Business decision support systems

Task 1: Business decision support systems
Business Decisions and Support Types
Decision making is undertaken at hierarchy’s all levels. So, it is crucial to gain knowledge
regarding the decision types being supported by a decision support system.
 Strategic Decisions: These decisions need lots of time to reach at and have non-recurrent
nature as they are not linked to an organization’s general functioning. Undertaken by the
hierarchy’s top level, these include a careful examination of the circumstances and
outcomes. Examples may include: investment proposal examination, decisions in respect
to mergers & acquisitions, funding or allocation of resources.
 Operational Decisions: There are 2 major categories to such decisions. Firstly, decision
making related to production volume, distribution channels as well as policies, location of
plant fall under the top mgt. Being long-term decisions, they have a direct influence on
the business’ operations. Secondly, decisions related to daily operations are undertaken
by the lower/middle level managers.
 Managerial decisions: Made by top + upper middle level of mgt., such decisions are
related to R&D, resource allocation, introduction of new product, withdrawal of old
products, talent mgt.
A unique support level is needed by every decision. Therefore, it is the duty of a decision support
analyst to examine the various kinds of decisions that are required to be supported, people who
are a part of decision-making process, whether or not there is a need of presenting other COAs.
Key features of how business intelligence work
Depending on particular industry and circumstances, different organizations make investment in
a BI solution for varied reasons. Irrespective of the separate agenda, below we are mentioning 6
features which must be targeted in any specific BI solution, regardless of the situations of its
applications:
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Task 2: Business intelligence, tools and technologies
BI is defined as a collection of technologies, practices and applications that can be used for
collecting, integrating, analyzing and presenting the business data. Supporting better business
decisions is the purpose of BI. BI is a data driven decision support system.
The tools and technologies of BI are explained below.
1. Executive dashboards
Business leaders get crucial, easy to understand real-time data with the help of Customized
Dashboards. Along with minimizing the response times to external/internal events, it supports a
quicker and improved decision making. Personalized dashboards are required by the executives
so as to get easily understood KPIs as well as summary info regularly on set schedules.
2. Location Intelligence
Location Intelligence can be known as the ability of mapping as well as visualizing data in
certain geographical formats. In order to gain knowledge of their business operations from latest
perspectives (like sales per region), it is crucial to explore and visualize the data sets on the basis
of geographical elements.
3. “What if” analysis
For assessing the possible impacts of the critical business decision prior to actually undertaking
them, the businesses can refer to the “What if” analysis. For gaining the business targets as well
as avoiding the primary approach of “hit and miss”, users can devise strategies by utilizing the
present data. By this, the mgt. can perform precise strategic planning.
4. Interactive reports
To transform data into knowledge, Interactive reports prove beneficial. They help the users in
obtaining an improved understanding of the evaluation within reports as well as the primary data
which is the base of those reports, to promote improved decision-making.
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5. Meta data layer
Removing the requirement of coding and SQL, a meta data later aids in making reporting simple.
This helps the users as well as report writers to observe and obtain info in a simplified language
of business. Without understanding the complications of the basic data/database, the users tend
to individually have interaction with the data at the level of meta data.
6. Ranking reports
With the help of this feature, you can make reports which order particular categories of info,
through numerous dimensions, by choosing a particular criterion. Also, with the aid of these
reports, you are enabled to observe the worst/best performing aspects in regards to your business.
For instance, you can make a report for ranking your ten top-selling sales persons, products or
regions.
7. Utilizing BI for undertaking Sales decisions
BI particular to industry aids the companies in identifying the in-depth sales trends which
are base on various aspects of their consumers like buying habits, choices and others. By
controlling the purchasing habits of their consumers, a company can choose the best COA for
keeping the precious consumers as well as taking benefits of the gone sales opportunities.
Gaining such detailed visions, a company can immediately choose which products best suit
cross-selling or which opportunities related to link-sell need to be increased. By finding out the
declining consumers, a company can establish the most effective plan for product re-positioning
before they finish purchasing entirely. Sales managers have expertise in finding out the best
consumers, where they can be located as well as establishing the best strategies of acquisition
and conversion. To make decisions related to top promotional strategies or whether to allow
certain customers to leave, the company needs to identify the bottom-buyers. For amalgamating
mgt. decision making and marketing, a plain image of sales trend is a must.
8. Undertaking improved financial decisions with BI
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