Business Intelligence: Concepts, Components, Techniques and Benefits

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Journal of Theoretical and Applied Information Technology
© 2005 - 2009 JATIT. All rights reserved. www.jatit.org

BUSINESS INTELLIGENCE: CONCEPTS, COMPONENTS, TECHNIQUES AND BENEFITS JAYANTHI RANJAN Institute of Management Technology, Ghaziabad, Uttar Pradesh, India Email: jranjan@imt.edu

ABSTRACT For companies maintaining direct contact with large numbers of customers, however, a growing number channel-oriented applications (e.g. e-commerce support, call center support) create a new data management challenge: that is effective way of integrating enterprise applications in real time. To learn from the past and forecast the future, many companies are adopting Business Intelligence (BI) tools and systems. Companies have understood the importance of enforcing achievements of the goals defined by their business strategies through business intelligence concepts. It describes the insights on the role and requirement of real time BI by examining the business needs. The paper explores the concepts of BI, its components, emergence of BI, benefits of BI, factors influencing BI, technology requirements, designing and implementing business intelligence, and various BI techniques. 1. INTRODUCTION A specialized field of business intelligence known as competitive intelligence focuses solely on the external competitive environment. Information is gathered on the actions of competitors and decisions are made based on this information. Little if any attention is paid to gathering internal information. In modern businesses, increasing standards, automation, and technologies have led to vast amounts of data becoming available. Data warehouse technologies have set up repositories to store this data. Improved Extract, transform, load (ETL) and even recently Enterprise Application Integration tools have increased the speedy collecting of data. OLAP reporting technologies have allowed faster generation of new reports which analyze the data. Business intelligence has now become the art of sifting through large amounts of data, extracting pertinent information, and turning that information into knowledge upon which actions can be taken. The paper explores the concepts of BI, its components, emergence of BI, benefits of BI, factors influencing BI, technology requirements, designing and implementing business intelligence, cultural imperatives, and various BI techniques. The paper would be useful for

Business intelligence (BI) has two basic different meanings related to the use of the term intelligence. The primary, less frequently, is the human intelligence capacity applied in business affairs/activities. Intelligence of Business is a new field of the investigation of the application of human cognitive faculties and artificial intelligence technologies to the management and decision support in different business problems. The second relates to the intelligence as information valued for its currency and relevance. It is expert information, knowledge and technologies efficient in the management of organizational and individual business. Therefore, in this sense, business intelligence is a broad category of applications and technologies for gathering, providing access to, and analyzing data for the purpose of helping enterprise users make better business decisions. The term implies having a comprehensive knowledge of all of the factors that affect the business. It is imperative that firms have an in depth knowledge about factors such as the customers, competitors, business partners, economic environment, and internal operations to make effective and good quality business decisions. Business intelligence enables firms to make these kinds of decisions.

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Journal of Theoretical and Applied Information Technology
© 2005 - 2009 JATIT. All rights reserved. www.jatit.org

budding researchers in the field of BI to understand the basic concepts. 2. BUSINESS INTELLIGENCE

Stackowiak et al. (2007) define Business intelligence as the process...
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