We identified two main sources to assist in data analyzing which are business intelligence (BI) and data visualization.
Business intelligence is a technological process enabling users to present the maximum of data in order to make better decisions. Its advantage is to present all sorts of information coming both internal and external sources combined into dashboard that would raise the level of information during the decision making process.
Data visualization is a process to assist decision makers in truly consider the importance of data placed in a visual context. The aim is to reveal through visual effects (like graphs, bars, diagrams) the phenomenon or trends that would be not detected otherwise. It is usually done by a software permitting to select the form that is the most adequate way to analyze data.
We can also speak about advanced analytics. While business intelligence focuses on historical data, advanced analytics is turned to future events prediction. It’s used through data mining statistics, big data analytics and modelling to assess the impact of business decision on the organization.
The core point is to use the best mix of internal and external information for decision making. However attention must paid to their values. Internal information are normally highly valued for daily work and tactical
Therefore, the benefits of good management information are huge for any organization. Information becomes part of the chain of added value. An information management value chain increases the usefulness of information to users permitting them to make better decisions. The value of the MIS in the organization corresponds to the better profits coming from the better decisions the system permits (Cisco and Strong, 1999). Below schematic shows the process and different elements of information value chain (Phillips,
Internal- What is Danis capable of? (analyze the strengths and weaknesses) By looking at the company’s strong points and weak points Danis will be able to determine the company’s capabilities. According to Knol, marketing strategies, “All factors that are internal to the organization are known as the ‘internal environment’. They are generally audited by applying the ‘Five Ms’ which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external.” (Knol, marketing strategy p 3)
Smith, W., & Jewett, D. (2009). Tableau software and teradata database the visual approach to the active data warehouse. In Retrieved from http://www.tableausoftware.com/learn/whitepapers
Asemi observe that Management Information System (MIS) is one of the information systems that is computer based. Besides, Asemi defines MIS as “an organizational method of providing past, present and project information related to internal operations and external intelligences. It supports the planning, control and operation functions of an organization by furnishing uniform information in the proper time frame to assist the decision makers,” (2011). The aim of MIS is to satisfy the general information need of the entire manager in an organization. Before the advent of computers, the process of decision-making was one that was full of built-in advantages and ad hoc methods. Computers technologies have changed the landscape of the decision-making process completely by making the process less demanding and easy to undertake. The reason for this situation is that information technology has made access to information more automated, efficient, effective, timely, and less ambiguous. Consequently, the ordinary t...
In the business world today, technology is becoming an essential staple. Every big business relies on it one way or another. More importantly than just technology itself, the use of management information systems is what guides a company in terms of catering to its customers and knowing what moves to make next. Management information systems (MIS) can be defined is the study of people, technology, and organizations (What is MIS?). However, that is a very general definition because there is a lot more that comes out of the use of these MIS systems.
There are many ways to handle the organizational performance data and visualize them for an effective decision making. For example, in the web analytics, it helps to answer the critical queries like "how the website is performing with respects to our marketing objectives?" From a corporate’s perspective, a new visualization method such as Dashboards offer a quick way to view data and information. The end results may include variance comparisons, single metrics, geographical maps and graphical trend analysis. These types of user interface will helps others to easily comprehend the complex data relationships and performance metrics in such a format that is easily understandable and digestible by time pressured managers.
Decision making refers to the process of finding and selecting options according to the priorities and values of the person making the decision. Since there are many choices involved, it is important to identify as many options as possible so as to pick the option that best fits a company’s target, goals, values and vision. Due to the integral role of decision making in company growth and financial progress, many firms such as Amazon.com and EBay are pumping in huge investments in business intelligence systems, which are made up of certain technological tools and technological applications that are created for the purpose of facilitating improved decision making process in business. In this paper, I take a critical look at Decision Support Systems and how they affect organizational Decision making.
While accumulating data is essential to interpreting progress and making progress in future ventures, the ability to display data is critical. Displaying data allows for a superior understanding of the information. The three most common ways to visually display data is through the use of pie charts, bar charts, and line graphs. Pie charts are best used when comparing parts of a whole (Data Driven Decisions). A disadvantage of using a pie chart is that one will not be able to see changes over time. If one is trying to best track changes over time bar charts and line graphs will be used. When smaller changes exist, line graphs are better to use than bar graphs. Line graphs can also be used to compare changes over the same period of time for more than one group (How do I). Conversely, when trying to measure change over time, bar graphs are best when the changes are larger (How do I). Below is a chart with examples of data sets and the accompanying appropriate frequency chart.
Now days, companies are searching for new ways of gathering data so that they can get useful data in order to make well informed decisions regarding the market they are operating in. Google analytics is considered one of the best tools offers extensive amount of data to business owners for free. However, the success of business is highly depended on how well they can arrange data and customize their collected data corresponded to their business priorities. Google analytics provides beneficial information for companies regardless of their extent of operation.
First of all, business intelligence analysis requires the capturing of information and storing in a single location for effective data analysis. Currently, data analysis is supported by transactional systems, business specific data marts, and other ad-hoc processes. Information is distributed making it difficult and time-consuming to access. Business teams have adapted to this environment by creating user maintained databases and manual “work-arounds” to support new types of reporting and analysis. This has resulted in inconsistent data, redundant data storage, significant resource use for maintenance, and inefficient response to changing business needs.
Edward Tufte in his seminal work The Visual Display of Quantitative Information explains, “Graphics reveal data”. “Indeed graphics can be more precise and revealing than conventional statistical computations.” (Tufte, 1983)
Companies have transformed technology from a supporting tool into a strategic weapon.”(Davenport, 2006) In business research, technology has become an essential means that many organizations use in their daily operations. According to the article, Analytics is a major technological tool used. It is described as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions."(Davenport, 2006) Data is compiled to enhance business practices. When samples are taken, they are used to examine research and understand how to solve problems or why situations are as they are. Furthermore, in this article, Thomas Davenport discusses analytics from a business standpoint. He refers to organizations that have been successful in their usage of data and statistical analysis. In addition, he also discusses how data and statistics can be vital in the efforts to improve the operations of businesses.
To start the process of applying business intelligence, as many possible sources of information must be gathered. After the information has been collected, it must be sorted into different categories. These categories are either valuable or non-valuable information, otherwise known as intelligence. Since the intelligence is derived by businesses for businesses, it is considered business intelligence. Business intelligence has a direct effect on how well its organization does in the marketplace. This intelligence is used to identify forewarnings of disasters as well as opportunities that may occur. After the intelligence needs have been identified for a business, the information is then collected by an all source fusion. After analyzing the data that has been collected, it can be determined which information can be used, and what can be discarded. The results are then passed to the bosses of an organization, who in turn, make a decision. This completes the four-phased intelligence cycle.
Business intelligence, or BI, is an umbrella term that refers to a variety of software applications used to analyze an organization’s raw data. BI as a discipline is made up of several related activities, including data mining, online analytical processing, querying and reporting. Data mining is the process of sorting through large amounts of data and picking out relevant information. It is usually used by business intelligence organizations, and financial analysts, but is increasingly being used in the sciences to extract information from the enormous data sets generated by modern experimental and observational methods.
Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows: