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Business Intelligence and Analytics
Before taking decisions and setting up goals, it is important for an organisation to search and investigate their past performance. This exercise will give an idea of projecting model. For an organisation it is necessary to know their capabilities and how they can use it to make maximum profit needs business intelligence and analytics. In this essay we are discussing how business intelligence and analytics is used in an organisation and their benefits.
Business intelligence combines the collection of data and knowledge management with the tools of analytics to make complex data useful for the decision makers. It is mainly deal with large amount of data. This includes data mining, gathering of data, data warehousing and to think about the data . (Negash, 2004, Article 15)
Business intelligence is a plan and collection of new processes and ways of performing exploration of data to support decision makers and also facilitate databases that provide organisational societies easy approach to data. (Larissa Terpeluk Moss, 2003)
Advantages of using business intelligence in workplace give the opportunity to the managers to eliminate their gut feeling or guess work while making decisions. Gutt feel and experience not always gives positive result, but business intelligence provides the clear framework of what to do in the business and provide more correct results. It gives quick answers to your business questions without wasting time to go through large data. Another great benefit of business intelligence is, with the help of this tool companies can be able to know their customer needs and their behaviour which they will use to make profit in future businesses. With the help business intelligence companies are capable to modify their predictive models. It increases the efficiency of business, by providing predictive models. It gives insight to your business where your business was, where it is now and where it is going. It helps to manage inventory according to the needs of customers.
Business intelligence can also be applied in routine work. Such as revenue assurance, selecting vendors, customer value, order accuracy etc.
First example: Bharti Airtel Limited (Telecommunication Company) beliefs that customer is the heart of the business, they focuses on customers and their target is to provide maximum benefits and best services. If they want to give reward to top 20 customers by facilitating them one month free broadband subscription. They have to approach to previous years data. Although it is a big challenge for the company to find out best 20 customers from big data. Firstly, managers have to find out the answers of such simple questions:
- How many workers a company have or strength of the employees?
- For each plan, how many customers were opted within last 1 year in different regions?
- Who are top 20 customers?
- What is value of each customer?
It is very surprising that nobody knows the answers of these questions and even don’t have any framework for these questions. BI program not only provide tools to do framework, it also act as a channel for changing the way of thinking of team members. Before finding out the 20 best customers it is important for the managers to differentiate between a “good” and “bad” customer and be able to measure the goodness. Business intelligence works in the way to what sets of data need to be collected, set up the process for the collection of data to find out answers of these questions and make it useful by applying software. It also works to maintain the quality of the data to avoid errors and combined the results into sensible report. By applying these measures manager can easily find out their top 20 customers and broadcast the result. (Loshin, 2012)
Second example: In the selection of vendor company needs to find out the vendor who is capable of fulfilling the company needs. This can be achieved by questionnaire based study. A questionnaire was framed and criteria are rated by the different fields of specialization. Each criteria assigned number from 1to 9 and according to number, levels of importance are determined. On the basis of results which would get from the questionnaire, a matrices are produced and priorities are decide. This process is helpful to find out the reliability of the vendor, quality of the product and the vendor experience in same field. (S. Kumar, 2009)
Business analytics works on the different methods or processes of organisation use to make effective decisions. Process of analytics consist of a platform of varied techniques and statistics. Accumulating and analysing data can direct the business breakthrough. (Thorland, 23 June 2014)
Business analytics perform on past performance analysis, concentrate on two-way analysis, to obtain new perceptions and understanding, research the unknown and develop new patterns. (Beller, 2009)
Human resource is a branch of an organisation who deals with the people of an organisation to enhance their performance, recruiting staff and to give the direction to an employee to work on organisation by applying policies and systems. This branch of an organisation use business analytics in many ways like employee appraisal, incentive schemes, recruitment process, promotions and employee welfare.
Example 1.: State Bank of India is one of the biggest bank who work worldwide. This bank applies analytics to HR management to find out the problems and challenges of an organisation by arranging meetings with senior executives. According to their voting, they identifies problem like how to energise the performance of an employee and another problem they are facing is the ageing of top management group needs to be replace by young energetic staff. The HR is not capable to deliver development for the staff and their incentive schemes are not effective. After analysing such fact bank recognise that the people of SBI is the asset for an organisation and on the other it acts as a real problem. Employees had low morale and change must be required. They decide to design induction specifically devoted to create sense of team spirit among employees. Operation was cover the low-ranking executives and clerical staff, which comes around 1,38,000 employees and it was a two day workshop. To find out the accomplishment of the programme, questionnaire based survey of SBI customers was driven and more than 48% customers agreed that there has been an improvement noticed in the employees product knowledge and services. More than 28% of customers believed that employees give more attention than before. (N.Selvam, 2011)
Example 2: In 1947, Wipro started as a vegetable oil company and in 1979, Wipro started developing their own computers. Selection process in Wipro is the process to place right person on right job. Human Resource department of Wipro uses analytics in many different ways. Recruitment is one of the process refers to the screening and selection of appropriate candidate according to the job requirements. Wipro is mainly used two sources for its recruitment i.e. internal and external sources. Internal sources means recruitment within the company by doing promotions, internal postings and reference from the employees. External source means outsourcing the employees through advertisements, on campus interview, agencies deal in personnel recruitment. Its recruitment process comprises of three steps i.e. 1) Aptitude test 2) Technical interview 3) HR interview . In aptitude test candidate has to solve 20 questions and there is no negative marking. Each section of test had cut-off. Interview was in two stages, one is technical and another is HR interview. Technical interview focuses on candidate’s technical knowledge and HR interview focused on candidate’s communication skill. After going through all these rounds, company would finalise their selections. In terms of analytics, it is a process to analyse skills and qualities of an individual, which is helpful for the company to effectively work for the achievement of goal. (P.Rao, 2010 Vol -2)
Example 3 : Hyatt International is one of the biggest international chain of seven star hotel used business analytics in their HR practices to concentrate on those employee who become key assets and focusing on their development and growth. To do this, we can say that Hyatt focuses on employee needs to be fulfilled which leads to achieve efficient work from the staff members and contribute better results. In hospitality, where people are recruited with the pleasing personality. The process of recruitment is done with the help of software called Taleo and after short listing the candidates called for further rounds. Company organizes the group discussion round so that people having good communication skills should be scrutinized and candidates with go getting attitude should be used for multitasking environment for the organization. Through an interview they finalise their candidates. Hyatt also organizes training for senior managers to make sure that everyone is equally treated and avoid conflicts in selection procedure. By applying such practices Hyatt can be able to recruit effective personnel for their hotel which leads betterment of the organisation.
In conclusion, if a company needs to receive all the benefits of effective business intelligence, it ensures that they invest their money and time on capable human resources. They also planned such tools which is helpful to analyse their efficiency. Also to make sure that tools and systems designed would analyse both conditions and content of data.
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