What is Business Intelligence?

Question

• What is Business Intelligence (BI)? • In a contemporary organisation, explain how business intelligence can provide a competitive advantage. • Using a loyalty card example from the retail industry, explain how the use of data mining and analytics can impact decision making in an organisation.

Answer

Business Intelligence is essentially a range of techniques used to acquire and transform raw data into useful information for company/strategic purposes. It can provide a competitive advantage because if the information gathered and analysed is useful, not only can a company use the information to react to the changing market conditions but it can also help the company to predict them, thereby giving them a competitive advantage. The use of data mining and analytics can impact decision making in an organisation because loyalty cards (e.g. from Tesco or Boots) allow customers give personal information such as: demographics and shopping habits. Such information can be valuable for marketing purposes, and allows a simple level of targeted advertising and promotion. The company may also record purchasing habits. The company can track what the customers buy, and when. This can allow them to recognise trends in purchasing, and they can look for correlations between demographic information and purchasing habits. For further information please visit: https://www.ukessays.com/ask/loyalty-card-analytics-in-a-retail-organisation-865

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