelligence strategy that will surely make your investment successful.


 Back Up Your Business Intelligence Strategy with Effective Tools


 Your organization should plan a business intelligence strategy carefully if you want to rise above the competition. You should put in mind that when you work together as one group, you will be able to come with the best tactic to make your business victorious. Your team should continue to be goal-oriented and united. If you want to make sure that each member of the group possesses the right knowledge, choose from your organization wisely. A team which has expertise over business intelligence will help you develop an efficient business intelligence strategy. Other than great teamwork, you should also back up your strategy with the best tools. Examples of these tools would be intelligence applications or management software. Even though your business plan sounds just perfect, it will never be one unless you pair it with the right tools.


 The Huge Importance of Developing a Business Intelligence Strategy


 If you want to direct more profit into your business, you must comprehend the importance of a business intelligence strategy. Once you are aware the benefits that it can provide you, you will be able to come up with an intelligence solution which suits the objectives of your business. You should make it a point to create a tactic to make your business intelligence venture more successful. However, it does not have to end only with awareness and comprehension. Careful planning and development of ideas are also needed. Your business preparation should be thorough before you think of implementing any business intelligence strategy.


 What Makes Your Business Intelligence Strategy Successful?


 Before you develop a business intelligence strategy, you have to know the certain factors which make it more effective. There are major factors which define an efficient intelligence tactic. These include the following:


•    The continuous alignment of your business’ goals with your intelligence strategy.


•    The practical integration of business intelligence applications into the major workflow and processes of your business.


•    Constant consultation with the right members of your organization, such as business authorities.


•    Leveraging the practices of your business with technology.


•    The utilization of efficient definition process for your business intelligence strategy.


 Business Intelligence Strategies Change with the Growth of Your Business


 Your business does not remain within a certain level. As time passes, your investment will expand and grow. This goes especially when your business intelligence strategy is effective and successful. With the growth of your business, your strategies should also change. This is due to the fact that you need to improve your tactics in order to comply with the growing demands of your clients. Your competitors are also thinking of ways to gain victory. This is why you need to enhance your business intelligence strategy all the time to gain an edge against them.


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Consult with the Internet marketing company, webefforts, about your business intelligence strategy.

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Business Intelligence (BI) Software Market in China

Business Intelligence (BI) Software Market in China 2008-2012

 Business Intelligence (BI) refers to the applications and technologies used for gathering, providing access, or analyzing information about a company's operations. Business Intelligence systems can help companies have a comprehensive knowledge of the factors affecting their business; for example, metrics on sales, production, and internal operations. Various tools and applications of BI include query reporting & analysis tools, data mining tools, and data warehousing tools. ( http://www.bharatbook.com/detail.asp?id=129591&rt=Business-Intelligence-BISoftware-Market-in-China-2008-2012.html )

 The constant requirement of business organizations to get an insight into the current trends and new market opportunities; along with the complete information on suppliers, distributors, and customers is driving the demand for Business Intelligence applications. Further, the necessity to turn knowledge into better business decisions by integrating information from different business functions (marketing, finance and operation) is also driving the demand for Business Intelligence applications. Business organizations seek BI software to understand their business and customers better, which helps increase their market share.

 In China, Business Intelligence is an evolving strategy, and is presently going through the developmental phase. BI is becoming an integral part of business processes in many large organizations. The increased IT spending by the industries (including government and finance) and constant support by the government organizations in the development of IT infrastructure favor the growth of the BI market in China.

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How Business Intelligence Gives A Retailer Insight Into Future

Wouldn’t it be grand if retailers could have a way to predict the future of their business? Well, many retailers are doing just that.

This store in New York once had a hot-selling item which was discovered by management from an instant report they pulled, alerting them to order more of that item for that particular store before they ran out of stock. That’s a pretty prognostic report, I’d say.

That report was a Business Intelligence (BI) report.

The term “business intelligence” was first used in a 1958 article by an IBM researcher Hans Peter Luhn, and defined as “the ability to apprehend the inter-relationships of presented facts in such a way as to guide action towards a desired goal.”

You might need to read that a few times to fully grasp the concept.

It wasn’t until the late 1990’s that the business intelligence idiom became widespread, bringing BI reporting and business analytics together.

The BI technologies essentially provide reporting for both historical and current information which can then formulate predictive views of a business, and help support better business decision-making.

Although this might be a dry subject for some retailers, the future of BI applications and practices is here today, and will lead to 40 percent of the total budget spending by 2012, according to a 2009 Gartner paper.

The same paper stated that, through 2012, because of lack of information, more than 35 percent of the top 5,000 companies globally will fail to make insightful decisions about significant changes in their business and markets.

I don’t want you to be among that 35 percent who fail to make insightful decisions. You can use the tools at hand today to enable you to emerge as a company who uses BI to gain insightful information and formulate collaborative decision-making.

Another instance of using BI involved one of our clients who opened a store in New Jersey which carried lots of white T-shirts of all varieties. Not only did the store owner have many types of white T-shirts, but she had multiples of the same shirts from different vendors.

A BI report showed her that she could get the same shirt from the same vendor for a better profit margin, and didn’t need to use various vendors.

So, that retailer was able to make an intelligent decision based on margins. This one particular report let her see how profitable the item was for her (which shifted on a regular basis), as well as showing her vendor information to compare pricing and profit margins.

There are other ways that BI takes data and presents it in a way that helps a retailer predict the future so they can respond accordingly. You can:

• Make faster and better decisions by seeing what is selling and not selling and act on it quickly
• Improve profit margins by seeing how you can get more of an item that is giving you a good margin and get it into the store
• View traffic patterns to improve business and store operations
• Access key metrics by compiling info of Key Performance Indicators (KPI’s)
• Identify and adapt to changing business trends easier by viewing graphical representation of trends
• Maximize returns by looking at existing data sources and actionable data
• Generate more sales by seeing what products are selling and where it is selling (what stores) so you can quickly get more of it
• Improve bottom line by having info at your fingertips
• See over-priced items which are not selling unless it is marked down
• See best selling price point for a particular product category
• Plan and execute expansion easier by seeing if stores in a certain area are taking off and then leverage current state of real estate to open more stores
• Improve customer service by seeing how you can serve your customer better by seeing what the customer is buying and giving them what they want quicker.
• React to problems quicker by looking over the store performance info.
• Improve allocation of space in a store by looking at what percent of store is allocated to each area by square feet.
• Avoid employee theft with info on items that are discounted too much and/or showing bad profit margins

These are just some reporting benefits that help enable a retailer to apprehend facts (data) which guide them towards a more successful business.

With industry research indicating a ROI of up to 2,000 percent, BI should be a key component of a retail system’s architecture.

I hope you’ll catch the wave of BI and ride it all the way to more success.

http://onestepretail.com One Step Retail Solutions

About the Author

CEO One Step Retail Solutions. Scott Kreisberg is a pioneer in being the first in selling point of sale software systems to retailers in the 80’s when they were still using cash registers, and first-handedly changed the face of retailing.

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