Let’s talk about Business Intelligence tools. This term refers to the software tools used to analyze a company’s raw data. These tools scan data that usually has been stored in a data warehouse.
Business Intelligence tools can handle a large volume of unstructured data and help organizations identify, develop, and transform data into new insights and strategic business opportunities.
Business intelligence tools have become a way for companies to monitor data and generate business insights. Business intelligence tools help organizations by finding new insights, identifying new market trends, and making the decision-making processes faster. Business intelligence tools can leverage data and turn it into actionable information so that companies can obtain benefits from it.
The main goal of business intelligence tools is to create an easier and more useful way to analyze data for business purposes. By identifying new opportunities and developing a data-based strategy, organizations can achieve a competitive market advantage and enjoy more stability.
Business intelligence tools can include a large variety of advanced analytics methods, such as data mining, text mining, predictive analytics, and data analytics. Data analysts and professionals were the first ones to start conducting analyses and producing results and reports using business intelligence.
Identifying business intelligence tools
Business intelligence tools can be divided into general categories:
A spreadsheet is one of the most interactive Business Intelligence tools. It helps organizations analyze and store data in a tabular format. Results appear in rows and columns so data can be easily sorted and arranged. This format also allows companies to calculate numerical values from their data.
This capacity to calculate data values by using mathematical formulas makes the spreadsheet a unique Business Intelligence tool.
- Reporting and querying software
This business intelligence tool extracts, classifies, abstracts, and submits selected data. Afterwards, it can be used to generate easy-to-understand reports from diverse data sources.
- OLAP: Online analytical processing
OLAP business intelligence tools allow us to perform sophisticated multidimensional data analysis. You can also choose to analyze and view from various viewpoints. OLAP Business intelligence tools involves three different functions:
Slicing and dicing allows users to sort out a precise set of data, as well as view “slices” of data from different viewpoints. The drill-down allows users to get right down to the details of their data. Consolidation, also called roll-up, is about computing all data relationships from your aggregate data, which can be calculated in various dimensions.
- Digital dashboards
These dashboards are business intelligence tools that present summaries of business results by process. These indicators monitor progress of set goals and make necessary decisions at appropriate intervals and within a limited time. Dashboards are a decision support tool for managers, as they can provide projections and forecasts for the future.
- Data mining
Data mining is a set of algorithms from various scientific disciplines (like statistics, artificial intelligence and machine learning) that build models from data, find interesting patterns according to pre-established criteria, extract maximum knowledge, and transform the data into an understandable format that can be used for analysis.
- Data warehousing
Data warehouse concepts refer to a database that helps us collect, order, log, and store information from operational databases, and thus provide a foundation for decision support in business. Data warehouse concepts are a key part of Business Intelligence. They are used to store current or past data, and are also used to create analytical reports for researchers.
- Data visualization
Data visualization is a general term that refers to making data easy to understand by converting it to a visual or graphic format. This is a business intelligence tool that allows us to highlight correlations that are often undetectable in text-based data. Data can be more easily recognized and identified thanks to data visualization tools.