Tuesday, August 14, 2007

Define DW/BI ?

Two commonly used term in the BI world are, Data Warehousing (DW) and Business Intelligence (BI). Do they mean the same thing ? Both these terms are used interchangeably and intended to mean the same, but by definition they are not.

Data warehouse (DW) is the main repository of the organization's historical data. There are many reasons to build data warehouse, but the most important ones are
  1. Reliable Reporting -The need for reliable, accurate and timely report based on data from disparate data sources

  2. Better Performance - The critical factor leading to the use of a data warehouse is that a data analyst can perform complex queries and analysis on the information without slowing down the operational systems.

  3. Intuitive - Keep the data model simple and intuitive for end users to build reports

Business intelligence (BI) is a business management term which refers to applications and technologies which are used to gather, provide access to, and analyze data and information stored about their company operations. Business intelligence software and applications includes range of tools.

  1. Some BI applications are used to Analyze Performance, projects, or internal operations, such as Scorecarding; Business activity monitoring; Business Performance Management and Performance Measurement

  2. User/End-user Query and Reporting

  3. Enterprise Management systems; Executive Information Systems (EIS); Supply Chain Management; and Finance and Budgeting tools.

  4. Other BI applications are used to store and analyze data, such as, Data mining; Forecasting; Document Management; Knowledge Management; and Dashboarding; Geographic Information Systems (GIS); Trend Analysis; Online Analytical Processing (OLAP) and multidimensional analysis; (based on the "hypercube" or "cube")

I will go into detail on the above mentioned BI applications in my future posts.

2 comments:

Andrea said...

Thanks for defining both these terms and clearing that they are not similar. I will share this detail with all my friends too so that they can also clear their doubts.
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Unknown said...

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