After reviewing the key features of business intelligence and business analytics

Question

After reviewing the key features of business intelligence and business analytics, why do you think firms are increasing the use of these tools? What do you see as the benefits of firms utilizing business intelligence and business analytics? What potential drawbacks do you see with firms utilizing these tools? Share with the class any experience you have had using either of these tools. If you have not used any of these tools, do some research with the class to identify some of the most popular business intelligence or business analytics tools used today.

Explanation / Answer

The business intelligence and business analytics are very essential tools for the smooth running of the business. Therefore, business firms use these kind of tools for the following purposes:

1. It allows the firm to gain proper knowledge about the customer needs and wants (consumer behavior).

2. It helps the business firm in developing efficiency by understanding the prerequisites of the business activities.

3. It excludes guesswork in the business operations by providing relevant information about various methods of demand and supply forecasting.

4. It can provide proper business statements and help the firm to know whether it's running in profit or loss.

5. It results in economies of scale by determining the actual manufacturing costs and there by helping the firm to minimize them to a great extent through various managerial tools.

6. It reflects the actual need of inventory stocks I.e, no more no less but optimal.

7. It develops multifaceted character in the firm to adopt it's with the dynamic business environment.

Apart from these benefits the firms face a few drawbacks in utilizing these tools and the are as follows:

1. Nonavailability of information as it's a costly affair and not every business firm is well developed to inncur these costs.

2. It's a time consuming process as different analysts can analyze the information differently and provide different outcomes which is a concern for the business as it needed to spend a lot of time in finding the middle road.

3. It alarms a theart to data and information from hackers as databases can be hacked and therefore these precious resources can be at risk.

4. It's a Costly affair as it requires human resource, IT enabled systems to gather information.

5. It can sometimes make the human resources uncomfortable by blending the professional and personal boundaries for accessing the data and information.

In nutshell, it depends on how the business firms takes it as "mind is its own place, you can make a heaven of hell, a hell of heaven".

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