The Role of Business Intelligence in TESCO's Competitive Strategy

This report analyzes the role of Business Intelligence (BI) at TESCO, a multinational consumer goods organization. It explores how BI components such as data warehousing, data mining, and real-time data analysis contribute to improved decision-making, enhanced marketing strategies, and increased sales opportunities. The report discusses the impact of BI on TESCO's competitive advantage, including faster response times, better inventory management, and the democratization of information. Furthermore, the report examines the Ansoff matrix to understand TESCO's growth strategies and the associated risks. The report highlights how TESCO leverages BI to improve productivity, ensure a good return on investment (ROI), and make informed decisions, ultimately leading to a stronger market position.

Business intelligence

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
The role Business Intelligence play in the decision-making process.........................................3
Discuss how the selected organisation can Discuss the role Business intelligence in achieving
competitive advantage using business intelligence.....................................................................4
Ansoff matrix..........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
books and journals ......................................................................................................................8

INTRODUCTION
Business intelligence can be define as combination of strategies and technology to
achieve business objectives and manage function in appropriate way (Alpar and Schulz, 2016).
Prime use of this is to analysis business data. This report is based in study of TESCO. It is an
consumer good multinational organisation which is operating its function from Britain.
Organisation is seedling number of goods and services. In current report there is discussion about
role of Business Intelligence in TESCO. Along with this, it also include discussion on business
intelligence in achieving competitive advantage.
MAIN BODY
Business intelligence is important function as it include number of components which can
be use to achieve business objectives. Some of these components are online analytical
processing reporting, analytics, dashboard development, data mining, process mining and many
others (Dedić and Stanier, 2016). Business intelligence can be use by organisation in order to
achieve its objectives and manage function of individual to perform there roles and responsibility
in appropriate way.
The role Business Intelligence play in the decision-making process
Business intelligences is directly liked to performance of organisation in current business
environment. This is because it helps in identification of functions which has to perform by firm
and using these function according to present requirement. Some of important role which are
played by business intelligence are discussed below:
Improve Business Productivity: Business firm is entirely dependent on productivity in
its functions. This includes all those essential elements which re related to performance of
business objectives and using this to achieve organization function. In context of this, business
intelligence helps in number of functions in organisation (Dedić and Stanier, 2016). In context of
tesco, BI in organisation is used by firm to achieve business objectives in Discuss the role
Business in effectiveness way. This helps firm in improving productivity as all BI gathering
work is handled by the BI team, it results in cost saving, time saving and efficient reporting
supporting improved business productivity.
Easily Accessed to important information: this is also an function which is performed
by business intelligence in relation to organisation. Under this, this helps firm in identification of

importance information in time effective way. This is because it identify various function which
helps in management of information and using this information to achieve business objectives.
This impact of improving their ability to make quick decisions and generating a competitive
advantage.
Ensure good ROI: business intelligence is also related to improving ROI within
organisation to achieve its objectives and using function in business. This is because, it helps in
identification of techniques which are related to function of organisation to better manage its
employee and identification of new opportunities to invest in productive system. BI use to
perform function which helps in qualitative ROI such as improvements in better strategic
decision making, business and process efficiency, employee productivity, customer satisfaction
and many others (Larson and Chang, 2016).
Informed Decision Making: This is also related to perforce of business function which
can be use to archive business objectives and managing performance of organization in current
business environment. Under this function this is use to achieve benefits which manage function
and use to restore its objectives. This helps in making better decision related to working
condition and using these to achieve business objectives.
Reduce the need of IT intervention: Previously, the reports were made by IT
departments and when the managers used to check them and want more insights on the particular
thing then the changes are made which takes time and a till then some figures like sales and
profit can be changed. Business Intelligence has now made it to a click one can easily make the
reports that give all the insights and even the chances of getting the error is reduced. Now there
is no need to make many reports as data can be collected at a single source. TESCO has taken the
competitive advantage by making reports with the help of BI and letting the IT persons to work
on security and other tasks (Laursen and Thorlund, 2016).
Tools of BI
Data warehousing is a tool which is also known as enterprises data warehouse. It included
appropriate system which is used for reporting and data analysis. It acts as a core component of
business intelligence. This tool is useful for organisation as it provides Central repositories of
integrated data from one or more different sources. It is helpful to organisation in storing current
and historical data at a single place where they can be used to create analytical reports for worker
through the enterprises. Tesco can also use data warehousing and core function within the

organisation. This is because it provides opportunity to organisation to use the data sources
together according to the needs and requirement of current system.
Tesco also uses Github code to support the research team, by keeping use of the
prominence technological augmentation, Tesco hopes to maintain market value against more
agile and technology-driven initiatives
Data mining is a process of discovering patterns in large data sets which directly involved
the matter at the intersection of machine learning, statistic and database system. it can also define
as an interdisciplinary subfield of computer science and statistics which is performed by the
organisation to achieve the overall goal of information sharing. it perform its function from data
set and transformation of information into the comprehensive structure for future use. This tool
can be used by organisation like test in order to maintain the analysis of Tata which involve data
management aspects data preprocessing model and interface considerations and many other
complexities which can be solved according to nation requirement of business intelligence.
Tesco is going to use effective business intelligence in its new programmes these are
associated with Data updates in real-time analytics, like “Broccoli Cam”, could be accumulated
with predictive analytics to convey the reorder cautionary priorly via supply chain and logistics
thread.
Discuss how the selected organisation can Discuss the role Business intelligence in achieving
competitive advantage using business intelligence.
Boost Marketing Strategy: Business Intelligence helps an organisation to improve there
marketing strategy as it gives access to more data, which is fruitful for improving the strategy. It
helps to check the benefit of paid ads and email campaigns which helps to take marketing
decisions. TESCO is using business intelligence and has gained competitive advantage by
boosting their marketing strategy and making better promotional plans.
Achieve faster response time: With the increasing use of business intelligence the
revenue reports of competitors are easily available and can be compared there is now no need to
wait for long to get the reports. In context to TESCO, it timely compares the report of
competitors and takes the required measures if required to compete better (Shollo and Galliers,
2016).

Increase Sales opportunity: It is important to know who are your customers and what
are they purchasing more also which product is not going good. With the help of Business
Intelligence now the sales can be monitored on daily, weekly, monthly basis as required by the
organisation. Checking sales trend helps to increase sales TESCO has made right use of BI and
keeps a eye on the products which are at boom and the once whose sales is declining and found
ways to improve the sales of the products which are not in demand to boost there sales and know
there winning product.
Managing inventory: Business Intelligence has helped a lot in keeping record of
inventory easily as managing inventory is an important task for every organisation so as to
decrease the piled up stock in the ware houses. TESCO believes in having that much stock which
is required by the customers and letting no wastage so the demand of customers is also fulfilled
and capital is not blocked.
Real time data: Real time data involves providing current and feasible information to the
end user as soon as it is gathered by business intelligence practitioners. The data provided must
be authenticated in every respect in accordance with the organizations requirements. TESCO
generally focuses on the predictions and forecasting of BI practitioners as it will give them an
upper hand over their competitors. TESCO is trying to deal with every obstacle associated with
the customer behaviour and cut throat competition in the industry in this current scenario. This
will provide a detailed information about the strategic planning and its effective implementation
towards the successful achievement of goal of TESCO. Real time data also works for TESCO as
a sensor data which monitors the future and develops strategy corresponding to the contingent
problems which will substantiate the information of BI tools (Sun, Sun and Strang, 2018).
Democratization of Information: Information act as efficient tool of planning and
organising the data in a precise manner. BI provides them this information which saves them
from deficiency in their working. BI tools also makes out their way and the employees have to
only walk on that path through interpretation and presentation of information in accordance of
the TESCO's current situation. TESCO is planning to enter into a data lake model known as
hadoop framework. The company is using this concept in building a scenario for successful
transformation of data into a quite useful information. TESCO's main challenge comes when a
new strategy is devised then it becomes difficult to access the current data easily and it is hoping
to maintain its market share by studying its competitors behaviour (Trieu, 2017).

Theoretical vs Practical: Theory framework is limited only in the nooks but it cant be
tested against the practical data unless it passes through BI tools. These tools provides a way of
setting the standards and comparing the actual performance of the information against those
standards. Every department has its own theoretical plans and practical forecasting. BI tools
helps in developing the actionable plans associated with the practical information which can be
checked against the historical data provided to the company. TESCO has a belief that old data
provides a base for the practical information which is effective for building competitive
advantage and its functionality is based on the maintenance of core differentiation in the grocery
chain industry. As the company operates in the unpredictable external environment due to which
the employee must update themselves with the help of BI tools.
Ansoff matrix
This model is useful in analysing the growth of a company and helps to develop
strategies so that growth will increase. It was developed in 1957 by H. Igor Ansoff in an article
titled “strategies for diversification”. Ansoff matrix include four strategies such as market
penetration, market development, product development and diversification which helps company
to grow and analyse risk association with each strategy.
Market penetration: Market penetration is a strategy which is greatly affected tesco
company. Success behind tesco is mainly because tesco understand the existing market and its
attainment in economies of scale to increase growth. Nowadays tesco products are greatly
consumed by customers in different regions of the world showing evidence for its penetration
(Yeoh and Popovič, 2016).
Product development: This strategy includes on basis of company improvement in
quality of a new product. tesco simply understands basic product line so that whenever company
sell new product in the market, it will automatically attracts different segments of customers.
tesco involves different segments of customers by which they receive diverse range of products
offerings. On basis of diverse ranges, tesco consistently able to involve in product development
from decades. Therefore it enables tesco on the path of success by providing new products with
good quality regularly.
Market development: It is a strategy which includes new market for selling existing
products to customers. tesco always want to grow at International level this is why it approaches

market development strategy. For example, tesco first grow in British market then after a decade
it stepped into other countries of Europe. The continuous success of tesco expand its business in
America as well as Asia. In Today's world tesco has their branches in almost 150 countries
including Africa, America, India, France, Netherlands etc. The basic agenda of using market
development strategy by tesco is if there is lack of profit in one market then there can be
possibility to gain maximum profit in other market.
CONCLUSION
This can be concluded from above mentioned information that there are number of
factors which are number of factors which can be use by organisation to achieve business
objectives and perform function in effective way. Business intelligence is used to achieve
function and manage various role in organisation. Under this, Improve Business Productivity,
Easily Accessed to important information, Ensure good ROI and Informed Decision Making are
some roles which are planed by business intelligence. These are also helpful in achieving
business objectives and advantage in market.

REFERENCES
books and journals
Alpar, P. and Schulz, M., 2016. Self-service business intelligence. Business & Information
Systems Engineering, 58(2), pp.151-155.
Dedić, N. and Stanier, C., 2016, December. Measuring the success of changes to existing
business intelligence solutions to improve business intelligence reporting.
In International Conference on Research and Practical Issues of Enterprise Information
Systems (pp. 225-236). Springer, Cham.
Dedić, N. and Stanier, C., 2016, November. Towards differentiating business intelligence, big
data, data analytics and knowledge discovery. In International Conference on
Enterprise Resource Planning Systems (pp. 114-122). Springer, Cham.
Larson, D. and Chang, V., 2016. A review and future direction of agile, business intelligence,
analytics and data science. International Journal of Information Management, 36(5),
pp.700-710.
Laursen, G.H. and Thorlund, J., 2016. Business analytics for managers: Taking business
intelligence beyond reporting. John Wiley & Sons.
Shollo, A. and Galliers, R.D., 2016. Towards an understanding of the role of business
intelligence systems in organisational knowing. Information Systems Journal, 26(4),
pp.339-367.
Sun, Z., Sun, L. and Strang, K., 2018. Big data analytics services for enhancing business
intelligence. Journal of Computer Information Systems, 58(2), pp.162-169.
Trieu, V.H., 2017. Getting value from Business Intelligence systems: A review and research
agenda. Decision Support Systems, 93, pp.111-124.
Yeoh, W. and Popovič, A., 2016. Extending the understanding of critical success factors for
implementing business intelligence systems. Journal of the Association for Information
Science and Technology, 67(1), pp.134-147.