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Business intelligence life cycle: from definition to full process description

Business intelligence (BI) is the key to unlocking potential and fueling business success. Guided by a comprehensive view of data from multiple sources consolidated in a single location, organizations can analyze past and present experiences to predict future conditions and make strategic decisions.
8 min read
business intelligence life cycle
business intelligence life cycle

    The exponential increase in data volumes has complicated the way information is stored, transferred, shared, and used. To successfully address challenges and capitalize on the value of data, decision-makers are adopting advanced business intelligence tools.

    What is BI and how does it work? In this article, we will uncover the essence of business intelligence and explore its life cycle from beginning to end, providing a holistic view of how it works.

    What is business intelligence?

    Business intelligence involves processing and analyzing data, transforming it into knowledge that organizations can use to make informed decisions. BI uses a combination of analytics, strategy, and technology to help decision-makers develop plans and tactics to drive change and adapt to the market.

    Business intelligence software offers invaluable advantages to companies by aiding in data organization, converting data into actionable insights, and predicting market dynamics and future trends based on discernable patterns.

    BI tools help businesses improve their offerings, maximize productivity, and accelerate the analysis of information from different sources, thereby boosting data-driven approaches, economic growth, and profitability. To gain a better understanding of the process, let’s delve into the business intelligence workflow.

    Benefits of business intelligence
    Benefits of business intelligence
    Benefits of business intelligence

    How does business intelligence work?

    Simply put, BI takes information from different sources and transforms it into convenient and understandable analytics presented in user-friendly views (tables, charts, graphs, histograms, and more). BI uses two types of sources: internal and external.

    business intelligence workflow
    business intelligence workflow
    business intelligence workflow

    Business intelligence life cycle

    Business intelligence is multifaceted and only functions effectively when properly optimized. It is an ongoing process requiring constant evolution to provide relevant, accurate, and meaningful data. To illuminate the essence of BI, we outline below the steps of the BI life cycle.

    what is BI lifecycle
    what is BI lifecycle
    what is BI lifecycle

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    Conclusion

    F.A.Q. about the business intelligence life cycle

    • Business Intelligence (BI) is evolving rapidly, driven by technological advancements and changing business needs. One key trend is the rise of augmented analytics, which integrates artificial intelligence (AI) and machine learning (ML) into BI tools to automate data preparation, insight generation, and recommendation processes. This enables organizations to derive actionable insights without requiring advanced technical expertise. Additionally, real-time analytics is becoming increasingly critical as businesses strive to make data-driven decisions instantaneously, particularly in sectors like e-commerce, finance, and healthcare. Another significant trend is the shift toward cloud-based BI solutions, offering scalability, accessibility, and cost-efficiency. These trends collectively aim to make BI more accessible, proactive, and integral to everyday business operations.

    • Ensuring data security and compliance in BI projects begins with implementing strong governance policies and access controls. Role-based access ensures that users can only view or manipulate data relevant to their responsibilities. Encryption, both in transit and at rest, protects sensitive data from unauthorized access. Compliance with regulations such as GDPR, HIPAA, or industry-specific standards requires regular audits and adherence to best practices. Organizations should also adopt secure cloud services with certifications like ISO 27001 to guarantee data protection. Implementing logging and monitoring systems helps detect and respond to suspicious activities, ensuring continuous security in BI projects.

      At EffectiveSoft, we guarantee compliance with data security standards and regulations. For instance, we have recently achieved the updated version of ISO/IEC 27001:2022 certification which assures clients that their sensitive information is handled with the utmost care and in compliance with internationally accepted standards.

    • Data integration faces challenges such as dealing with disparate data sources, formats, and systems. Mismatched schemas and inconsistent data definitions can cause compatibility issues, complicating the integration process. Data silos within organizations further hinder seamless integration, limiting comprehensive analysis. Scalability is another challenge, especially when handling large volumes of data generated in real time. Ensuring data quality throughout the integration process is critical, as errors can propagate across systems.

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