Underpinning Business Intelligence is a consolidated base of information (also called a Data Warehouse), which is shared amongst interested parties and structure in such a way that it can return correct information quickly and easily. It provides quick notification of business exceptions, advanced reporting and analysis capabilities and the ability to compare data to improve tactical and strategic management. It empowers decision making at all levels of management. What is Business Intelligence actually?The definitions are vast and varied but in a nutshell Business Intelligence (BI) is a concept for delivering specific and useful information in the midst of the data-explosion organisations are facing today.īI is a corporate weapon to fight fraud, waste, and abuse. It provides effective methods of storing historical data, structured in such way that it can be retrieved in acceptable time frames. Business Intelligence is process driven not data driven – it takes a broader view of the entire process making it possible to analyse data from different perspectives (for example: by Region, Year, Quarter, Branch, etc.). This is where Business Intelligence (Analytical systems / the Data Warehouse) steps in – it fills the gap as it reflects the way people look at their business over time. However this approach is not suited for answering questions such as “Show me the best-selling product line of last month/last quarter/last year” or “compare current month’s returned-orders to the same period over the last 2 years”. It plays a very important role: without a detailed picture of individual orders, sales, shipments, banking transactions and so on, the business cannot run. In other words it takes a microscopic view, based on transactions. ![]() If we compare the differences in the Information Value Chain – from an operational or OLTP perspective, we realise that the focus is on a series of events. OLTP systems drive the day-to-day business and are based on business processes that are translated into computerized systems Enterprise Resource Planning (ERP) being one example of such a system. The difference between Business Intelligence and Online Transaction Processing Systems On the other hand finding the best way of “getting the data out” for analytical or reporting purposes poses a challenge that many organizations disregard. However the key focus of such systems are “getting the data in”, in other words making sure that the transactions are stored securely and making sure that each individual transaction can be traced. OLTP systems are essential for the business to drive the daily operations. It is true that without our OLTP systems our businesses cannot function. There is often a lack of ways to analyze and report on all the valuable data that is embedded in our everyday applications (also referred to as transactional processing systems or OLTP). ![]() ![]() Why is Business Intelligence required? In short: transaction processing systems do not provide adequately for the analytical and reporting requirements of business people.
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