Information Networks and Business Intelligence - Case Study Example

Information Networks and Business Intelligence Introduction Business intelligence refers the capacity to appreciate the interrelations of data in a way that provides leeway for the achievement of desired goal and objectives. The purpose of business intelligence is to offer past, current, as well as predictive perceptions towards business operations in order to maximize organizational efficacy with regard to utilization of organizational resources. Business intelligence is an integral constituent of business decision making processes and is thus referred to as a decision support system (DSS). While other business systems also enhance business decision making, the distinguishing factor with regard to business intelligence is that it entails the use of technologies, applications and processes. These systems analyze and disseminate data with regard to the organization’s internal structures and business processes. This paper looks at business intelligence, providing insight into the essence of business intelligence and analytics in enhancing achievement of business goals. Business intelligence and analytics are paramount to the development of businesses. Business intelligence provides leeway for the acquisition, reporting, analyzing, processing and management of valuable business information. According to Vivek, 2006) business intelligence entails three crucial elements that include querying, reporting and business analytics. Here, business analytics involves statistical analysis, prediction and optimization. From the case study of Exclusive Resorts, LLC, it is apparent that business intelligence is essential in some of the most crucial business processes, which are aimed at driving business value to optimal heights. Business management is applied in the measurement of efficacy and success of business processes. This is because business intelligence establishes a performance metric, which measures the business’ activities with regard to achievement of certain goals. Such performance metrics allowed the management of Exclusive Resorts, LLC to align company activities with the needs of its stakeholders such as customers, employees and even the company’s shareholders. In previous times, metrics were primarily based on finance as a measure of an organization’s performance, business intelligence allows for customer-based focus with regard to organizational performance. Performance metrics require the establishment of critical procedure to analyze customers’ needs and requirements, the development of strategies to achieve customer satisfaction and finally the establishment of goals for comparison with achieved results. However, the main critique of performance metrics is that the value of information is computed through mathematical systems, which proves that performance metrics professionals also use strategies that encompass little value. For instance, it is apparent that the metrics employed by Exclusive Resorts, LLC emphasize performance attributes that the company considers easily and directly measureable, despite their low value. The company’s measurement of performance on the sheer success of its enterprise resource planning is implicit of the disparity of using performance metrics as a core business intelligence module. The case study has, nonetheless provided vital information with regard to using measurement as a tool and benchmark to achieve progress in business activities geared towards the achievement of specific goals. Here, the business intelligence module provides information to business leaders about progress towards concerning business goals. Analytics, on the other hand, establishes quantitative systems through which a business can achieve optimal decisions. Analytics also provides a benchmark for the performance of knowledge discovery, which entails processes such as data mining conducted in knowledge discovery within databases, process mining where business processes and strategies are examined and perfected. Analytics also entails the process of business processes modeling, which entails the analysis of business processes to facilitate improvements. This process is conducted primarily when business managers seek to improve the proficiency and quality of business’ products and services. For example, in order to discover flaws in its former enterprise resource planning (ERP) that is the Oracle software, Exclusive Resorts, LLC’s management employed business process modeling and discovered that the system was unproductive, requiring drastic changes (Microsoft Inc.,2011). While business progression modeling as a vital part of business intelligence requires information technology, this is not always the case. Furthermore, business intelligence entails systems for reporting of data. An effective business intelligence module is one that puts together viable infrastructure to facilitate strategic reporting, which is paramount in business strategic management and not sheer operational reporting. Reporting encompasses processes such as executive information systems, whose aim is to support information and decision-making requirement of company executives. This is primarily done by providing access to external, as well as internal information that is essential in achieving the business’ strategic goals. Furthermore, business intelligence entails data visualization measures where visual aids are used in the representation of data. Online analytical processing (OLAP) is a vital constituent of an efficient business intelligence system. OLAP refers to a system that allows for receipt of swift answers to multidimensional questions regarding company processes. OLAP is essential in the process of business reporting, especially in management, budgeting and forecasting future business successes and shortcomings. Business intelligence systems also provide a platform for collaboration of different areas both within and without the business. The system incorporates data sharing and electronic data interchanges to enable collaboration with regard to information sharing in the company, as well as with other stakeholders outside the business. For instance, the Marshfield Clinic used business analytics to enhance patient outcomes and the facility’s billing accuracy (Konitzer and Cummens, 2011). However, such a system not only provides a channel for those in business to share information, but it also allows key health stakeholders such as government health agencies and insurance companies to disseminate vital information regarding the health sector. Business intelligence is also crucial in the management of vital knowledge and information. Business intelligence provides an avenue for the identification, creation, representation, distribution and adoption of experiences, as well as insights that are considered essential business knowledge and other essential information (Stubbs, 2011). This is essential in healthcare facilities as it allows for collection and distribution of patient information such as diagnostics, treatments of patients. Health care facilities, as well as other businesses, need knowledge management as it enables the dissemination of vital business knowledge such as regulatory compliances and advances in business strategies. In addition to the aforementioned essentials of business intelligence, it is paramount to note that business intelligence also provides a pro-active approach to the business. For instance, business intelligence can act like an alarm system that notifies the end user of any unexpected shifts in business dynamics. For instance, if a business’ value goes below the set threshold, the system will send out an alert signal such as a different color to alert business analysts, as well as the business management. Business intelligence programs also provide for alert signals to be sent to the analyst or even the user(s) through mail. Data governance, therefore, becomes a key process in the overall business intelligence program. This means that the process requires the input of software experts. In order to implement business intelligence initiative sufficiently, it is essential to prioritize projects that require initiatives. This is primarily done through the identification of tangible goals for which the business intelligence strategy is to be implemented. This allows business managers to establish business intelligence in the core business elements such as improving customer satisfaction, reducing costs and other desired goals. Moreover, it is paramount to enforce a culture of easy access of information throughout the entire business. Through this small-valued benefits, such as saving a few minutes to the overall business activities, will produce substantive benefits when the efforts are multiplied by other employees in the business. Furthermore, according to Ross, Weil and Roberson (2006), a successful business intelligence initiative allows for the BI project to be rolled together with other business activities that have proved successful in previous times. In order to do this, the business must employ the services of enterprise architects who are able to outline business projects that will augment the mission of business intelligence. Conclusion It is apparent that business intelligence is a viable tool that enhances business success with regard to achievement of desired goals aligned with the overall business’ mission. Business intelligence allows for effective analysis and dissemination of crucial business information and knowledge. This is done through a number of processes that include among others performance measurement, analytics, reporting, collaboration, as well as knowledge management. The main constituents of business intelligence systems are querying, reporting and OLAP. While business managers are continually bombarded with critical management decisions such as prioritizing goals, business intelligence should be at the forefront of all decision-makers’ minds. It is, therefore, undisputable that business intelligence and analytics are paramount in business development. References Microsoft Inc. (2011). Exclusive Resorts, LLC Destination Club Generates Rapid ROI, Enhances Services, Takes Control of Business.Microsoft Case Studies. Retrieved September 16, 2011,from http://www.microsoft.com/casestudies/Microsoft-Dynamics-AX/Exclusive-Resorts-LLC/Destination-Club-Generates-Rapid-ROI-Enhances-Services-Takes-Control-of-Business/4000009718 Konitzer, K. and Cummens, M. (2011). Case Study - Using Analytics to Improve Patient Outcomes and Billing Accuracy at Marshfield Clinic. TDWI. Retrieved September 16, 2011, from http://tdwi.org/articles/2011/07/11/case-study-using-analytics-to-improve-patient-outcomes-and-billing-accuracy-at-marshfield-clinic.aspx  Ross, J. W, Weil, P. and Robertson, D. C.(2006). Enterprise Architecture as Strategy: Creating a foundation for business execution. Harvard: Harvard Business Press. Stubbs, E. (2011). The Value of Business Analytics. New York: John Wiley & Sons. Vivek R. (2006). The Power to Predict: How Real Time Businesses Anticipate Customer Needs, Create Opportunities, and Beat the Competition. London: McGraw-Hill Publishers. Read More