The Importance of Business Intelligence Essay

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In today’s business world, the information gathered is very critical because it constitutes the important part of decision making in the organization.

Intelligent decisions needs to be made to drive business forward thus the importance of business intelligence which is the computer based applications and technologies for gathering, storing and analyzing business data such as sales revenue and turnover to help in decision making in the organization.

Systems application for business provide business people and organizations with the ability to interact with the organizations database and the ability to manage assets, finances, personnel, cost accounting, materials and production operations which are critical to the organization.

This application popularly known as SAP has also some problems in consumer and customer management where it has straggled to penetrate (Dipen, 2010).

The strategy of business intelligence helps and benefits the forward thinking business in reaching their goals.

It helps the organization to learn the enterprise efficiently capitalizing on the available data, the system can be implemented in different ways and the organization would need to figure out the kind of business intelligence applications it would need to use for the maximum benefit.

In order to streamline the operations and have an advantage the application prays a crucial role in tracking and analyzing data. Based on its output the management is able to make decisions which are in line with the business operations (Doan, 2000).

This is of great benefit to the business since it cuts down the cost and produces results which are more accurate unlike the traditional system which heavily relies on the intelligence and experience of the involved person and in some cases can be prone to errors.

Informed decisions are made using this software. Employees in the organization also gain knowledge and thus become informed through the software on how to position there product in the market and edge out competition.

Every business has different requirements and therefore it is important to ensure that it gets a business system developed and customized by developers who truly understand the requirements of the business and thus can provide the services required and can deliver accordingly.

The software provides up-to-date information which is used by management to act accordingly. Despite its popularity and importance the business information software has its drawbacks which in some cases can be critical (Linthicum, 2009).

Roman Stanek advices that business intelligence is a luxury and only big organization can cope with its failure due to their financial power.

Its use of single true parameters which in some cases is not based on real time to aid the management, its non scalability to cope with the changes in the organization and its success not being easily measured constitutes a big factor in its lack of success.

The lack of communication with the business to get the real needs since many of the questions which needs to be answered for its success are psychological and sociological and not technical which are mainly used (Roseti, 2005).

The system may have its shortcomings but it’s practically impossible for many organizations to operate and make informed decisions without the business intelligence software which in recent times has become part of big organizations.

Organizations like Microsoft and oracle use SAP to manage and run their business. These organizations are among the best in the world thus clearly depicting the importance of computerizing the decision making process.

Political and other interference are drastically reduced using the system applications in the business and increases productivity and success (Loraine, 2008).

References

Dipen, V. (2010). Business Success without Business Intelligence is Possible? Web.

Doan, A. (2000). . Web.

Linthicum, D. (2009). Leveraging Information and Intelligence. Web.

Loraine, L. (2008). SAP Needs More than Tech Help to Fix Problems This Week. Web.

Roseti, L. (2005). Business Intelligence. Web.

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