Business Intelligence Core Subject – 15 Unit Credits

Tactical and Operational Decisions Lecture 2

Learning Objectives Tactical and Operational Decisions Business Intelligence (BI) Common and Important functions of BI Examples of BI BI’s Advantages

Tactical and Operational Decisions Tactical decisions are decisions taken by ___________________ that are usually semi- structured. They are more straightforward and less complex. When decisions are aligned with the company’s ____________ or mission, tactical decisions add even more value to the outcomes of the implementation. Middle managers translate top-level decisions into goals that can be operationalized. Operational and ______________ are made daily. Many operational decisions are guided by company procedures and processes. Because conditions are predictable, operational and frontline decisions tend to follow a more routine pattern.

What is BUSINESS INTELLIGENCE (BI)? BI is an umbrella term that combines architectures, tools, databases, analytical tools, applications and methodologies. BI major objective is to enable _________________ (and models) to provide business managers with the ability to conduct analysis. BI helps transform data, to information (and knowledge), to decisions and finally to action. Stackowiak et al. (2007) define Business Intelligence as the process of taking large amounts of data, analyzing that data, and presenting a high-level set of reports that condense the essence of that data into the basis of business actions, enabling management to make fundamental daily business decisions. Tvrdíková, (2007) describes the basic characteristic for BI tool is that it is ability to collect data from heterogeneous source, to possess advance analytical methods and the ability to support multi-users demands.

What are some common functions of business intelligence technologies?

Important Functions of BI The most important functions of BI are data analysis ad hoc reports Predictive analytics

BENEFITS OF BI The ability to provide accurate information when needed, including _______________ view of the corporate performance and its parts A survey by Thompson (2004) Faster, more accurate reporting (81%) Improved decision making (78%) Improved customer service (56%) Increased revenue (49%)

IMPORTANCE OF A RELIABLE DATA Accuracy - Having an accurate data will help businesses to be able to _______________ everyday decisions they make. Accurate data can drive efficiency, profitability and growth. However, data must be processed and presented in a way that works so that it can be applied properly. If data accuracy levels are low, the decisions it influences are likely to be poor as a result.

Research Activity 1) Give 2 examples of types of Business Intelligence Support Functions (Software) that are available for business decision-making at Tactical Level and at Operational Level. 2) Explain and provide examples as to why Business Intelligence is vital to business success.

REFERENCES : ROSENBLATT – SYSTEM DESIGN AND ANALYSIS 10TH Edition (Shelly Cashman) https://www.linkedin.com/pulse/decision-making-types-structured-unstructured-problems-joseph-ezenwa https://blog.capterra.com/business-intelligence-features-list/ http://ww2.informationbuilders.com/blog/james-cotton/19152