Business Intelligence (BI) systems are designed to analyze data and provide actionable information that aids in strategic decision-making. The purpose of a BI system is not merely to integrate departments or provide access to raw data, nor is it limited to using only proprietary data. Instead, BI systems enable organizations to make informed decisions based on the analysis of a wide range of data. Here’s how they work:
1.Data Collection: BI systems collect data from various sources within the organization, including all departments.
2.Data Storage: The collected data is then stored in a secure and accessible manner, often in data warehouses.
3.Data Analysis: BI tools analyze this data to find patterns, trends, and insights. This analysis can include descriptive analytics to understand past performance and predictive analytics to forecast future trends.
4.Information Presentation: The insights are then presented in an understandable format, such as reports or dashboards, which decision-makers can use to guide their strategic choices.
[References: The information provided is corroborated by multiple sources that describe the role and purpose of BI systems. They emphasize the importance of BI in analyzing data to support business decisions, rather than just integrating departments or providing raw data access1234. These sources outline the BI process from data collection to analysis and reporting, highlighting its value in strategic decision-making., ]
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