Business intelligence evolved from the Decision Support System (DSS) that began in 1990s and developed throughout the mid 1980s. DSS originated in the computer-aided models created to assist with decision making and planning. From DSS, data warehouses, Executive Information Systems, OLAP and business intelligence came into focus beginning in the late 80s.
Hans Peter Luhn first used the term BI in 1958 as "the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal". The term then gained traction under the context of Decision Support Systems in the 1960s. During the 1970s, computer hardware prices remained extremely high and computer processing is power limited. The largest firms generally owned few mainframe-based systems that were reserved for operational data entry only. Frustration at reliance on paper reports and inflexible reporting systems led to further theory developments as business journals began to explore management decision systems, strategic planning systems and decision support systems.
In 1979, John Rochart of the Harvard Business School published an influential article on Executive Information Systems (EIS) and Executive Support Systems (ESS), developing the concept of using information systems to display critical success metrics for managers.
In 1989 Howard Dresner redefined BI as "concepts and methods to improve business decision making by using fact-based support systems", a definition that acted as a precursor to the future path of BI.
The 1990s saw both developments and new challenges for the field of BI. The World Wide Web saw remarkable technological development which enhanced the capabilities for deploying computerized DSS, including: HTML 2.0, the creation of corporate Internets in 1996-97, and data warehouses for the consolidation of disparate databases. Household internet penetration, the proliferation of eCommerce platforms, and a soaring demand for programmers led to the creation of much third party software which was often generic and failed to meet business requirements.
In response to these challenges and developments, web-based analytical and business intelligence applications and solutions began to emerge in 1999 and evolved in the early 2000s
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