This article is submitted by Nupur Dave
The term business intelligence (BI) was coined by Howard Dresner in the early 1990s. He defined Business Intelligence as “a set of concepts and methodologies to improve decision making in business through use of facts and fact-based systems.” In a time when data warehousing was considered leading-edge he created the vision that led to the development of business intelligence, as it is known today. The once visionary BI is now commonplace and in near future a momentous transformation is about to take place.
BI is all set to bring information democracy where end users across an organization will be able to view information related to their segment. Further, with the rising consumer expectations there will be demand for capability requirements of BI as well.
Information Democracy with Business Intelligence
BI plays a crucial role in providing cost-effective, comprehensive insights into business processes that help organizations make informed, strategic decisions that assure enhanced business results. Not long ago, BI was the domain of statisticians and corporate analysts. Only the selected few could access BI. Today, BI is spreading to nearly every strata of organization, as companies attempt to provide critical data to business users who need it to perform their jobs. It is quite evident that BI is instrumental in bringing information democracy and it provides everyone the insights they require – delivering information to the right people at the right time across the enterprise. More and more organizations are expected to empower their employees with BI for productivity and operational gains.
Business Intelligence and Performance Management for competitive advantage
Today, when economic downturn is adversely affecting the world market, making insightful decisions about major changes in their business and markets has become crucial for organizations. They need to reconsider their strategies and operating plans. Only companies that can anticipate emerging trends and opportunities, refocus business strategy and vision, and align resources to maximize performance can effectively deal with the adversities of economic downturn and gain competitive advantage. BI and Performance Management brings business sensibility with enhanced visibility and insights, by delivering accurate and latest information to the right people for faster, improved, strategic and tactical decision making. Companies have increasingly starting realizing the importance of timely performance information to improve results, which will further make way for the rising demand for BI and Corporate Performance Management Solutions.
Business Intelligence via Software As A Service (SaaS)
It is being anticipated that in the coming years a number of organizations will have an industry-specific analytic application delivered via software as a service (SaaS) as a standard component of their BI portfolio. Information aggregators will bank on SaaS to deliver domain-specific analytic applications, which are made from industry data they assemble, and bring the balance of power in the BI platform market in their favor. Organizations will share their data with only those aggregators that can assure security as well as confidentiality. Thus, countless information aggregators offering SaaS analytic applications might appear; however, a virtual monopoly is expected to remain within each vertical niche owing to the high barricade that blocks the entry for others.
Business Intelligence and Social Software
Collaborative decision making will soon become the norm, which amalgamates social software with BI Platform capabilities. With social software users can tag assumptions made in the decision-making process to the BI framework, which significantly enhances the business value of BI as it ties all the good. Take for instance, in order to decide how much to invest in marketing a new product, users can tag their assumptions about the future sales of that product to a key performance indicator (KPI) that measures product sales. Whenever the KPI surpasses a threshold the BI platform would send alerts to the user to inform the decision makers about assumptions that no longer hold true.
With the advent of social software it has become easier to utilize the upsurge of interest in informal collaboration. As an alternative to the advancing of the usual top-down decision-making initiative, social software will be employed to collaborate and make decisions.
Business Intelligence Across All Sectors
BI is on its way to become an integral component of every type and size of organization across all sectors, including Real estate, IT, mobile devices, governmental agencies, scientific and engineering communities and R&D labs, banking and insurance, to name a few. BI can effectively deal with industry-specific constraints, operations and objectives thereby helping organizations better understand their customers, optimize their operations, minimize risk, manage revenue, and ultimately improve their results. More importantly, it is expected that in a couple of years BI will soon replace the gut-feel management with real data-based decision-making.
Business Intelligence For Real-Time Data
Today, consumers are demanding faster and improved services from businesses. As it has become imperative for companies to pay attention to consumer satisfaction in order to stay competitive they are depending even more on BI. They now demand near real-time analysis for intelligent decisions for business success. The rising demand for near-real-time data analysis is making way for a new framework for business intelligence. BI 2.0 is the recently-coined term to describe the acquisition, provision and analysis of real- time data, which was earlier lacking in BI. BI 2.0 is a part of the constantly developing business intelligence industry and indicates the next step for BI.
In near future, companies will switch from the traditional model of making business adjustments on a quarterly basis to business intelligence and performance management tools to make real-time shifts in strategy to respond to changes in the marketplace.
Over the coming years, business intelligence will undergo transformation that will have a broad and lasting impact. It will revolutionize the way that we think about business and the way business decisions are made. It’s only when thoughtful analysis supersedes gut feeling and conventional perception, we will enter the next level of business intelligence that will empower businesses with the capacity to reason, prepare, forecast, resolve issues and innovate.
Reference : Nupur Dave (http://blog.sqlauthority.com)