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3. What is Business Intelligence (BI)? Give some recent
examples of BI usage, using the Internet for assistance.
What BI benefits have companies found? { minimum 350
Words Required}
Solution
Business Intelligence (BI):
Business intelligence (BI) represents the tools and systems
that play a key role in the strategic planning process
within a corporation. These BI systems allow a company to
gather, store, access and analyze corporate data to aid in
decision-making.
Generally these systems will illustrate business intelligence
in the areas of customer profiling, customer support,
market research, market segmentation, product
profitability, statistical analysis, and inventory and
distribution analysis to name a few.
Business intelligence (BI) is a technology-driven process
for analyzing data and presenting actionable information to
help corporate executives, business managers and other
end users make more informed business decisions.
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Examples:
To Boost Sales:
Customers are the lifeblood of any business, of course,
and a business intelligence system can help you
understand them better.
Online luxury womens goods retailer Gilt Groupe is a
prime example. Every day it sends out an email to its
customers at 11:45am, previewing the daily sal e, and
customers then click through to buy (or not) from its
website. Clearly, with a business model like this, the
conversion rate from each email is absolutely critical.
The company was already collecting data on its customers
browsing and shopping history and more, but was looking
for a better way of analysing all that data and producing
actionable results.
Gilt implemented a business intelligence system from SAS,
enabling the firm to combine information from different
sources and produce reports that helped it target its
emails more successfully. The data produced allowed Gilt
to predict much more accurately which customers would be
attracted by which offers, and customise its emails to
maximise sales.
To Analyze Web Traffic:
Some business intelligence systems are simple and well-
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known, and youre probably using them already.
Google offers lots of analysis of your website visitors
through free services like Google Analytics and Webmaster
Tools, and taking the time to use them effectively can help
you attract more customers and optimise your website to
encourage them to buy.
->A hotel franchise uses BI analytical applications to
compile statistics on average occupancy and average room
rate to determine revenue generated per room. It also
gathers statistics on market share and data from customer
surveys from each hotel to determine its competitive
position in various markets. Such trends can be analyzed
year by year, month by month and day by day, giving the
corporation a picture of how each individual hotel is faring.
->A bank bridges a legacy database with departmental
databases, giving branch managers and other users access
to BI applications to determine who the most profitable
customers are or which customers they should try to cross -
sell new products to. The use of these tools frees
information technology staff from the task of generating
analytical reports for the departments and it gives
department personnel autonomous access to a richer data
source.
Benifits:
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1 Reduced labor costs
2 Reduce information bottlenecks
3 Make data actionable
4)Faster reporting, analysis or planning
6)More accurate reporting, analysis or planning
7)Better business decisions
8)Improved data quality
9)Improved employee satisfaction
10)Improved operational efficiency
11)Improved customer satisfaction
12)Increased competitive advantage
13)Reduced costs
14)Increased revenues
16)Saved headcount

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