The Profit Impact of Business Intelligence - Case Study Example

BUSINESS INTELLIGENCE   Appendices Executive Summary P.3 Business Intelligence P.4 Methods to Be Used P.4-7 Software Tools to Be Used P.8-9 Factors Affecting the Selection of Tools P.10 Effects of Methods Used To the Business P.11 Bibliography .12-13 Executive summary Business intelligence has been on the forefront in solving business related problems. In the report which was a case study of Giant Food LLC company, a pricing strategy is presented. The solution to the problem requires more labor and covers a period of 30 years. The company presented the problem to Demand Tec Company to find the solution. The company chose customer relation management method to solve the problem. Business intelligence Business intelligence can be explained as a set of methodologies, theories, technology, and architecture that are used to transform the raw data obtained into useful and meaningful information for the purpose of business. Business intelligence handles a large number of data that is unstructured in the help of developing, identifying, and creating new opportunities. The creation of new opportunity and the implementation of a new strategy provides a long term stability and a competitive market advantage for the business. business intelligence technologies provide current, predictive and the historical views of business. The common functions of these technologies are online analytical processing, reporting, analytics, process mining, data mining, benchmarking, complex event processing, prescriptive analytics, text mining, business performance management, and predictive analytics. Web Mining Web mining will include the mining and the extraction of the data and also its integration.web mining process will in some way help in the solving the problem of strategic price setting. Use of metal crawlers is more advisable as it provides comfort to the users and provides a lot of information even though its not structured. In solving the problem, the use of web agent and an extended database will be employed as this will provide a high level of organization data which will be structured. The web agent model will involve the development of a sophisticated system that will perform autonomously and help in the discovery of information. The following diagram will represent the model to be used in agent data mining to solve the problem. The set up model will help the firm to ensure oit gets proper and structured information that will solve the business problem. The information reports and the analytical data will be used to help in the determining of the solution. The model has all the information involved in the market of the product. Web Analytics This process will involve the collection, analysis, and measurement for the purpose of understanding and optimization of the web usage. In solving the problem of price setting, the web analytics will be used as a tool for market research and a way of assessing the effectiveness and improvement of a the business. The web analytic models will help in the provision of customer information that will work very well to provide a predictive base for the setting of the price. The information received will be in a digital manner. The solving of the problem will require the use of customer lifecycle analytics centric approach will be used to measure the customer information in life cycle marketing analytics. This will help in the review of what the competitors are using and will help the business come with a conclusive and competitive solution. Customer lifecycle analytics encourage the storing of customer data individually as opposed to other methods those stores it as separate data points. This will help to give insights in the customer and product behavior and help in setting up of an equilibrium price that favors the operation of the business. The business will have to post the desire price and then use the web analytic software to measure and analyze the number of customers that will be comfortable with the new set price and the ones that will be affected by it. In this way, the company is able to come up with a concrete detail and analysis of how to set the price of the product. Decision support The decision support systems have to be developed to analyze the collection of data which is massive. The principal variety for the decision support systems is one that is data driven and model driven .In this case the model driven system is the one suitable in solving the problem. This is because it will accommodate applied set of limited data. In a typical session, the sales manager or the analyst assigned to this work conducts a typical dialog with the decision support system with a specified number of scenarios in the business line. The sales manager will use a marketing decision in setting up the price of a product. The system contains a model that relates to various factors that include the cost of goods, the promotion expense, the price of the product, and the price of the competing products. By supplying the information of different products, the manager will be faced with the duty of comparison and will have a profound decision in the selection of a most favorable selling price. The use of soft ware agents will also help in solving the problem experienced. The software agent will perform independently on behalf of other systems used to solve the problem. The use of data mining agents and the query programs will be an added advantage in the set up of the selling price by the Giant Food company. the ability of the software agent to work and perform independently offers different packages and a tool set of different solutions to the problem. The provision of the different solutions available will be analyzed differently by the system and this will provide a new set of information that will be used to set up the price in the company. The use of Googlebot is highly recommended in the solution finding as it gives the ranks of the information and the data to be used. TOOLS TO BE USED Tools in Web Mining Web data mining has continued to grow due to the large amounts of data that are available freely on the web. The technical nature of the data and its large volume has brought the need for data-mining tools that have specific design has been on the rise. The recommended tool for data mining to solve the problem in this case will be the Rapidminer. This is the world leading open source system and serves to analyze the data collected. This system will give and analyze data about the customers’ purchases and preferences. It gives a basis to differentiate between the web visitors and real customers who purchase the goods and services on the website. This data-mining tool will search for consumer patterns and marketing information that will be used to set the price of the product by the company. Web Analytics Software Tools The pivotal reason as to why the company will succeed or fail is determined by the company ability to track the business statistics an the interpretation of the data in order to make crucial and valid decisions. The most recommended tool is the Google analytics software, which is free and provides a wide range of data analysis systems and methods. It provides statistics about the number of web visitors and is widely used in the whole worked. The software has the popularity due to its ease of use and its ability to provide a wide range of detailed reports. With the reports being provided for comparison, the management will have an easy way to make a profound decision in the business operation and performance. Decision Support Tools The decision support system will be used to provide different options according to the information analyzed and this helps in making an outstanding decision. The recommended tool in this case is the model driven Decision Support System. This system tool will include the use of financial and accounting models compared to the computer one or the data driven model. The system will provide product optimization details and this provides a basis on solving the price-setting problem. It has simple statistical tools that have high functionality hence provides a solid decision. Factors affecting the selection of the software tools Efficiency The available tools have different levels of efficiency in their operations. The software tool with the highest efficiency is highly recommended, as it will bring undisputed results in an efficient way. The Scope of The Problem Different software tools are developed to handle different scopes of problem.im this case the problem is a business one hence the use of a business-oriented tool for easier solutions and decision-making. The problem may cover different areas and hence it requires the use of combined software tools to solve it. Size of The Data Required For a small business, the size of the data required may be small as compared to a large business enterprise. The small business will use software tool that covers on small business markets while the large business will consider using a software tool that covers on large enterprises. Technology It is advisable to use a software tool that is supported by the business technical advancement level as this will make the business intelligence process very productive and easier to handle. Effects of the Business Intelligence Applied To the Business The application of the software tools recommended will improve the decision making process. The software tools make information available to the management that uses it to compare different scenarios of the business. The comparison helps the management to make a strong decision that improves business performance The use of the web analytics help in the creating a competitive advantage as the business is able to know its real customers. The comparisons of this information with that of a competing company will help the management to come up with a decision to improve the comparative advantage enjoyed by the company. The software tools as proposed will improve the business processes and the performance. The date provided by web mining will be used to analyze the whole business process and this helps in improving the business process. The analyzed data and the decision making ensures problems are handled correctly and this improves the business process and performance. In conclusion, the implementation of the business intelligence tools in an organization has been more advantageous to the business. The software tools have provided best solutions to business related solutions and this has seen the improvement of business performance in the markets they serve. In this case, the problem of price setting is handled by different tools that give basic and crucial information that helps to set the product price for the business. Business intelligence methods are beneficial to solving business problems in a better and a cost effective way. Bibliography Williams, Steve, and Nancy Williams. The profit impact of business intelligence. Amsterdam: Elsevier/Morgan Kaufmann, 2007. 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