Ever wondered what Business Intelligence is and why we use it? In this video I'll
be answering those questions and showing you why you should be implementing BI
for your business.
Hey everyone, Adam here from Vitamin BI bringing you business
intelligence for beginners and beyond. On this channel we'll look at all
things BI like data analysis and visualization as well as BI platforms
and how to choose the right one for you. So if you're new here consider subscribing.
So let's get straight into it, what is BI? Well, BI is all about
harnessing the data that your business generates in all of its different
activities. Then we analyze and visualize this data in order to clearly understand
it and gain valuable insights into how your business is performing. Now these
insights, in turn, allow you to make better informed smarter business
decisions to help your business evolve and grow. And that's basically it,
the three stages of BI, which in theory sounds quite straightforward but in
practice it has many challenges.Let's dig a little deeper and take a closer
look at each one of these three areas in turn.
In today's modern business world, companies generate a lot of data. Gone
are the days when it was all contained in spreadsheets and on-premise databases.
With the online age we now have things like social media and cloud-based
business services and they all generate tons of data. Therein lies the biggest
challenge for BI. All of this data is separate in what we call 'silos' meaning
it's hard to easily get a global 360 view of how your business is performing
in all of its activities without having to look at multiple reports in different
places. What we really need to do is to bring these disparate data sources
together and analyze them together to get a clearer picture. We'll dedicate
more time to the specifics of where and how to access your data in other videos
so don't forget to subscribe. So what about the analysis part? Well, the end
product of the analysis usually takes the form of a reports or dashboard
containing visual representations of your aggregated data like this one, and
this one, and this one. Whereas a car dashboard displays things like your
speed, how much is left in the tank or even the outside temperature a BI
dashboard contains your business' metrics or KPI's like your revenues
stock levels or how much engagement you're getting on social media. When you
track and benchmark your KPIs you can measure your business's performance.
Visualizing your data makes it easy to read, understand and digest. A dashboard
gives you an at-a-glance snapshot of performance and helps you identify areas
where you're doing well and those that might need some more attention or
investigation. Data visualization is a discipline all unto itself and
effective visualization is the key to making sure that your data is as easy to
understand as possible.
Finally, once we've got all the data together, analyzed and visualized it, it's
time for the insight stage where we read the results of the analysis and see what
we can learn. Your dashboard can help you spot trends, see how metrics correlate
with each other and also compare periods of time to see how things are evolving.
Obviously every business is different with different data but let's
take a look at a dashboard I built with some real data and I'll demonstrate the
kind of insights that we're looking for. This dashboard contains some real
Instagram data for a town's tourist office in France. It's a fairly small
sample size but you can see that we've broken down the main KPI's, number of
posts and average number of interactions - which is likes and comments combined - by
various things like month, day of the week, hour, type and filter applied. We've
also used color data encoding to be able to look at these two KPIs together.
If we look at this first chart by month we can see that in the month of August
they posted the most number of times but we can also tell by the yellow color
that those posts had the least number of average interactions. So this could tell
us that maybe they posted too much and should think about reducing the number
of posts during a month. Or simply that it's a month when a lot of people are on
holiday in France so aren't on Instagram as much. One way to test this would be to
compare the same month of the previous year and see if the average interactions
was also low. Now, this chart by day gives us some clearer insights. We can
tell that posts on Tuesday and Wednesday receive the highest average number of
interactions. So this could tell us that we should post more on those days. And
finally, we can see that the Amaro filter appears to be most effective in
gaining engagement so we could try applying it to more posts to see if
interactions increase. The data visualized in this dashboard gives us
ideas and food for thought of things that we could try in changing how
when, in this case, we post to Instagram. Ideas that we may not have had without
having analyzed our data. And that's exactly what we mean by insights.
And that's it for this video. Hopefully now you have a better understanding of
what business intelligence is, its challenges and its benefits. And if this
has peaked your interested and you'd like to learn more about things like data analysis and
visualization, don't forget to subscribe to the channel and hit that bell to get
notified whenever we post new videos. I'll be showing you that you don't need
to be a data scientist or have a huge budget to get started with basic BI.
Until then, stay BI-curious.