Chapter 6. How can information systems be used to enhance business intelligence?

Chapter 6. How can information systems be used to enhance business intelligence?

High quality and timely information are very important for the effective management of a company. This can be provided by several different information systems.

What is business intelligence?

Business intelligence is defined as the use of information systems to collect and analyze data and information to improve making good business decisions. The data and information can be both internal and external. Companies use business intelligence to gain or sustain a competitive advantage. Business processes occur at different organization levels and they are highly interconnected.

To monitor and control its business processes a company needs accurate and integrated information. This information is necessary to realize the strategic goals of the organization. Companies that make decisions that can be backed up with verifiable data are called data-driven organizations. Such organizations are measurably more profitable and productive than companies that are not data-driven.

Modern organizations face challenges from external factors, but these factors can also create opportunities. Examples of such external factors are globalization, societal changes and governmental regulations. The business environment is very complex and business intelligence can help organizations to better make decisions in this environment. Business intelligence can help by collecting and analyzing internal and external data more effectively.

If a company is able to effectively manage their data then this will increase the organizational performance of the company. However, many organizations are not able to harness the value of Big data. Big data is data which has high volume, velocity and variety. The trends in social and mobile field have led to an enormous amount of potential data.

The large volume of data enables companies to make decisions that are based on more factors. However, managing an storing such large amount is a challenge for companies. Companies obtain data at a very high rate. Useful data can have several forms:

  • Structured data, like transaction data, which can be fitted in a spreadsheet or database
  • Semistructured data, sensor data and like clickstreams
  • Unstructured data, like video and audio data

For many companies it remains hard to successfully use Big data.

First, organizations did not have the right tools and information to plan their future continuously. Since the environment is nowadays changing very fast it is important that companies can react quickly and this requires new ways of planning. Many companies that are successful use a continuous... Interested? Read the instructions below in order to read the full content of this page.

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    Contributions, Comments & Kudos


    Hey Floor!! Very nice of you to post a summary of chapter 6; it was very clear and you made very good use of bullet points to make a clear structure. I think you have covered all of the relevant topics in chapter 6, is this correct? 

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