Business Intelligence 101. Why Being "Data Driven" Matters
As the year rolls onward, this much is clear: the availability of data is forever changing the way businesses are run, but only if companies find a way to interpret and use it. Business intelligence (BI) software
enables executives and managers to harness data and steer their companies with fact-based insight rather than opinions and ideas. If you're unfamiliar with business Intelligence, we explain its concepts and
why your company should care.
Business intelligence terminology
In order to get started planning how you will use BI, you'll need to understand the common terminology used in the field. BI terms can be sorted into four different categories.
- What Happened? Standard reports: Records of past activity and data.
- Why did it happen? Spreadsheet analysis: The analysis of data using standard productivity software to evaluate or anticipate business performance under a given set of circumstances. Ad-Hoc query: Software that enables
the users themselves to create specific, customized data queries. Visualization tools. Software that helps users understand data better by creating a visual representation of it.
- Monitoring. What happening now? dashboard: A central display of all useful, actionable data and metrics for an organization. KPIs: Key performance indicators (KPIs) are particular measures of performance, such as
click-through rate, return on investment, etc. Performance management: Any system designed to ensure that all performance goals are being efficiently met. Predictive modeling: Any model that attempts to predict the
probability of an outcome. Data mining. A way of extracting patterns and correlations from large amounts of data.
The rising popularity of business intelligence
Business intelligence is nothing new. In fact, BI tools have been in existence for over 20 years. However, the field has been experiencing a spike in Internet in recent years. Aside from the sheer abundance of available data,
there are two significant trends in business and technology that explain this.
- Consumerization. Business users are demanding BI insight instead of just data analysts. In fact, business people now control roughly 40 percent of the BI software purchases.
- Mobility. The mobile technology market has exploded in the past five years. In 2011, tablet sales in particular rose 260 percent. These devices are perfect tools for tapping BI data wherever you are.
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If you're not sure how to harness the power of your own business intelligence data - or even where to begin - the team at Domo can help. Domo is a new form of business intelligence delivered as a service that helps
managers and executives transform the way they run their business. To learn more, visit www.domo.com/BI.
Sources: Cmo.com (http://www.cmo.com/cmo-survey-results-impact-data-driven-marketing-business-performance); Computer world
(http://www.computerworld.com/s/article/9223502/the_top_10_tech_priorities_of_cios); Tech Crunch (http://techcrunch.com/2010/08/04/schmidt-data); Bellevue college; Strategic Analytics; www.tdwi.com.