Business Intelligence (BI) Definition :

Business Intelligence can be explained and defined as broad category of applications and program technologies designed and developed for assisting business organization to take better financial decisions. Business Intelligence aids in taking decisions regarding storing, analyzing, and providing quick access to the relevant data. Business Intelligence applications help enterprises in decision support, query and reporting activities, online analytical processing (OLAP), statistical analysis, forecasting and data mining.

Business Intelligence basically refers to having a comprehensive knowledge of all the factors that affect a business. When talking about Business intelligence it is assumed that the enterprise has an in depth knowledge about the determining factors such as customers, competitors, business partners, economic environment and internal operations to make a effective and good business decision. Moreover, Business Intelligence helps to take good and qualified decisions.

Significance of Business Intelligence (BI) :

Business Intelligence as explained helps an enterprise to take calculated and well informed decisions which as effect provide a competitive advantage. Business Intelligence yields best results when any enterprise is able to contemplate and use information from indicators in the external environment and forecast the upcoming economic trends accurately. When this intelligence is gathered effectively and used precisely in the decision making process, the organization benefits before the competition does. Business intelligence mainly aims at improving the timeliness and quality of information. The process helps an enterprise to understand the trends and take decision accordingly. Business intelligence reveals and enterprise about its:

1. Market share i.e. position of the enterprise in comparison to its competitors.

2. It reveals the changing patterns in customer behavior and their spending patterns.

3. BI reveals and helps to understand customers preferences.

4. The process reveals the capabilities of the enterprise.

5. It also reveals the market conditions, future trends, demographic and economic information.

6. BI helps to understand the changes in social, regulatory and political market.

7. The BI process informs about what other firms are doing in the market.

This information on business intelligence helps an enterprise to take decisions and make changes accordingly. As a matter fact in todays competitive scenario for any enterprise to survive and thrive it is very important to react instantly and rightly to the changing nature of the market and economic trends. Business Intelligence here helps the enterprises to use the information and respond quickly to the changes.

Factors Influencing Business Intelligence :

Business Intelligence helps in decision making. There are various factors that influence a decision taking process which also affect Business Intelligence.

1. Customers

Customers are the nucleus of any companys performance and success. Since all activities of any company are eventually directed towards customers they are most important factor influencing Business Intelligence. Business Intelligence enables a company to gather information regarding the changing needs and preference of customers. The process informs the enterprise about the changing spending habits of the customers. This intelligence helps to company to come with innovative products catering to the changing needs.

2. Competitors

Most enterprises in the market today aim at customer satisfaction and maximum profits.

In such competitive conditions, keeping one step ahead of the competitors is the very important for any enterprise to be successful. Business Intelligence enables an enterprise to take an informed decision by telling what the competitors are doing.

3. Business Partners

Business Intelligence bridges the communication gap between various partners of the same enterprise. It enables equal and complete share of information between all partners thus preventing inefficiencies. For instance the intelligence process allows easy access to the suppliers to see their inventory level, performance metrics and other supply chain data thus improving the supply chain management.

4. Economic Environment

When making business decision on keeping the understanding of the economic environment generally the state of economy and other key economic indicators are considered. Business Intelligence provides the required information on the economic factors and enables the company to take calculated decision regarding expanding and restricting business operations.

5. Internal Operations

These refer to the day to day activities that go within the organization. For building a successful enterprise one is required have an in depth knowledge about the internal working of the business - from top to bottom. At times a certain decision taken by the management generates a negative impact on the enterprise. To avoid such circumstances Business Intelligence provides the management, information on how the entire enterprise works.

Business Intelligence Technology :

Companies involved in the Business Intelligence processes use specially designed applications and software to gather, store, analyze and provide access to data, and present that data in simple and useful manner. These software are designed intelligently keeping in the mind the demands of current business and market conditions. They aid in business performance management. Besides, the software helps enterprises to make better business decisions by providing them accurate, current and most relevant information in the right time. Often warehouses are also used as they offer with a logical collection of the required information. For the success of any Business intelligence technology mechanism, companies must address the following technical issues:

1. Making the automation secured by creating specified user access to the warehouse.

2. How much is the data volume(capacity) and how long it will be stored (data retention)

3. Considering benchmarks and performance targets.

Benefits of Business Intelligence :

Business Intelligence offers with a spectrum of benefits to an enterprise. The information gathered using Business intelligence reduces guess work within the organization. The process helps in bridging the communication gap between the departments while coordinating activities. More over the process develops promptness in the company enabling it to respond quickly to financial conditions customer preferences and supply chain performance. Business Intelligence helps in generating and gathering most useful information that helps the enterprise to take decisions. The decisions turn to be more fruitful as the intelligence process provides the most accurate information at the right time. Business intelligence in total enhances the overall performance of an enterprise.

In todays instant and fast changing world availability of right and most accurate information at the right time is very crucial. Considering the cut throat competition in the international arena the importance of Business Intelligence has magnified considerably. With the rising use of the Internet and its rising dominance in international commerce the process of Business Intelligence will and has become more fast and accurate.