xBusiness intelligence is the capability to collect, sort and analyze raw data from the market environment, and convert it into information to assist corporate enterprises in optimizing their decision-making process. Business intelligence implies a set of strategies and tools that focus on knowledge creation and managing this knowledge from an analysis and scrutiny of the existing data that a corporate enterprise has.
Charles Phillips of Infor- one of the largest business intelligence companies in the USA says that it is vital for all companies big and small to opt for business intelligence software programs. The Charles Phillips Infor team of experts guide and advise their clients when it comes to creating customized software programs for their clients.
In the context of information technology, business intelligence refers to a system of methods, applications and technologies that allow a corporate enterprise to collect, sort, group and transform data. This refined data allows such corporate enterprises to analysis and generate further information that enhances their decision-making capacity. Within its ambit, business intelligence covers the current comprehension of functioning of corporate enterprise and anticipation of future events in order to make available a body of knowledge for effective decision-making.
In business intelligence, data are the minimum semantic units and the basic elements of information. Data alone is not relevant to make effective business decisions like a person’s phone number or name. It is possible to derive data from an internal or external source of a corporate enterprise and can be either objective or subjective. It is also possible for such data to be either qualitative or quantitative.
On the other hand, in the realm of business intelligence, information is a refined form of data. Unlike raw data, information refers to a group of processed data, which is relevant, has purpose and context. Information is critical for decision-making and removes any uncertainty. Information has the ability to change a business executive’s perception on something and impacts his/he value judgment and behavior.
Knowledge refers to a combination of experience, values, information and expertise that form a viable framework to integrate new experiences. Information can only become knowledge when it performs it needs to perform the following functions:
- Make a comparison with relevant elements;
- Predict the consequences;
- Search for appropriate connection; and
- Communicate with other carriers of information.
Business managers are in a position to formulate strategies and define both the strengths and weaknesses of a corporate enterprise after obtaining knowledge of the business from relevant business information.
Business intelligence is a broad concept that utilizes intelligence from various organizations. The critical areas from that contribution to strategic decision-making for a corporate organization are market intelligence, competitive intelligence and business intelligence.
Market intelligence refers to a strategic management area within a corporate enterprise that allows an in-depth analysis of market conditions and evaluation of the enterprise’s performance within the market by the continuous of information.
Competitive intelligence, on the other hand, refers to a process of collecting, scrutinizing and evaluating information regarding the corporate enterprise’s competitors to support the accomplishment of enterprise’s corporate goals. The constant flow of this relevant information allows a corporate enterprise to know its competitors’ activities in the financial and commercial arena.
Finally, business intelligence says the Charles Phillips Infor team indicates a set of relevant tools to extract business experience. It refers to a set of distinct dynamic customer bases like sales trends, niche values and profitability segments.