Importance of Business Intelligence Tools
Companies and organizations as they do business collect large amount of data. Known
as the corporate data, it consists of important information dealing with business
operations, current business trends, business strategies of their competitors, latest
events and fads and so on. This data needs to be consolidated for future reference
especially when companies and organizations want to plan strategically their business
processes. Moreover, interpretation and analysis of this data can provide valuable
insights into their business operations. This in turn would help to identify areas that
need improvement, achieve operational efficiency, increase sales, reduce costs, identify
new business opportunities and make powerful business decisions.
Business intelligence is the identification and analysis of company’s disparate data to
extract meaningful information for more effective decision-making. Forrester Research
defines Business Intelligence as “a set of methodologies, processes, architectures, and
technologies that transform raw data into meaningful and useful information used to
enable more effective strategic, tactical, and operational insights and decision-making."
However, since mountains of data are developed and collected, companies and
organizations need effective tools to manage data efficiently. With the volume of data
growing at an unprecedented rate, what is required are effective tools that do more
than just organize and deliver information. With the help of eminent market players
who have been ranked among the best product development companies, organizations
can develop tools that can analyze and interpret data quickly and provide them the
much-needed competitive advantage. Let us look at some of the important functions of
business intelligence tools.
Online Analytical Processing (OLAP)
OLAP is a category of software product development tools that helps to selectively
extract information from multidimensional data and view it from multiple perspectives.
It comprises of three important operations and they are consolidation, drill-down, and
slicing and dicing.
It is the process of extracting hidden information from large mountains of data and
delivering it in a way that is comprehensible and understandable. Data mining tools
help to forecast future trends.
It is the process of extracting information from event logs to analyze the processes and
thereby identify the problem areas. Process mining provides the necessary tools and
techniques to extract process, control, data, organizational, and social structures from
It is the process of analyzing the business data for developing recommendations to
improve business performance in the future.
Complex Event Processing
It is the process of identifying the most relevant events from the cloud of events
happening in a company or organization; analyze the impact or effect of those events so
that the most appropriate action can be taken at the right time.
As the name suggests, it is the process of analyzing current and historical facts to
provide forecast on future events.
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