Successful business intelligence entails ability to collect data, organize it, and transform that data so that the final, meaningful data can be applied into problem-solving. Decision making in an organization needs to be fast and accurate in this modern business world. This is very crucial because it is what differentiates between a succeeding organization and a failing one. With so many companies offering very similar products and services, accurate and fast decisions today give an organization an added business advantage and the organization can achieve greater market shares. It’s imperious that businesses understand and earn indulgence so as to exploit a firm’s profitability (Naggy, http://caabi.ba.ttu.edu). Many study fields like Business intelligence, sales forecasting and knowledge management are contrived to assist businesses in their decision making processes.
According to Dr. Jay Liebowitz, Business Intelligence (BI) involves studying and researching organized and information from a specific field, for instance studying clients, products, services or opponents so as to differentiate and understand styles and designs thus being able to develop good and clear perceptions and being able to make deductions that can be helpful in decision-making. This whole process mainly involves skills that allow gathering, storage, retrieving and evaluating data. The Business Intelligence process also involves interactively sharing the found discoveries so as to amend the necessary things. BI is a broad category of technologies that allows for gathering, storing, accessing and analyzing data to help business users make better decisions.
In small organizations, where business intelligence can become very disadvantageous, thus the organizations may be forced to go for the more efficient alternative; the data federation instead of the data warehousing concept. Also, another expense that is incurred when an organization goes for business intelligence concept is that of acquiring the business intelligence software.
Business Intelligence and Sales forecasting
Sales forecasting in the business field on the other hand encompasses anticipating how much the public will procure considering the features of the merchandize features and sale environment. Forecasting sales assists capitalists to decide on investing in new undertakings and also help business administrators on major decisions like company size they should build, how much workforce they will need and salaries to pay to their workers. In sales forecasting; personal experience, mouth-to-mouth enterprising and client-specific antiquity are very crucial elements that ease the sales forecasting job (Kenneth B, Kahn and Marjorie, Adams, 2000-2001). Business Intelligence can be applicable to the entire organization whereas sales forecasting is usually involves the exchange of intelligence and information between various individuals (Cody, 2002).
The most significant difference between business intelligence and sales forecasting is that in most cases, business intelligence is done through storing and analyzing data, on the other hand, sales forecasting can be successfully be done through word of mouth in meetings or otherwise. Sales forecasting in organization employs person to person approaches whereas in business intelligence organizations employ analytical tactics (Mentzer, 1999). When it comes to sales forecasting, one very evident advantage is that multiple concepts can be expressed during a person-to-person information exchange. This is very good for the organization that is using this method since the personnel can show in a more realistic way, their thoughts and opinions on what they feel should be prioritized. For this very reason, sales forecasting time-consuming could turn out to be time consuming especially when every person decides to give their opinion in a limited duration of time. Currently, it has been evident that sales forecasting cannot work without using knowledge to support it. (Kenneth B, Kahn and Marjorie, Adams, 2000-2001).
Business Intelligence and Knowledge management
Knowledge management and business intelligence is also dissimilar in some ways. For instance, knowledge management accelerates business intelligence and not the other way round Cody, 2002). Also, Knowledge Management is normally linked with managerial conduct and amorphous information while business intelligence is related to data warehousing and analysis. Business intelligence and knowledge management may involve similar processes. One of the differences between knowledge management and Business Intelligence is; conception of newly found knowledge and its distribution of knowledge in an organization.
Business Intelligence and Common Sense
Common Sense can be described as applying wisdom in today’s business. It involves more than knowing facts and figures. It is the ample use of simple, ordinary or basic concepts to succeed. It involves understanding business growths and environment in a unique way especially what the other lot ignores. Common sense in business may not be learnt even in the best schools locally or abroad. Actually, some people who lack formal education usually compensate that with their abundant business sense. Business sense can alert you when consumers require to be provided with more publicity information so as to help them in their procurements. Business sense also means that companies, the qualified and executive classes have to bend down and refresh their minds on the basic business fundamentals that they may have ignored for a long time. That these administrators have to get associated with the consumer; because business sense encourages sincere visions and missions, good business ethics, corporate care, charity, bravery, humbleness and good business definition. Business sense is learnt through real life experiences and intuitive observation. For one to acquire and even use business sense in their corporates; one needs to be humble and of low-spirit. This is the kind of person that will be able to be keen enough on the easily forgettable business fundamentals and thus be able to bring lasting results (Okeke, E).
A Common-Sense Approach is compensates for the information management gap that may exist in any organization. A business can incorporate a common-sense approach too in information management of their activities. This approach could involve assessing business needs, generating technical requirements and identifying the Information Management System to be used. One great advantage of this approach is that it is not limited to any company’s specifications and hence it can be used by any organization. An organization needs to identify their so as to ensure focus on the assessment and production of good results, to coordinate and evaluate the business requirements and also puts in order personnel that will be acting as feedback. Generating technical requirements is whereby the organization complements all the business needs data and information that was gathered and documented in the first stage with technical requirements. The Information Management System stage is whereby the organization chooses the most suitable solution to whatever they may be tackling with the help of the first two approaches.
Sales forecasting when combined with business intelligence technologies assist organizations to not just have the past view of the business running but also improves the ability of a company to predict the future of the organization. Forecasting is empowered by including data integration and information distribution abilities since with such assistance; there is consistency in publicizing forecast results.