Assignment 1: Business Intelligence

Value Add of Business Intelligence to a Company

The relevance of business intelligence (BI) to a company cannot be overstated. This is more so the case when it comes to the provision of crucial data for the formation of valuable business insights. To begin with, it is important to note that virtually all organizational departments can make use of BI. Indeed, as Baltzan (2017) points out, BI could come in handy in each and every value chain step. For instance, as Baltzan (2017) further point out, one of the companies that actively makes use of BI is Volkswagen AG. In this case, the company deploys BI in efforts to not only monitor, but also comprehend and manage data across various departments.

Secondly, it would also be prudent to note that BI makes it possible for everyone to gain access to the most current information. BI is instrumental in efforts to ensure that users are provided with the tools that they need to address various queries. For instance, according to Baltzan (2017), BI makes it possible for MasterCard International merchants to closely track their enterprises on a regular basis. Baltzan (2017) point out that in some instances, standardized reports are sufficient for some users. However, the said reports may not answer all questions and may, as a matter of fact, trigger a set of other queries. To reign in this challenge, Baltzan (2017) are categorical that a BI system should let users autonomously make ad hoc requests for information from corporate data sources.

Third, BI also allows centralized access to crucial information for all users. Baltzan (2017) point out that BI solutions make it possible for enterprises to avail crucial information in their databases to users who possess the relevant authorizations. In this case, the said users access the relevant data from a single point. With such information at their fingertips, uses can then be able to gain better understanding of the key drivers of the enterprise.

Downsides of Business Intelligence on Decision-Making Processes

Although, as has been indicated above, BI is of great relevance to a company, there are indeed some negative impacts that the same has on decision-making processes. To begin with, BI could slow down or cloud decision-making processes. This is more so the case given that in some instances, poor data management could give rise to surplus or irrelevant data. Indeed, in the words of Sherman (2014), a surplus of data can mean that a lot of what your BI tools analyze is irrelevant or unhelpful, muddying...

external influencers, human factors, etc. For instance, how various organization executives perceive data could be influenced by factors such as their background and expertise, motivations, etc. For this reason, it is possible for executives to reach different conclusions following their exposure to the same set of data. This could get in the way of effective decision-making especially given that in some instances, reconciling individual views and perspectives could take a significant amount of time.

Lastly, data breaches as well as loss are not uncommon in the realm of BI. Indeed, as Vercellis (2011) points out, unless your system is completely disconnected from an online portal, the threat of a security breach is something which must always be proactively considered (311). If an organization is overly reliant upon the BI technical as well as procedural infrastructure for its operations, then such occurrences could significantly affect its various processes, including decision-making processes.

The Utilization of Tactical, Operational, and Strategic BI

My company could make use of tactical, operational as well as strategic business intelligence in an attempt to comprehend its client base and ensure that the various items offered for sale are managed in a better manner. To a large extent, the company would be further enhancing its decision-making and planning abilities. In my opinion, managers across all levels would in this case have the tools they need to advance the organizational agenda in the short-term, medium-term, as well as long-term. Below is a tabular representation of how my organization would ideally be deploying tactical, operational, as well as strategic BI.

Operational BI

Tactical BI

Strategic BI

Business Focus

Through the utilization of transactional data (real-time), the organization could seek to track business processes deemed core. In this case, managers could be notified in case there are significant variations with respect to set parameters.

Example: Manufacturing analytics

Mid-level…