Revolutionary Business Management Using Business Intelligence

Question: Describe about the Revolutionary Business Management Using Business Intelligence And Analytics? Answer: Introduction The report discussed here is interrelated to the information management system. It includes different revolutionized ways to make evolved decisions making for the business management system. The report will analyze different types of decisions made within an organization, and the functionalities of those decisions. The information management system also describes the analytical outputs that provide correct and real-time information system to the users. In order to incorporate modern business processes, other requirements are also demonstrated. Findings and analysis Different types of discussions made within the business environment There are major six types of decision-making techniques utilities officially in an ordered way in every organization (Pettigrew 2014). A different group of people for beneficial outcome takes the decisions. Harper (2015) stated that the significant decisions are programmed and non-programmed decision, routine and strategic decisions, tactical and operational decisions, organizational and personal decisions, major and minor decisions, individual and group decision. All these regulatory decision making processes are relevant to each other. Function of decision-making Programmed and non-programmed decision: Programmed decisions are related to repetitive nature of problems occurred in an organization. The Certain standard procedure is followed to handle to execute his sort of decision making in an organization (Kaner 2014). The lower level managers take this decision. Programmed decisions are concerned with buying raw materials, leave grant for an employee, supply chain management, etc. whereas the non-programmed decisions are deals with serious problems in an organization those have no easy solution. According to PopoviÄ , Hackney and Coelho (2012) these matters are closely related to the organization's final decision making. In order to open the new branch, new product launching, advertisement in the marketplace these decision-making tactics are used. Routine and strategic decisions: The characteristic functions of an organization are known as the routine decision. These decisions are easy to take, and it does not require any assessment or further evaluation. Lower level employees make these decisions, as these are pre-organized according to the board policy (Harper 2015). At the same time, strategic decisions are important for an organization to achieve fruitful results. These decisions affect the objectives, goals and policy matters of an organization. A massive amount investment is required to execute these decision programs. After detailed analysis and dummy evaluation, the final implementation of this decisions is taken. Tactical and operational decisions: The top-level management team makes the policy or tactical decision for an organization. These have long-term effects on society. The policy decision involves plant location, production volume, and distribution channels maintained by an enterprise. However, the lower level and middle-level management team took the operational decision for an organization (Pettigrew 2014). These are practical decisions that evaluate on a daily basis for particular business operation. Decisions concerning bonus, payment, incentives are tactical decisions at the same time measurement of an amount for individuals are an operational decision. Organizational and personal decisions: when an organizational head takes some decision for the sake of the company then that is called corporate decision whereas if the decision affects the private life of the executive then will be known as the personal choice (Howson 2014). Organizational and individual decisions are interrelated to each other for example it can be said that when an organizational head leaves a company for any particular reason, it may affect the corporate function also. Significant and minor decisions: In an organization meaningful and small both kinds of decisions are taken (Kaner 2014). The company's top-level management makes the major decisions, but the lower, and middle-level management team of the company takes the small decisions. Individual and group decision: Any person makes a decision related to the company is known as an individual decision. Enterprise head decision-maker makes these decisions. When the industry requires a team support, then they arrange board meetings or committee meetings (PopoviÄ , Hackney and Coelho 2012). During these kinds of meetings, the group discussion leads to taking group decisions. Figure 1: Decision making processes (Source: PopoviÄ , Hackney and Coelho 2012, pp-731) Six elements of intelligent business environment There are six items in the environment to business intelligence. These are as followed: Elements Role Play Data fetching from business resources Integration and organization of the structured and unstructured data taken from various resources Infrastructure of business intelligence In order to arrange all relevant business data in an organized way a proper database managements system is required. Analytical business toolsets Different diagnostic key tools are needed for assessment of relevant data and to produce an analytical report. It also measures the progress speed of the enterprise performance. Methods and their managerial users The managers decide the strategic business objectives. The proper utilization of BI and BA tools are also made. Platforms required for delivery The resultant from the BA and BI tools are delivering to every individual of the firm, and the delivery platforms are MIS, DSS, and ESS. User interface Different visual procedures such as a dashboard, scorecards are used to represent the resultant BA and BI report. Table 1: Elements of intelligent business environment (Source: Rouhani 2012, pp-3766) Discussion of the analytical functionalities provided by BI system: Analytical functionalities Role play Production report Based on the particular industry need this report is predefined. Parameterized report In order to receive isolated impacts of the parameters user enter several parameters. Dashboard/ Scorecard Visual report to represent performance of the data defined by the users Ad hoc query/search/report creation Based on systematic search and queries users creates their report. Drill down It is the capability to make a transaction from the high-level summary to view that is more detailed. Forecast and scenario models Ability to perform linear forecasting and assessment of data taken from the resources are done using these models. Table 2: the analytical functionalities provided by BI system (Source: Sein-Echaluce 2013, pp-407) Figure2: Business intelligence system (Source: Vargas and Cuenca 2016, pp-60) Five discrete outputs that provide correct and real-time information to users Harmon (2015) stated that Business intelligence is mainly a drive technology program used to convert raw data into useful organizational data for sound decision-making. For decision-making, it provides report formation on the functionalities, tools to identify the bunch of useful data, data mining technique, and analysis for prediction. The five analytical outputs or components utilized by business intelligence system that provides correct and real time information systems to the user are- OLAP, data Visualization, dashboard, report, and alerts. The users get the detailed presentation of the resultants for the generated queries according to the requirements (Li and Cao 2014). Apart from this, the ability of BI forecasting is mainly a package of analytical application used for sales forecasting. Several sorts of analytical outputs are there that affect the business includes EIS (Executive Information System), Artificial intelligence (AI), data mining, Decision support system, CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning). The analytical application focuses on the vendors and internal teams (Vargas and Cuenca 2016). The inventory control, product purchasing, reliable transaction processing application is also supported by the system. Business intelligence and analytics that helps to improve decision-making In order to choose the correct path proper decision is required to make by the top management decision maker to take a quick decision. The values of Business intelligence and the business analytics are significant on the decision-making capability of an organization (Rouhani 2012). Therefore, it becomes difficult for the decision makers to take the proper decision. Apart from this, insufficient information and lack of investment are making the policy makers confused. Again, there are some companies where the decision maker takes the appropriate decision with the available pre-processed data (Sauter 2014). The advantages of implementing BI and BP in the business models for decision-making include: Improved business productivity: A business process can channel their resources in the field of implementation. The BI team handles all the information in an organized way. The productivity includes cost savings, time management, time saving and efficient outcome (Chen 2012). From the customer's interaction, the BI team extracts the crucial information for proper documentation and well presentation. Easily virtually, accessible information: It provides necessary information to the company to make quick decisions and to achieve competitive advantages in the marketplace. Return on investment: Any business requires the enormous amount of investment for continuous progress. Therefore, the company expects also some beneficial outcome from this. This return policy is known as ROI (Harper 2015). The business process efficiency, employee productivity, and better decision making are the gain from the investment. Informed decision-making: Based on the timely information and reporting the company can easily measure their progress of performance (Howson 2014). BI provides crucial and necessary information the enterprises to make the perfect decision including future trends, expected demands and customer behavior towards the company. Intelligent techniques in decision-making and knowledge management that benefit the modern business The knowledge management and BI provide benefits to every company. It also eliminates mighty guess works. The organizations recognized the importance of BI. The benefits are as followed: With the help of BI tools, the conversion and solution of issues regarding business knowledge through analytical intelligence are possible (Dumas 2013). Business issue rates can be decreased with direct email, telephone, email, and market campaigning via the internet. Organization can identify the same customer for their company. In order to keep those customers satisfy the company undertakes different underlying reasons. Again, loyalty, trust, and understanding between the client and server are easy to keep with the help of BI (Rouhani 2012). The method contributes to attracting more customers in future also. It analyzes quick stream data for ecommerce strategic improvement. Money-laundering criminal activities can be discovered. Warranty reported problems could be detected quickly. It analyzes the potential growth, and risk reduction strategies. Detects fraudulent behaviors Contract a balanced relationship between customer and management team of the company. It adds profit rate for the insurance. It analyzes the product quality and the service line structure. Decision Support system for groups to take efficient decisions According to Matayong (2013) the concept of Decision support systems grew during the 1970s to 1980s when the companies started facing various issues. It introduced two computer-assisted decision-making systems such as- MIS (Management Information System) and OR/MS (Operation Research and Management Systems). The MIS provides scheduled report for the well-defined requirement for information, demand report for an ad hoc information system and the capability to query a database to search data (Sein-Echaluce 2013). At the same time, OR/MS is used for assessment of specific issues. The definition of DSS implemented in the 1970s and was using today also. The definition of DSS is as followed: It is a computer-based system It helps the decision maker to make a significant decision for the company. It challenges the ill-structured issues. With the help of direct interaction with the consumers With the data and analyzing models In todays era, different complex ambiances are occurring in the business cases (Matayong 2013). In order to optimize those issues, the company needs to acquire appropriate decisions as per the situation. Now a day, for quick decision-making the businesses are adapting fact-based decisions and modern decision support system (Sauter 2014). In this case, the occurrence of information overloading and information distortion level is also very high. These systems help a group of people to take an efficient decision for the company's benefit. Different level groups make different decisions for practical results. Discussion of the systems that are used to improve enterprise-wide knowledge management Rouhani (2012) opined that the methods used to develop enterprise-wide knowledge management includes OLAP (Online analytical process), advanced analytics, groupware system, DSS, tools of AI, semantic networks, corporate performance management system, simulation tools, the real time BI, data warehouse and data resources. Multidimensional analysis of business data that gives an opportunity for the organization to measure complicated calculation, trend analysis, and sensitive data modeling is performed by OLAP. Budgeting, forecasting, financial reporting, and simulation models are the business applications performed by the company (Dumas 2013). Improvement in this field is necessary for the organization. Data warehouse emphasizes the capture of data from diverse resources. The data mining system is needed to be enabled, as it is the process of computation of discovering the types in a large set of data that involves artificial intelligence, database, and learning machines (Chen 2012). Advanced DSS and simulation tools should be incorporated into the existing system for improvement. Figure 3: Enterprise-wide knowledge management system (Source: Delgado 2013, pp-980) Groupware system is the application software introduced to support the ordinary working people who are concentrating on reaching the preset target level (Brown 2013). As Artificial intelligence is a machine, rather software, therefore, the human feeling cannot be incorporated with this. As a result, the technical improvement is required for the beneficial outcome of the company. Conclusion In the above report, it has been discussed different decision-making system for an organization. With the help of DSS how the complexity of decision-makings is reduced are discussed here. Enterprise-wide knowledge management systems are how improved for the managerial decision-making are also mentioned in the report. Business Intelligence and Business Analytics methods are described and also how these systems helped to improve the decision making a power of the dominant management system is discussed. Recommendations The above discussion provides many complex situations that have occurred in an organization. In order to mitigate those, make recommendations as followed: The major issue related to the BI is the cost. The technique is cost-effective. Therefore, wrong BI implementation will be a waste of money and time as well. The software and hardware maintenance cost is very high. The organizations should acquire advanced BI to overcome these problems. More advance DSS should be evolved for the current systems in an organization to mitigate the issues. A robust and secure computerized architecture should be projected as a beneficial outcome for the company. 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