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Assignment on Business Intelligence and Government

Category: Corporate Governance Paper Type: Assignment Writing Reference: APA Words: 3100

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.

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