Organizations continually evolve each and everyday due to competition and increasing demands of the consumers. Moreover,organizations in both private and public sectors are experiencing high pressureto explain to the management of the organization about the innovation andcontinuous changes.
In order to be in a position to explain so, a firm needs tohave strategic, tactical and operational decisions. However, these decisionsare usually complex. The leadership of the organisation decisions requires to bebased on data, knowledge, and information. The data should be available on timein order to ensure that strategic decisions are made at the right time. Thisenhances good performance and the organization remains competitive. In additionto ensuring the right decision-making process, data quality must be upheld(Farjami, 2015). Different organizations can accessdata from many areas. For instance, they can access data from Internet records,from smartphones, social media, and manual records among others.
The concept ofBI can filter all the collected data and identify the existing trends andpatterns. The activities of any business regardless of its size involvegovernance of a wide variety of data both from the outside and inside theconditions of the business. The internal business conditions are factors, whichaffect the method and success of the daily activities of the business. Themanagement can easily control them. On the other hand, the external businessconditions are those factors outside the company and company has little or no influence on them forexample competition. The upholding of efficiency and effectiveness in theinternal business operations and identifying beneficial opportunities whileputting external business conditions into consideration are crucial factors toensure the success of the business (Mihaelia and Rozalia, 2012).
Theidea of Business intelligence (BI) emerged in the mid 90’s to satisfy the managers’ request for efficientlyand effectively analyzing the enterprise data in order to better understand thesituation of their business and improving the decision process (Golfarelliet.al, 2004). The technology ofdecision support is employed by many companies to make strategic decisions,which in return give the organization the advantage of competition with othercompetitive organizations. The rapid growth of BI idea currently has beenfacilitated greatly by increased innovations in the technology and improvedstorage capacities as well as an increased collection of data. With currentadvancements in the technology, companies can employ the idea of BI in thestorage of big data without incurring a lot of costs. Nowadays, BI has become a topic of interest for manyresearchers. Eventually, the mainresults obtained on topics such as OLAP, multidimensional modeling, designmethodologies, optimization and indexing techniques converged to define themodern architectures of data warehousing (DW) systems, and were absorbed byvendors to form a wide set of on-the-shelf software solutions, as this literature review willshow.
1. Business IntelligenceIn General Business Intelligence (BI) is a broad term used to refer to theapplications, practices, and technologies for the gathering of data, cleaning/filtering, analysing and presenting the information to the decision makers ofthe organization. The main purpose of business intelligence is to enhancebetter and right decision-making process in the organizations.
These in returnenable the organization to remain competitive in the business. Right and betterdecisions are healthy for an organization. This is because it makes it easy foran organization to identify beneficial opportunities as they arise, achieve itsgoals and objectives as well gaining competitive advantage of the otherorganizations in the same business. 2.1Definition of BusinessIntelligence 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 fromdiverse source sources thus reducing the amount of time required to obtain animportant data of the business to enable effectiveness and efficiency in the decisionmaking process by the top management. This in return permits the look ofdynamic information of the enterprise, examination, recovery, and explanationof administrative choices (Nofal and Yusof, 2013). In general, businessintelligence dwells on the data collection; process the collected data andproduce information that concern the consumers, the business itself, productsand technology.
BIcan be described as a procedure that involves a number of many activities thatare driven by a specific need of data by decision makers as well as theaim/objective of attaining an advantage over the other competitors. Businessintelligence can also be described as a framework changes the data into relevantinformation that is used in enhancing the decision-making process of theorganization. Business intelligence is a framework, which is marked bygathering data from different sources, changing the data and displays informationthat is used in the decision-making decision process by the management of theorganization.
Business intelligence can be understood as a question and ananswer that assists the makers of the decisions to understand the economicconstraint of the organization (Nofal and Yusof, 2013). Business intelligencecan be described as methodological and numerical models of examination used inextracting raw data and information from different sources to enhance the decision-makingand management of the organization (Vercellis, 2013). Similarly according to Watson &Wixom (2007), BI is a category of diverse technologies, processes, andapplications for the collection of data, storage, access and analysis to makethe users of the data to make right decisions. The knowledge given by theapplications of the business intelligence can be upgraded specifically bymaking use of the procedures of mining, modelling of real-world under systemthinking approach and simulation, adding to a great understanding of thecontinuity of the business in any kind of organization and enhancingforecasting (Mu?ller and Lenz, 2013). 2.2BI Components and Tools BI tools are widely accepted as a new middlewarebetween transactional applications and decision support applications, therebydecoupling systems tailored to an efficient handling of business transactionsfrom systems tailored to an efficient support of business decisions. Thecapabilities of BI include decision support, online analytical processing,statistical analysis, forecasting, and data mining.
The following are the majorcomponents described by(Carlo, 2009) pyramid that constitute BI.· Sourcesof data: These sources in most cases are composed of the data from operationalsystems. However, unstructured data such as text messages, emails, and datafrom external sources may as well be included.· Datawarehousing or Data mart: Data warehouse is employed to store data fromdifferent sources into one central position. This takes place through theprocess of extraction, transformation and loading and standardization of theresults for the systems which are authorized to be queried.
Basically, a data mart is a form of smalldata warehouse, which is based on the departmental level rather than the wholeorganization. They a bit simpler to handle compared to the data warehouses andare also cheaper to put in place/implement compared to data warehouses. · Explorationof data: Exploration of data is the passive analysis of business intelligenceand is composed of reporting systems, query, and statistical methods.