Business Intelligence and Data Analytics Impact on Key Functions

This report provides a comprehensive analysis of the impact of Business Intelligence (BI) and Data Analytics on various business functions, including Human Resource Management, Marketing, Finance, and Production. It begins with an introduction to the concepts of BI and Data Analytics, highlighting their significance in the current globalized business environment. The report then delves into a detailed description and critique of these technologies, discussing their advantages and disadvantages. The core of the report focuses on how BI and Data Analytics influence each business function, emphasizing their role in improving decision-making, enhancing operational efficiency, and gaining a competitive edge. Recommendations are provided to optimize the implementation and utilization of these technologies. The report is well-structured, including an executive summary, table of contents, and a complete list of references, adhering to the assignment brief's requirements of a business report.

Running head: BUSINESS INTELLIGENCE AND DATA ANALYTICS
BUSINESS INTELLIGENCE AND DATA ANALYTICS
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Executive Summary
The global economy is advancing largely and it is with reference to this that, all the business
enterprises would be essentially required to come up with the technology to deal with the
competition. This may assist them in gaining a competitive business environment. The focus
of the report is to highlight the way in which the different business intelligence and the Data
analytics generally have an impact on the business functions. The report follows a systematic
format whereby the Introduction is followed by the analysis of the Business operations and
the concepts have been discussed. This is then followed by the discussion on the impact of
business intelligence and data analytics on the business functions. Certain recommendations
for the same have been provided.

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Table of Contents
Introduction................................................................................................................................3
Current Business Intelligence and Data Analytics.....................................................................4
Description.........................................................................................................................4
Critique...............................................................................................................................6
Advantages.........................................................................................................................7
Business Functions.....................................................................................................................9
Human Resource Management..........................................................................................9
Marketing.........................................................................................................................10
Finance.............................................................................................................................10
Production........................................................................................................................10
Impact of business intelligence on business functions.............................................................11
Conclusion................................................................................................................................16
Recommendations....................................................................................................................16
References................................................................................................................................19

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Impact of business intelligence/data analytics on business function (human resource, finance,
marketing, production, etc
.
Introduction
Globalization has changed the business era entirely and it is due to this reason that, it
becomes increasingly critical for the different organizations to step up their operational
procedure and improve the overall competitive environment (Moro, Cortez & Rita, 2015).
Therefore, it can be considered increasingly important for the organizations to undertake
considerable measures and adopt the advanced technology so that they will successfully be
able to compete with the different competitors present in the external environment of the firm
and along with this, will be able to make the operations more efficient. The business
Intelligence technology can be mentioned to be highly efficient as they assist in assisting the
top managers, the operational employees as well as the senior management in not only
improving operational measures but also take critical decisions, cut the costs of the firm or
identify those lagging procedures, which require re-engineering (Wang, Kung & Byrd, 2018).
The business intelligence is beneficial for the firm as it assists an organization in
understanding the needs of the various customers rather effectively, allows to drive
performance and the revenue earned by the business, grade the leads of the firm, identify the
different sales trends, provide the personalized services rather efficiently and lastly gain a
competitive sustainable advantage (Wamba et al., 2017). Hence, this paper is focused towards
highlighting the manner in which the different enterprises present in the economy tend to
make use of the current business intelligence as well as the data analytics. Additionally, a
critique of these tools along with the advantages of the tools shall also be presented. This will
then be followed by the discussion on the manner in which the business functions are greatly
affected by the business intelligence. Certain set of recommendations shall also be provided.

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Current Business Intelligence and Data Analytics
The concept of Business Intelligence combines the elements of business analytics,
visualization of data and infrastructure in order to aid a business organization to make data
oriented decisions (Sauter, 2014). The technologies and strategies utilized by business
organizations for the purpose of data analytics are comprised within the scope of business
intelligence. Data analytics further involves the process of collecting, transforming, cleansing
and modeling of data for evaluating significant information to produce data oriented
decisions for business organizations (Fan, Lau & Zhao, 2015).
Thus, it can be said that the concepts of business intelligence and data analytics are
interrelated to enhance the decision-making processes conducted to improve the efficiency of
business functions and operations (Duan & Xiong, 2015). The function of data analytics is to
convert the gathered raw data into useful and structured information. Hereafter, it is the role
of business intelligence to utilize technology and strategies to process and analyze the
information and data for the purpose of decision making.
Description
Business Intelligence is often considered to involve a variety of elements and process
pertaining to the gathering and processing of data (Laursen & Thorlund, 2016). These
processes in turn help in the improvement of the performance of the business organization.
One of the preliminary functions of business intelligence is data mining, which
includes the process of using statistics and databases to determine the trends of business in
various sectors. For example in the retail industry, the process of data mining involves the
collection of data to produce useful information about trends in product sales, customer
preferences, periods of peak traffic, supplier demands and the like to aid the organizations in
the sector to strategize their business activities accordingly (Raju, Bai & Chaitanya, 2014).

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Following the process of data mining, business intelligence involves reporting of the
gathered information to the stakeholders of the organization, to enable them to analyze the
trends perceived and make appropriate decisions (Wixom et al., 2014). Based on such
decisions, the performance history of the organization and its functions is compared with the
goals and predictions of the decision taken. For example, in the retail sector, the process of
benchmarking performance standards based on previous history and the evaluation of current
trends helps the organization to establish sales and overall performance targets.
Establishment of performance targets and benchmarking is followed by a process of
statistical evaluation to ensure that the targeted outcomes are achieved by the organization.
This process further engages in the comparison of the previous records of performance with
the current trends and performance of the organization to produce useful data regarding it
utilization of resources and returns from it. Such data is then visually analyzed and
communicated to the members of the organization to provide them with an insight about the
efficiency of the business activities (Larson & Chang, 2016). Finally, the data is then utilized
to make decisions regarding the future prospects of the organization and changes in its
operations.
Data analytics, on the other hand, involves certain processes that help in the
transformation of raw data into comprehensible patterns of information for the purpose of
decision making by business entities. These processes include the collection of the inputs
required for analysis. Data is then collected from a variety of sources following methods such
as open-ended surveys, direct observation, interviews, focus groups and the like. The data
thus collected is then processed in an organized or structured manner for further analysis.
Following this process, the structure is cleansed of any repetitions or errors and then explored
for the establishment of useful information (Choi, Chan & Yue, 2016). The product of the
analysis is then utilized for decision-making. For instance, in the retail sector, data analytics

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help in the processing of information regarding levels of inventory, movements in supply
chains, sales and consumer demands. Such information further aids the organizations to make
decisions pertaining to procurement, production and marketing. Another example of the
application of data analytics in current business operations can be given from the
telecommunications industry. In this sector, the process involves providing useful
information on the patterns of consumer behavior and utilization of resources to enhance
retention of customers, improve quality of performance and optimize networking
(Coussement, Lessmann & Verstraeten, 2017).
Critique
Owing to the rapid development of technology used for business operations, the role
of Business Intelligence in enhancing the performance of organizations is increasing by the
day. Optimization of business performance is an important aspect that helps the organization
to acquire and retain an advantage in the competitive market of a globalized world
(Dinçerden, 2016). Therefore, the collection and transformation of data to useful information
pertaining to industry trends helps the organization to formulate strategies for the
optimization of business functions like production, finances and marketing. Business
Intelligence can be defined as a value proposition that aids in the making of efficient
decisions by the business organizations (Corte Real, Oliveira & Ruivo, 2014). The systems of
business intelligence are capable of aggregating the data for the purpose of its analysis. The
data thus analyzed is then reported to the individuals and groups within the organizational
structure for the management of business functions. According to Aruldoss, Lakshmi Travis
and Prasanna Venkatesan (2014), the concept of Business Intelligence architecture further
entails the process of structuring and organizing data and information in a systematic manner
through the application of technological components.

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The various elements of business intelligence include the component of online
analytical processing, management of corporate performance, software applications for real
time business intelligence, data warehousing and data sources. Such components along with
the application of specific analytics of software help in leveraging the strategies developed by
business organizations in order to remain competitive in the market and development its
processes. For example, the application of business intelligence in the healthcare sector is
enhancing the ability of the medical facilities to make decisions regarding patient care,
clinical operations, administration, management of resources, finances and other daily
practices (Höer et al., 2014).
Data analytics is a widely practiced function in business organizations that helps them
to make informed business decisions. In this respect, the concept of Exploratory Data
analytics, propounded by John Tukey, involves the method of summarizing the main
elements of the collected data through visual models (Jebb, Parrigon & Woo, 2017). Such
mode of analytics helps the organizations to strategize their decisions through the
identification of trends and patterns. Confirmatory Data Analytics, on the other hand, involve
the usage of statistical tools through the process hypothesizing and testing (Kotu &
Deshpande, 2014). Such a form of data analytics is often used for predicting trends in
marketing and consumption patterns to make decisions regarding customer management.
However, there are certain identifiable challenges pertaining to data analytics that may
include the conflicts between facts and opinions, confirmation bias, and the approach towards
data without higher purpose.
Advantages
There are various advantages involved in the application of business intelligence in
organizations. Chief among such advantages is the enhancement of the decision-making
capabilities of the organization based on data gathered from the internal and external

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environment in which the business operates. To elucidate this aspect further, the example of
the healthcare sector may be considered. In this sector, the decisions to be taken by the
organizations pertain to system operations, diagnostics, facilities and equipment, physician
practices and patient care. In this aspect, business intelligence systems play an integral role in
navigating through the governance of the healthcare facilities to track the reports of not only
the organizational performance but also the requirements and progress of the patients
(Ashrafi, Kelleher & Kuilboer, 2014). Such analysis further aids the medical facilities to
extend prompt services and improve the quality of their performance.
Other advantages of business intelligences systems in business organizations include
the ability of fast and accurate reporting of information, improvement of data quality, ability
to make efficient and structured business decisions through the process of evaluation and
planning. Business intelligence also helps in the improvement of operational efficiency
thereby ensuring enhanced employee and customer satisfaction. Operational efficiency also
brings about a competitive advantage for the organization, with the interplay of reduced costs
and increased revenues.
The advantages of data analytics include the ability of the business organizations to
make faster decisions based on the information gathered through the analysis of the raw data.
This further enables the organization to understand the customer requirements and helps them
develop positive business relationships with their stakeholders. Furthermore, the analysis of
the data collected through the process of data analytics further enables the organizations to
predict the risks and conflicts that may be faced in the course of the business processes and
activities. A comprehension of such probable risks helps the organization to devise strategies
for their management and mitigation. Implementation of organizational changes for the
development of efficiency of business functions is another added advantage of data analytics
(Gregory, 2015). Such changes also enable the organization to improve their financial

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performance, reduce costs and thereby improve profits. For example, in the retail sector, a
process of data analytics can provide useful information to an organization like Woolworths
about the trends in customer preferences so that they may be able to implement changes in
the availability of diverse products through online mediums (Richards et al., 2014). This will
further enable them to make greater number of sales and thereby make greater profits.
Business Functions
The business functions of an organization are varied, the successful execution of
which helps in the maximization of its productivity and profitability. The different business
functions that are observed in organizations from almost all sectors include the management
of human resources, finances, marketing and production. The following sections will
elaborate on these functions further.
Human Resource Management
The process of Human Resource Management involves the business organization to
effectively manage its members for enhancing employee performance and thereby increase
their productivity. The human resource systems of various organizations play the significant
role of overseeing the activities of the staff and employees in terms of the benefits provided
to them, recruitment, training, performance appraisals, development, reward management and
even conflict management (Noe et al., 2017). It is also the responsibility of the human
resource management systems of organizations to integrate organizational changes within the
employees so that they may be able to adapt to new systems of operations and enhance their
performance accordingly. For example, in the case of a merger between two companies it is
the responsibility of the human resource management system to integrate the workforce of
the two companies to meet the newly established objectives.

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Marketing
The concept of Marketing refers to the functions performed by an organization in
order to promote the services and products produced by it in the market for enhancing its
sales. The various tools of marketing include direct selling, advertising, promotion and the
like (Fill & Turnbull, 2016). For example in the retail industry, the process of marketing
involves the consideration of four key aspects namely, product, place, price and promotion.
Product refers to the commodities that are being sold by the organization. Place refers to the
areas or regions in which these products are being made available. Price refers to the
strategies adopted by the organization for selling the products. Promotion refers to the
methods applied by the organization to reach out to its target customers.
Finance
Financing is one of the most important processes of business, involving the provision
of funds to carry out business operations smoothly and efficiently. This function engages the
organization to acquire funds and managing them for planning expenditures or budgets
(Vernimmen et al., 2014). Such management further enables that the organization is able to
invest in resources and utilize them efficiently to meet its objectives and goals. Management
of finances is an essential function in business organizations as it helps in the determination
of success or failure of business outcomes.
Production
The process of production involves the transformation of raw materials and resources
of a business organization into commodities for selling them in the market (Gerber, Theorin
& Johnsson, 2014). For example, the production process in the apparel industry includes the
transformation of raw materials such as wool or cotton into textiles that are further tailored
into garments for sale. The four basic components required for the function of production are
labor, land, capital and entrepreneurship. The function of production is an integral part of the

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business operations in an organization as its quality and quantity ultimately determines the
profitability of business.
Impact of business intelligence on business functions
According to Chang, (2014), Business Intelligence has become the top most priority
for the business organizations. As per data and analysis, it has been identified that since
1990s, all the business organization in every industry have started implementing
technologically advanced machinery in order to enhance its performance and productivity.
According to Howson, (2013). The technology that is mainly implemented by the
organizations is business intelligence along with telecommunications and internet. This
process has become the backbone of evolution of the information technology. As agreed by
Larson, and Chang, (2016), it is considered one of the driving forces of productivity in the
business organization. One of the major challenges that are faced by the organizations is slow
decision making. It is believed by IşıK, Jones, and Sidorova, (2013), that data and improper
access to information hampers the productivity and the performance of the employees in the
organization; this might discourage the employees and hurt the bottom line of the business
organizations as well as its operations. Therefore, according to Laursen and Thorlund, (2016),
introducing business intelligence in the business organization is crucial as it encourages the
departments and the teams of the organization to work in collaboration with the other teams
and sustain competitive edge. Moreover, as mentioned by Lim, Chen and Chen, (2013), it
encourages the teams and the departments of the organization to be empowered towards
decisive and it encourages long lasting cultural improvements. Therefore, it can be said, that
business intelligence positively affects the organization (Minelli, Chambers and Dhiraj,
2013).