IN COMPETITIVE MARKETPLACE, it is vital for every business enterprise whether small or big to cope with the pace of the market growth. Intelligence is the ability to learn and understand new situations by updating yourself with current information. This is why organizations are becoming more dependent on data or information for improving development of product and services that can outsell their competitors. So, they are primarily relying on analytical database solutions like data warehouses. However, in the entire process these information and later applying them in action describes a chain of methods called value chain. Value chain is the process that converts data into information and then applies that knowledge in taking productive business decision, and the outcome is the ultimate value.
The first step of the value chain is the collection, management and analysis of data to produce information that can help in taking different types of business decision. Data warehouse generally contains various kinds of data both related and unrelated but here BI tries to co-relate, analyze and explore valuable information from those data resource. However, it becomes essential to first list out similar or related data that can assist in identifying healthy business opportunities. These can be descriptive, quantitative or qualitative.
Here, information engineering refers to the kind of information needed and way for its presentation that should meet current and future demand of business. Data is generally available in raw forms and is base for extracting information that sustains the knowledge environment for developing business strategies.
It’s the process of knowing something through experience (experiment), instinct, beliefs that make you aware about different things and help to act intelligently. Knowledge is the core aspect to understand what is relevant and significant to business issues and it can be used for further advantage. So interpreting available information can assists in gaining knowledge that leads to business intelligence.
Data analysis and information exchange create knowledge that are used in resolving complex problems, innovating new ideas and taking various decisions like strategic, tactic for specific business purposes. So combining knowledge and information used to take action; it includes the sharing and accumulating knowledge for gaining successful business ideas.
Information and knowledge offer an insight to the kind of action is to be taken and is essential to integrate knowledge and business ideas to positive business outcomes. A well-planned business strategy with adequate information generally supports to reduce cost, save time, optimize resources, increase revenue, satisfy customer, and over all to reach the desired business goals.
Hence the method or process that includes data collection, management, information extraction, and knowledge application in developing business strategies collectively forms the value chain in Business Intelligence. However, the entire business value creation depends on various business domains including strategic planning, financial management, R&D, human resource, marketing, sales, corporate governance and lastly the most important information system.
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