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Business Intelligence System

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  • 1. an@wBusiness Intelligence Systems 6680 1Business Intelligence SystemsTable of ContentsAbstract........................................................................................................................................2Introduction ...............................................................................................................................2Decision Making Process .................................................................................................................2Decision Support Systems ...............................................................................................................3Business Intelligence.........................................................................................................................4Literature Review.....................................................................................................................4Annotated Bibliography.........................................................................................................4Summary of author........................................................................................................................................5Critical evaluation..........................................................................................................................................52.1. Bibliographic Information ..................................................................................................62.2. Annotation Explanation .......................................................................................................6Summary of author........................................................................................................................................6Critical evaluation..........................................................................................................................................63.1. Bibliographic Information ..................................................................................................73.2. Annotation Explanation .......................................................................................................7Summary of author........................................................................................................................................7Critical evaluation..........................................................................................................................................74.1. Bibliographic Information ..................................................................................................84.2. Annotation Explanation .......................................................................................................8Summary of author........................................................................................................................................8Critical evaluation..........................................................................................................................................85.1. Bibliographic Information ..................................................................................................95.2. Annotation Explanation .......................................................................................................9Summary of author........................................................................................................................................9Critical evaluation..........................................................................................................................................9Methodology and reflection............................................................................................... 10Business Intelligence application/ Software............................................................... 11Concluding ............................................................................................................................... 12References................................................................................................................................ 13
  • 2. an@wBusiness Intelligence Systems 6680 2AbstractThe business environment is always performing with complexes,which create opportunities on the one side and confusing to make rightdecision on others. A right decision is depending on the business intelligenceof the decision makers.In this essay discuss about how does business intelligence supportOrganizational Decision Making. By observing this essay can understand thesignificance of business intelligence, decision-making, Decision supportsystem and their correlation. This report might be providing idea andknowledge to gain a complete understands of all the issues facing withdecision-making.Keywords: business intelligence, decision-making, Decision support system,data, informationIntroductionDecision Making ProcessIn every work place as organizations, private and public, are under thecircumstance of making decision for their organizational strategies, tactical,and operational decisions. A good decision can be support to close the gapbetween the current performances of an organization and its goals. Thepotential solution is relying on the decision support systems and businessintelligence of the decision maker.According to Mintzberg (1980), interpersonal figurehead, leader, liaison,informational monitor, Disseminator, spokesperson, decisional entrepreneur,disturbance handler, resource allocator and negotiator are ten managerialroles. To better perform their roles; managers need information that isefficiency and effectiveness. Every managerial activity in all roles mustperform decision-making process for their every task. High levelsmanagerial roles are primary decision maker. Some time and some case theyhave to make decision in a timely. Managerial level always make decisionsby four- step process of defined the problem, construct a model that describethe real’ world problem, Identify possible solutions to the modeled problemand evaluate the solution and compare, choose, and recommend a potentialsolution to the problem. For every step must have alternative solution arebeing considered. To get alternative solution are difficult because businessenvironments are growing more and more complex every day. Thus now aday, making decision is the most complex task for managerial levels.Technology, information systems, advanced search engines, and
  • 3. an@wBusiness Intelligence Systems 6680 3globalization result in more and more alternatives from which to choose andgovernment regulations and the need for compliance, political instability andterrorism, competition and changing consumer demands produce moreuncertainty, marking it more difficult to predict consequences and the futureare the main reason of the complex to make the right decision on time.Thus, Manager must have more experience and knowledge to use the newtools and techniques of their fields, especially for decision-making. Thosetools and techniques provide to make effective decisions with efficiency.For this reason, seventy per cent of the executive levels know thatinformation technology is vital for their daily business live. They useDecision support systems to evaluate the daily business transactionprocessing and monitoring activities to problem analysis to make rightdecision timely.Decision Support SystemsSpeedy computations, improved communication and collaboration,increased productivity of group member, Improved data management,managing giant data warehouses, quality support, agility support,overcoming cognitive limits in processing and storing information, using theweb, anywhere and anytime to get the support are the visual capabilities ofusing computerized decision support systems.The definition of the decision support systems (DSS) as „interactivecomputer-based systems, which helps decision makers utilize data andmodels to solve unstructured problems” (Gorry and Scott- Morton, 1971).According to Keen and Scott- Morton (1978), “Decision support systemscouple the intellectual resources of individuals with the capabilities of thecomputer to improve the quality of decisions. It is a computer-based supportsystem for management decision makers who deal with semi structuredproblems”.In my opinion, decision support system (DSS) is a support system, whichbased on computerized system for management decision makers to solveproblems. These systems allow the business to gather, store, access,evaluate and analysis data to make the right decision for their business.Mostly, customer profiling, customer support, market research, productprofitability, statistical analysis, distribution history, order process areillustrate in these systems. Data are the first component and models are thesecond component of the DSS Architecture. The two major type of Decisionsupport system are model- oriented DSS and data- oriented DSS.Quantitative models are used to solve the problem in model – oriented DSS.Data such as report and queries and other supported information are used indata- oriented DSS.
  • 4. an@wBusiness Intelligence Systems 6680 4Business IntelligenceBusiness intelligence (BI) represents theories, methodologies, processes,architectures, and technologies that transform raw data into meaningful anduseful information for either business purposes or decision-making processof business. The benefit of Business intelligence is not only can handlelarge amounts of information to help identify but also creates newopportunities for business. The definition of the Business intelligence is“Business intelligence (BI) is a broad category of applications andtechnologies for gathering, storing, analyzing, and providing access to datato help enterprise users make better business decisions. BI applicationsinclude the activities of decision support systems, query and reporting,online analytical processing (OLAP), statistical analysis, forecasting, anddata mining.” (Luca 2006, Searchdatamanagement.techtarget.com)In my point of view the term business intelligence (BI) refer to the set oftheories, methodologies, processes, tools and systems that play a high levelin the organization process. Also business Intelligence (BI) is a conceptualframework for decision making that contains all the information executivesneed such as architectures, tools, data-bases, analytical tools, applicationsand methodologies. Data warehouse, business analysis, businessperformance management and user interface are four major components of aBI system. The data-warehousing environment is concern relaying ontechnical staff. Business analysis is the field of business users. Businessperformance management processes include planning and forecasting of abusiness strategy. Dashboards and other information broadcasting tools areincluding in user interface that provide a comprehensive visual view ofbusiness performance, trends and exceptions. According to Thompson(2004) report, faster, more accurate reporting, improved decision making,improved customer service and increased revenue are the major benefits ofthe business intelligence.Literature ReviewIn this essay, five sources will be discussed as annotated bibliographyto understand how Business intelligence supports Organizational Decision-making. All sources are providing how BI supports Organizational Decision-making from their different point of view.Annotated Bibliography
  • 5. an@wBusiness Intelligence Systems 6680 51.1. Bibliographic InformationTurban,E., Sharda, R., and Delen, D., Decision support and businessintelligence systems, 2011 (9th ed), Person Education International, UpperSaddle River, and USA.1.2. Annotation ExplanationSummary of authorIn this book, 14 chapters are organized into seven parts as part1: Decisionsupport and business intelligence, Part II; computerized decision support,Part III; Business intelligence, Part IV: collaboration, communication, groupsupport systems, and knowledge management, Part V: Intelligent systems,Part VI: implementing decision support system and business intelligence andPart VII: online supplements.Critical evaluationTurban,E., Sharda, R., and Delen, D describe how organizationssurvive by using business intelligence as computerized support formanagerial decision making in such a business environment. This bookconcentrates not only the theoretical and conceptual foundations of decisionsupport but also the commercial tools and techniques that are available.Chapter 1 has provided an overview of decision support systems andbusiness intelligence. Chapter 2 and 3 are included in Part II computerizeddecision support and describes both structured models and modeling tools.Chapter 5 to 9 are several distinct components of business intelligence.These three parts are the main stream of how BI support decision-making.
  • 6. an@wBusiness Intelligence Systems 6680 62.1. Bibliographic InformationFarnaz M and Nastaran H write this book. The title of the book is AFramework Correlating Decision Making Style and Business IntelligenceAspect. Publication year was 2012 (3rd Ed). Published by InternationalConference on e-Education, e-Business, e-Management and e Learning,IPEDR vol.27, (2012) IACSIT Press, Singapore.2.2. Annotation ExplanationSummary of authorThis research paper proposes a framework with appropriate BIcapabilities to get the best result for each of the decision-making styles’requirements. The concept of business intelligence systems and itscapabilities are discussed in first part. After that decision making styleconcept and how decision-making styles are impact on BI are discussed.Critical evaluationThis paper highlights the bidirectional relation between decision-making styles’ concept and Business intelligence capabilities.This paper give the logic of, application of BI in organizationaldecision making is important to consider the manner of decision maker tofulfill the information of their organization needs. This paper mentions thatBI capabilities change according to decision making style and findingappropriate BI capabilities for the entire decision maker has limited.This research paper brings not only established theories from the decisionsciences but also research for information systems areas.
  • 7. an@wBusiness Intelligence Systems 6680 73.1. Bibliographic InformationHana, K and Marketa S, Decision Support Systems or Business Intelligence:What can help in Decision Making? Publication year was 2006. Publishedby Institute of System Engineering and Informatics, Faculty of Economicand Administration, University of Pardubice.3.2. Annotation ExplanationSummary of authorIn this paper discuss about two basic types of supporting system tomake effective decision-making; DSS- decision support system and BI-business intelligence. This paper provides comparison definitions, and anoverview of decision support systems and business intelligence.Critical evaluationThe main discussion of this paper is comparing between the businessintelligence and decision support system.Business intelligence is a broad category of applications and technologies.Business intelligence is not stable and their ranges of concepts aredeveloping and future components can be absolutely different.A decision support system is a computer program application. It ishelp to make decisions more easily for decision makers through directinteraction with data and analysis models.Both of particular concepts are based on data to make a decision in a betterand easier way.
  • 8. an@wBusiness Intelligence Systems 6680 84.1. Bibliographic InformationChartered Instituted of Management Accountants (executive report),Improving decision making in organizations, unlocking businessintelligence. Publication year was October 2009. Published by CharteredInstituted of Management Accountants (CIMA).4.2. Annotation ExplanationSummary of authorThis business intelligence system is perspective from the role of themanagement accountant. The decisions making process, businessintelligence and the role of the management accountant in businessintelligence are the main areas of discussion in this paper.Critical evaluationAccording to this paper, business intelligence is not just abouthardware and software. Business intelligence perform vital role in betterdecision making in business. Business intelligence will always be a demandfor accountants with technical expertise. Management accounts should havebusiness intelligence in their business. If they have the Business intelligencethey can help ensure data quality for problem area, they can help toarticulate the business’s information needs for decision making, they canwork with information technology or decision support system to developbusiness intelligence strategy and so on. A lot of figures demonstrate tounderstand easily.
  • 9. an@wBusiness Intelligence Systems 6680 95.1. Bibliographic InformationPeter, GWK & Michael, S.S.M write this book. The title of the book isDecision Support Systems an Organizational Perspective 1978. Published byAddison-Wesley publishing company, Sydney.5.2. Annotation ExplanationSummary of author“Decision support systems an organizational perspective” is a book,which is the Addison-Wesley series on Decision Support focus onmanagers’ decision-making activities. This book has shaped by ninecategories, which address the main issue of decision support.Critical evaluationThe book explores systematic approaches to improving theeffectiveness and efficiencies of decision processes. The theoretical studiesof organizational decision making and technical work in interactivecomputer systems have evolved in the concept of decision support. Theintention of the series brings together the various theoretical, behavioral,practical and technical point of views gained so far.One interesting aspect of the work of authors is indicates a major rolefor computers as a tool for individual decision-making. Although there was atime more than thirty five year ago where the idea of using, their idea is stillleading in decision support systems concepts.
  • 10. an@wBusiness Intelligence Systems 6680 10Methodology and reflectionAbove five sources are used in research as the quantitative method. Allresources discuss how decision support system and business intelligence areimpact on decision-making process from their point of view by using thereference of other authors.Decision support system and business intelligence tools are essentialcomponent of the decision making process in this ages is the mainmethodology of the essay.Poor data and information quality are key issue of the decision makingprocess. If base on poor quality data and information, neither the rightanalysis nor decisions are made. Poor quality data and information leads topoor quality decision and its leads waste of the time and organizationresources.Furthermore, experience and intelligence to use these tools of the decisionmaker are another issue of the decision making process. If the decisionmakers not have the sufficient experience and intelligence, the decisionscannot the best one.
  • 11. an@wBusiness Intelligence Systems 6680 11Business Intelligence application/ SoftwareOLAP online analytical processing is a computer processing. That enables auser to easily and selectively extract and view data from different points ofview. OLAP data is stored in a multidimensional database. OLAP softwarecan locate the intersection of dimensions and display. OLAP can be use fordata mining or the discovery of previously undiscerned relationshipsbetween data items. OLAP database does not need to be as large datawarehouse.(Margaret 2007)OLAP applications span a variety oforganizational functions. Finance departments use OLAP for applicationssuch as budgeting, activity-based costing (allocations), financialperformance analysis, and financial modeling. Among other applications,marketing departments use OLAP for market research analysis,salesforecasting, promotions analysis, customer analysis, andmarket/customer segmentation. Typical manufacturing OLAP applicationsinclude production planning and defect analysis. OLAP applications arefound in widely divergent functional areas, they all require the following keyfeatures Multidimensional views of data, Calculation-intensive capabilitiesand Time intelligence
  • 12. an@wBusiness Intelligence Systems 6680 12ConcludingIn globalization ages, the environment of the organizations is more and morecomplex with opportunities and problem or pressures. The degrees of thesuccessful of the organization are depending on decision-making skill of themanagerial levels. Decision-making skills are relying on the manageriallevels’ BI and DSS. According to the annotated bibliographies, decisionsupport system is a technology that can directly help make intelligencebusiness decision faster. Business intelligence is an umbrella term and newtools as business analytics, data minding, intelligent systems, delivered viaweb technology, BI capabilities, model and data for computer-aided decisionmaking are appear under the BI. (OLAP Council, 1997)
  • 13. an@wBusiness Intelligence Systems 6680 13ReferencesCIMA Chartered Institute of Management Accountants. Cimaglobal.com,2011, improving decision making in organizations, Unlocking businessintelligence, Executive report October 2009, viewed 27 February 2013,http://www.cimaglobal.com/Documents/Thought_leadership_docs/cid_execrep_unlocking_business_intelligence_Oct09.pdfFarnaz, M and Nastaraan, H 2012, A Framework Correlating DecisionMaking Style and Business Intelligence Aspect, IPEDR 2013, viewed 27February 2013, http://www.ipedr.com/vol27/18-IC4E%202012-F00024.pdfGorry, G.A., and M.S. Scott- Morton. (1971). “A Framework forManagement Information Systems” Sloan Management Review,Vol.13,No1, pp 55-7.H. A. Mintzberg, The Nature of Managerial Work, Prentice Hall, EnglewoodCliffs, NJ 1980H. A. Mintzberg, The Rise and Fall of Strategic Planning.The free press,New York, 1993Hana, K and Marketa, S 2006, Decision Support Systems or BusinessIntelligence: What can help in decision making?, Dspace.upce.cz 2009,viewed 3 March 2013,http://dspace.upce.cz/bitstream/10195/32436/1/CL585.pdfKeen, P. G. W., and M. S. Scott- Morton. (1978). Decision SupportSystems: An Organizational Perspective. Reading, MA;Addison- Wesley.Luca, R 2006, Tech Target, Business Intelligence (BI), viewed 29 April2013, http://searchdatamanagement.techtarget.com/definition/business-intelligenceMargaret, R 2007, Tech Target, OLAP(Online analytical processing),viewed 29 April 2013,http://searchdatamanagement.techtarget.com/definition/OLAP
  • 14. an@wBusiness Intelligence Systems 6680 14OLAP Council, 1997, olapcouncil.org viewed 19 April 2013,http://www.olapcouncil.org/research/whtpaply.htmPeter, GWK & Michael, S.S.M 1978, Decision Support Systems anOrganizational Perspective, Addison-Wesley publishing company, Sydney.Thompson,O. (2004, October). “Business Intelligence Success, lessonLearned”. Technologyevaluation.com (accessed June 2009).Turban, E., Sharda, R., &Delen, D. 2011, Decision support and businessintelligence system, 9thed., pp. 2-30, viewed 26 February 2013, Universityof Canberra E-Reserve.