From Data to Decisions: A Beginner’s Guide to On-Premises BI
In today’s digital age, businesses generate massive amounts of data daily. This data can be used to gain valuable insights, make informed decisions, and improve business operations. However, without proper analysis and interpretation, this data is essentially useless. This is where business intelligence (BI) comes in. BI is the practice of using data to inform and improve business decisions. In recent years, there has been a shift towards on-premises BI solutions, which allow businesses to store and analyze their data locally rather than relying on cloud-based solutions. In this beginner’s guide, we’ll break down the basics of on-premises BI and provide practical tips to help you get started on your BI journey.
Table of Contents
Understanding Data in On-Premises BI
Benefits of On-Premises BI
Data Preparation for On-Premises BI
Choosing the Right On-Premises BI Tools
Implementing On-Premises BI Solutions
Best Practices for On-Premises BI
Challenges and Solutions for On-Premises BI
On-Premises BI vs Cloud-Based BI
Conclusion
Understanding Data in On-Premises BI
Before diving into on-premises Business Intelligence, it’s important to understand the different types of data businesses deal with. There are two main types of data: structured and unstructured.
Structured Data
Structured data is data that is organized in a specific manner to ensure readability and accessibility extends to both humans and artificial intelligence. Typically, a data model can provide a structure for the data so that it can be organized in this manner.
This type of data is easy to analyze and can be stored in a database or spreadsheets. Examples of structured data include sales figures, customer information, and inventory levels. It generally appears in data fields for, say, a customer’s name, address, phone number and email address.
Structured data is useful due to the ease in which it can be analyzed via various techniques/tools. Furthermore, it ensures consistency by following a well-defined structure, which allows ease of accessibility.
Unstructured Data
Unstructured data, on the other hand, is not organized in a specific way. This type of data can be more challenging to analyze and interpret as it does not follow a predetermined format. It can include social media posts, emails, images, text documents and audio or video files. This type of can be generated by people or machines.
Human-generated unstructured data includes emails, text files, social media, websites, mobile and communications data, and digital, audio and video media. Unstructured data created by artificial intelligence includes scientific data (surveys, seismic imagery, atmospheric intelligence, etc.), digital surveillance (reconnaissance photos/videos, etc.) and satellite imagery (weather, land forms, military movements etc.).
In on-premises BI, businesses can analyze both structured and unstructured data. This allows companies to gain insights from all their data, not just the structured data.
Benefits of On-Premises BI Compared to Cloud BI
Data Security
On-premises Business Intelligence solutions offer several benefits over cloud-based solutions. One of the most significant benefits is data security. When data is stored and analyzed locally, businesses have more control over who has access to it, so important information is less likely to be exposed. Even if data is leaked, with on-premises BI, it is much easier to discover how it occurred, as there are means to track who had access to the information at what time. This is especially important for businesses dealing with sensitive data such as financial, customer, or medical records.
Due to the importance of data security, you should invest in the best tools, whether or not you are using a cloud-based or on-premises approach. Such tools will have implemented multiple layers of protection.
Integration
Another advantage of on-premises BI is the ability to integrate with existing systems. Many businesses already have data stored in their databases, and on-premises BI solutions can easily integrate with these systems. This means businesses can analyze all their data in one place rather than moving it to a different system.
Customization
Finally, on-premises Business Intelligence solutions offer more customization options than cloud-based solutions. Businesses can customize their BI solutions to meet their specific needs and requirements. This means companies can create dashboards and reports tailored to their unique needs.
Maintenance
Although on-premises BI renders the business itself responsible for maintenance, it grants flexibility in terms of available resources, staff and time. Furthermore, it can be maintained in a manner that suits the company’s requirements, thus reducing contingency issues and costs. This is because it reduces the future needs for supplementary tools.
Data Preparation for On-Premises BI
Before data can be analyzed in on-premises Business Intelligence solutions, it needs to be prepared. Data preparation involves collecting, combining, cleaning and organizing the data to ensure accuracy and consistency so that it may be used for BI and data visualization. This can be a time-consuming process but ensuring that the data is reliable and can be used to make informed decisions is essential. The components of data preparation include processing, profiling, cleansing, validating and transforming.
One way to prepare data for on-premises BI is to use data integration tools. These tools can help businesses combine data from multiple sources and ensure that the data is consistent and accurate.
Another important aspect of data preparation is data governance. Data governance involves setting up policies and procedures to ensure data is used responsibly and ethically. This includes setting up security measures to protect the data and ensuring that the data is only accessed by authorized personnel.
The primary purpose of data preparation is to ensure raw data is accurate so BI analytics will be valid. Raw data is often inaccurate as during collection there may be missing values or other errors that must be corrected. By correcting errors in raw data, it can be optimized for information.
Choosing the Right On-Premises BI Tools
Choosing the right on-premises Business Intelligence tools is essential to ensure businesses can analyze their data effectively. There are several factors to consider when selecting BI tools, including:
- Functionality: The BI tools should have the necessary functionality to meet the business’s needs. This incorporates the ability to create dashboards, reports, and visualizations.
- Ease of use: The BI tools should be easy to use and intuitive. This is especially important for businesses that do not have dedicated IT staff.
- Scalability: The BI tools should be able to handle large amounts of data and should be able to scale as the business grows.
- Cost: The cost of the BI tools should be considered, including any licensing fees and ongoing maintenance costs.
The top tools for use in 2023 include:
Tableau Server is a Business Intelligence tool that uses data visualisation techniques, reports and dashboards to analyse complex data. It is best suited to smaller or medium sized businesses, as it requires little technical knowledge and is easy to understand. In the on-premises sense, it allows businesses to host your own IT infrastructure. It guarantees complete control over data access, accurate insights and versatility.
PowerBI Report Server is an on-premises version of Microsoft PowerBI (mentioned in our previous blogs). It allows complex data to be broken down into visualisations that grant ease of understanding. It is best suited for large-scale enterprises already accustomed to the Microsoft system as it warrants a more advanced understanding on the requirements for KPIs. Alternatively, it is also well-suited to SMEs with a capacity to grow fast due to the high level of interactivity.
Metabase is a basic BI tool for learning via charts and dashboards. It is best suited for startup companies with a limited budget for BI tools due to its user-friendly interface for employees without technical knowledge. Further, it is an expeditious platform beneficial for reducing time wasted on searching.
Looker is a platform under the Google umbrella, which acts as the API for your data. It is best suited for large-scale enterprises with the means to use such software advantageously. It is time-efficient due to the downloading, installation and maintenance it does in the background.
Zoho Analytics offers an on-premises platform for converting raw data into actionable insights with the use of artificial intelligence. It has a wide range of suitability for both small and large companies, who simply require software that requires little learning time.
Domo uses data analysis to deliver actionable insights, enable collaboration and generate predictive analytics from multiple collected sources. It is best suited to enterprises who have little technical knowledge, however can also be used for experienced teams who wish to uncover more meaningful insights through data transformation.
Implementing On-Premises BI Solutions
Implementing on-premises Business Intelligence solutions can be a complex process. It involves setting up the necessary hardware and software, integrating the data sources, and creating the required dashboards and reports.
One approach to implementing on-premises BI is to start small and gradually expand. This allows businesses to test the BI solutions and ensure they meet their needs before investing in a more extensive implementation.
Another necessary aspect of implementing on-premises BI solutions is user adoption. It’s essential to ensure that the BI solutions are easy to use and provide value to the users. This can be achieved by providing training and support to the users and ensuring that the dashboards and reports are tailored to their needs.
Best Practices for On-Premises BI
To ensure that on-premises Business Intelligence solutions are effective, businesses should follow best practices. These include:
- Defining clear goals and objectives for the BI solutions
- Ensuring that the data is accurate and consistent
- Providing training and support to the users
- Regularly reviewing and updating the dashboards and reports
- Ensuring that the BI solutions are secure and comply with data protection regulations
Challenges and Solutions for On-Premises BI
While on-premises Business Intelligence solutions offer many advantages, there are also challenges to consider. One of the biggest challenges is the cost of implementing and maintaining the solutions. On-premises BI solutions require significant hardware, software, and IT staff investment.
Another challenge is data silos. Businesses often store data in different systems, making it difficult to analyze all the data in one place. This can be addressed by using data integration tools.
Finally, on-premises BI solutions require ongoing maintenance and updates to ensure they are effective. This requires dedicated IT staff and continued investment in the solutions.
On-Premises BI vs Cloud-Based BI
While on-premises Business Intelligence solutions offer many advantages, cloud-based BI solutions also have their place. Cloud-based solutions are often more cost-effective and require less IT staff. They also provide more flexibility, as businesses can access their data anywhere with an internet connection.
However, cloud-based solutions may not be suitable for businesses that deal with sensitive data or have specific customization requirements due to the increased security risk involved. Further, On-Premises BI has an increased range of customisation options, and therefore is able to better-suit a specific business based on individual requirements. Not to mention, the range of accessibility for On-Premises BI is far broader than Cloud BI as it does not require internet to operate.
Ultimately, the choice between on-premises and cloud-based Business Intelligence solutions will depend on the specific needs and requirements of the business.
Conclusion
On-premises Business Intelligence solutions allow businesses to store and analyze their data locally, providing greater control and customization options. However, implementing on-premises BI solutions can be a complex process that requires significant investment in hardware, software, and IT staff. To ensure the success of on-premises BI solutions, businesses should follow best practices and provide solutions tailored to their specific needs and requirements. Whether businesses choose on-premises or cloud-based Business Intelligence solutions, the ability to analyze data and make informed decisions is essential to success in today’s digital age.