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What is Business Intelligence (BI)?

Business Intelligence turns company data into dashboards and decision support. Understand the BI stack, Power BI and the difference between BI and AI.

In short

Business Intelligence, abbreviated BI, covers the methods and tools that gather a company's data from finance systems, CRM, production and other sources and turn it into overview, reports and dashboards that management can base decisions on.

A typical BI solution consists of data sources, a shared data model and a visualisation layer, where Power BI is the obvious choice in Microsoft environments because it works directly with Microsoft 365, Excel and Azure. The prerequisite for trustworthy numbers is data quality and governance: clear definitions, controlled access and an agreed truth about what the figures mean.

BI differs from artificial intelligence by showing what has happened and why, while AI predicts and automates. In practice the two complement each other. MI Support IT helps Danish businesses bring their data together and build BI solutions on Microsoft's platform, from data model and data quality to finished dashboards.

Back to the glossary

What is Business Intelligence?

Business Intelligence (BI) is the umbrella term for the processes and tools that transform a company's raw data into decision support. Instead of gut feeling and scattered Excel sheets driving the management meetings, figures from the finance system, CRM, inventory and production are gathered in one place and presented as reports and dashboards everyone can understand. The goal is simple: decisions about sales, purchasing, staffing and investments should be made on facts that are up to date and trustworthy.

The typical BI stack: from data sources to dashboards

In practice, a BI solution consists of three layers. At the bottom are the data sources: line-of-business systems, databases, spreadsheets and cloud services. In the middle is the data model, where data is cleaned, connected and given shared definitions, so revenue means the same thing in every report. At the top is the visualisation layer with dashboards, reports and automatic distribution. Users typically only see the top layer, but it is the two layers below that determine whether the numbers are of any use.

Power BI: the obvious choice in Microsoft environments

If the company already uses Microsoft 365, Power BI is the natural BI tool. It shares a platform with Power Apps and the rest of the Power Platform, pulls data from virtually any source and lets users share dashboards directly in Teams and Excel. Microsoft's Power BI documentation describes the architecture and licensing models in detail. The strength is that the business can work with the reports itself, while the data model is kept central and governed by IT.

Data quality and governance as a prerequisite

A beautiful dashboard on top of bad data just produces wrong decisions with greater confidence. That is why data quality and governance are the prerequisite for all BI: there must be clear definitions of key figures, control of who may see what, and processes for how errors in source data are detected and corrected. In Microsoft environments, Microsoft Purview can help classify data and govern access, so sensitive information does not end up in reports where it does not belong.

BI vs. AI: what is the difference?

BI and AI are often confused, but they answer different questions. BI is backward-looking and descriptive: what happened, where and when? Artificial intelligence is forward-looking and action-oriented: what is going to happen, and what should we do? In practice, good AI builds on the same data foundation as BI, and tools like Copilot in Power BI already let you ask questions of your data in plain language. The order matters, though: without control of data and BI, AI projects rarely become more than demos.

How MI Support IT can help

We help Danish businesses with the whole BI journey: data foundation, data model and dashboards in Power BI through our work with Microsoft Power Platform, and building onwards towards AI via AI Consulting. Contact us if your data should be working for the business instead of sitting in silos.

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