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Make Better Decisions Faster

The primary objective of BI is to help people make decisions that improve the performance of a company and p

romote the competitive advantage in market. In short, the Business Intelligence enables organizations to take better decisions faster.

In the best of worlds, the managers, from the lowest caposupervisore administrator delegate, make decisions ba

sed on their experience, the perception of business, business plan, and information available. Often experiences, perceptions and strategies used in decision making is rather static: that is, change very slowly. The information, however, are always new, which means that often changing rapidly and so important. It is often difficult to control these changes and understand their meaning. Make better decisions mean better one or all parts of the process: this has also resulted in fewer decisions poor and a greater number of exce

llent ones. Best decisions have resulted better achievement of corporate objectives, such as improving the value shareholder base.

Business intelligence helps to better policy making by analyzing whether, Indeed, the actions taken are going hand in hand with the objectives of the company. Deciding what is a better decision for an organization is best achieved by a set of cle

arly defined objectives and a plan to achieve them. This relationship between the general plan of a company and the Business Intelligence is not a one-way street, with Business Intelligence simply receiving the plan and uses it as a balance to measure the quality of decisions. Business Intelligence has a major role in creation of these strategies and plans. It is faster to take best decisions, and more strategic decisions are those in which business intelligence is more essential.

What is a well-conceived plan of action if it’s just too late to achieve competitive advantage? Most sectors are highly competitive, and business opportunities are extremely sensitive to the schedule. Companies highlighting opportunities but too slowly decide how to exploit lose against rivals faster. Need to take decisions not only best but also better decisions faster. The need for spe

ed also applies to obtaining feedback in an organization. If is not available, neither a quick nor a complete circle of information, decisions shall be taken either without the support of information or outdated information. The negative consequences of not having information or to dispose of obsolete information can be enormous, for example losing a major customer or continue to produce a product that consumers no longer want. While having a perfect information support every decision is a goal not achievable, the

re is no doubt that taking regularly best decisions soon provide a competitive advantage.

Convert data into information To make better decisions faster, executives and managers need to have important and useful facts at hand. But often there is a big gap between the information decision makers require, and the mountains of data that companies collect every day. This phenomenon we call gap analysis. To fill this gap analysis, organizations make significant

investments in development of BI systems to convert raw data into useful information. The most effective systems BI accessing huge volumes of data (the order of Gigabytes and even Terabytes) and provide instant subsets relevant to decision makers in a form in which these people can easily put them in the report. Some call this process “Analysis at the speed of thought” to be able to get an answer to a question almost simultaneously with the wording of the question. This makes possible a jump quantum in the qualit

y of which can be performed, which leads to an understanding much better activity. In Chapter 2, “Bridging the gap analysis,” explains how BI systems support “analysis at the speed of thought.” Some consider the contribution of technology to provide useful information as basic definition of Business Intelligence: systems, applications, processes and procedures which collect and convert large volumes of data into useful information for management and control of business activities in departments, divisions and business units. We believe it is a vision too limited.

While technology is a significant part of this process, often the most Business Intelligence is difficult to be able to define which information is useful and relevant to a decision. Enterprise-wide BI solutions are entrusted collection and production of reports of most critical metrics of a company, sometimes called key performance indicator (KPI), which is a leading indicator of performance. KPIs drive companies to make decisions that affect particular business unit and also the company in general. Explain better the KPI later in this chapter in the paragraphs on the measurement. In addition to KPI, now more than ever, the vision of Business intelligence has expanded beyond the measures that traditionally have intrinsic characterized the production of management reports. With the progress of e-commerce, transaction systems business-to-business (B2B) and business-to-consumer (B2C) Business Intelligence is increasingly to provide actionable information to people outside the organization: often as an additional source of income. Throughout the book, including case studies in Part II and practical advice in Part III, we provide the details to help you understand the importance and the technical specifications conversion of raw data into useful information to support decision making.

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