Business Intelligence (BI)

What it means, why it matters, and best practices. This guide provides definitions, examples and practical advice to help you understand the topic of business intelligence.

Screenshots demonstrating a rich Qlik Sense dashboard on both desktop and mobile devices.

What is business intelligence?

Business intelligence (BI) is the combination of applications, processes, and infrastructure that provide data access and analysis to improve your decisions and performance. Modern BI tools bring together data integration, data analytics and data literacy to close the gaps between data, insights and actions.

Business intelligence examples

From self-service BI and dashboards to mobile BI and conversational analytics, modern business intelligence supports a wide range of business needs and users, allowing every employee to access the insights they need, regardless of technical skill. Here are the primary business intelligence use cases and capabilities:

1. Self-service Analytics

Gone are the days when business users had to wait days or weeks for data analysts to build reports. Self-service BI tools let users easily explore data and make discoveries using natural language search and interactive selections and create their own visual analytics with simple drag-and-drop tools. And AI is making these processes easier than ever.

2. Data Visualization

The ability to explore and interact with data makes it easier for users to explore, discover patterns, and gain insights from data. Interactive BI dashboards make data even more actionable, revealing the shape of the data, highlighting outliers and trends, and putting data in the ideal context to answer any question.

3. Conversational Analytics

This class of analytics lets users explore data and discover insights using natural language text chat and voice within analytics apps. AI-powered natural language capabilities allow users to ask questions in their own words and get answers presented in an easy-to-understand conversational manner. The best BI platforms let users freely explore data using text search and interactive selections to filter within charts, tables and other elements.

4. Custom & Embedded Analytics

Embedding analytics into applications like CRMs and ERPs helps people find insights and deliver value faster, right where they work. BI technology that offers open APIs and developer tools let organizations embed analytics, build custom BI apps, and create visualizations and extensions to address the ever-growing demands for insights.

5. Mobile BI

Work happens everywhere today. And to do their best work, employees need access to business intelligence insights whenever and wherever decisions are made. Mobile business intelligence lets users create and explore analytics and collaborate using any device. The best mobile BI solutions support interactive analytics even when users are offline.

6. BI Reporting

While BI reporting is one of the most traditional forms of business intelligence, it remains an essential BI capability. While many second generation BI tools don’t offer reporting, some offer highly flexible, modern reporting capabilities. This includes drag-and-drop report creation and formatting, pixel perfect output in popular formats and flexible automated delivery.

7. Augmented Analytics

AI and machine learning are quickly becoming an essential facet of BI, quickly processing massive volumes of data to suggest relevant insights and automate processes while letting users interact conversationally. Augmented analytics complements human intelligence and increases data literacy so more users can get value from their data.

Icon of api stack and arrows showing extensibility

8. Open APIs and extensibility

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9. Collaboration and sharing

10. Governance, security and flexible deployment

11. Data integration and management

The most successful business intelligence initiatives combine a smart analytics strategy with an effective data strategy. Raw data only gains value when it can be transformed into highly accessible, analytics-ready information. This often begins by moving source data (ERP, CRM, etc.) into a central repository like a data lake or data warehouse. Data connectors in the analytics system load data from these repositories as well as specific applications and files so it can be prepared for use. This can be slow and tedious, requiring data experts which can create bottlenecks at scale. However, innovative data replication and data migration technologies can automate the integration process. In addition, Governed data catalogs that profile and document every data source let business users easily access, create, and share data sets on their own, combining any data they need to analyze.

Diagram showing how data is processed into the Governed Data Catalog and BI Applications.

Dashboard & BI Tools Comparison Kit

Essential resources for selecting the best BI and dashboard tool for your organization, including an evaluation checklist, a TCO comparison report and analyst findings.

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Benefits of business intelligence


According to BARC’s BI Survey, the top benefits of business intelligence software are faster and more accurate planning, analysis and reporting, better business decisions and improved data quality. But how do these translate to real business value? With the right business intelligence platform and strategy, here are four major ways BI can deliver value and drive digital transformation within organizations:

  1. Reinvent business processes, optimizing business performance

  2. Understand customers to deepen loyalty and increase lifetime value

  3. Uncover unexpected new sources of revenue

  4. Better balance risk with reward across business operations

What are BI best practices?

Build Data Literacy with Training and Tools

Ensure Flexible Deployment and Scalable Architecture

Centralize BI Governance, Security and Management

Extend the Value of Your BI Investment

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  • Combine data from all your sources

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The history and evolution of BI

The emergence of business intelligence can be traced to the decision support systems of the 1960s, evolving in three major waves of innovation over the decades. The challenge is always the same: How can businesses analyze data to make discoveries that lead to competitive edge? Each generation has come a little closer to that promise but it’s the third generation of BI we are now entering that holds the greatest potential to spread the value of BI to every business user and unlock all the value in data:

Graphic depicting 1st generation, 2nd generation, and 3rd generation of Business Intelligence

1st Generation BI – Centralized

In the early days of BI, if a person wanted to learn something from data, they had to submit a question to a data analyst with the skills to create a query or use a complex technology stack that analyzed multi-dimensional data sets (OLAP data cubes2). Often weeks later, they’d get a report that could be out-of-date or raised further questions. This inefficient “Ask > Wait > Answer” cycle limited BI’s value, while reaching only 25% of business users with static information.

2nd Generation BI – Decentralized

The next wave of BI, pioneered by Qlik, introduced user-driven BI. This replaced the complex technical stack with more agile methods to prepare and load data, and intuitive ways to visualize and explore that data. Business analysts could create analytics apps for key processes, delivering interactive BI dashboards to everyday users. Eventually even more lightweight data visualization tools came to market, and while BI could now reach between 25-50% of employees, most of these visualization tools lacked governance. Because these tools focus on content authoring, low data literacy rates limited user adoption and led to the use of untrustworthy data sources.

3rd Generation BI – Democratized

BI is entering its next phase, driven by new approaches to how we manage data, deploy analytics and improve data literacy. Trusted data is accessible to all users through governed data catalogs. Augmented analytics accelerates discoveries and increases data literacy by suggesting insights, automating processes, and providing conversational, natural language interaction. And embedded analytics brings BI to the applications and processes that people and machines (IoT analytics) interact with daily. These innovations are enabling organizations to reach the 50-75% of employees not yet using BI, offering a huge potential increase in value from data.

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