Organizations explain to the management of the organization

Organizations continually evolve each and every
day due to competition and increasing demands of the consumers. Moreover,
organizations in both private and public sectors are experiencing high pressure
to explain to the management of the organization about the innovation and
continuous changes. In order to be in a position to explain so, a firm needs to
have strategic, tactical and operational decisions. However, these decisions
are usually complex. The leadership of the organisation decisions requires to be
based on data, knowledge, and information. The data should be available on time
in order to ensure that strategic decisions are made at the right time. This
enhances good performance and the organization remains competitive. In addition
to ensuring the right decision-making process, data quality must be upheld
(Farjami, 2015).

 

            Different organizations can access
data from many areas. For instance, they can access data from Internet records,
from smartphones, social media, and manual records among others. The concept of
BI can filter all the collected data and identify the existing trends and
patterns. The activities of any business regardless of its size involve
governance of a wide variety of data both from the outside and inside the
conditions of the business. The internal business conditions are factors, which
affect the method and success of the daily activities of the business. The
management can easily control them. On the other hand, the external business
conditions are those factors outside the company and company has little or no influence on them for
example competition. The upholding of efficiency and effectiveness in the
internal business operations and identifying beneficial opportunities while
putting external business conditions into consideration are crucial factors to
ensure the success of the business (Mihaelia and Rozalia, 2012).

 

            The
idea of Business intelligence (BI) emerged in the mid 90’s to satisfy the managers’ request for efficiently
and effectively analyzing the enterprise data in order to better understand the
situation of their business and improving the decision process (Golfarelli
et.al, 2004). The technology of
decision support is employed by many companies to make strategic decisions,
which in return give the organization the advantage of competition with other
competitive organizations. The rapid growth of BI idea currently has been
facilitated greatly by increased innovations in the technology and improved
storage capacities as well as an increased collection of data. With current
advancements in the technology, companies can employ the idea of BI in the
storage of big data without incurring a lot of costs. 

 

            Nowadays, BI has become a topic of interest for many
researchers. Eventually, the main
results obtained on topics such as OLAP, multidimensional modeling, design
methodologies, optimization and indexing techniques converged to define the
modern architectures of data warehousing (DW) systems, and were absorbed by
vendors to form a wide set of on-the-shelf software solutions, as this literature review will
show.

1.     Business Intelligence
In General

            Business Intelligence (BI) is a broad term used to refer to the
applications, practices, and technologies for the gathering of data, cleaning/
filtering, analysing and presenting the information to the decision makers of
the organization. The main purpose of business intelligence is to enhance
better and right decision-making process in the organizations. These in return
enable the organization to remain competitive in the business. Right and better
decisions are healthy for an organization. This is because it makes it easy for
an organization to identify beneficial opportunities as they arise, achieve its
goals and objectives as well gaining competitive advantage of the other
organizations in the same business.

 

 

2.1Definition of Business
Intelligence

            Various definitions of BI have emerged in the academic and practitioner literature.
Business intelligence can be described as a framework that collects,
change/filter the data and produce information in an organized manner from
diverse source sources thus reducing the amount of time required to obtain an
important data of the business to enable effectiveness and efficiency in the decision
making process by the top management. This in return permits the look of
dynamic information of the enterprise, examination, recovery, and explanation
of administrative choices (Nofal and Yusof, 2013). In general, business
intelligence dwells on the data collection; process the collected data and
produce information that concern the consumers, the business itself, products
and technology.

 

            BI
can be described as a procedure that involves a number of many activities that
are driven by a specific need of data by decision makers as well as the
aim/objective of attaining an advantage over the other competitors. Business
intelligence can also be described as a framework changes the data into relevant
information that is used in enhancing the decision-making process of the
organization. Business intelligence is a framework, which is marked by
gathering data from different sources, changing the data and displays information
that is used in the decision-making decision process by the management of the
organization. Business intelligence can be understood as a question and an
answer that assists the makers of the decisions to understand the economic
constraint of the organization (Nofal and Yusof, 2013). Business intelligence
can be described as methodological and numerical models of examination used in
extracting raw data and information from different sources to enhance the decision-making
and management of the organization (Vercellis, 2013).

 

            Similarly according to Watson &
Wixom (2007), BI is a category of diverse technologies, processes, and
applications for the collection of data, storage, access and analysis to make
the users of the data to make right decisions. The knowledge given by the
applications of the business intelligence can be upgraded specifically by
making use of the procedures of mining, modelling of real-world under system
thinking approach and simulation, adding to a great understanding of the
continuity of the business in any kind of organization and enhancing
forecasting (Mu?ller and Lenz, 2013).

 

2.2BI Components and Tools
       

            BI tools are widely accepted as a new middleware
between transactional applications and decision support applications, thereby
decoupling systems tailored to an efficient handling of business transactions
from systems tailored to an efficient support of business decisions. The
capabilities of BI include decision support, online analytical processing,
statistical analysis, forecasting, and data mining. The following are the major
components described by
(Carlo, 2009) pyramid that constitute BI.

·       Sources
of data: These sources in most cases are composed of the data from operational
systems. However, unstructured data such as text messages, emails, and data
from external sources may as well be included.

·       Data
warehousing or Data mart: Data warehouse is employed to store data from
different sources into one central position. This takes place through the
process of extraction, transformation and loading and standardization of the
results for the systems which are authorized to be queried.    Basically, a data mart is a form of small
data warehouse, which is based on the departmental level rather than the whole
organization. They a bit simpler to handle compared to the data warehouses and
are also cheaper to put in place/implement compared to data warehouses.

·       Exploration
of data: Exploration of data is the passive analysis of business intelligence
and is composed of reporting systems, query, and statistical methods.

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