The definition of Business Intelligence is best defined as the process of gathering information that can help a business be successful. That information is derived from data collected by the business' day to day operations by statistical and trend analysis. Business Intelligence can provide a business with anything from knowledge of it's customers requirements to forecasting future sales. Business executives and managers can use Business Intelligence to make both short and long term decisions that are good for the business.
In order to utilize Business Intelligence, a business must first accumulate all of it's data into a centralized area, separate from the operational application databases, in order to facilitate analytical reporting. The centralized area used to store and analyze all of a business' data is called the Data Warehouse or Operational Data Store.
In today's world of ever evolving technology, there are several Business Intelligence Solutions that are designed to help business executives and manager sort through the analyzed data, and even bring together data from different applications. Some of the tolls available in Business Intelligence solutions include data modeling, data mining, and On-Line Analytical Processing (OLAP). OLAP tools allow a user to look at data through different cross sections, called dimensions, and using different quantifiables, called measures. It also allows the user to change the granularity of the data by 'drilling in' or 'drilling out'.
The better business executives and managers understand their business, the better decisions they can make. Business Intelligence is derived from analytical reporting and trend analysis own the business' own data. What better way to understand a business than intelligence derived on your own data.
