Business Intelligence - History
Today, Business Intelligence (BI) plays a very important role in the strategic planning of nearly all major companies and stakeholders.
However, in its early days the concept of BI was quite unclear. It wasn't until years later that the importance of BI was fully recognized, driven by the growing need for data-driven decision-making and competitive advantage. And today we all can see ongoing improvements in BI tools and technologies that have made it a key part of modern business strategy.
Beginning of Business Intelligence (1800's)
The concept of business intelligence was first introduced by Richard Miller Devens in his 1865 book, Cyclopdia of Commercial and Business Anecdotes.
To show that relying on data and factual evidence was more effective than depending on intuition for making business decisions he gave the example of Sir Henry Furnese, who was a successful banker. Later, others also recognized the value of using information and the idea was then further developed by others who saw the benefits of using information.
The Final Decade of the 1800s
The first formalized system of business analytics was introduced by Frederick Taylor in the USA during the final decade of the 1800s. His scientific management approach began with time studies that examined production methods and workers' movements. This analysis aimed to identify inefficiencies and optimize processes leading to increased productivity and improved industrial output.
How Computers Revolutionized Business Intelligence?
Heres a more detailed look at how the technological revolution has transformed Business Intelligence −
Computers and Early DSS (1950-1960)
Let's start with the first digital era in Business Intelligence in which we start shifting from papers to computers. In the 1950s and 1960s, the introduction of computers started transforming how businesses handled data. Initially, these early systems were mainly used for processing transactions. But by the start of the 1960s, businesses began to develop the first Decision Support Systems (DSS), which allowed them to use data analysis to make more informed decisions instead of relying on gut feelings. This period marked the beginning of a shift toward data-driven decision-making in business.
Emergence of Data Management and Business Intelligence (1970-1980)
In the 1970s, Edgar F. Codd introduced the relational database model changing how data was stored and accessed. Then SQL was developed later making data management easier.
In the 1980s, Business Intelligence began to grow with new tools like Decision Support Systems (DSS) and Executive Information Systems (EIS). By 1989, Howard Dresner defined Business Intelligence as a way to improve business decisions through data analysis.
The Evolution of BI Tools (1990-2000): Data Warehousing, OLAP, and Self-Service
As Business Intelligence (BI) technology advanced it transformed how companies handled their data.
In the 1990s, BI software helped companies analyze data better and data warehousing became popular for storing large amounts of information but the technology was complex. By the late 1990s, OLAP tools allowed for detailed data analysis.
In the 2000s, BI tools became more user-friendly and integrated with systems like ERP and CRM. Self-service BI also emerged letting users perform their own analyses. By 2005 "Big Data" became a key concept leading to tools designed for handling larger and more complex data.
Business Intelligence in AI & ML Era (2010 -2020)
As technology evolved, so did Business Intelligence (BI). In the 2010s the BI began leveraging Big Data and cloud tools like Tableau and Power BI making it easier for you to grasp complex data. And then we will be moving into the 2020s, the era of AI and machine learning. AI and Machine Learning were introduced, providing real-time insights and automating decisions. Today BI focuses on real-time analytics and predictive tools helping you make smarter business choices.