Business Intelligence for Decision Making

This assignment delves into the crucial relationship between business intelligence (BI) and informed decision-making. It examines various aspects of BI, including its components, benefits, and applications in different types of organizational decisions. The discussion encompasses how BI tools analyze data to provide valuable insights that assist organizations in strategic planning, operational efficiency, and problem-solving.

Information Technology
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Table of Contents
INTRODUCTION ...............................................................................................................................4
Different types of decision made within the business environment and how this type of decision
making works...................................................................................................................................4
Six elements of the business intelligence environment...................................................................5
Five analytical outputs that business intelligence system utilize to provide correct and real time
information to users.........................................................................................................................7
Role of business intelligence and analytics support improved decision making.............................8
Benefits to a modern business of employing the use of intelligent techniques in decision making
and knowledge management............................................................................................................8
Use of business intelligent systems to help people working in groups make decisions more
efficiently.........................................................................................................................................9
Systems that are used for improving enterprise wide knowledge management............................10
CONCLUSION .................................................................................................................................10
REFERENCES...................................................................................................................................11
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Illustration Index
Illustration 1 Type of decision made within business environment.....................................................5
Illustration 2: BI environment in an organization ...............................................................................6
Illustration 3: Six elements of the BI environment for decision support.............................................7
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INTRODUCTION
Information Technology (IT) is a subset of Information and Communication Technology
(ICT) because it is used to store, transmit, retrieve and manipulation of data in the context of the
organization. Management Information System (MIS) is a outcome of evolution in IT. It is a
computerized database that is used to store financial information in organized manner (Davenport,
2013). It contains several functions such as sales, inventory management, logistic system, financial
information etc. With the help of MIS technique, organizations can easily understand the
contribution of each and every department. The most important significance of this system within
the business is being used to make inform decision for business knowledge management. The
development of MIS are business intelligence and business analytics (Venkatesh, Thong and Xu,
2012). The present study is relating to information technology and the report is evaluating the
impact of business intelligence and analytics on improving business decision making and managing
business knowledge.
Different types of decision made within the business environment and how this type of decision
making works
A decision is a made between the available two or more than two options. In other words,
decision making process is selecting the best alternative from the available derivatives to achieve
the objectives. For the organizations, to operate the enterprise in different business environment, it
has essential to taken right type of decisions (Waser, 2012). In this regards, decision made within
the business environment can be divided into three kinds: strategic, tactical and operational
decisions. Under strategic decision, it has done by top management level of the corporate. Here, the
decisions take for develop goals, policies and strategies. Along with this, a plan for measuring the
strategic performance of the organization has also done in strategic decision level (Schwalbe, 2015).
On the other hand, tactical decision has taken by business unit managers of the firm with the
intention of developing short and long term plans, preparing budgets, scheduling of various
business operation activities, allocation of resources etc. Similarly, operational decisions have taken
by lower level management. They have developed short term plan such as weekly production
schedules, use effectively allocated resources and budgets etc (Types of decisions, 2016).
There are two kinds of knowledge based system natural and artificial intelligence. Natural
intelligence have high sensor using capabilities and creative as well as imaginative ability. It is able
to collect the information from the different sources and use it for various purpose. But on the other
hand, natural intelligence is not able to make complex calculation and not appropriately transform
the information into the data.
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But in the case of artificial intelligence, it is able to make the complex calculation more easy
and accurate. It transform the information into the different data set more effectively. But the
negative drawback of this knowledge based system is it is not suitable to make the solution more
creative and imaginative.
These three types of decisions making works in the companies in the terms of improving
decision making process. In addition to this, it supports the business operations and other process as
well as support different strategies of the companies in terms of taking competitive advantages. Th
working of three type of decisions making works can be understand by an example (Tran, Le Ngoc
Thanh and Phuong, 2013). Suppose, Next PLC is planning to expand its product range and for this,
decisions will include at three levels which will completely depends on information. The process of
different types of decision made within the business environment with available information is as
follows (Laudon and Laudon, 2011).
Six elements of the business intelligence environment
Business Intelligence (BI) is used to transforming huge amount of data into useful
information. If an organization wants to implement it within this workplace than it will require lots
of investment as well as analysis. An exemplary BI environment has included different type of
business models, data models and sources, tool require to convert and manage the data into useful
information, ETL, data marts, reporting tools, target data warehouse and OLAP analysis. The entire
process of implementing BI environment is not only on the basis of tools or techniques. It is also
needed the skills staff who can use it for right purpose (Business Intelligence Environment, 2016).
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Illustration 1 Type of decision made within business
environment
(Source : Types of decisions, 2016)

There are six elements of the BI environment which are as follows.
Data from the business environment: Under this element, the structured and unstructured data has
collected from the different sources which are needed to be integrated and manage with the aim of
appropriate decision making process.
Business intelligence infrastructure: It has related to a database system that is used to store all
business process relevant data (Dahlstrom, Walker and Dziuban, 2013).
Business analytics toolset: The following element include various kinds of tools that are needed to
assess the data and develop reports in order to track the progress of business with the help of key
performance indicators.
Managerial users and methods: In this components, managers of the companies are taking
decisions regarding the strategic business goals. It is also used in measuring the progress of business
in more effective manner (Oliveira and Martins, 2010).
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Illustration 2: BI environment in an organization
(Source: Business Intelligence Environment, 2016)

Delivery platform (MIS, DSS and ESS): MIS, DSS and ESS are the tools of BI environment that
help the management of the organization in order to deliver the outcomes from BI and BA tools
within the firm.
User interface: For creating the interface with the users, companies have taken the help of different
visual techniques such as scorecards, dashboards etc to represent the outcomes of BA and BI
outcomes (Bilbao-Osorio, Dutta and Lanvin, 2013).
Five analytical outputs that business intelligence system utilize to provide correct and real time
information to users
There are five analytical outputs that BI system use to provide correct and real time
information to users are as follows:
Production report: It is a predefined reports that are preparing according to specific industry
requirements. On the basis of this, companies have made changes in the outcome documents as per
the industry specific. With the help of it, users get correct and real time information about the
organization different business operations (Borghoff and Pareschi, 2013).
Parametrized reports: Under this analytical output of BI system, various parameters in a pivot
table. With the help of this, the users can easily filter data from the table by putting different
parameters with their impacts.
Dashboards/scorecards: It is an analytical output of BI system that can be considered as a visual
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Illustration 3: Six elements of the BI environment for decision support
(Source: Bilbao-Osorio, Dutta and Lanvin, 2013)

tools. Companies can customized the data on the basis of the end users requirements. So, it has
delivered real time and correct information to the individual one (Tallon and Pinsonneault, 2011).
Ad hoc query: By using this, users can simply create won reports on the basis of search and queries.
By using customers needs and requirements, they can get the right and real time information
without any manipulation.
Drill down: It has represented the information in more detail form as compare to summary. Here,
the firms have shown the various data in detail manner that helped the end users to understand the
things and outcomes in more effective manner (Wang, 2010).
Role of business intelligence and analytics support improved decision making
Business Intelligence and analytic offers various programs and applications which help the
organization to track out and assess the present and past activities of the business. Along with this, it
helps in make the predications regarding the future possible decision of the firm. BI and analytics
includes the different kinds of tools and methods that allow the management of the organizations to
view real time information related to internal business activities (Bates and Bitton, 2010). It delivers
the empowerment to higher authority of the company that all the aspects of the business are well
define and strategies are implementing according to the set process. BI and analytics helps the
managers to let them know about those productive areas that will require the right and appropriate
decision making process to make them more improve (Lyoob, 2012). It provides the facility to the
enterprises to take decision on the basis of the available information with little time of perception.
So, it allows the management level to form quick and right decisions with the intention of
improving or current state of the company from any kind of risk.
To understand the role of BI and analytics in support to improve decision making,an
example can be taken into the consideration. A company has presently used BI and analytics system
within the business (Vennapoosa, 2008). In the marketing department, the current system will help
the organization to analyse the impact of campaigning and promotional schemes, methods to
increase ROI, use of social media marketing etc. On the other hand, in financial department, BI and
analytics system will help the firm to determine the new and best practices to increase profit and
revenue, raise the number of sales of services etc. Similarly, the following implemented system will
help tracking and managing inventory levels (Tiwari, 2013). By gathering the information from the
system, the respective head of the departments of the organization will take the decision as well as
improve decision making process.
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Benefits to a modern business of employing the use of intelligent techniques in decision making and
knowledge management
In the last few years, many of the companies are using various techniques to improve the
decision making process in order to take competitive advantages. But the modern business are
employing the application of intelligence techniques in decision making and knowledge
management. Benefits of this to the organizations are as follows.
Improve business productivity: The different intelligent techniques such as BI has suggested the
new ways to the organizations to use resources more effectively. It has increased the interaction
with the end users and collecting the necessary information about them. It has basically helped out
the management to understand the needs to the customers and analyse effectiveness of the current
business practices (Schiff, 2010). Assessment process will help in find out the loopholes and
improve decision making process. It will leads to improve business productivity.
Reduce labour cost: If a modern business apply different intelligence techniques in decision
making and knowledge management than the benefit of it is it will reduce labour costs. The
automatic generated reports from intelligence system helps the organizations to develop standard
reports within the less time (Henrichsen, 2012).
Reduce information bottlenecks: Intelligence techniques help modern businesses helps in taking
the right decision and knowledge management. Benefit of this for the company is minimize
information bottlenecks because it allows users to get the information in the form of report without
depending on the other departments (Bates and Bitton, 2010).
Align the common goals of individual with organization objectives: If a modern business
implement intelligence techniques in decision making and knowledge management than
management can easily align the objectives of the business with individual goals. By doing this, a
pattern of perception of users have generated that will leads the organization to understand the
customers regarding the services and take the decision according to it (Kellermann and Jones,
2013).
Use of business intelligent systems to help people working in groups make decisions more
efficiently
With the help of different BI and analytical systems, the organizations employees can
improve the decision making process in effective manner. For example, the gather information with
BI system, the marketing department can analyse the effectiveness of existing campaigning and
promotion and their impact on customers (Beaudry and Pinsonneault, 2010). This data will help in
identify the loop holes in the existing strategies and policies. According to the measures, the actions
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can be taken according to it. On the other hand, the finance department can use past and present
data for forecast the new sales and profit for upcoming 5 years. With the help of BI system, it will
be easy to accurately forecast the sales and profit for 5 years (Karsh, Weinger, Abbott and Wears,
2010).
Systems that are used for improving enterprise wide knowledge management
Group Decision Support System, Management Information System etc are used for
improving enterprise wide knowledge management. With help of these systems, the organizations
can manage and transform the collected data into useful information. It is used to take right
decisions with minimum risk of failure. By doing this, it will become more easy to manage all the
information and make it safe and secure from the reach of third party (Strong and Volkoff, 2010).
Therefore, the different BI systems are using by companies to improve wide knowledge
management.
CONCLUSION
From the above research, it can be concluded that information technology play an important
role in every organization. There are three types of decisions made within in the business
environment and it helped in decision making works. With the help of six elements, companies have
created an appropriate business intelligence environment. The five analytical output of business
intelligence systems utilize to provide correct and real-time information to users. Various business
intelligence and analytics support improved decision making. There are several benefits to a modern
business of employing the use of intelligent techniques in decision making and knowledge
management.
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REFERENCES
Books and Journals
Bates, D.W. and Bitton, A., 2010. The future of health information technology in the patient-
centered medical home. Health Affairs, 29(4), pp.614-621.
Beaudry, A. and Pinsonneault, A., 2010. The other side of acceptance: studying the direct and
indirect effects of emotions on information technology use. MIS quarterly, pp.689-710.
Bilbao-Osorio, B., Dutta, S. and Lanvin, B., 2013. The global information technology report 2013.
Borghoff, U.M. and Pareschi, R. eds., 2013. Information technology for knowledge management.
Springer Science & Business Media.
Dahlstrom, E., Walker, J.D. and Dziuban, C., 2013. ECAR study of undergraduate students and
information technology. 2013.
Davenport, T.H., 2013. Process innovation: reengineering work through information technology.
Harvard Business Press.
Karsh, B.T., Weinger, M.B., Abbott, P.A. and Wears, R.L., 2010. Health information technology:
fallacies and sober realities. Journal of the American medical informatics Association, 17(6),
pp.617-623.
Kellermann, A.L. and Jones, S.S., 2013. What it will take to achieve the as-yet-unfulfilled promises
of health information technology. Health Affairs,32(1), pp.63-68.
Laudon, K.C. and Laudon, J.P., 2011. Essentials of management information systems. Upper Saddle
River: Pearson.
Oliveira, T. and Martins, M.F., 2010, September. Information technology adoption models at firm
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Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Strong, D.M. and Volkoff, O., 2010. Understanding Organization—Enterprise System Fit: A Path to
Theorizing the Information Technology Artifact. MIS quarterly, pp.731-756.
Tallon, P.P. and Pinsonneault, A., 2011. Competing perspectives on the link between strategic
information technology alignment and organizational agility: insights from a mediation
model. Mis Quarterly, 35(2), pp.463-486.
Tran, S.T., Le Ngoc Thanh, N.Q.B. and Phuong, D.B., 2013. Introduction to information
technology. In Proc. of the 9th inter. CDIO conf.(CDIO).
Venkatesh, V., Thong, J.Y. and Xu, X., 2012. Consumer acceptance and use of information
technology: extending the unified theory of acceptance and use of technology. MIS
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quarterly, 36(1), pp.157-178.
Wang, P., 2010. Chasing the hottest IT: effects of information technology fashion on
organizations. MIS quarterly, 34(1), pp.63-85.
Waser, R., 2012. Nanoelectronics and information technology. John Wiley & Sons.
Online
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<http://www.learnbi.com/blog/business-intelligence-environment/>. [Accessed on: 21st
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<http://www.enterpriseappstoday.com/business-intelligence/ten-benefits-of-business-
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Types of decisions, 2016. Decision making techniques
A CIMA case study. [Online]. Available through:
<http://businesscasestudies.co.uk/cima/decision-making-techniques/types-of-
decisions.html#axzz43W5cfA9p>. [Accessed on: 21st March, 2016].
Vennapoosa, C., 2008. Business Intelligence Role in Making Corporate Decisions. [Online].
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