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What is Business Intelligence? - Definition & Examples

What is Business Intelligence? - Definition & Examples
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  • 0:03 What Is Business Intelligence?
  • 1:13 Steps for Starting a…
  • 2:23 Business Analytics
  • 3:24 Lesson Summary
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Lesson Transcript
Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

Business intelligence (BI) allows a company to learn important information to help gain a competitive advantage. In this lesson, we'll discuss what business intelligence is, how to start a new BI system, and the importance of business analytics.

What Is Business Intelligence?

The Burger House introduced some new items a few months ago. The company wanted to try and change the menu to help attract new customers. They want to determine which items are working for the restaurant and which items aren't successful. The company has business intelligence software that allows them to determine which of the new items had the most success. After looking at the data, The Burger House realized its egg burger was not a big hit. They can now focus on the products that have brought them business, and eliminate the egg burger that has not been financially successful. How did business intelligence help them make this conclusion?

Business intelligence (BI) is a variety of software applications used to analyze an organization's raw data. BI can include data mining, online analytical processing, and business reporting. Most businesses use BI software to help keep track of information and rely on the software to operate effectively. Companies can use the information from business intelligence software to determine what items within the business need to be changed because they're not selling well. BI systems help employees modify their individual and team work practices, which leads to improved performance among the sales teams.

Steps for Starting a New BI System

Bob is the business owner of an arcade. He recently got an electronic device put on all the games to determine who uses a game card or who uses cash. The device is brand new, and the reports are all new as well. Bob notices the reports do not have the best layout but decides to launch because it allows customers to get money on their card with a credit card. Bob has earned a lot more money because the use of this new system. It is okay that the reports are not perfect, because when introducing new BI software there are bound to be some problems, but as time goes on, the company can tweak the BI software to what works best.

A BI system can be brought into action through the following steps:

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