Business Intelligence: technological forecasting of change or black magic?

What makes Netflix know exactly what movies to recommend to us? How did Boston reduce crime by 55%? How did it improve the quality of education at an American university? How did the NFL League increase fan loyalty and take care of administrative resources? What makes the NBA able to report such accurate statistics and games played for 65 years? How have Washington physicians reduced the number of patient visits? Counterintuitively, to all of the above questions, there is the same answer.

The answer to these questions is simple: business intelligence, business analytics, and the data warehousing (Data Warehousing) behind them are the three ingredients of the perfect brew, unlocking the secrets of predicting the future.

What is Business Intelligence?

Business Intelligence (BI for short) is a certain set of processes that includes data analytics, reporting, drawing conclusions and visualizing practical information. It makes managers and executives know what is of interest, what is well received, where there are possible downtimes in distribution processes, etc. Its advantage is that it can (when supplemented with data) effectively forecast data.

With BI, we can speed up decision-making processes and make them more efficient. In summary, business analytics as defined by BI is a kind of business philosophy and a set of tools to support its implementation.

The area of interest of BI is not only manufacturing or sales, but in fact any sector, to which ingenuity will allow us to collect data. The key here is to equip oneself with appropriate data warehouse resources (Data Warehousing) and to systematically supplement data on the basis of all arising changes. The data contained in the data warehouse comes from many sources and allows the appropriate business intelligence tools to predict the behavior of the market, consumers or other subject under observation.

What does Business Intelligence give companies?

One of the tools that use BI methodology is SAP Business Intelligence. It allows you to gather all the necessary information in a single database.

– An investment in a well-implemented BI allows you to extract information from the systems you already have and support strategic decision-making regarding the direction of the company’s operations, as well as guard against erroneous assumptions that may lead to a crisis in the company. It allows us to find and know better the relations between various business relations not only on a micro but also on a macro scale, and thus to be ahead of the competition. – says Michał Gruszecki, Senior Analytics Consultant at Hicron.

It is with the help of Business Intelligence that Netflix gained as many as 53 million customers worldwide. How did it do that? By collecting data on when to rewind a program, when to pause it, where and how to watch the offered programs (at home, on a trip, on the road, on a laptop, phone or TV screen). On the basis of behavioral information about viewers, he created real marketing personae of his audience. In this way, he gained an indescribable advantage over his classic competitors, who still have to estimate the interest of the consumer.

Business Intelligence in Healthcare?

Another attractive example of a BI application is the healthcare system in Washington, D.C., which, thanks to data analysis, was able to verify which patients and for what reasons were regular visitors to the emergency room, thus separating the incidental patients from those who report needing help on a regular basis, not necessarily for urgent matters. This has succeeded in smoothing traffic through the hospitals and getting help to those who really need it.

The City of Boston has increased the efficiency of service to residents and businesses thanks to BI. Through the implementation of SAP BI, the city authorities keep track of 2000 performance indicators and use them as a basis for forecasts on how to improve life in the city. In order to increase the quality of functioning and dynamics of the residents’ movement, a special mobile application was introduced, which continuously informs people in the area about threats, obstructions and changes in the metropolitan area. By using the SAP HANA platform, they were able to reduce crime by 55% and the city reduced bureaucratic paperwork from 600 to just 10.

Other Business Intelligence Applications

At one American university, SAP BI helped improve the quality of education and better utilize university resources. Operations that used to take 20 minutes were reduced to 1 second.

The NFL league has built a virtual league app that has brought fans even closer together. The game engages them through statistics derived from more than 100 indicators assigned to each player. The NBA website, on the other hand, supports 4.5 trillion statistical combinations derived from the history of the entire basketball league.

All this information is just a snippet of what BI-based systems can do. In the future, the amount of data we will be able to analyze will also expand to include biological, historical, and many other issues, with the result that perhaps predicting the future will cease to be mere black magic and become a completely natural process within business analytics.

Like this post? Please share to your friends:
Mobile Pedia