Many companies develop an information technology strategy that includes the use of business intelligence software in the decision-making process.
Business intelligence analytics combines two of the key information technology concepts into one powerful tool for businesses and organizations. To use these concepts productively, the organization requires trained and dedicated business analysts, business intelligence software, and powerful analytical tools. The main objective of a business intelligence analysis system is to identify trends and patterns in consumer behavior. This information is used to increase profitability, focus the company on customer needs, and provide greater accuracy in cost-benefit analysis.
Members of the business analytics team typically have a college degree in information technology, business administration, or data management. An increasing number of universities offer business analytics training programs, as this career is expected to see above-average growth. The primary task of a business analyst is to review the business processes used and look for technology that reduces the time, effort, and cost of completing these tasks. In many companies, the business analyst has several years of experience working in the actual business department. This experience is valuable as it provides insight into the tasks required, the tools available, and the challenges of doing the job well.
Business intelligence software is also known as data mining or data management software. This type of tool is used to provide a dedicated reporting area. Typically, the organization’s data is downloaded to the business intelligence analysis software tool. A series of relational database tables and queries are created to provide the basis for analysis.
Many companies develop an information technology strategy that includes the use of business intelligence software in the decision-making process. To really achieve a solid return on investment in this type of software, the company must have at least 10 years of detailed data on sales, purchases, personnel costs and other elements that affect the total cost of providing a service or good. Data cubes and reports can be created to show trends, identify product success and failure, and provide a more holistic view of business activity.
Data Analytics is true statistical analysis software and is best used by employees with formal post-secondary training in statistics and analytics. This software is often used to identify trends in data collected over a period of time. Since much of the data used for this type of analysis is also needed for a business intelligence tool, some companies have combined the tools and capabilities of these two software products into one.
In the hands of skilled employees, a business intelligence analytics tool provides snapshots of business activity and in-depth analysis of the same data. The ability to provide employees with personalized reports on performance in their areas of responsibility is a very powerful force in a business environment. Combine that with detailed analysis for senior management of the costs associated with various businesses, and the business has the tools it needs to make great business decisions.