Unpacking the Role of Business Intelligence in Strategic Decision Making

This assignment content provides various sources on business intelligence (BI), including books, academic journals, and online articles. It explores the role of BI in making strategic decisions, its benefits, and the environment that supports it. The content includes discussions on decision-making techniques, types of decisions made within a business environment, and the six elements of the BI environment for decision support.

Information Technology
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Table of Contents
INTRODUCTION ...............................................................................................................................4
FINDINGS AND ANALYSIS ............................................................................................................4
Different types of decision make within the business environment and how this type of decision
making works...................................................................................................................................4
Six element of the Business Intelligence (BI) environment ...........................................................5
Five analytical output that business intelligence system utilize to provide correct and real time
information to users.........................................................................................................................7
Role of business intelligence and analytical 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..............................9
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
(Source: Chen, Preston and Teubner, 2010).........................................................................................7
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INTRODUCTION
When the people enjoy technology such as iPhone, Facebook, computers and other gadgets,
the major thing behind the development of these is Information Technology (IT). It improves the
life of the human being and make their work easier and faster. In this context, Management
Information System (MIS) is one of the most important invention of IT (Chen, Chiang and Storey,
2012). It is a set of system and process that use for gather the information from various range of
sources, compile it and present it in the readable formate. This system effectively manage all the
functions of the organization such as decision making process, forecasting of sales, maintain day to
day operational activities etc. On the other hand, the other major development in MIS are business
intelligence and business analytics. These both improves the business decision making and manage
business knowledge in appropriate manner (Anandarajan, Anandarajan and Srinivasan, 2012). The
present research is based on Information Technology and to understand it's importance within the
industry, various case studies are taking into the consideration. The objectives that will cover under
the current study are role of IT and world wide web (WWW) in the organizations, require elements
of hardware and software used for transformation, storage and retrieval of information and
importance of IT in improving the quality of management decision making.
FINDINGS AND ANALYSIS
Different types of decision make within the business environment and how this type of decision
making works
A decision can be made between available two or mote than two alternatives. Decision
making process can be define as a selection of best alternative from the available options in order to
accomplish the objectives. For taking the competitive advantages in highly competitive market, it is
important for the firms to take appropriate decisions (Yeohand, Koronios, 2010). So, in this context,
in the business environment, the decisions can be categorised into three types: strategic, tactical and
operational. The explanation of these types of decision are as follows:
Strategic decision: These type of decision take by top management of the companies. Their
decisions related to formulation of strategies, goals, mission, vision, objectives etc. They also
prepare the plan for measure strategic performance of the firm.
Tactical decision: Such kind of decision takes by middle level managers with the aim of achieve the
objectives of business. They are responsible for preparing short and long term plans, developing
budgets, scheduling of operational activities, arrangement and distribution of the resources etc
(Laudon and Laudon, 2011).
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Operational decision: Lower level of management responsible for taking operational decisions in
order to manage day to day activities. They prepares various plans such as production scheduling,
effective use of resources, allocating the roles and responsibilities to the labour on regular basis,
hire shop level employees of weekly basis etc (Galliers and Leidner, 2014).
The above stated three types of decision making helps the management of the organization
to enhance the decision making process. With the help it, it becomes easy to take decisions for
taking the competitive advantages (Watson, Boudreau and Chen, 2010). The working process of
three decision making can be understand by the example of Primark which wants to launch its new
sportswear in the market. From the given below illustration, it can be easily seen and interpret how
three level decision making help the company to made decisions in the business environment.
Six element of the Business Intelligence (BI) environment
Business Intelligence use in transformation of large amount of data into the useful
information. A worth-full BI environment consists various business models, data sources and
models and tools needed manage and transform the form of data (Chen, Preston and Teubner, 2010).
Form effective implementation of the BI within the workplace, a skilled workforce is needed.
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Illustration 1 Type of decision made within business
environment
(Source : Types of decisions, 2016)

The six elements of the BI environment are explaining in below mention points.
Data from the business environment: It helps in collection of unstructured and structured data
from various source of information because it effectively integrate and manage the gather
information to take right decisions (MacKenzie,Podsakoff and Podsakoff, 2011).
Business intelligence infrastructure: It can be consider as database system where all relevant
information and data of business store for accomplish business objectives.
Business analytics tool set: It consist set of tools which require for evaluate the information and
formulation of the reports with the aim of tracking of the progress of the business in different
aspects and environment (Chen, Chiang and Storey, 2012).
Managerial users and methods: Here, the managers and other employees of the organization use
the data for taking the decisions for achieve strategic business objectives and goals.
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Illustration 2: BI environment in an organization
(Source: Business Intelligence Environment, 2016)

Delivery platform (MIS, DSS and ESS): MIS, ESS and DSS are come in BI environment tools
category where the management can get the outcome of transformation of data into the information
via BA and BI techniques.
User interface: Under this element of BI environment, it create the interface between the users
systems and servers through several technologies like dashboards, scorecards, etc to show thw
outcomes of BI and BA (Anandarajan, Anandarajan and Srinivasan, 2012).
Five analytical output that business intelligence system utilize to provide correct and real time
information to users
The five analytical output that BI utilize to provide correct and real time information to users
are as follows.
Drill down: It show the information and data in the detail manner so that end users as well as client
interpret the contents and their outcomes in more appropriately (Yeohand, Koronios, 2010).
Production report: It prepares according to requirements and type of the industry. The result of the
document can be change as per the need of the company. It delivers right and real time information
to the uses that helps in taking appropriate business decisions.
Ad hoc query: Here, the users can create and prepare report as per their own requirement on the
basis of queries. So, it delivers the real time information to the companies about the clients
requirements and take the decision according to it (Williams and Williams, 2010).
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Illustration 3: Six elements of the BI environment for decision support
(Source: Chen, Preston and Teubner, 2010)

Parametrized reports: To getting this output from BI, several parameters already set in pivot table.
On the basis of this, the users can filter information from the table by changing the parameters in
pivot table.
Dashboards:It a kind of visual tool where the firms can customized the information and data as per
the requirements of the users. With the help of this, it can be easy to obtain real time information
(Laudon and Laudon, 2011).
Role of business intelligence and analytical support improved decision making
BI and BA both helps the companies to to track down and evaluate present and past
information for better decision making. It also allows the management to predict future best
possible decisions that helps in taking competitive advantages (Lyoob, 2012.). In the simple words,
the role of both BI and BA delivers real time information to the firm by which the higher
authorization can take the well decisions by considering various aspects of business and develop
appropriate and supportive strategies for achieve business objectives. They also help the
management to take frequent and suitable decisions in order to enhance present state of the business
(Galliers and Leidner, 2014).
The role of BI and BA in the context of support improved decision making, an example can
be consider. Suppose a firm use both the systems in the workplace (Tiwari, 2013). In marketing
department, these methods help in analysing the impact of promotional and advertising techniques,
effectiveness of social media in marketing of the goods, track the growth of ROI etc. On the other
hand, in finance section, BI and BA systems assist in explore the new tactics for increase revenue
and profit, increase sales of services etc. Beside this, the operation department use both the
techniques in order to track the inventory level of the goods, forecast volume of production of
products etc (Vennapoosa, 2008). So, BI and BA, both collectively support improved decision
making process within the companies.
Benefits to a modern business of employing the use of intelligent techniques in decision making and
knowledge management
There are many benefits of modern business of employing the use of intelligent in decision
making and knowledge management.
Fast based decisions: Business intelligence techniques contribute effective role for organisation to
take fast decisions by sorting out information very fast as comparison of other tools. This process
helps the corporations to take decisions as per current situation of company which reduce
complexities in the organisational working (Henrichsen, 2012). In addition to this, it support the
organisation to increase its sales in the market as comparison of previous years.
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Improving knowledge of employees: Generally business intelligence play important role for
management of corporations to improve knowledge of staff members by providing various
opportunities about new IT concepts. This process provide huge reliability to enhance knowledge of
staff members in the organisations (Watson, Boudreau and Chen, 2010).
Eliminate waste: Mainly business intelligence techniques help the corporation to reduce waste part
by analysing appropriate factors which provide better opportunities to identify the weak areas at the
workplace. These efforts support management of corporations to reduce organisational mistakes in a
appropriate manner by improving those areas (MacKenzie,Podsakoff and Podsakoff, 2011). Along
with this process, they also provide effective support organizational employees to take better
decisions and gain effective knowledge.
Use of business intelligent systems to help people working in groups make decisions more
efficiently
Business intelligence systems are effectively used to help people who are working in groups.
It helps the organization to take decision very fast as compared with other systems. Some of them
are described below in the points.
By providing effective data: Business intelligence systems contribute effectively for staff members
to provide genuine information in the organisation. It helps the employees to take better decisions
which support to reduce various type risks in the market. In addition to this, it aids the staff
members to increase efficiency and performance of organisation which also increase organizational
profit in specific industry (Chen, Preston and Teubner, 2010).
Improving sales and negotiation: Business intelligence system plays important role for Staff
members of corporation to improve organisational sales by providing update report of market. This
process contribute effective role for management of corporation to take appropriate decisions which
aids to increase market share in particular industry (Chen, Chiang and Storey,2012). In addition to
this, it also helps in improving communication by enhancing knowledge of employees. Further, this
process greatly supports organisation to sort out various issues of consumers as well as suppliers in
the market.
Systems that are used for improving enterprise wide knowledge management
Management information system (MIS) is one of the best and famous tools which are used
by most of the organization. The main reason to use this tool is it is fast and with the help of this
system organization can easily manage their all data information. Further, it also provides a wide
range of technology knowledge in firm (Anandarajan, Anandarajan and Srinivasan, 2012). The
main point of this information system is it is available in low cost and less time consuming, so by
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applying this company can easily manage their all work. Workers can easily communicate with each
other in order to take better and improved decisions. Moreover, it is easy to understand so head
department can guide their new employees. In additional with the help of MIS company can take a
right and appropriate decision because this also provide an old data information which are based on
firm (Yeohand, Koronios, 2010). This tool become all work easy and safe and head department can
easily share the important and authentically information with their team members. For the same,
business intelligence (BI) systems have been used by companies in order to improve their decision
making process as well as knowledge management.
CONCLUSION
From the above study, it can be summarized that there are three kinds of decisions in
business environment: strategic, tactic and operational level. Six elements have helped the
organizations to developed suitable business intelligence environment for taking competitive
environment. With the use of five analytical output of BI system, management and clients have got
real time information. Both BI and BA have delivered many advantages to a modern business in
terms of decision making and managing business knowledge.
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REFERENCES
Books and Journals
Anandarajan, M., Anandarajan, A. and Srinivasan, C. A., 2012. Business intelligence techniques: a
perspective from accounting and finance. Springer Science & Business Media.
Borghoff, U.M. and Pareschi, R., 2013. Information technology for knowledge management.
Springer Science & Business Media.
Chen, D. Q., Mocker, M., Preston, D. S. and Teubner, A., 2010. Information systems strategy:
reconceptualization, measurement, and implications. MIS quarterly. 34(2). pp.233-259.
Chen, H., Chiang, R. H. and Storey, V.C., 2012. Business Intelligence and Analytics: From Big Data
to Big Impact. MIS quarterly. 36(4). pp.1165-1188.
Galliers, R. D. and Leidner, D. E., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Kroenke, D. M. and Boyle, R. J., 2015. Using Mis. Prentice Hall Press.
Laudon, K. C. and Laudon, J. P., 2011. Essentials of management information systems. Upper
Saddle River: Pearson.
Loshin, D., 2012. Business intelligence: the savvy manager's guide. Newnes.
MacKenzie, S. B. and Podsakoff, N. P., 2011. Construct measurement and validation procedures in
MIS and behavioral research: Integrating new and existing techniques. MIS quarterly. 35(2).
pp.293-334.
Watson, R. T., Boudreau, M. C. and Chen, A.J., 2010. Information systems and environmentally
sustainable development: energy informatics and new directions for the IS community. MIS
quarterly.pp.23-38.
Williams, S. and Williams, N., 2010. The profit impact of business intelligence. Morgan Kaufmann.
Yeoh, W. and Koronios, A., 2010. Critical success factors for business intelligence systems. Journal
of computer information systems. 50(3). pp.23-32.
Online
Business Intelligence Environment, 2016. [Online]. Available through:
<http://www.learnbi.com/blog/business-intelligence-environment/>. [Accessed on: 22nd
April, 2016].
Henrichsen, N., 2012. What are the benefits of business intelligence?. [Online]. Available through:
<http://businessintelligencetutorial.blogspot.in/2010/07/33-what-are-benefits-of-
business.html>. [Accessed on: 22nd April, 2016].
Lyoob, J., 2012. Business intelligence helps in strategic decision making. [Online]. Available
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through: <http://www.etechgs.com/blog/post/Business-Intelligence-Helps-in-Strategic-
Decision-Making.aspx>. [Accessed on: 22nd April, 2016].
Schiff, J., 2010. Ten Benefits of Business Intelligence Software. [Online]. Available through:
<http://www.enterpriseappstoday.com/business-intelligence/ten-benefits-of-business-
intelligence-software-1.html>. [Accessed on:22nd April, 2016].
Tiwari, N., 2013. Business Intelligence, Helping Data Driven Decision Making. [Online]. Available
through: <http://yourstory.com/2013/04/business-intelligence-helping-data-driven-decision-
making-2/>. [Accessed on: 22nd April, 2016].
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: 22nd April, 2016].
Vennapoosa, C., 2008. Business Intelligence Role in Making Corporate Decisions. [Online].
Available through: <http://www.exforsys.com/tutorials/business-intelligence/bi-role-in-
making-corporate-decisions.html>. [Accessed on: 22nd April, 2016].
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