Introduction

The growth of technology and its influence on industrialization and major businesses has
impacted the global perception about its scope and has led to various innovations which have
enhanced business activity and productivity. One of these significant technology tools is
Business Intelligence (BI). Not only has BI taken every industrial landscape by storm, it has
provided them the opportunity to convert mountains of data into meaningiful insights which
enables them to improve decision-making.

Through analysis software, BI systems utilize raw data sets and develop key data trends for a
wide range of business segments such as marketing, demand planning and sales strategizing.
Businesses of all sizes rely on various data sets from internal and external resources to
improve their data collection process, the primary stage in BI. The process of BI in simpler
term involves data warehousing and online analytical processing of unstructured data sets in
an organized and validated form to prepare them for business analytics. For this, BI has been
dubbed as the disruptor in modern day business practice.

The business under review for is CVS Health, one the largest players in the American
healthcare industry with a portfolio range expanding from pharmacy, retain pharmacy chain,
CVS Caremark to Aetna (Health insurance provider). Healthcare sector has been one of the
biggest areas of technological innovation that has enhanced the production, distribution and
consumption of medicine through BI to enhance healthy living.

Value Addition of Business Intelligence to CVS Health

BI can enhance productivity and service at various CVS business portfolio’s through timely
and accurate use of data to improve decision-making ability.

Retail Pharmacy Chain

Retail stores and restaurants have been widely known for utilizing customer datasets to
improve their services. CVS can incorporate this approach in their own retail pharmacy to
develop consumer healthcare loyalty cards. With mass individualized purchase data on
millions of customers, CVS can use this information and BI software to predict consumer
purchase behavior, buying journey and cater personalized customer needs. As a result,
company would be able to inform customers regarding deals, discounts, healthcare updates
and develop customer loyalty. By drawing on existing customers into their retail stores more
frequently and increasing their volume of sales, CVS can use this system as a part of their
CRM system to increase their brand value.

CVS Pharmacy

Clinical Data Analysis

One of the key challenges for CVS has been the process of introducing products to the market
at faster rate than competition while minimizing business costs at the same time. Therefore,
management of clinical data becomes a critical part in this scenario, as they lie in the core
value proposition of the company business. The data extracted from clinical trials and tests
becomes extremely useful hence needs to be monitored continuously and data trends to be
used effectively.

The best BI software provides the production teams the analytical capabilities to track all
collected information, identify practices with high efficiency and also enhance resource
distribution. In addition, through data collected from various resources, BI can be
categorically used to enable pharmaceutical companies to identify trends and inconsistencies
and scrutinize risks involved during product development and launch.

Logistics
CVS Pharmacy can use business intelligence to develop personalized and customized product
recommendations by using BI software tools for decision-making on logistical aspects.
Moreover, in-depth data analysis will not only enhance product promotion but also enable the
company to run its massive supply chain smoothly. Optimization of shipping routes,
inventory management and demand planning can all be enhanced using predictive algorithm
to improve customer service, business efficiency and profitability.

Antena – Insurance Provider

The global insurance industry has been largely revolutionized to provide consumer with best
range of services. For health sector, CVS has developed its very own insurance provider,
Antena, which can enhance company sales through key aspects mentioned below.

Combat Fraud
BI software allows the features to combat multiple types of fraud for CVS systems including
inflation of actual claims, falsification of information provided through effective fraud
prevention based on predictive analysis used by BI which also combines with AI, data mining
and, machine learning. Easy-to-understand visualizations are used to present information to
end user making it easier for them to identify patterns which point towards potential
fraudulent activity and thus requires them to setup automated alerts based on it.

Build efficiency into claim management

By integrating relevant BI software within their CRM software, CVS can improve their
services for insurances. This way, Antena would provide claim handlers with in-depth detail
on consumer profiles which can be used to review prior customer claims and valuable
information to provide a more expedient service and customized experience by providing a
holistic view of key business processes.

Identification of Profitable Opportunities

As highlighted earlier, data analytics through BI develops detailed data visualizations which
provides users with actionable insights. Antena can use these insights to monitor varying
market dynamics to improve strategic business decision-making. It also allows them to
monitor progress and market trends of their partners and different products to determine
which segments require extra effort and spending to increase profitability.

Potential Negative Implication of BI for CVS Health

Similar to every business approach and software tool, BI has both pros and cons that can
impact its outcome on overall business objectives. For CVS, the most basic issue would be
related to technology problem i.e. integration of software with current system. Furthermore, it
is likely that company would face problems when applying BI software into new areas,
engineering issues at back end along with maintenance problems involving software and
system. Lastly, the company would have to ensure all users have qualifications to run the BI
software and should not develop false expectations based on inaccurate assessment of BI
technologies.

Application of Data Mining Tools

The three most prominent tools to analyze data mining process for CVS Health are the
classification, clustering and predictive model. The Classification model, for instance, would
allow the pharmacy division to distinguish the items in a data set into groups. So, a medical
research would divide medicines in demand based as low, medium and high priority to
develop better data visualization. Clustering analysis involves data grouping based on similar
items and related features. This segmentation analysis would allow CVS Retail chain to
develop customized solutions for a range of customers allotted to each segment based on their
characteristics. Lastly, predictive analysis model would CVS insurance provider, Antena, to
predict future sales goals based on present and past data sets.

Tactical, Operational and Strategic BI at CVS Health

Ethical and Security Concerns for CVS Health
The company should address the following concerns to evaluate its