Types of Business Intelligence (BI)
In this chapter, we will introduce you to various types of business intelligence. After reading this chapter, you'll be able to understand the different types of Business Intelligence.
Based on Various Parameters
- Types of BI- based on analytics
- Types of BI- based on decision
Types of Business Intelligence Based on Analytics
Based on analytics business intelligence is divided into 3 parts −
- Descriptive Business Intelligence
- Predictive Business Intelligence
- Prescriptive Business Intelligence
1. Descriptive Business Intelligence
Based on available data it provides insight into what has happened. It gives you information about what happened based on the data. It also helps you understand why it happened.
Example How many people visited the local park last Saturday?
Why did the number of visitors suddenly increase in the afternoon?
2. Predictive Business Intelligence
It predicts what might happen in the future using past data and patterns. It figures out the value of something unknown based on the relationships found in the data.
Example − How many people are expected to attend the community event next weekend?
Which attendees are most likely to switch from attending in-person events to participating in virtual ones?
3. Prescriptive Business Intelligence
The prescriptive business intelligence provides the best option to implement to get the desired output.
Example − What should be the best strategy to increase membership sign-ups for the Java course over the next three months?
How many volunteers are needed to support the Java project?
Types of Bi-based on Decision
- Strategic Decisions
- Tactic Decisions
- Operational Decisions
Strategic Decisions
In the strategic approach, the goal here is to make informed decisions that will shape the companys future, such as deciding which products to focus on or develop to maximize long-term growth and profitability.
Example − On which service we should invest for the long term?
In which location should we launch this course?
Tactic Decisions
The tactical decision involves choosing specific actions to reach a set goal within a defined timeframe.
Example − Which promotion should be required to meet yearly targets?
Operational Decisions
Operational decisions are those decisions that deal with day-to-day decisions that are necessary for the smooth functioning of a business. the practical decisions that need to be made to ensure the business runs efficiently.
Example − How many teachers should we hire for the Java course?
Business Intelligence based on Solution Ownership
Based on the solution based on the ownership the Business intelligence is divided into two parts −
- Self-managed BI
- BIaas
Self-Managed BI
In self-service BI people in a company look at and analyse data on their own, without needing the help of IT or data experts. It gives them user-friendly tools like dashboards and reports so that they can quickly find the answers they need for their business questions without having to rely on others. The self-managed business intelligence is one in which BI offers an environment in which information workers can create and access specific sets of BI reports, queries, and analytics themselves without IT intervention.
BIaaS
The BIaas stands for Business Intelligence as a Service. Businesses are turning to Business Intelligence as a Service (BIaaS), which lets them outsource BI and analytics tasks to experts without needing to hire more staff. In this setup, a vendor provides a fully managed BI solution to multiple clients on a subscription basis, taking care of all the technical work. This way, companies don't need to keep a BI team in-house, as the service provider handles everything.
Difference Between Self-managed BI and Business Intelligence as a Service
| Arabic | Self-managed BI | BI as a Service |
|---|---|---|
| Management | The company will be responsible for managing and maintaining the whole BI system. | The service provider manages and maintains the whole BI system. |
| Time | Deployment and implementation take a longer time. | Shorter implementation and deployment time. |
| Dependency | Low Dependency on third-party providers. | High dependency on third-party providers. |
| Security | In the self-managed BI, the data is more secure as it remains within the company. | The security is managed by the service provider. |
| Access to new technologies | Access to new technologies and features can be slower, as the company is responsible for managing upgrades and migrations. | Companies enjoy faster access to the latest BI technologies and features, with the service provider regularly updating the platform. |
| Scalability | Self-managed BI is not easy to scale due to the need for additional hardware, software, and resources. | BIaaS is easy to scale since it is fully cloud-based. |
| Customization | The Self-managed BI provides more control and customization options because the company manages the system. | BIaas may have limited customization options based on the service providers features and offerings. |
| Cost | Self-managed BI generally has higher upfront costs due to the need for software, hardware, and IT staff. | BIaaS usually has lower initial costs, as it operates on a subscription basis with ongoing costs that cover maintenance and updates from the service provider |