This quarter I’ve heavily focused on data. Of my three classes, one is on SQL and another is focused on database theory and design. As part of the theory and design class, I’ve been thinking a bit about Business Intelligence (BI) systems.
What are BI systems?
Business Intelligence Systems are tools that enable management (and other people) to analyze business activities. This includes past and current activities. Additionally, these tools are extremely valuable in predicting future behavior. They enable organizations to assess their effectiveness, strategize and plan for the future, as well as control various elements of the business. Ultimately, their function is to assist and guide decision-making.
How do BI systems differ from transaction processing systems?
Transaction processing systems, aka: operational systems, facilitate and monitor primary business operations such as sales, purchasing, and inventory control. They are involved in the ongoing stream of daily business operations. Operational systems are, generally, the core program of the business.
Business Intelligence Systems focus on management’s decision-making and analysis needs. Often, BI systems are disconnected from operational databases. BI systems pull their data from three possible sources:
- From the data within the operational database. However, they do not modify, insert or delete the operational data. It’s critical that analytics remain separate from the operational system.
- From data that have been extracted from the operational system. This database might be completely different from the operational, including being a different DBMS, or even a non-database tool like Excel.
- BI systems can also analyze data purchased from third-party data vendors.
I am finding data systems to be incredibly fascinating. Though it is one of the “areas of the future”, that’s not the whole thing. I see how valuable data is to, well, everyone. There are so many ways to benefit any organization and so many ways to misuse it.
