Business Intelligence and Analytics, Essay Example

In their 2011 study “Business Intelligence and Analytics: From Big Data to Big  Impact” authors Chen, Hsinchun, Roger HL Chiang, and Veda C. Storey,  assess the relationship between business intelligence and management in top industries. Business intelligence and analytics (BI&A) has developed to become one of the most important factors in industries today that can influence the success and growth of a business. The authors published their article in the MIS Quarterly Special Issue on Business Intelligence Research in the hopes of providing managers in industries and researchers in academia updated information on practices in Business Intelligence Analytics and its evolution. The current research in BI&A is assessed for its value and the added opportunities it provides to business managers for expansion. A bibliometric study of six critical BI&A publications, researchers, as well as research topics were taken from over a decade of relevant industry and academic publications. The following will take a deeper look at their study in an attempt to better understand the contribution BI&A research makes to management practices as a whole.

The significant development of Business Intelligence and Analytics is highlighted in the opening parts of the study. The authors note that, “ based on a survey of over 4,000 information technology (IT) professionals from 93 countries and 25 industries, the IBM Tech Trends Report (2011) identified business analytics as one of the four major technology trends in the 2010s” (Hsinchun, Chiang, and Storey, 1165). In another survey, on Business Analytics carried out by Bloomberg Businessweek, the study evaluated the state of business analytics, finding that “97 percent of companies with revenues exceeding $100 million were found to use some form of business analytics. A report by the McKinsey Global Institute predicted that by 2018, the United States alone will face a shortage of 140,000 to 190,000 people with deep analytical skills” (Hsinchun, Chiang, and Storey, 1165). The study further found that there would be a decline from 1.5 million data Savvy managers, capable of analyzing big data and using it to make effective management decisions. This means that managers as whole are in decline, specifically those that have the necessary skillset to use data management tools and understand analytics. The reason why this is an important issue is that it allows managers to make more effective informed decisions that drive performance.

The study is keen to point out the advantages of utilizing data management on the internet and in social media. From the early 2000s, the Internet first started to offer specialized analytics and data collection research with search. The authors note that, “the HTTP-based Web 1.0 systems, characterized by Web search engines such as Google and Yahoo and e-commerce businesses such as Amazon and eBay, allow organizations to present their businesses online and interact with their customers directly” (Hsinchun, Chiang, and Storey, 1167). The authors attribute the ability of these companies to interact with their client’s directly to the porting of RDBMS-based business content and product information, in addition to logs of detailed and IP-specific user search. This data is collected through server logs, cookies and interaction logs. The authors refer to this pool of data as a “goldmine of understanding,” because it essentially enables companies to track the data users to a new gold mine for understanding customers’ needs and identifying new business opportunities (Hsinchun, Chiang, and Storey, 1167). In addition to being a valuable tool for customer engagement, business intelligence analytics serves a significant need within small and large businesses who seek to efficiently manage employee operations. The data retrieved through web analytics have a wide range of practical applications within management. The authors point to networks that are established specifically for the purpose of communicating with staff, as well as networks that are embedded into the infrastructure of company operations, such as systems that assist with logistics, manufacturing or distribution. The internet as a whole has also expanded the reach of businesses to enable them to advertise and sell internationally, in ways never before utilized by small and medium enterprises. Most importantly, web analytics has made managing advertisement campaigns more affordable. Through the analysis of click stream data, utilizing tools like Google Analytics, companies are now able to know distinct interests of their consumers, and tailor products to exact consumer needs.

The article addresses the history of Big Data to Big Impact noting that there have been several global trends that have emerged out of BI&A practices. One key development is extremely fast IT connections that have increased the acquisition of big data providing managers with extensive more material to make sound business decisions. This expansion happened from the 1970’s to the present. The authors attribute this development to “the development and deployment of business-related data standards, electronic data interchange (EDI) formats, and business databases and information systems have greatly facilitated business data creation and utilization” (Hsinchun, Chiang, and Storey, 1168). The study notes that BI&A has resulted in improvements in security and public safety, while at the same time introducing new risks. They credit the September 11^th, 2001 terrorist attacks to the urgent need to expand data acquisition and management in the public sector. From the development of this technology, the market has expanded to allow for five main forms of analytics. These tools include,” (big) data analytics, text analytics, web analytics, network analytics, and mobile analytics—all of which can contribute to BI&A 1.0, 2.0, and 3.0” (Hsinchun, Chiang, and Storey, 1168). The authors define data analytics, specifically as Business information technology that focuses mainly on statistical analysis and data mining. They also reference text analytics which falls into the management and tracking of company communications, such as e-mail, social media, and computational linguistics. Web Analytics research is also referenced and the author place a major importance on the role it plays in cloud computing. Network analytics is mentioned, as it plays a key role in monitoring and tracking the effectiveness of network on which major infrastructural systems in corporations rely. This is especially true of hospitals which rely on networks to store medical records, but also to maintain efficiency within operations. Managers that can effectively structure and run networks are in high demand in the medical field for this exact reason. The final type of analytics mentioned in the study is mobile analytics. The authors point out that this is a growing aspect of both networking and e-commerce, as more people are making transactions with mobile devices, or engaging with brands through their smart phones and tablets. It is essential that managers are knowledgeable in all fields of analytics and data acquisition and management because through doing so they can develop sound strategies towards gaining a competitive edge in their markets. These tools are also ideal for managing large teams as well as corporations as a whole.

In sum, the reason why business intelligence and analytics and the study of the field contributes significantly to management practices as a whole is because they allow managers to make more informed decisions. As the technology continues to develop, a wide range of opportunities will emerge. Currently, Business Intelligence and analytics serves as one of the key fundamental aspects of knowledge acquisition for the formation of corporate strategy, but the technology also serves as a tool for project management, communications, and a supplement for key company operations. For example, there are many companies like Amazon, and other web based merchants, that handle their logistic with the help of cloud computing technology. Companies also manage their scheduling, training, hiring and salary distribution primarily online. It is standard practice to have a working database through which employees as well as customers interact with a particular company. This article sheds a perfect light on some of the most relevant development within business intelligence management. One of the most valuable details mentioned in the article is the increasing need for managers who know how to analyze and implement big data. The report showed that by 2018 there will be a decline of 1.5 million managers in the U.S. capable of utilizing these data acquisition and analysis tools due to increased complexity within the field. One of the most critical aspects of business is the dissemination of information, and this article demonstrates that the process in business is virtually all online.

Work Cited

Chen, Hsinchun, Roger HL Chiang, and Veda C. Storey. “Business Intelligence and Analytics: From Big Data to Big Impact.” MIS quarterly 36.4 (2012): 1165-1188.