There is nothing really new about business intelligence software. The software that businesses used before were much simpler than the software that businesses use today. It is only through the use of business intelligence software that any business can be run intelligently. Business intelligence software offers more than merely making intelligent running businesses. What is included in business intelligence software are tools and support that addresses the various aspects of strategic planning to the end that executives’ valuable time are freed for more important business concerns. These executives then can actually manage, operate, and make decisions instead of laboring over time intensive reporting and planning methodologies that can be efficiently and easily subsumed into some of the many applications available from contemporary business intelligence software. In other words, business intelligence software can help you collect data and information on most issues of operational relevance, from customer trends to employee performance, and to store, access, use, analyze, and apply the value learned from the process to trend analysis and new objectives. Managing and understanding your stakeholders and your profits can also be done using the business intelligence software. Business intelligence software is sufficiently versatile to be applied for more or less purpose your may have in mind. Here are the common uses of business intelligence software and how they function.
One of the ways that a company can use business intelligence software is by the use of executive scorecards and dashboards which make it easy for management to check of key performance indicators and important measurements in a fast manner compared to traditional reporting that needs to be drawn up every time an executive wants an assessment of performance of growth or whatever measurements he needs. So one look at these scorecards and dashboards will give the management a clear idea of what is the situation of the business any time that he needs it.
A second way in which business intelligence software is widely used is in the area of online analytical processing (OLAP) capabilities which allow users of the software to manipulate data in an infinite number of ways and with immediate effect. This is a critical strategic tool as it enables management and executives to view data from many different perspectives at the same time and down to the smallest detail.
Data mining is another extremely useful capacity of business intelligence software in today’s globalized world where companies have to deal with massive and growing volumes of data on a daily basis. It would be an impossibility to look for information with this massive amount of volume even if you know what you are doing. The data mining features of business intelligence software packages make it possible to locate and extract only the most important and relevant information from enormous data sets, saving vast amounts of time and money while ensuring that the information itself is used appropriately.