able of
Contents
Introduction. 3
Business
Intelligence and Data Warehousing. 3
Data
Collection. 3
Data
Integration. 3
Data Storage. 4
Data
Analysis. 4
Data
Distribution. 5
Reactions on
the basis of Generated Insights. 5
Business
Intelligence in Public Sectors. 5
Constraints
and Risks. 6
Human
Engagement 6
Financial
Pressures. 7
Culture. 7
Legislature. 7
Privacy and
Data Management 8
Benefits. 8
Decision-Making
Transparency. 8
Innovation
and Policy-Making. 8
Quality
Assurance. 8
Services
Improvement 9
Summary Table. 9
Conclusion. 11
References. 12
Business
Intelligence and Government
Introduction of Business Intelligence and Government
It is common knowledge that effective decision making
depends significantly on high-quality and reliable information. In the modern
competitive environment, businesses require access and must utilize data
storage warehouse which is organized in a way to enhance the performance of a
business. Business Intelligence has emerged for meeting these requirements and
the backbone of its processes is data warehousing. In general, business
intelligence is a term which refers to policies and standards for organizing data
using computer-based technologies and techniques which develop business
intelligence systems for the visualization, analysis, and reporting of data.
One of the components of business intelligence is data
warehousing. Extraction, cleaning, storing, and organizing of the data have to
be performed by a data warehouse or a central repository system.
Business
Intelligence and Data Warehousing
Business intelligence and data warehousing are terms
utilized for describing the process of storing the data of an organization in
the external or internal databases from different sources with a specific focus
on analysis. There are a number of layers and components which are included in
the architecture of business intelligence. Each and every component has its own
function. There are some processes included in framework of BI architecture
namely data collection, integration of data, data storage, analysis,
distribution, and reaction on the basis of insights (Williams & Williams,
2010).
Data
Collection of Business Intelligence and Government
The first step in the development of a stable
architecture begins with data collection from different sources of data such as
APIs, files, databases, ERP, or CRM in accordance with the resources and
requirements of an organization. From a business perspective, the collection of
data is considered very important because it facilitates decision making based
on data for eliminating errors, streamlining operations, and increasing
productivity. The collection of data is necessary before its manipulation.
Data
Integration of Business Intelligence and Government
With the collection of data through different systems,
the next step is concerned with the extraction of data. The process is referred
to as ETL or Extract-Transform-Load. Since there is a significant amount of
data generated by organizations at present, ETL is the method for solving
complex requests of data in industries. The process is quite simple as data is
obtained from different external sources while making sure that these sources
are not impacted negatively with the performance. Second, the data is specific
or adjusted to a specific standard. This step of transformation helps in
cleaning and preparing the data for the final stage.
Data Storage of Business Intelligence and Government
The third step is concerned
with the storage of data. Data collected from different sources has already
been cleaned in the previous step. Now, the data is visualized and adjusted in
such a manner that meaningful insights can be derived from it. Data
visualization is considered one of the prime elements which allow business
users, professionals, and managers to perform different analyses without the
use of heavy IT guidance.
Data
Analysis of Business Intelligence and Government
Once the data has been cleaned, processed, and handled,
the fourth step is to analyse the data. The need for an effective analysis of
data for growing and increasing profit all sizes of business is met with the
use of BI application tools, especially for ad hoc analysis which allows
flexibility, usability, and freedom in answering complex and critical business
questions in an accurate and swift manner. Modern tools of business
intelligence such as datapine allow business users to develop queries by
dragging and dropping, and building data visualizations with only a few clicks.
It can be seen in the figure down below (Babu, 2012).
This plays an important
role in simplifying the process of developing an analytical report or business
dashboards for improving the strategic and operational efficiency of a
business. This architecture is made efficient with the use of a data warehouse.
Data
Distribution of Business Intelligence and
Government
The distribution of data is one of the most significant
or critical process when it comes to exchanging information and offering
insights to stakeholders for obtaining sustainable development of business. There
are three methods of distributing data including embedding, dashboarding, and
reporting through automated e-mails.
Reactions
on the basis of Generated Insights
The final stage where the power of BI is expounded is
considered very important for any type of business. It helps in creating
decisions which are based on data. Without the foundation of business
intelligence and data warehousing, it wouldn’t be possible to complete the
final stage and businesses wouldn’t be capable of progressing in the market. Professionals,
managers, and CEOs can depend on the capability of data for generating
data-based, accurate, and valid decisions which will help them in moving
forward.
Business
Intelligence in Public Sectors
Even though the origins of
Business Intelligence lie in the previous century, it has expanded in recent
times. It spans over different domains such as economy, information technology,
and mathematics, and it is considered one of the top priorities in terms of
business investments. Advancement in computer science and industrialization in
computer science have served to transform several business processes. Meanwhile,
the public sector or government-driven environment is the part of economy which
is operated by the government and has the aim of achieving some specific
environmental and social objectives.
In the public sector, there
is a significant need for competent leaders with reliable insights. One step
towards achieving effectiveness in the managerial context is by utilizing
technology for supporting the process of decision-making. Effective adoption of
business intelligence has already been examined by several authors in the
private sector. Their findings seem to suggest a potential for successful
implementation and application of BI in other sectors such as non-profit
organizations and public service (Abai, Yahaya, & Deraman,
2015).
In spite of the positive feedback from different
business, it is obvious that the public sector is struggling for recognizing
the worth of BI or business intelligence. Working in a non-competitive
environment, there is no apparent reasons for its implementation. Still, many
events and transactions are performed in a similar manner to the ones in the
private sector, and it is creating analogous issues and challenges for decision-makers.
There are approximately 2 billion public organizations in the US. And only a
few rely on business intelligence. For instance, only fifteen thousand public
firms out of 2 billion firms utilize business intelligence.
Number
|
Technology
|
Active
|
2.0 Billion Public Firms
|
Analytics
|
65 Million
|
65 Million Public Firms
|
Business Intelligence
|
15 Thousand
|
Table 1: Number of Public Firms
Although studies and research till now have been focused
on two performance evaluators in public sectors including increasing the
service quality and decreasing the operational costs. There are some potential risks
of implementing BI or advanced technology for supporting the process of
decision making in the public sector.
Constraints
and Risks of Business Intelligence and Government
A number of practical questions emerge when it comes to
dealing with the concept of BI or business intelligence in an environment
driven by the government. In general, any type of new technology is subjected
to inevitable risks which are capable of influencing the deliveries.
Human
Engagement of Business Intelligence and Government
Considering the fact that
cross-departmental commitment and effective communication are necessary for the
development of BI methods, it is important for such initiatives for soliciting
support from experts and decision-makers. In addition to it, functional and
geographical decentralization of a public sector can be an issue influencing
the customization and development of BI products.
Financial
Pressures of Business Intelligence and Government
In accordance with the requirements, large investments
have to be made commonly for implementing and exploiting the capabilities of
any new technology. Although ROI or return on investment can be calculated
easily in evaluating financial gains in the private sector, investment
profitability in the public sector is quite different. For overcoming this
difficult, it is important to consider SROI or sustainable return on
investment.
Culture of Business Intelligence and Government
In developed nations, it is
a universal trend to empower the connection between the public and governments.
In the age of information, communication between citizens and policy-makers is
democratic progress’s major indicator. Cultural and political studies have
actually proven that differences in world view and cognition are reflected
directly in the operations of government apparatus.
Legislature of Business Intelligence and Government
The government, through its
decisions, is present continually in the economic and social lives of its
country. However, the public sector is subjected to different mandates. Besides
national laws, rules related to industry apply to different economic sectors. In
addition to it, it is important for countries to obey international agreements
and regulations.
A framework is established by eEurope for the speed of
response and quality of assurance in interactions between citizens and public
bodies. Additionally, there has been a significant enhancement in the
infrastructure of IT with the introduction of online services and e-government
applications. They have served to create data-rich environments and intelligent
tools can be used for using these environments.
Privacy
and Data Management
The disposal, utilization,
management, collection, and development of data produced through online public
services need legislative regulations, particularly in the context of privacy
protection. Responsible management is very important for making the best
utilization of data assets while ensuring the protection of the privacy of
people.
Benefits of Business Intelligence and Government
Decision-Making
Transparency
After years of reasoning on the basis of own judgment and
personal experience, decision-making has actually become a very important
scientific process based in logic and rationale. The importance of the public
sector as the foundation of economic growth and social welfare, results in
specific requirements and accountability for its transparency. The potential of
BI in enhancing the accountability and traceability of decision-making
processes cannot be ignored (Gaardboe, Svarre, &
Kanstrup, 2015).
Innovation
and Policy-Making
While a government is a regulatory body, public firms act
as execution points where strategies are executed and delivered. National
governance's effectiveness relies heavily on the forceful and relevant policies
associated with the organization and individuals. Methodologies of BI like
real-time analysis provide protection against some specific environmental and
social threats which cannot be identified by only a single decision-maker.
Quality
Assurance of Business Intelligence and Government
In a board sense, it can be
said that the public sector is quite a big enterprise with officials or
management, clients, employees, and products. The multitude of interactions in
the bureaucratic and heterogeneous environment needs formal regulations. This
detailed view is unavoidable in the promotion of eligible practices and
developing standardization in the public sphere.
Services
Improvement of Business Intelligence and Government
Offering services which are
demanded such as education, social security benefits, and free healthcare have
to be stable or balanced with the ones which reflect the needs of businesses
and communities. Recognizing different pattern sand underlying relationships
can be translated into tailored or customized programs which will serve to not
only address but resolve important issues. This is how services can be improved
by different public entities by implementing business intelligence
Number
|
Benefits
|
15,000 Firms
|
Enhanced services, transparency, quality, innovation,
and reliability.
|
Table 2: Benefits
In the above table, it can be seen that only fifteen
thousand out of two million public organizations experience enhanced services,
transparency, quality, innovation, and reliability because of BI implementation
(Collier, 2012).
Summary Table
Benefits
|
Explanation
|
Sources
|
Provision of advanced solutions to the business
problems
|
For any complicated problem the advanced solutions are
offered by BI systems.
|
(Popescu, 2012)
|
Advanced visualization for the datasets
|
The datasets are being provided with the advanced
visualizations.
|
(Popescu, 2012)
|
Services Improvement
|
The firms can provide with the improvements to the
services.
|
(Gaardboe, Svarre,
& Kanstrup, 2015).
|
Quality assurance
|
The more the business firms are equipped with the BI
systems the better it helps to ensure the quality of the same.
|
(Gaardboe, Svarre,
& Kanstrup, 2015).
|
Innovation to the policy-making
|
The policies of the firms are streamlined by the BI
systems.
|
(Gaardboe, Svarre,
& Kanstrup, 2015).
|
Transparency to the decision making
|
The decision making processes become crystal clear
through the advancements in BI systems.
|
(Gaardboe, Svarre,
& Kanstrup, 2015).
|
Applications of business intelligence
1.
HelloFresh is a meal kit company that was facing the issue of digital
marketing reporting regarding manual, inefficient and time-intensive. The
company centralized digital marketing reporting that increase conversions and
implementation of business intelligence solution saved 10-20 working hours per
day by changing the manual record system to the automating reporting process.
The system saved time and enable to track real-time data related to optimized
marketing campaigns and behaviours of customers (Tableau. com, 2019; Adair, 2019).
2.
REI is an outdoor retail co-op that was facing difficulty in tracking
membership metrics with the data of 90 terabytes. The company implemented
intelligence platform to evaluate the co-op membership and contribution of the
members in the account of REI. The system benefited the company for the greater
customer satisfaction and the positive association with the brand of the
company as it helped in analysis of customer segmentation, shipping methods,
product category assortment, member lifecycle management and management of
membership (Tableau. com, 2019).
3.
In the Coca-Cola bottling company, the issue was associated with the
manual reporting process that restricted real-time sales access and operational
data access. The company used business intelligence to handle the reporting of
sales and delivery operations at the company. The implementation of the new
system saved more than 260 hours a year and 40 hour work weeks (Abai, Yahaya, & Deraman,
2015).
4.
Chipotle Mexican Grill is a well known American restaurant chain that
provides services around the world with more than 2,400 locations. The company
implemented a BI solution to improve the self-service BI platform that allowed
to create a centralized view of operations. The system helped in tracking the
operational effectiveness of the restaurant (Tableau. com, 2019).
5.
Another important example is Des Moines Public Schools (DMPS) that used
BI to improve the dropout intervention rates that enable to understand the
impact of teaching methods and strategies on the outcomes of the individual
student. The system used data visualization and make it convenient to identify
the students that require more attention. The real-time analytics accessed 7000
students and teaching staff and extracted results for improving success rates.
The system improved five-year historical data and it was specially designed to
dig all the historical data and to identify the valid insights of the current
students and to spot all the dramatic improvement in the students by applying
new strategies (Gaardboe, Svarre, & Kanstrup, 2015; Tableau. com,
2019).
Application
|
Features
and benefits
|
Source
|
Access to
the information
|
Employees
are not provided with complete access to the information and they are focused
on the improvement of data and work.
The
professionals are provided with the access that remain helpful in the
security of data.
The BI
system implementation ensures competitive positions for the sales, potential,
and to recognize the performance data system.
|
(Scavicchio, 2016)
|
Reduce
stress for micromanaging
|
The use of
BI system reduce stress for the management and improve employee’s
expectation.
The
transparent environment is defined for the accountability and to outline
parameters of work.
The
controlled environment is used to access and manage the data in business
|
(Gaardboe, Svarre, &
Kanstrup, 2015)
|
History of
the business is saved
|
The
history as well as predicted results of business actions will remain save
under the perspective of analytics.
The
solution based on BI will either display the past trends or it will be used
as a base for the predictions of certain actions along with success.
|
(Scavicchio, 2016)
|
Growth of
the company
|
The growth
of the company relies on the improved and well-defined decisions not on the
gut decisions. BI software will provide additional information and will
improve data reliability.
|
(Gaardboe, Svarre, &
Kanstrup, 2015)
|
Conclusion of Business Intelligence and Government
Overall, it wouldn’t be wrong to say that business intelligence
and data warehousing are terms utilized for describing the process of storing
the data of an organization in the external or internal databases from
different sources with a specific focus on analysis. It is true that there are
some risks involved with the implementation of business intelligence and data
warehousing in the public sector.
Even though there have been
many studies on BI in the context of private sector, there are only a few
studies which explore the implementation of BI in terms of the public sector
and this study is one of them. This study doesn't only explore the existing
concepts but also indicates that BI implementation can be sustainable in the
public sector. Thus, researchers can utilize this research for developing their
own studies as this study contributes to the existing knowledge base.
References of Business Intelligence and Government
Abai, N. H., Yahaya, J. H., & Deraman,
A. (2015). Incorporating business intelligence and analytics into performance
management for the public sector issues and challenges. 2015 International
Conference on Electrical Engineering and Informatics (ICEEI), 484-489.
Adair, B. (2019). Business
Intelligence Applications: Considering the Application of BI. Retrieved
from selecthub.com:
https://selecthub.com/business-intelligence/4-key-bi-applications/
Babu, K. V. (2012). Business
intelligence: Concepts, components, techniques and benefits. Components,
Techniques and Benefits .
Bodislav, D.-A. (2015).
Transferring business intelligence and big data analysis from corporations to
governments as a hybrid leading indicator. Theoretical and Applied
Economics, 22(1 ), 257-264.
Collier, K. (2012). Agile
analytics: A value-driven approach to business intelligence and data
warehousing. Addison-Wesley.
Gaardboe, R., Svarre, T.,
& Kanstrup, A. M. (2015). Characteristics of business intelligence and big
data in e-government: Preliminary findings. Innovation and the public sector.
Popescu, S. (2012). Business
Intelligence Solutions – a Way of General Improvement of Efficiency and
Effectiveness. ResearchGate, 88-95.
Scavicchio, J. (2016, 08 01). Why
Use Business Intelligence Tools? 10 Strategic Benefits. Retrieved from
www.betterbuys.com: https://www.betterbuys.com/bi/strategic-bi-benefits/
Tableau. com. (2019). 5
real examples of business intelligence in action. Retrieved from
www.tableau.com:
https://www.tableau.com/learn/articles/business-intelligence-examples
Tunowski, R. (2015). Business
Intelligence in Organization. Benefits, Risks and Developments. Science
Direct, 133-144.
Williams, S., & Williams,
N. (2010). The profit impact of business intelligence. Elsevier.