Power BI Lesson 2 – Business Intelligence Basics | Dataplexa
Beginner Level · Lesson 2

Business Intelligence Basics

Before we touch a single button in Power BI, you need to understand what Business Intelligence actually means — because Power BI is just the tool, and BI is the thinking behind it.

What Business Intelligence Actually Means

Business Intelligence — BI for short — is the process of taking raw data and turning it into information that helps people make better decisions. Every business collects data. Sales numbers, customer records, website clicks, stock levels. The problem is that raw data on its own tells you nothing. BI is the process of making sense of it.

Think of it this way. A supermarket has millions of transaction records sitting in a database. That is data. When a manager looks at a report that says "Bread sales drop every Tuesday by 23%" — that is Business Intelligence. It is actionable. It leads to a decision.

Teacher's Note: A lot of people think BI is just about making charts look nice. It is not. The chart is the last step. The real work is understanding your data, cleaning it, and connecting it correctly — which is exactly what this course teaches you to do in Power BI.

Data, Information, and Insight

These three words get used interchangeably, but they mean very different things in BI. Understanding the difference will help you think clearly about what you are building in Power BI.

Data
Raw Facts
Numbers, text, dates with no context. Example: 4500, 3200, 6100
Information
Organised Data
Data given structure and context. Example: Jan sales £4,500 · Feb £3,200 · Mar £6,100
Insight
Actionable Finding
Something you can act on. Example: Sales recover strongly in March — investigate what drove that.

Power BI helps you move through all three stages — from raw data, to organised information, to insights you can present to a manager or a client.

The Five Stages of a BI Project

Every BI project — whether it takes one hour or six months — follows the same five stages. Knowing these stages helps you understand where each part of Power BI fits in.

1
Connect
Bring your data into Power BI from files, databases, or cloud services. This is done in the Get Data step.
2
Clean
Fix errors, remove duplicates, rename columns, and shape your data. This happens inside Power Query Editor.
3
Model
Define how your tables relate to each other. A solid data model is what makes your calculations accurate.
4
Analyse
Write DAX measures and calculated columns to create the numbers your business actually needs.
5
Visualise and Share
Build reports and dashboards, then publish to Power BI Service so your team can access them from anywhere.

Key BI Terms Used Throughout This Course

These terms appear constantly in Power BI. Learn them now so nothing feels unfamiliar later.

Term What It Means Example
KPI Key Performance Indicator — a number that measures success Monthly Revenue, Customer Churn Rate
Dashboard A single-page summary of the most important numbers Sales overview for a CEO
Report A multi-page file used to explore data in more detail Regional sales breakdown by product
Dataset The collection of tables your report is built on Sales, Products, Customers tables combined
Drill Down Clicking a visual to see a deeper level of detail Click Year → see Months → see Days

A Simple BI Workflow in Practice

Here is what a basic BI workflow looks like inside Power BI, represented as pseudocode so you can see the logical flow before we write real code in later lessons.

// Step 1 – Connect to data source
Source = Excel.Workbook("Sales_2024.xlsx")

// Step 2 – Clean in Power Query
Remove nulls, rename columns, set data types

// Step 3 – Model: define relationships
Sales[ProductID] → Products[ProductID]   (Many-to-One)
Sales[CustomerID] → Customers[CustomerID] (Many-to-One)

// Step 4 – Analyse: write a DAX measure
Total Revenue = SUM(Sales[Revenue])

// Step 5 – Visualise
Bar chart: Product Category vs Total Revenue
Publish to Power BI Service
Report Result
Total Revenue
£248,500
Top Category
Electronics
Active Customers
1,340
Report published to Power BI Service · Last refreshed: today

Teacher's Note: You will not memorise this workflow today and that is perfectly fine. Every single step above has its own lesson in this course. Right now, all you need to understand is that these five stages exist and that Power BI has a dedicated area for each one.

Practice

Practice 1 of 3

The process of turning raw data into useful information that supports decision-making is called ___.

Practice 2 of 3

In the five stages of a BI project, the stage where you fix errors and rename columns is called ___.

Practice 3 of 3

A single-page summary showing the most important numbers for a business is called a ___.

Lesson Quiz

Quiz 1 of 3

Which of the following best describes Business Intelligence?

Quiz 2 of 3

In which stage of the BI process does Power Query Editor do most of its work?

Quiz 3 of 3

A KPI is best described as which of the following?

Next up — Lesson 3 walks you through the main components of Power BI and how each one fits into the BI workflow you learned today.