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Knowledge Update

Role of Business Intelligence and Analytics

Role of Business Intelligence and Analytics

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Intelligence was initially introduced and defined by John McCarthy during the introduction of AI at a conference in Dartmouth in the summer of 1956 (Benko & Lányi, 2009). Howard Dresner presented a new way of looking at "BI" as a thorough categorization that encompasses programs and services aiding in data collection, consolidation, analysis, and accessibility.

The main goal of this framework is to help corporate users improve their decision-making processes in the business field (Burstein & Holsapple, 2008). During the 1990s, business intelligence saw increased adoption among IT communities and enterprise businesses (Chen et al., 2012). Moreover, according to Gartner's research, BI&A has emerged as the top technology option for CIOs aiming to enhance their companies' competitiveness in recent years (Gartner, 2015; King, 2017). Chaudhuri et al. emphasized the importance of utilizing BI&A technology in today's ever-changing business environment. Furthermore, BI&A is utilized for the remainder of the project. Present businesses possess access to a substantial volume of data. BI uses various methods to analyse and leverage data to increase profitability. The primary constituents of BI are mentioned below:

Online Analytical Processing (OLAP) is a BI data analysis method. Administrators can classify and select data combinations for monitoring with this BI component. Denić et al. (2014) stated that the main goal of OLAP is to summarize and show information from a large database to aid decision-making. Data mining analyses data from various sources to gain useful insights. These insights can boost profits and cut costs (Plotnikova et al., 2020). This project seeks correlations or trends in large databases from many disciplines (Qihai et al., 2008). CRM strategically builds and maintains client relationships (Guerola-Navarro et al., 2022). In order to properly manage customer relationships, the company must understand customers' purchasing behavior and prioritize their needs. Integrating GIS with BI improves operational efficiency, production, and costs. These apps also allow companies to monitor and manage people, machines, and assets and collect and analyse real-time data for informed decision-making (Alzahrani et al., 2021). Recognition, collection, organization, and use of information in an organization to promote efficiency, effectiveness, and strategic goals is called knowledge management (V Nair & Munusami, 2020). Knowledge management also helps firms learn from their experiences. Thus, prioritising information acquisition, storage, and usage for problem-solving, active learning, decision-making, and tactical planning requires comprehensive knowledge management (Jain et al., 2020).


In addition to strategic and tactical benefits, BI is used operationally. When properly implemented, BI can assist many users anticipate and respond to changing organizational conditions (Sandu, 2008). According to Dedić and Stanier (2017), the purpose is to enhance operational performance management by enhancing stakeholder understanding of the organization. According to Kurniawan et al. (2014), BI can mine the mountains of daily operational data for insights that can help decision-makers. Dedić & Stanier, 2016b explained that traditional BI focuses on data modification, development, and visualization, emphasizing OLAP, ETL, DW, and analysis.