Chapter 5

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Ch 5 - Business Intelligence

5.1 Managers and decision making

Information Technologies support managerial decision-making by collecting, storing, retrieving and analysing valuable information. Helping businesses break down decisions and make choices based on evidence in a timely manner.

Decision-making involves a 3 step process:
Intelligence - identify the issue or opportunity
Design - construct a set of validated options
Choice - selecting which option to choose and applying it

5.2 What is business intelligence?

Business intelligence (BI): a term to describe all tech applications/proccess that help the decision-making process.

BI has growing importance in support for both small and large organisations. Depending on the funds available for each organisation, BI use can be minimal, such as Excel spreadsheets. Or, in larger institutions, e.g. data mining, dashboards and data visualisation.

5.3 Business intelligence applications for data analysis

Depending on how users analyse, present and execute data BI can come in a variety of applications, including:
Online analytical processing (OLAP) or multidimensional data analysis -
Helps break down data, enabling businesses to answer queries promptly, look at past and present trends, and predict future scenarios.

Data mining -
The process of gaining information from large amounts of data to help predict trends and identify unknown patterns.

Decision Support Systems (DSS) -
Through considerable user involvement, DSS aims to analyse semistructured and unstructured problems through a combination of models and data. Helping businesses strengthen decision-making through sensitivity, what-ifs, and goal-seeking analysis.

5.4 Business intelligence applications for presenting results

For users to have reliable, current data, and easy-to-understand applications (like the ones listed above), it can be useful to present them in:

- Dashboards: Provide direct and timely access to management reports.
- Data visualisation technologies: Displays data in visual formats. e.g. graphs.
- Real-time business intelligence: Captures and stores current data, allowing users to support decisions though present information.

5.5 Business intelligence in action: corporate performance management

Corporate performance management (CPM): is a tool for monitoring an organisation's performance based on KIPs. e.g., revenue, return on investment, and operation cost.

Gray, H., Issa, T., Pye, G., Troshani, I., Rainer, R. K., Prince, B., & Hugh, J. W. (2015). Management information systems. Wiley.
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Quote of the week:  

"The goal of business intelligence is to turn data into information, and information into insight." - Carly Fiorina

Comments

  1. Gen Mowbray21 April 2024 at 04:41

    I really liked your explanation on data mining and Decision Support Systems and what they're used for. Who doesn't like visual graphs and real-time information? Nice work Sophie!

    ReplyDelete
  2. Graham22 April 2024 at 03:49

    Great work Sophie! Touched on all the main points we went through in this lesson and summed it all up in a well laid out and concise structure.

    ReplyDelete
  3. s2312552919 May 2024 at 17:46

    Business Intelligence is an important topic and you have written good points from this class. Summarizing the definitions of Business Intelligence and its sub components is a good layout as it allows us the readers to understand the topic well.

    ReplyDelete
  4. andresiulai24 May 2024 at 06:53

    WOW! Your explanation on Business Intelligence accurately reflects the core of how information technologies aid management decision-making. The three-step decision-making process which provides a systematic framework for discovering possibilities, developing options, and making informed decisions.

    ReplyDelete

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