What is the main purpose of business intelligence (BI) tools?

The primary purpose of business intelligence (BI) tools centers around the collection, analysis, and presentation of business data. These tools are designed to help organizations make informed decisions by transforming raw data into meaningful insights. By aggregating data from various sources, BI tools enable companies to identify trends, monitor performance, and visualize data in a way that supports strategic decision-making.

The significance of BI tools lies in their ability to provide actionable insights, which help organizations not only to understand their current performance but also to forecast future trends. This capability is essential for effective business operations, as it allows companies to be more agile and responsive in a constantly shifting market landscape. By focusing on data analysis and presentation, BI tools empower stakeholders at all levels to leverage data for improved planning and operational efficiency.