The paper "Business Intelligence Enhances the Quality of Decision-Making" is a great example of business coursework. Business intelligence systems are the systems that are designed by the management of the organizations as one of the modern tools ought to be adopted by business organizations to improve their performance. Business intelligence systems are designed to be responsible for the transcription of data into information and knowledge. These systems tend to create an environment that encourages strategic thinking and enhancement of effective decision making in an organization. In simple terms, business intelligence systems are sets of methodologies, theories architectures and technologies that convert the raw data into a more useful form for business use.
A well-designed business intelligence system handles voluminous information and aids in developing and identifying opportunities that could boost an organization’ s performance. When the management of the organization realizes new opportunities, they adopt and implement effective strategies hence, providing competitive market advantage leading to the stability of the organization. This paper majorly focuses on business intelligence system as one of the modern tools that firms are using to counter competition in their respective industries.
It is not an old concept, but it came into existence recently after the invention of the computer software. For the short period, this method has been in use in various forms, it has proved to be one of the best tools that can be used to promote the good performance of the organization in terms of management and financial growth. Business intelligence enhances the quality of decision making. Decision making is defined as the cognitive process which results in the selection of the course of action among the available options; every one of the options available has a final choice.
Therefore, to reach the final choice that is fair to the organization requires careful selection of the alternative by the decision-maker since it can affect the performance of the firms either positively or negatively. Business intelligence system when applied well tend to create the conducive environment that allows effective processes of decision making, strategic planning and credible action in a firm (Mohamed 2012). The contemporary world of business has become quite uncertain, this requires that the management have to be critical and courage to make a difficult decision even if it means those decisions have many risks.
Prominent managers of firms are different from other managers just because of the quality of the decisions they often make. This implies that decision making is one of the defining characteristics of a good manager. There is no big secret on how these best managers make a decision other than applying effectively their business intelligence systems. Some of the ways in which business intelligence systems promote quality decision making are as follows.
First, we know very well that in making decisions, the decision-maker tend to look at the past records and experiences. Past records and experiences tend to impact on the future decision making, in most cases, when there is a positive outcome from a past decision made, a person would likely again make the same decision in case there is the same circumstance. This means that past experiences can affect future decision making (Juliusson, Karlsson & Graling, 2005). On the same account, individuals tend to avoid doing the past mistakes.
Therefore, managers would likely to avoid selection the alternatives that once caused past mistakes to incase they face similar circumstances in future. From this perspective, the decisions made basing on the past experiences are not always good because maybe the circumstances that were in the past and the present are quite different (Mohamed 2012, p2). Therefore, it is not wise to rely on past experiences to make the present decisions. This is where now business intelligence systems come in to assist the managers to make quality decisions. The managers are advised to make decisions according to the results after the analysis made using the business intelligence systems.
This would reduce the overreliance on the past experiences hence making quality decisions.
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