- May 6, 2014
- Posted by: essay
- Category: Term paper writing
Modern business may be characterized by a large number of new opportunities (including an access to new customers, suppliers, and competitors), but it is also known for its increased complexity of the management’s decision-making.
The technologies that are commonly used by organizations have a great impact on the business by making operations less stable and predictable. In addition, the time for checking the information that is needed for decision making is very limited nowadays.
Therefore Thierauf (2001) argues that ”˜appropriate analyses are unavailable to decision makers or the requisite analyses are infeasible.’Â It leads to dissatisfaction with the traditional rules of decision making. Thus, business requires additional tools that would help to ease the decision making in the organization.
According to the ”˜BI Best Practices’ (n.a.) business intelligence the most wanted technology by businesses from all around the world. It may be defined as ”˜the business capability to extract actionable insight from business and market data to support better decision making and improved corporate performance.’ (”˜BI Best Practices’, n.a.)
It is so crucial for modern business success that even the reality of the economic and financial crises hasn’t influence the eagerness to develop this business capability. Therefore the basic knowledge about BI is required from any businessman who aims to succeed during an economic crisis.
The major differences between traditional and operational business intelligence solutions, and the benefits, and challenges of implementing these strategies have to be additionally researched by the companies that plan to adopt BI.Â The introduction of the new models does not mean the use of models or the use of decision support systems should be abandoned. Â Not at all, the analytical tools should be blended with traditional approaches and it is expected to lead to improvement of the insights about factors too complex to build into models. Specifically, this bending may facilitate the modification of results of analytical tools when they contradict intuition.Â Also, these tools may serve for the verification of intuitive insights before its inclusion into the decision-making process. Clearly, ”˜the combination of analytical tools and human interaction provides insight for a company’s decision makers into problems and their related opportunities.’ (Thierauf, 2001)
The most interesting aspects of the business intelligence applications research are the definitely its uneasy relations with the organizational culture. It is also intriguing how the business intelligence is able to avoid real confrontation with traditional management structures and decision procedures and priorities. Instead it concentrates on ways of manipulating information to presumably work around the organization rather than allow itself to point out shortcomings in the organizations themselves.
This papers aims to find the answers to the following questions:
- Why the business intelligence applications are needed?
- What are the elements of business intelligence application?
- What kinds of resources are required for development and implementation of effective BI framework?
- Business intelligence as an inevitable element of E-commerce world
As the business environment constantly changes, business desperately needs newerÂ businessÂ systems that could help to keep the competitive positions in this complex environment. At the moment these newÂ businessÂ systems that maintain the growth of the business are businessÂ intelligenceÂ systems. (Fleisher and Blenkhorn, 2003)
Thierauf (2001) explains that businessÂ intelligenceÂ is a crucial part of E-commerce and it includes ”˜collecting, managing, mining, and analyzing the data of the organization’. Â As the result of the implemented businessÂ intelligence, organization obtains information and knowledge that have a strategic value for its owners.
In terms of resources, it is known that vision, money, and patience of the management are the most common resources needed for businessÂ intelligenceÂ systems development and implementation.
The core ability of businessÂ intelligenceÂ is the real understanding of information that was gathered through various sources, because despite the data availability, in the majority of cases this information is considered useless without its effective synthesizing.