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In a universe dominated by information, it is more important than ever for businesses to know how to extract every drop of value from the raft of digital advice available at their fingertips.
As stated by Better Buys, 85 percent of business leaders believe using big data to their benefit will significantly improve how they run their companies -- and they are not wrong.
By obtaining the ability to comprehend that datasets are related to specific goals, strategies, and initiatives in your organization, you will be able to spot trends or patterns which can allow you to create substantial improvements in many of important areas within the organization. This concept is known as business intelligence.
Business intelligence, or"BI" for short, is becoming increasingly widespread across businesses every year. But with business intelligence concepts comes a great deal of confusion, and ultimately -- industry jargon that are unnecessary. Such jargon leads to business intelligence buzzwords that may dilute the significance of important info.
Together with our introduction into business intelligence, we're going to dispel the myths surrounding BI, explore the core business intelligence concepts, cover the BI fundamentals, and drill down into a mixture of real life business intelligence examples and use cases.
Intro To Business Intelligence Concepts
Business intelligence theories refer to the usage of digital computing technologies in the form of data warehouses, analytics and visualization with the intent of identifying and analyzing essential business-based information to generate new, actionable company insights.
BI technologies offer you present (real time ), historic, and predictive perspectives of structured data relating to all departments within an organization, which radically enhances operational insight and improves the decision-making procedure.
Put simply: Business intelligence is the process of discovering valuable trends or patterns in data to make more efficient, accurate decisions related to your business goals, goals, and strategies.
As pattern recognition is a decisive part of BI, artificial intelligence in business intelligence plays a pivotal part in the procedure. When approached properly, pattern recognition is one of the key hallmarks that differentiates BI pros from BI amateurs. By helping users to discover integral insights autonomously, AI technologies help tremendously in pattern recognition, which makes the process more intuitive, more compact, and ultimately -- more accurate.
A host of business intelligence theories are executed through intuitive, interactive tools and dashboards -- a centralized distance that offers the capacity to drill down to your data easily. But more on that later.
Next up, let's think about how business intelligence concepts relate to the inner workings of your brain.
The Two Kinds of Decision-Making In Our Brain
Chess prodigy Joshua Waitzkin writes about this differentiation in The Art of Learning: A Journey in the Pursuit of Excellence. In his book, Waitzkin says that the best baseball players are the ones that can take from the most information in a short span of time. They do this using the"fast thinking" method of their brain.
Let's clarify. As laid out from the Nobel winning psychologist Daniel Kahneman in his book Thinking, Quick and Slow, your brain has two different learning and decision making systems:
1.
Slow But Accurate
You have a slow believing system which you can think of as a sign of attention. You use this program when you really focus on and consider a problem step-by-step. This slow believing system is very accurate. Howeverit can only process so much data at any 1 time and takes a whole lot of energy.
Many folks don't use our slow believing system for the majority of decisions. Rather , we utilize our quick system, otherwise known as our instinct.
2.
Speedy But Error-Prone
Your fast thinking system may take in enormous amounts of information at once. Additionally, it may make snap decisions very fast, with pretty high accuracy. Nonetheless, your quick thinking system has one huge drawback. It is more likely to logical fallacies and perceptual biases.
If your slow believing system is like a spotlight, then your quick thinking process is like the field of a film which isn't in focus. You do not have to burn off much energy to use it, but you don't see things as clearly as possible with your slow thinking system.
This introduction into business intelligence principles proves that in today's data-driven world, companies and individuals that may sift through the noise to unearth signs of genuine significance will grow far above the competition. BI theories provide a form of advanced pattern recognition to the savvy individuals and businesses that are searching for cutting-edge competitive advantages.
In conclusion, BI helps you to understand your market, your customers, your competitors, and your business so you can make the very best decisions.

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