Business Intelligence Concepts

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Questions and Answers

What is the primary goal of business intelligence in an enterprise?

To enhance customer relationships

To identify and develop new strategic business opportunities (correct)

To improve employee productivity

To reduce operational costs

What type of data do business intelligence tools typically handle?

Only unstructured data

Only structured data

Large amounts of structured and sometimes unstructured data (correct)

Only internal data

What is the outcome of combining external and internal data in business intelligence?

A complete picture of the market (correct)

A strategic business decision

A singular set of data

A competitive market advantage

What is the primary source of data for business intelligence applications?

Data warehouse (DW) Signup and view all the answers

What is the term used to describe the combination of business intelligence and data warehouse?

BIDW Signup and view all the answers

What is one of the strategic business decisions that business intelligence can support?

Priorities, goals, and directions Signup and view all the answers

What is one of the common uses of business intelligence tools?

To gauge the impact of marketing efforts Signup and view all the answers

What is the outcome of using business intelligence effectively?

Competitive market advantage and long-term stability Signup and view all the answers

What is the primary purpose of a data warehouse?

To store and analyze data for decision support Signup and view all the answers

Who is credited with using the term 'business intelligence' in the context of receiving and acting upon information?

Richard Millar Devens Signup and view all the answers

What is the key aspect of business intelligence, according to Hans Peter Luhn's definition?

The ability to apprehend the interrelationships of presented facts Signup and view all the answers

What is the primary goal of business intelligence, according to Solomon Negash and Paul Gray?

Improving the quality of input to the decision process Signup and view all the answers

When did the term 'business intelligence' become widely used in its modern context?

Late 1990s Signup and view all the answers

What is the key characteristic of business intelligence, according to Howard Dresner?

Using fact-based support systems to improve decision-making Signup and view all the answers

What is the primary focus of business intelligence, according to Forrester Research?

Transforming raw data into meaningful information Signup and view all the answers

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 Signup and view all the answers

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

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Description

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.