What is BI Architecture? 

Much has been said about Business Intelligence (BI), but what are the components of BI? How is it structured? These two questions can be answered with one, what is BI Architecture? 

Business intelligence is the union of several tools with the purpose of improving company managers’ decisions. Therefore, business analytics, data mining, data visualization, data tools and infrastructure, and best practices are used. However, before applying these strategies it is necessary to plan, and that is where BI architecture comes in. 

BI Architecture definition  

BI architecture is a framework useful to articulate technology, data management, and analytics practices from an organization. 

Components of BI Architecture 

Before renovating your house, you need to make a budget, evaluate how much can be spent, what are the priorities, if children or elderly people frequent the house, and how long the renovation will take, in short, it is necessary to collect data. It is no different for Business Intelligence, so the first component is data management. 

Data management  

As the name implies, it is concerned with how you gather, keep, and access data. In order to support BI activities, a solid data management system must be in place. This system should be tailored to the organization’s unique requirements. 

Data management happens at all levels of the company, from sensor and device data to personnel data, everything is recorded into databases. External sources of data including social media, market research organizations, and government authorities are also stored. 

However, as you may already know, this is not enough, it is necessary to transform this data into insights. Now is when data analytics comes into the picture. 

Data Analytics 

The process of transforming data into insights is known as data analytics. Businesses may acquire a better knowledge of their consumers, operations, and industry trends by utilizing data analytics. 

There are several sorts of data analytics, but they all have the same goal: to assist organizations in making decision processes to get better results. 

Data analytics may be classified into three types: descriptive analytics, predictive analytics, and prescriptive analytics. 

  •  Descriptive analytics provides a solution to the inquiry, “What happened?” 

Its objective is to comprehend historical events and patterns. 

  • Predictive analytics: Predictive analytics provides a solution to the query, “What will happen?” 

It’s useful to predict future events and trends. 

  • Prescriptive analytics: Prescriptive analytics provides a solution to the query, “What should we do?”  

Its function is to make suggestions for activities that would improve corporate performance. 


You know that in business intelligence architecture, you need to gather data and then act on that data. So, how do you do that? You’ll need the correct technology. 

Technology is essential for business intelligence since it facilitates data collection, storage, and analysis. You will also be able to share your ideas with others in your business if you use the correct technologies. 

Data warehouses, data lakes, and business intelligence tools are among the most significant technologies for business intelligence. 


Determining the best BI Architecture strategy requires good data collection, management, and analytics within your supply chain, so if you are wondering how to get that, you are in the right place. Talk to our experts here to get more info.