Business Intelligence as a technological solution
Business intelligence (BI) is a technology-driven process for analyzing data and presenting actionable information to help corporate executives, business administrators, and other end users make more informed business decisions. BI encompasses a variety of tools, applications, and methodologies that enable organizations to collect data from internal systems and external sources, prepare it for analysis, develop and run queries on data, and create reports, dashboards, and data visualizations for make analytical results available to corporate decision makers as well as operational workers.
In other words, it is the ability to transform data into information, and information into knowledge, so that the business decision-making process can be optimized, comprising the following:
Data
Data is a collection of facts, such as numbers, words, measurements, observations, or even just descriptions of things. These can be qualitative or quantitative. Qualitative data is descriptive information, while quantitative data is numerical information, which in turn can be discrete or continuous. Discrete data can only have certain values (such as integers) and continuous data can take any value (within a range)
information
Information is the set of processed data that have a meaning among themselves. The data is transformed into information when a certain value is added:
- Contextualize: it is known in the context in which they are located and the reason in which they were generated. Categorize: there is knowledge about the units of measurement that help interpret the data. Calculate: the data could have been processed mathematically or statistically. Correct: errors are removed from the data. Condense: the data has been summarized more concisely.
Knowledge
It is derived from information as well as information from data. For information to become knowledge, it is necessary:
- Compare it with other elements. Predict the consequences. Look for connections. Talk with other knowledge carriers.
Knowledge benefits
- Entering new markets Product promotions or offers Elimination of information islands Financial control Cost optimization Production planning Analysis of customer profiles Profitability of a specific product
Balanced scorecard
(Robert Kaplan 2009) The Balanced Scorecard is a planning system that is used in business and industry, government, and organizations to align business activities, improve internal and external communications, and monitor organization performance against strategic goals. It originated as a measure that adds strategic non-financial performance measures to traditional financial metrics to give managers a broader view of organizational performance. The balanced scorecard answers the following questions:
- How can you know if the business is being well managed, where you are failing to correct the mistakes you have, is it possible to continue improving, can you achieve your objectives?
The balanced scorecard has 4 perspectives:
Financial perspective
Project these strategies on the financial objectives of the organization. It incorporates the vision of the shareholders and measures the creation of value of the company. And answer the question: What indicators have to go well for the company's efforts to really transform into value?
Customer perspective
It reflects the positioning of the market in which you want to compete. This perspective is one of the most problematic of the balanced scorecard, since the following must be well defined: Who is the client? How to reach the clients' objectives?
Internal perspective
It collects indicators of internal processes that are critical for positioning in the market and for bringing the strategy to a good place. For this perspective it is important to focus on internal strategies, provide a framework for finding and assigning appropriate objectives, and discuss the indicators that can be used.
Growth outlook
In the balanced scorecard "learning and growth" is a dependent perspective, as it follows from the results of the other perspectives. This perspective answers the question: How should the company learn and improve in order to achieve its vision? In this perspective, the company has to learn how to satisfy the needs of customers, how to improve business processes and how to achieve its financial goals.
DDS
It is a Business Intelligence tool focused on analyzing the data of an organization. It is a team based on the information system that serves to support the organization in decision making. It also serves the management, operations, and planning levels of an organization and helps people make decisions about problems that may be changing. There are 4 types:
- Management Information Systems (MIS) (MIS, Management Information Systems) Executive Information Systems (EIS) (EIS, Executive Information System) Artificial Intelligence Based Expert Systems (SSEE) Group Decision Support Systems (GDSS) (GDSS, Group Decision Support Systems)
Datawarehouse
A Datawarehouse is a corporate database characterized by integrating and filtering information from one or more different sources. Must be
- Integrated Thematic Historical Non-volatile
Steps to develop Datawarehouse
- Extraction: It is the obtaining of information from the different internal and external sources. Transformation: It is the filtering, cleaning, purification, homogenization and grouping of information. Loading: It is the organization and updating of data and metadata in the database.
Data mining
It is the process of data analysis from different perspectives and summarizes in useful information data that serve to increase income, reduce costs, etc. It allows users to analyze data from many different dimensions or angles, categorize, and summarize the identified relationships. Technically, data mining is the process of finding correlations or patterns among thousands of fields in large databases.
- Take the guesswork out: (Ken Dixon 2002) "Running a business shouldn't be like the game," Too often, executives must rely on the best. They do it because their business data lacks any structure that allows them to truly make decisions. informed. BI can provide more accurate data, real-time updates, eliminating the need for guesswork. Get quick answers to your business questions: (Wende 2009) BI users can quickly get answers to business questions, instead of spending hours reading through volumes of print reports »Get key business metric reports when and where they are needed: (Mike Meikle 2009) Today,Many manufacturers of business intelligence software are trying their best to give users access to leading business metrics, reports, and dashboards from mobile devices such as the iPhone, iPad, Droid, or BlackBerry, giving sales and marketing access to the Business-critical information on the go. Gaining insight into customer behavior: (Mike Meikle 2009) One of the great advantages of business intelligence software is that it enables companies to gain visibility into what customers are buying (or no), giving them "the ability to turn this knowledge into added benefit" and retain valuable customers. Identify cross-selling and up-selling:(Mohit Joshi 2009) «Business intelligence software enables companies to leverage customer data to build, improve, and modify predictive models that sales reps increase sales and cross-sell products at points of contact with the suitable customer ”.
conclusion
Business Intelligence is a concept that usually involves the delivery and integration of relevant and useful business information in an organization. As such, companies use business intelligence to detect significant events and identify / monitor business trends in order to quickly adapt to their changing environment or scenario. By using effective business intelligence training in the organization, you can improve decision-making processes at all levels of management and improve your tactical and strategic management processes. These are some of the main reasons to invest in a suitable business intelligence system.
Thesis proposal
Business intelligence prototype using the data mining tool for the company Publicidad Galán SA de CV
Objective:
Support the taking of strategic sessions of the company since the storage of data is not handled correctly.
References:
- (http://www.sinnexus.com/business_intelligence/piramide_negocio.aspx, 2015) Accessed on November 9, 2015Ballvé, Alberto M., 2007, Control Board, Information to create value, Emece - Planet, ISBN Control Board, Information to create valueDrucker, P., 1985: La Gerencia. Tasks, responsibilities and practices, El Ateneo, Buenos Aires.Robert G., “The Performance Measurement Manifesto”, Harvard Business School Publishing DOI: 10.1225 / 91103.Hamel, G., & Prahalad, CK (1994), Competing for the future. Boston, MA: Harvard Business School Press.http: //www.cic.es/Solucion.aspx? Dep = 1 & Pag = CuadrosComando Consulted on November 9, 2015Johnson, HT and Kaplan, RS (1986): “Relevance lost: The rise and fall of management accounting ”, Harvard Business School Press.Kaplan RS and Norton DP (1992):"The balanced scorecard- Measures that drive performance" Harvard Business Review, January-February. Kaplan, RS and Norton, DP (1996): "The Balanced Scorecard: Translating strategy into action", Harvard Business School Press, Boston.Kaplan, RS, Ballvé, A. and Dávila, A. (2000): “Microsoft Latin America”, Caso, Harvard Business School, Boston. Leader Summaries (ed.). "Summary of the book How to use the Balanced Scorecard, by Robert S. Kaplan and David P. Norton". Retrieved on November 9 from Narayanan, VG and Ballve, A. (2002): "Andina Bottling Co.", Case 9-102-040, Harvard Business School, Boston."Microsoft Latin America", Case, Harvard Business School, Boston. Leader Summaries (ed.). "Summary of the book How to use the Balanced Scorecard, by Robert S. Kaplan and David P. Norton". Retrieved on November 9 from Narayanan, VG and Ballve, A. (2002): "Andina Bottling Co.", Case 9-102-040, Harvard Business School, Boston."Microsoft Latin America", Case, Harvard Business School, Boston. Leader Summaries (ed.). "Summary of the book How to use the Balanced Scorecard, by Robert S. Kaplan and David P. Norton". Retrieved on November 9 from Narayanan, VG and Ballve, A. (2002): "Andina Bottling Co.", Case 9-102-040, Harvard Business School, Boston.
