Business intelligence systems help organizations make better decisions by analyzing large amounts of data and presenting the information in a usable way. The document discusses decision support systems and business intelligence, how they help organizational decision making, and reviews several sources that describe the relationship between decision making and business intelligence from different perspectives. Decision support systems use data and models to help managers solve problems, while business intelligence encompasses broader technologies and processes for gathering and analyzing various types of data to support decision making.
Presentation on how to chat with PDF using ChatGPT code interpreter
Business Intelligence System
1. an@w
Business Intelligence Systems 6680 1
Business Intelligence Systems
Table of Contents
Abstract........................................................................................................................................2
Introduction ...............................................................................................................................2
Decision Making Process .................................................................................................................2
Decision Support Systems ...............................................................................................................3
Business Intelligence.........................................................................................................................4
Literature Review.....................................................................................................................4
Annotated Bibliography.........................................................................................................4
Summary of author........................................................................................................................................5
Critical evaluation..........................................................................................................................................5
2.1. Bibliographic Information ..................................................................................................6
2.2. Annotation Explanation .......................................................................................................6
Summary of author........................................................................................................................................6
Critical evaluation..........................................................................................................................................6
3.1. Bibliographic Information ..................................................................................................7
3.2. Annotation Explanation .......................................................................................................7
Summary of author........................................................................................................................................7
Critical evaluation..........................................................................................................................................7
4.1. Bibliographic Information ..................................................................................................8
4.2. Annotation Explanation .......................................................................................................8
Summary of author........................................................................................................................................8
Critical evaluation..........................................................................................................................................8
5.1. Bibliographic Information ..................................................................................................9
5.2. Annotation Explanation .......................................................................................................9
Summary of author........................................................................................................................................9
Critical evaluation..........................................................................................................................................9
Methodology and reflection............................................................................................... 10
Business Intelligence application/ Software............................................................... 11
Concluding ............................................................................................................................... 12
References................................................................................................................................ 13
2. an@w
Business Intelligence Systems 6680 2
Abstract
The business environment is always performing with complexes,
which create opportunities on the one side and confusing to make right
decision on others. A right decision is depending on the business intelligence
of the decision makers.
In this essay discuss about how does business intelligence support
Organizational Decision Making. By observing this essay can understand the
significance of business intelligence, decision-making, Decision support
system and their correlation. This report might be providing idea and
knowledge to gain a complete understands of all the issues facing with
decision-making.
Keywords: business intelligence, decision-making, Decision support system,
data, information
Introduction
Decision Making Process
In every work place as organizations, private and public, are under the
circumstance of making decision for their organizational strategies, tactical,
and operational decisions. A good decision can be support to close the gap
between the current performances of an organization and its goals. The
potential solution is relying on the decision support systems and business
intelligence 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 managerial
roles. To better perform their roles; managers need information that is
efficiency and effectiveness. Every managerial activity in all roles must
perform decision-making process for their every task. High levels
managerial roles are primary decision maker. Some time and some case they
have to make decision in a timely. Managerial level always make decisions
by four- step process of defined the problem, construct a model that describe
the real’ world problem, Identify possible solutions to the modeled problem
and evaluate the solution and compare, choose, and recommend a potential
solution to the problem. For every step must have alternative solution are
being considered. To get alternative solution are difficult because business
environments are growing more and more complex every day. Thus now a
day, making decision is the most complex task for managerial levels.
Technology, information systems, advanced search engines, and
3. an@w
Business Intelligence Systems 6680 3
globalization result in more and more alternatives from which to choose and
government regulations and the need for compliance, political instability and
terrorism, competition and changing consumer demands produce more
uncertainty, marking it more difficult to predict consequences and the future
are the main reason of the complex to make the right decision on time.
Thus, Manager must have more experience and knowledge to use the new
tools and techniques of their fields, especially for decision-making. Those
tools and techniques provide to make effective decisions with efficiency.
For this reason, seventy per cent of the executive levels know that
information technology is vital for their daily business live. They use
Decision support systems to evaluate the daily business transaction
processing and monitoring activities to problem analysis to make right
decision timely.
Decision Support Systems
Speedy 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 the
web, anywhere and anytime to get the support are the visual capabilities of
using computerized decision support systems.
The definition of the decision support systems (DSS) as „interactive
computer-based systems, which helps decision makers utilize data and
models to solve unstructured problems” (Gorry and Scott- Morton, 1971).
According to Keen and Scott- Morton (1978), “Decision support systems
couple the intellectual resources of individuals with the capabilities of the
computer to improve the quality of decisions. It is a computer-based support
system for management decision makers who deal with semi structured
problems”.
In my opinion, decision support system (DSS) is a support system, which
based on computerized system for management decision makers to solve
problems. 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, product
profitability, statistical analysis, distribution history, order process are
illustrate in these systems. Data are the first component and models are the
second component of the DSS Architecture. The two major type of Decision
support 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 in
data- oriented DSS.
4. an@w
Business Intelligence Systems 6680 4
Business Intelligence
Business intelligence (BI) represents theories, methodologies, processes,
architectures, and technologies that transform raw data into meaningful and
useful information for either business purposes or decision-making process
of business. The benefit of Business intelligence is not only can handle
large amounts of information to help identify but also creates new
opportunities for business. The definition of the Business intelligence is
“Business intelligence (BI) is a broad category of applications and
technologies for gathering, storing, analyzing, and providing access to data
to help enterprise users make better business decisions. BI applications
include the activities of decision support systems, query and reporting,
online analytical processing (OLAP), statistical analysis, forecasting, and
data mining.” (Luca 2006, Searchdatamanagement.techtarget.com)
In my point of view the term business intelligence (BI) refer to the set of
theories, methodologies, processes, tools and systems that play a high level
in the organization process. Also business Intelligence (BI) is a conceptual
framework for decision making that contains all the information executives
need such as architectures, tools, data-bases, analytical tools, applications
and methodologies. Data warehouse, business analysis, business
performance management and user interface are four major components of a
BI system. The data-warehousing environment is concern relaying on
technical staff. Business analysis is the field of business users. Business
performance management processes include planning and forecasting of a
business strategy. Dashboards and other information broadcasting tools are
including in user interface that provide a comprehensive visual view of
business 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 of
the business intelligence.
Literature Review
In this essay, five sources will be discussed as annotated bibliography
to 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@w
Business Intelligence Systems 6680 5
1.1. Bibliographic Information
Turban,E., Sharda, R., and Delen, D., Decision support and business
intelligence systems, 2011 (9th ed), Person Education International, Upper
Saddle River, and USA.
1.2. Annotation Explanation
Summary of author
In this book, 14 chapters are organized into seven parts as part1: Decision
support and business intelligence, Part II; computerized decision support,
Part III; Business intelligence, Part IV: collaboration, communication, group
support systems, and knowledge management, Part V: Intelligent systems,
Part VI: implementing decision support system and business intelligence and
Part VII: online supplements.
Critical evaluation
Turban,E., Sharda, R., and Delen, D describe how organizations
survive by using business intelligence as computerized support for
managerial decision making in such a business environment. This book
concentrates not only the theoretical and conceptual foundations of decision
support but also the commercial tools and techniques that are available.
Chapter 1 has provided an overview of decision support systems and
business intelligence. Chapter 2 and 3 are included in Part II computerized
decision 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@w
Business Intelligence Systems 6680 6
2.1. Bibliographic Information
Farnaz M and Nastaran H write this book. The title of the book is A
Framework Correlating Decision Making Style and Business Intelligence
Aspect. Publication year was 2012 (3rd Ed). Published by International
Conference on e-Education, e-Business, e-Management and e Learning,
IPEDR vol.27, (2012) IACSIT Press, Singapore.
2.2. Annotation Explanation
Summary of author
This research paper proposes a framework with appropriate BI
capabilities to get the best result for each of the decision-making styles’
requirements. The concept of business intelligence systems and its
capabilities are discussed in first part. After that decision making style
concept and how decision-making styles are impact on BI are discussed.
Critical evaluation
This paper highlights the bidirectional relation between decision-
making styles’ concept and Business intelligence capabilities.
This paper give the logic of, application of BI in organizational
decision making is important to consider the manner of decision maker to
fulfill the information of their organization needs. This paper mentions that
BI capabilities change according to decision making style and finding
appropriate BI capabilities for the entire decision maker has limited.
This research paper brings not only established theories from the decision
sciences but also research for information systems areas.
7. an@w
Business Intelligence Systems 6680 7
3.1. Bibliographic Information
Hana, K and Marketa S, Decision Support Systems or Business Intelligence:
What can help in Decision Making? Publication year was 2006. Published
by Institute of System Engineering and Informatics, Faculty of Economic
and Administration, University of Pardubice.
3.2. Annotation Explanation
Summary of author
In this paper discuss about two basic types of supporting system to
make effective decision-making; DSS- decision support system and BI-
business intelligence. This paper provides comparison definitions, and an
overview of decision support systems and business intelligence.
Critical evaluation
The main discussion of this paper is comparing between the business
intelligence and decision support system.
Business intelligence is a broad category of applications and technologies.
Business intelligence is not stable and their ranges of concepts are
developing and future components can be absolutely different.
A decision support system is a computer program application. It is
help to make decisions more easily for decision makers through direct
interaction with data and analysis models.
Both of particular concepts are based on data to make a decision in a better
and easier way.
8. an@w
Business Intelligence Systems 6680 8
4.1. Bibliographic Information
Chartered Instituted of Management Accountants (executive report),
Improving decision making in organizations, unlocking business
intelligence. Publication year was October 2009. Published by Chartered
Instituted of Management Accountants (CIMA).
4.2. Annotation Explanation
Summary of author
This business intelligence system is perspective from the role of the
management accountant. The decisions making process, business
intelligence and the role of the management accountant in business
intelligence are the main areas of discussion in this paper.
Critical evaluation
According to this paper, business intelligence is not just about
hardware and software. Business intelligence perform vital role in better
decision making in business. Business intelligence will always be a demand
for accountants with technical expertise. Management accounts should have
business intelligence in their business. If they have the Business intelligence
they can help ensure data quality for problem area, they can help to
articulate the business’s information needs for decision making, they can
work with information technology or decision support system to develop
business intelligence strategy and so on. A lot of figures demonstrate to
understand easily.
9. an@w
Business Intelligence Systems 6680 9
5.1. Bibliographic Information
Peter, GWK & Michael, S.S.M write this book. The title of the book is
Decision Support Systems an Organizational Perspective 1978. Published by
Addison-Wesley publishing company, Sydney.
5.2. Annotation Explanation
Summary of author
“Decision support systems an organizational perspective” is a book,
which is the Addison-Wesley series on Decision Support focus on
managers’ decision-making activities. This book has shaped by nine
categories, which address the main issue of decision support.
Critical evaluation
The book explores systematic approaches to improving the
effectiveness and efficiencies of decision processes. The theoretical studies
of organizational decision making and technical work in interactive
computer systems have evolved in the concept of decision support. The
intention 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 role
for computers as a tool for individual decision-making. Although there was a
time more than thirty five year ago where the idea of using, their idea is still
leading in decision support systems concepts.
10. an@w
Business Intelligence Systems 6680 10
Methodology and reflection
Above five sources are used in research as the quantitative method. All
resources discuss how decision support system and business intelligence are
impact on decision-making process from their point of view by using the
reference of other authors.
Decision support system and business intelligence tools are essential
component of the decision making process in this ages is the main
methodology of the essay.
Poor data and information quality are key issue of the decision making
process. If base on poor quality data and information, neither the right
analysis nor decisions are made. Poor quality data and information leads to
poor quality decision and its leads waste of the time and organization
resources.
Furthermore, experience and intelligence to use these tools of the decision
maker are another issue of the decision making process. If the decision
makers not have the sufficient experience and intelligence, the decisions
cannot the best one.
11. an@w
Business Intelligence Systems 6680 11
Business Intelligence application/ Software
OLAP online analytical processing is a computer processing. That enables a
user to easily and selectively extract and view data from different points of
view. OLAP data is stored in a multidimensional database. OLAP software
can locate the intersection of dimensions and display. OLAP can be use for
data mining or the discovery of previously undiscerned relationships
between data items. OLAP database does not need to be as large data
warehouse.(Margaret 2007)OLAP applications span a variety of
organizational functions. Finance departments use OLAP for applications
such as budgeting, activity-based costing (allocations), financial
performance analysis, and financial modeling. Among other applications,
marketing departments use OLAP for market research analysis,
salesforecasting, promotions analysis, customer analysis, and
market/customer segmentation. Typical manufacturing OLAP applications
include production planning and defect analysis. OLAP applications are
found in widely divergent functional areas, they all require the following key
features Multidimensional views of data, Calculation-intensive capabilities
and Time intelligence
12. an@w
Business Intelligence Systems 6680 12
Concluding
In globalization ages, the environment of the organizations is more and more
complex with opportunities and problem or pressures. The degrees of the
successful of the organization are depending on decision-making skill of the
managerial levels. Decision-making skills are relying on the managerial
levels’ BI and DSS. According to the annotated bibliographies, decision
support system is a technology that can directly help make intelligence
business decision faster. Business intelligence is an umbrella term and new
tools as business analytics, data minding, intelligent systems, delivered via
web technology, BI capabilities, model and data for computer-aided decision
making are appear under the BI. (OLAP Council, 1997)
13. an@w
Business Intelligence Systems 6680 13
References
CIMA Chartered Institute of Management Accountants. Cimaglobal.com,
2011, improving decision making in organizations, Unlocking business
intelligence, Executive report October 2009, viewed 27 February 2013,
http://www.cimaglobal.com/Documents/Thought_leadership_docs/cid_execr
ep_unlocking_business_intelligence_Oct09.pdf
Farnaz, M and Nastaraan, H 2012, A Framework Correlating Decision
Making Style and Business Intelligence Aspect, IPEDR 2013, viewed 27
February 2013, http://www.ipedr.com/vol27/18-IC4E%202012-F00024.pdf
Gorry, G.A., and M.S. Scott- Morton. (1971). “A Framework for
Management Information Systems” Sloan Management Review,
Vol.13,No1, pp 55-7.
H. A. Mintzberg, The Nature of Managerial Work, Prentice Hall, Englewood
Cliffs, NJ 1980
H. A. Mintzberg, The Rise and Fall of Strategic Planning.The free press,
New York, 1993
Hana, K and Marketa, S 2006, Decision Support Systems or Business
Intelligence: What can help in decision making?, Dspace.upce.cz 2009,
viewed 3 March 2013,
http://dspace.upce.cz/bitstream/10195/32436/1/CL585.pdf
Keen, P. G. W., and M. S. Scott- Morton. (1978). Decision Support
Systems: An Organizational Perspective. Reading, MA;Addison- Wesley.
Luca, R 2006, Tech Target, Business Intelligence (BI), viewed 29 April
2013, http://searchdatamanagement.techtarget.com/definition/business-
intelligence
Margaret, R 2007, Tech Target, OLAP(Online analytical processing),
viewed 29 April 2013,
http://searchdatamanagement.techtarget.com/definition/OLAP
14. an@w
Business Intelligence Systems 6680 14
OLAP Council, 1997, olapcouncil.org viewed 19 April 2013,
http://www.olapcouncil.org/research/whtpaply.htm
Peter, GWK & Michael, S.S.M 1978, Decision Support Systems an
Organizational Perspective, Addison-Wesley publishing company, Sydney.
Thompson,O. (2004, October). “Business Intelligence Success, lesson
Learned”. Technologyevaluation.com (accessed June 2009).
Turban, E., Sharda, R., &Delen, D. 2011, Decision support and business
intelligence system, 9th
ed., pp. 2-30, viewed 26 February 2013, University
of Canberra E-Reserve.