Business Intelligence Software

Overview

Companies utilize business intelligence software to guide business decisions. Business intelligence examines historical data and trends in order to help decision makers assess strategies and objectives. Software consolidates all available data, which is helpful since data can come in a variety of formats from different sources. Software allows companies to analyze a broad range of information in an organized and consistent way. As a result, business intelligence software helps companies make decisions at different organizational levels.

How It Works

Business intelligence software operates through two mechanisms: a data warehouse that captures, stores, organizes, and maintains data and an analytical front-end that analyzes data from the warehouse.
Generally, data warehouses include a fixed database that periodically updates its information. In addition, users have the option to manually import data from other sources. Data warehouses are comprehensive and customizable for a business's specific analytic needs.

Benefits

Business intelligence software helps decision makers analyze historical trends to forecast business goals. The software simplifies complex statistical processes that are otherwise tedious or time consuming. The software also eliminates the need for an extensive research or data collection process. Business intelligence software helps businesses optimize its decisions for product positioning, order management, forecasting, finance, problem resolution, process optimization, personnel management, and inventory control.

Costs

Business intelligence software costs vary with the tools that a company needs, and prices can range from $1,000 to $250,000 or more. In any case, business intelligent software can help an organization perform more efficiently and save money.

Timing

A company can use business intelligence software at any point in its decision making process. A business can use the software intermittently, periodically, or as part of a routine.