Page 373 - Using MIS

Q1 How Do Organizations Use Business Intelligence (BI) Systems? 341

BigData applications, and knowledge management applications to produce business intelli-
gence for knowledge workers. Today such workers include not only analysts in the home office,
but also operations and field personnel who use BI to approve loans, order goods, and decide
where to police, to take a few examples.
How Do Organizations Use BI?

As shown in Figure 9-2, organizations use BI for all four of the collaborative tasks described
in Chapter 2. Starting with the last row of Figure 9-2, business intelligence can be used just for
informing. Personal trainers can use PRIDE to learn how clients are using the new system. At
the time of the analysis, the trainers may not have any particular purpose in mind, but are just
browsing the BI results for some future, unspecified purpose. At AllRoad Parts, the company
we studied in Chapters 1–6, Kelly may just want to know how AllRoad’s current sales compare
to the forecast. She may have no particular purpose in mind; she just wants to know “how
we’re doing.”
Moving up a row in Figure 9-2, some managers use BI systems for decision making. PRIDE
Systems could use BI on its competitive events to determine characteristics of the events that
generate the most revenue, and it could then conduct more of that type of event. When planning
items for future sales, AllRoad can use BI to help it decide which parts designs to sell for custom-
ers’ 3D printing.
(By the way, some authors define BI systems as supporting decision making only, in which
case they use the older term decision support systems as a synonym for decision-making BI
systems. We take the broader view here to include all four of the tasks in Figure 9-2 and will
avoid the term decision support systems.)
Problem solving is the next category of business intelligence use. Again, a problem is a per-
ceived difference between what is and what ought to be. Business intelligence can be used for
both sides of that definition: determining what is as well as what should be. If revenue is below
expectations, PRIDE Systems can use BI to learn what factors to change to obtain more event at-
tendance and more ad revenue. AllRoad’s competitive strategy is to maintain a huge inventory
selection so it has the parts customers want. AllRoad might use BI to buy smarter, reducing its
inventory but still maintaining its strategy.
Finally, business intelligence can be used during project management. PRIDE can be used
to support a project to create a partnership with local health clubs. When AllRoad decides to
open its European office, it can use business intelligence to determine which parts it should sell
first and which vendors to contact to obtain those parts.
As you study Figure 9-2, recall the hierarchical nature of these tasks. Deciding requires in-
forming; problem solving requires deciding (and informing); and project management requires
problem solving (and deciding [and informing]).

Task PRIDE Example AllRoad Example

Project Create a partnership program Create AllRoad Europe.
Management between PRIDE competitors and
local health clubs.
Problem How can we increase ad revenue How can we reduce our inventory size
Solving from competitions? but still have what our customers want?
Deciding Which competitions generate the Which parts designs should we sell for
most ad revenue? Develop more of customers to use for 3D printing?
the best competitions.
Figure 9-2 Informing In what ways are clients using the How do sales compare to our sales
Example Uses of Business new system? forecast?
Intelligence