What is business intelligence (BI)?
Tools and methods that turn company data into metrics, reports and charts to help managers understand business performance.
In detail
BI collects data from your business systems, aligns the definitions and turns it into visual reports, so people can see sales trends, profit structure, inventory turnover and more at a glance. Common tools include Power BI, Tableau and Metabase.
For example
A manager opens a BI report, looks at revenue and gross margin by region, product line and month, and sees that profit on one product line has dropped sharply.
How companies use it
Define your key metrics and how they are calculated before building reports. A small set of focused reports is worth more than dozens that nobody reads.
Common misconceptions
Inconsistent definitions. When “revenue” is calculated differently across reports, management loses trust in the data.
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