Benefits And Challenges In Operational Business Intelligence

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Benefits and Challenges in Operational Business Intelligence

In modern organizations, operational Business Intelligence (BI) is no longer a luxury for

the big multinationals but a need for all companies including small and mid-sized organizations.

Most fundamentally, business intelligence entails turning valid data into actionable and insightful

information. In a general business setting, data collected may aim at a number of goals such as

improving sales, identify opportunities and to eliminate wastefulness of physical resources and

time. In this 21

century, strategies to realize profits, identification of promising market

segments and attainment of high customer satisfaction must be based on solid facts drawn from

properly analyzed data.

It is important to note that earlier on most small and mid-sized organizations are hesitant

to implement operational business intelligence. Currently, most are now considering

implementing it as major technological advances have enabled access to powerful BI software.

Due to technological and business feats such as analysis platforms costs going down and cloud

storage among others, it has now become not only easier to implement BI but also to navigate

through the systems. However, despite the easiness that is being experienced, efficient running of

a BI system is still challenging to organizations regardless of their sizes as will be looked into

herein. In addition, though there are costs and challenges associated with implementing a BI, it

has a number of business-related benefits which will also be looked into.

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In consideration of 21

business needs, BI software and analytics are important tools in

business functions. There are numerous benefits of implementing a powerful BI system.

However, it is important to note that the system should function in line with organizational and

corporate goals. The first benefit that is normally realized is actionable intelligence. BI software

enables Information Technology (IT) managers to access databases and analyzed information

which can be used to solve pending problem such as market responses with regard to a particular

product. It has also become easier to access data more quickly which addresses the exact

problem without looking for extra sets of data from other sources.

BI systems have also brought about spending of lesser time when looking for and

analyzing data. Earlier on, organizations used to throw away valuable time searching for

information from numerous data sources when with a need to gain a deeper understanding of

business dynamics. In addition, when such data has been accessed, it has to be converted,

merged, and reported as well as tested for validity so as to ensure it is accurate. The traditional

sources of data have no mechanisms which guarantees accuracy as they are limited and

insufficient. BI systems have addressed all these issues as it is possible to navigate through data

more easily and effectively while at the same time addressing a particular issue.

An additional benefit that has been brought about by the BI systems entails better

management of inventory. The system helps an organization make the right orders at the right at

the time. In this light, external stakeholders such as customers are able to access goods at the

time they need them as opposed to having inventories overstay in the market. On the other hand,

the system enables an organization to have the most appropriate inventory. For instance, data

collected may indicate the customers’ tastes and preferences and hence goods meeting them will

be availed in the market. More specifically, it is possible to identify the needs of particular

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market segments and hence make inventories that are able to meet their needs. Essentially, the

supply chain functions are based on data collected and analyzed.

Further, BI systems enables an organization to better understand their past, present and

the future. From statistical analysis, it is possible to gain an understanding of patterns and trends

that are not only in the market but also among employees and customers. Critical and collective

study of such patterns will enable an organization to learn about its past, current and future

market positions. In this century, there are drastic changes due to globalization and rise of

industry players who are

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