Knowledge Management- Assignment 1

AKSHIT KUMAR SINGH

BC/20/010

Q. Define Business Intelligence with its applications.

Business Intelligence is a set of processes, architectures, and technologies that convert

raw data into meaningful information that drives profitable business actions. It is a
suite of software and services to transform data into actionable intelligence and
knowledge.

It has a direct impact on organization's strategic, tactical and operational business

decisions. It supports fact-based decision making using historical data rather than
assumptions and gut feeling.

It tools perform data analysis and create reports, summaries, dashboards, maps,
graphs, and charts to provide users with detailed intelligence about the nature of the
business.

The following are some applications of Business Intelligence:

Sales Intelligence: A key application of Business Application focuses on where your

business meets the customer. Customer negotiation is a crucial skill that every
organization’s sales department should foster. Sometimes it can be hard to move leads
along the pipeline and convince clients to buy your product or service. Through the
application of Business Intelligence, this process is becoming smoother and more
predictable.

Reporting: A crucial application of Business Intelligence is reporting. As we know

Business Intelligence tools collect and study unstructured sets of data in addition to
organizing and using them to generate a range of different types of reports.
Performance Management: With Business Intelligence applications, organizations
can monitor goal progress based on pre-defined or customizable timeframes. The
data-driven goals may include project completion deadlines, target delivery time, or
sales goals.
Q. Define the Process of Business Decision Making.
The business decision-making process is a step-by-step process allowing professionals
to solve problems by weighing evidence, examining alternatives, and choosing a path
from there. This defined process also provides an opportunity, at the end, to review
whether the decision was the right one.

Q. Explain about Executive Information System.

An Executive Information System can be defined as a specialized Decision Support
System. This type of the system generally includes the various hardware, software,
data, procedures and the people. With the help of all this, the top-level executives get
a great support in taking and performing the various types of the decisions. The
executive information system plays a very important role in obtaining the data from
the different sources, then help in the integration and the aggregation of this data.
After performing these steps, the resulting information is displayed in such a pattern
that is very easy to understand.

Executive information system is a computer-based system that serves the information

that is needed by the various top executives. It provides very rapid access to the timely
information and also offers the direct access to the different management reports.

Executive Information System is very user friendly in the nature. It is supported at a

large extent by the graphics.

Q. Distinguish between OLAP and OLTP

OLTP
Process It is an Online
Transactional System. It
manages database
modification.
Characteristics It is characterized by
OLAP
OLAP is an online
analysis and data
retrieving process.
It is characterized by a
 large number of short large volume of data.
online transactions.
Functionality It is an online database It is an online database
modifying system. query management
system.
Method It uses traditional DBMS. It uses the data
warehouse.
Tables Tables are normalized. Tables are not
normalized.
Data Quality OLTP database is always The data in OLAP
detailed and organized. process might not be
organized
Audience It is market-oriented It is customer-oriented
process. process.

Q. Explain about Decision Support System and also list its advantages.
A decision support system (DSS) is a computerized program used to support
determinations, judgments, and courses of action in an organization or a business. A
DSS sifts through and analyzes massive amounts of data, compiling comprehensive
information that can be used to solve problems and in decision-making.

Typical information used by a DSS includes target or projected revenue, sales figures
or past ones from different time periods, and other inventory- or operations-related
data.

The following are the advantages of DSS:

Time savings. For all categories of decision support systems, research has

demonstrated and substantiated reduced decision cycle time, increased employee
productivity and more timely information for decision making. The time savings that
have been documented from using computerized decision support are often
substantial. Researchers, however, have not always demonstrated that decision quality
remained the same or actually improved.

Enhance effectiveness. A second category of advantage that has been widely

discussed and examined is improved decision making effectiveness and better
decisions. Decision quality and decision making effectiveness are however hard to
document and measure. Most researches have examined soft measures like perceived
decision quality rather than objective measures. Advocates of building data
warehouses identify the possibility of more and better analysis that can improve
decision making.

Improve interpersonal communication. DSS can improve communication and

collaboration among decision makers. In appropriate circumstances, communications-
driven and group DSS have had this impact. Model-driven DSS provides a means for
sharing facts and assumptions. Data-driven DSS make "one version of the truth" about
company operations available to managers and hence can encourage fact-based
decision making. Improved data accessibility is often a major motivation for building
a data-driven DSS. This advantage has not been adequately demonstrated for most
types of DSS.

Competitive advantage. Vendors frequently cite this advantage for business

intelligence systems, performance management systems, and web-based DSS.
Although it is possible to gain a competitive advantage from computerized decision
support, this is not a likely outcome. Vendors routinely sell the same product to
competitors and even help with the installation. Organizations are most likely to gain
this advantage from novel, high risk, enterprise-wide, inward facing decision support
systems. Measuring this is and will continue to be difficult.