Capitalism is probably the most efficient economic system this world has ever created. On one hand we have millions of self-employed people that offer services to some individuals, but on the other hand we have large corporations that hire thousands of employees and invest millions of dollars in business intelligence tools that we have never dreams about. In this short article I am going to tell you a little bit more about business inteligence, what you should know about it and why it is so important.
What business intelligence is and why companies need this? Well, let me tell you that first of all it is according to the definition, “the set of techniques and tools for the transformation of raw data into meaningful and useful information for business analysis purposes”. As you can notice, the definition does not say anything at all, because it is not precise. I would like to mention the main functions of this technology:
predictive analytics – due to this a company is able to predict what people might need in the nearest future and what products might be less popular. Moreover, it has complex event processing, which is nothing less than data analyzing stream of information that flow through the system in a particular period of time. A company is able to see whether there is a connection between specific day, hour and product that clients but and as a result of which the company is able to display some specific products at their website without going to a subpage. This allow any company to make larger profits on specific products. This kinds of analyses has become more important than ever these days as in the 21st century information is far more valuable than gold or oil and I am not joking.
Enterprisereporting – due to this a company keeps on receiving reports on regular basis, for example daily, weekly or monthly. Those information help a company to make better decisions and as a result of this software business a company can have an increase in sales which leads to larger profits. Larger profits are in vast majority of cases larger dividends for shareholders and this makes shares prices to boost at the stock exchange. It is like a chain of decisions and results.
Mahatma Gandhi has said “The future depends on what you do today”, therefore it means that the future is not something unknown, we can predict what will happen in the future by spending time on analysis of our deeds today. Business intelligence tools are very expensive, because what is needed today is not easy to have programmed, those systems are complex and it takes time to prepare them.