Business Intelligence in Decision Making
TODAY BUSINESS INTELLIGENCE IS the primary tool to collect and analyze information for developing a successful business strategy. This is the age of information, technology and communication age it’s important to have full knowledge about all the strengths and weakness of your business plan and that can be possible only by analyzing available data. These data generally include quantities of product, customer, sales, market demand, customer service, and technical support system etc., that are useful in critical decision-making.
Business is now mostly relying on the kind of information available and that can be collected through various sources both inside the industry and outside through personal contact or taking the help of Internet. However, both collection and analysis of data takes time but are useful for long-term strategic decision-making. In case of short term goal companies often take business decision without experimenting or analyzing too much and here they only depend on intuition.
There are primarily three types of decisions that most business organization takes today: strategic, tactical and operational but act collectively for the growth of business.
Strategic – This is the most important one to take that affects the entire organization. This includes new product development, company merger, accusation, market expansion etc. So broadly this deals with the kind of business that one ought to be in and the markets one wants to focus.
Tactical - In case of tactical decision the focus is more towards the product and customer and the amount of risk associated in developing a new product or attracting new group of customers. Tactical decisions are mainly focusing on short-term goals dealing with immediate activities.
In both these decision business organizations take help of operational data store and data warehouse that provides credibility and validity for analytical processing. However, human intervention is necessary for taking action. So the role of business intelligence in both these two cases is considerable less. It merely builds a data store to extract strategic business value from available data. Apart from the above two there is another one named operational decision that deals with money transaction for example, approving or declining a specific application, pointing out fraud, and so on. In particular they address individual transaction like approving loan or not and these are more common decision taken in daily business activities.
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