Business Analytics in Practice

Business Analytics in Practice

Business Analytics in Practice
Executive Summary
This paper presents the findings into the investigation of the application of decision support
systems (DSS) in the marketing area of business. The Data-based Decision Support Systems,
Knowledge-based Decision Support Systems, Model-based Decision Support Systems, Online
Analytical Processing System (OLAP) and Online Transaction Processing System (OLTP) were
identified as the key DSS systems that find application in the marketing area of business. Their
applications fell under three main categories: data resource creation and management, marketing
analysis and information resource. The DSS systems were found to be beneficial to Multinational
companies by making the decision-making process efficient, allowing for early deployment of
marketing ideas ahead of the competition, early detection of potential crisis and opportunities in
the market, and ease of communication.
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Business Analytics in Practice
Contents
Introduction.................................................................................................................... 4
About Business Area........................................................................................................ 5
Applications of Decision Support Systems in Marketing.............................................................5
Data Resource Creation and Management........................................................................... 5
Marketing Analysis....................................................................................................... 6
Information Resource.................................................................................................... 8
Benefits of Applications of Decision Support Systems in Marketing..............................................9
Conclusion................................................................................................................... 10
References................................................................................................................... 11
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Business Analytics in Practice
Introduction
Increased competition in the business world has meant that the market dynamics are not enough
to rely on for guaranteed success. Market dynamics such as high demand, low supply and market
niche are currently not sufficient for improving the chances of success for a company (Kiechel,
2010; Tang, 2014). This is largely a product of availability of information to customers and
potential customers. The development of information technology and its evolution of the access
to information over the past decades has meant that the customers and the companies have access
to the same information (Halaweh & El, 2014). This reduction in the information gap between
the companies (competing companies) as well as between the companies and the customers has
given rise to stiff competition and highly sensitive customers.
Decision-making has become the new focus for improving the chances of success for companies.
A modern definition of decision-making, in the context of business, would be the ability to make
a choice that limits the losses and improves the profits (Henry & Venkatraman, 2015).
Before the onset and acceptance of data analytics, the quality of good judgement in decision-
making was based on the performance of the decision maker in previous positions (record of
accomplishment) (Trottier, 2017). Whereas data analytics has not entirely eliminated the need
and necessity of having a decision maker with an excellent record of accomplishment, it has
reduced the over-reliance on this single quality (Trottier, 2017).
In business terms, data analytics refers to the application of mathematical and statistical
approaches to available data in order to provide helpful inferences about the data (Han &
Jaiwei, 2011; Fawcett & Provost, 2013). Data analytics provides additional information for
decision makers to assist them in making decisions that are backed by actual data. Data analytics
is integrated into the decision support systems (DSS) in decision-making. Decision support
systems are computerized systems involved in all aspects of the process of decision-making
(Cristina, Rudolf & Stefan, 2019; Christian & Griffiths, 2017; Bryan et al., 2012).
This paper is focused on the application and benefits of the decision support systems for a
business area. The business area will first be identified then the applications of the decision
support systems in that business area will be evaluated. In addition, this paper will check on the
benefits of the decision support systems applied in the business area. Conclusions will then be
made from the findings in this paper.
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