16 Questions
What is the primary goal of business intelligence in an enterprise?
To identify and develop new strategic business opportunities
What type of data do business intelligence tools typically handle?
Large amounts of structured and sometimes unstructured data
What is the outcome of combining external and internal data in business intelligence?
A complete picture of the market
What is the primary source of data for business intelligence applications?
Data warehouse (DW)
What is the term used to describe the combination of business intelligence and data warehouse?
BIDW
What is one of the strategic business decisions that business intelligence can support?
Priorities, goals, and directions
What is one of the common uses of business intelligence tools?
To gauge the impact of marketing efforts
What is the outcome of using business intelligence effectively?
Competitive market advantage and long-term stability
What is the primary purpose of a data warehouse?
To store and analyze data for decision support
Who is credited with using the term 'business intelligence' in the context of receiving and acting upon information?
Richard Millar Devens
What is the key aspect of business intelligence, according to Hans Peter Luhn's definition?
The ability to apprehend the interrelationships of presented facts
What is the primary goal of business intelligence, according to Solomon Negash and Paul Gray?
Improving the quality of input to the decision process
When did the term 'business intelligence' become widely used in its modern context?
Late 1990s
What is the key characteristic of business intelligence, according to Howard Dresner?
Using fact-based support systems to improve decision-making
What is the primary focus of business intelligence, according to Forrester Research?
Transforming raw data into meaningful information
What is the key benefit of business intelligence, according to Richard Millar Devens' example?
Gaining profit by receiving and acting upon information prior to competitors
Study Notes
Business Intelligence (BI)
- BI consists of strategies and technologies used by enterprises for data analysis and management of business information.
Functions of BI Technologies
- Reporting
- Online analytical processing
- Analytics
- Dashboard development
- Data mining
- Process mining
- Complex event processing
- Business performance management
- Benchmarking
- Text mining
- Predictive analytics
- Prescriptive analytics
Benefits of BI
- Helps organizations identify, develop, and create new strategic business opportunities
- Provides a competitive market advantage and long-term stability
- Enables strategic decision making
- Combines external and internal data to provide a complete picture
Types of Business Decisions
- Operational decisions (e.g., product positioning or pricing)
- Strategic business decisions (e.g., priorities, goals, and directions)
Data Sources
- External data (from market in which a company operates)
- Internal data (from company sources, such as financial and operations data)
Uses of BI Tools
- Gain insight into new markets
- Assess demand and suitability of products and services for different market segments
- Gauge the impact of marketing efforts
History of BI
- Earliest known use of the term "business intelligence" in 1865 by Richard Millar Devens
- Hans Peter Luhn's definition of BI in 1958 as "the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal"
- Howard Dresner's proposal of BI as an umbrella term in 1989
- Widespread use of the term in the late 1990s
Definition of BI
- Combines data gathering, data storage, knowledge management, and analysis to evaluate complex corporate and competitive information for presentation to planners and decision makers
- Objective: improve the timeliness and quality of the input to the decision process
This quiz covers the concepts and technologies used in business intelligence, including data analysis, reporting, and predictive analytics. Learn about BI tools and their functions in managing business information.
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