How - Business - Intelligence - Help - Organizations Research
How - Business - Intelligence - Help - Organizations Research
How - Business - Intelligence - Help - Organizations Research
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Unit Title Unit 14: Business Intelligence
LO2 Compare the tools and technologies associated with business intelligence functionality.
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Unit 14: Business Intelligence Assignment
01
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Submission format
Submission to include:
Part 1: The submission is in the form of an individual written report. This should be written in a
concise, formal business style using single spacing and font size 12. You are required to make use
of headings, paragraphs and subsections as appropriate, and all work must be supported with
research and referenced using the Harvard referencing system. Please also provide a bibliography
using the Harvard referencing system. The recommended word limit is 2,000–2,500 words,
although you will not be penalized for exceeding the total word limit.
Part 2: Comprehensive table
Part 3: The submission is in the form of a ten-minute Microsoft® PowerPoint® style presentation.
The presentation can include links to performance data with additional speaker notes and a
bibliography using the Harvard referencing system. The presentation slides for the findings should
be submitted with speaker notes as one copy. You are required to make effective use of headings,
bullet points and subsections, as appropriate. Your research should be referenced using the Harvard
referencing system. The recommended word limit is 500 words, including speaker notes, although
you will not be penalized for exceeding the total word limit.
Scenario:
Data and information are core to any organization and business process. The necessity of
having meaningful information is the key driver for effective decision making and problem-
solving. Business intelligence has evolved from technologies such as decision support systems
(DSS) to include tools and methods associated with data mining, data integration, data quality
and data warehousing in conjunction with other information management systems and
applications.
Suppose you are recently recruited as a Business Analyst to a leading Sri Lankan
Organization. As your initial project, you are required to prepare a management report
to the Board of Directors including the following details.
Part 1
Identify and explain different business processes and supporting processes models used at the
selected organization with examples.
Explain data that have been used by the different process models given above.
What are the application softwares used in the given process models?
Evaluate the benefits and drawbacks of using application software as a mechanism for business
processing.
Part 2
Compare the tools and technologies associated with the business intelligence functionalities and
support available for business decision making at various levels within the organization
• Compare the types of support available for Business Decision making at different levels
of the organizational structure
• What are the business intelligence tools commonly used in selected organization? Justify
with specific examples of the key features of business intelligence functionality
Part 3
Design a simple business intelligence tool/application with user friendly and functional
interfaces that can perform a specific task to support problem solving or decision making at
an advanced level the selected organization.
Provide a critical review of the design in terms of how it meets a specific user or business
requirement and identify what customization has been integrated into the design.
Part 4
Discuss the importance and the impact of business intelligence tools and technologies that can
be used by the organization for effective decision making.
Describe the legal/ regulatory issues involved in the secure exploitation of business intelligence
tools in an organization. What are the legal issues you can identify in the system designed by
you?
Identify new Business Intelligence trends and technologies that can be further enhance the
operational activities in the selected organisational context
Evaluate how organizations could use business intelligence to extend their target audience and
make them more competitive within the market, taking security legislation into consideration
Grading Rubric
Regards, The
Author,
Enura Indula.
Acknowledgement....................................................................................................................i
List of Figures.........................................................................................................................iv
List of Tables............................................................................................................................v
Introduction.............................................................................................................................1
Company Overview.................................................................................................................2
Business Process......................................................................................................................3
Data Modelling......................................................................................................................10
Data Classification.................................................................................................................12
Structured Data....................................................................................................................13
Un – Structured Data...........................................................................................................13
Privacy Laws...................................................................................................................63
H.D.S. Enura Indula (COL/A-060329) Business Intelligence iii
Copyright Law.................................................................................................................64
Conclusion..............................................................................................................................76
References..............................................................................................................................77
List of Figures
Figure 1 - Chosen Company (ZARA) Logo ..............................................................................
2
Figure 2 - Manufacturing Process Flow Chart ...........................................................................
7
Figure 3 - Human Resource Management Flow Chart ..............................................................
8
Figure 4 - Finance Management Flow Chart .............................................................................
9
Figure 5 - Data Flow Diagram of Manufacturing Process .......................................................
10
Figure 6 - Data Flow Diagram of HR Management ................................................................
11
Figure 7 - Data Flow Diagram Finance Process ......................................................................
11
Figure 8 - Illustration of Data Classification ...........................................................................
12
Figure 9 - Managerial Level in an Organization ......................................................................
18
Task 1
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1.1 Background details of the organization.
Company Overview
Zara is a Spanish brand of clothing and accessories and is the flagship brand of the Inditex
Group. Few clothing brands follow the latest fashion, they are high quality but affordable. It
is probably the fusion of all these qualities that has allowed Zara, the Spanish clothing brand,
to become the quintessential fashion brand for all. Not surprisingly, Zara, which was
originally a small store in Spain, is now the world's largest retailer and its founder, Amancio
Ortega, the fourth richest man in the world (UKEssays.com, 2019). Zara slowly extended its
empire from the Spanish city to the rest of the country, then to Portugal. In the 1990s, the
store expanded to the United States, France and most European countries. Today, Zara has
almost 6,500 stores in 88 countries around the world (UKEssays.com, 2019).
The secret of Zara's success was largely due to the way street fashion followed with changing
times. The brand examines the evolution of fashion every day. Create new models and put
them in stores in one or two weeks. Most other fashion brands would take six months to
market their new models. Zara stores offer clothing for men and women, as well as children's
clothing (Zara Kids). Zara products are provided according to consumer trends. Its highly
responsive supply chain sends new products to stores twice a week. Once the products are
designed, it takes ten to fifteen days to reach the stores. All clothing is processed by the
distribution centre in Spain. New items are inspected, sorted, labelled and loaded into trucks.
In most cases, clothing is delivered within 48 hours. Zara produces more than 450 million
items a year.
Zara clothing brand has a very modern goal; which is “Through Zara’s business model, we
aim to contribute to the sustainable development of society and that of the environment
with which we interact”. In addition, the company holds a common vision and mission;
which is to “Give the customer an exclusive choice of fashion by providing a quicker
turnover of new stock than other fashion retailers” (Businessoffashion.com, 2019).
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1.2 Identify and explain different business processes and supporting processes models
used at the selected organization with examples.
Business Process
A business process is a series of repeatable steps taken by a team or business to achieve a
type of business purpose: managing deliveries, assembling products, incorporating
employees, and so on (Techopedia.com, 2019). The key aspect of a business process is
repeatability: a process is not a matter of time. The main advantage of business processes is
that they optimize your business. On the other hand, with a structured business process, the
manager knows exactly what to do step by step. This, in turn, makes your business much
more efficient;
Clearer responsibilities: Everyone knows what task they are supposed to perform. For
example, you will not have employees working on the same job, or a job is not cancelled
because no one thought it was your job.
Fewer mistakes: Everyone is aware of his work, there is much less room for human error
Increased productivity: With tasks properly communicated throughout the organization,
your employees will eventually be more productive because less time is spent on
organizational problems.
Cost reduction: With extra productivity, employees will have a much better "production"
because they spend less time on unnecessary tasks and more on tasks that really matter
(Nicole, 2019).
This is the main concept of a Business Process. Business Processes can be derived into three
main sub-domains. Which are;
• Management Process
• Core Business Process
• Supporting Business Process
In this report, we will be discussing about core business process and supporting business
process for ZARA Clothing Company (Nicole, 2019).
In Zara clothing brand, their core business process is to retail new design of clothes often.
Through their business model, they aim to contribute to the sustainable development of
society and that of the environment with which people interact. Their core business process is
so valuable, that it gives the customers an exclusive choice of fashion by providing a quicker
turnover of new stock than other fashion retailers. In Zara clothing brand, they mainly rely on
Design, Manufacturing and Sales (Bidur, 2015). Zara brand does consist of a strong core
business process that, they occupy the designing and fashion market very easily. As
mentioned earlier, Zara relies on designing and they most of the time produce new designs
and concepts of fashions weekly. While the other retailers concentrate on promotions and
marketing, Zara’s core business process concentrate about the customer turnover rate and
sales. Zara brand hardly do any marketing or promotions, due it’s massive popularity. Zara
clothing brand thrives on a business model, which is agile and flexible. Due to these key
points, Zara as a clothing brand, has the upper-hand and it is really working for the company
(BPM Platform, 2017).
Support processes are all processes whose sole purpose is to guarantee the functioning of the
core processes (main processes) and the functioning of the company itself. Because they
support core processes, they provide the commercial resources in the quality and quantity
needed, ensuring the quality of resource supplies or support services and covering the overall
efficient operation of the organization (Traviata.eu, 2019).
Unlike core processes, they are relatively similar in different types of organizations (human
resource processes are similar in both the automotive business and the bank). Support
processes tend to be more complex and complicated in larger companies because there are
more people involved, a higher organizational structure, and so on. In small businesses, one
person may be responsible for a particular support process or activity (Khalaf, 2008).
Now the reader knows about the supporting business process and in next section of the repot,
the author will be concentrating about the supporting business process at the chosen company
Zara. As the Zara company has one of the best core business models it is not a stand-alone
model. The core business model/process, is very successful because it gets all the support
needed from the other process. Which are the Supporting business processes. In the next
section, the author will be elaborating about the supporting business process at Zara (Khalaf,
2008).
In Zara company, to support the main business process they indeed use supporting business
processes. Below is a list of supporting process, which they are using to get the work done.
Zara clothing company consist by supporting business processes which are manual and
automated (GradesFixer, 2019). If manual, the process is achieved without the aid of an
automation or assisting technology. If automated, a technology aid has been put into place
which assists users in implementing the process in a more accurate, standardized or optimized
manner. Therefore, let take a look at some of the supporting business processes at the Zara
company.
The above supporting processes are some of the main processes at Zara clothing company.
Manufacturing supporting process holds the product assembly process and quality assurance
process at the company. This process is so important, it actually acts as a core process inside
the company at times. Likewise, Financing and HR also plays a major role inside the Zara
clothing company (Cheng, 2019).
In this section we will be concentrating about three main supporting business process at Zara
clothing company. We will be discussing about Manufacturing Process, HR Process and
Finance Process in the company (GradesFixer, 2019).
A business process can often be visualized as a flowchart or workflow of logical steps.
Business Process Management is the discipline which attempts to formalize this method.
Therefore, to have a better idea about the processes, the author will be exhibiting all the
necessary flow charts for the above-mentioned process at the Zara clothing company (Cheng,
2019).
1.3 Explain data that have been used by the different process models given above.
H. D. S. Enura Indula (COL/A-060329) Business Intelligence
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Data Modelling
Data modelling is a process used to define and analyse the data requirements needed to
support business processes as part of organizations' corresponding information systems. As a
result, the data modelling process involves professional data modelers who work closely with
the company's stakeholders, as well as with potential users of the information system. In this
section of the report, we will be discussing about the data which have been used in the above
three process models (Pearlman, 2019).
The three main supporting models at Zara is, Manufacturing, Human Resources and Finance.
These three processes, use a lot of data in order to get the work done perfectly. As the reader
already know the process flow of the above supporting businesses, let’s take a vivid idea
about what data will be using in those processes. In addition, it is convenient to use data flow
diagrams to show the data which have been used in the above supporting models. Hence, let’s
check the below three data flow diagrams and understand the data modelling for the above
business processes (Pearlman, 2019).
Data Classification
Data classification is broadly defined as the process of organizing data into relevant
categories so that they can be used and protected more effectively. At the basic level, the
classification process facilitates the location and retrieval of data. Data classification is
particularly important for a company to improve risk management, compliance and data
security (Aggarwal, 2014). Data classification involves the labelling of data to facilitate
research and traceability. It also eliminates multiple data duplications, which can reduce
storage and backup costs while speeding up the search process. Although the classification
process may seem very technical, it is a problem that should be understood by the leaders of
your organization.
Zara brand thrives on data as they gather a lot of valuable data about the competitors and
employees. Zara has a wide range of outlets and it is important to wholesome data and evolve
around one main protocol. For the ease of analysing the relevant data, Zara have mainly
divided data into three main categories (Aggarwal, 2014).
• Structured Data
• Semi – Structured Data
size. Therefore, to store relevant information, it is good to have a vivid knowledge about data
classifications (Rouse, 2019).
To understand this section of the report vividly, let’s have a closer look at those three main
parts of data classifications. At the end of this section the reader will go through a
comparison chart of these data in order to have a better idea.
Structured Data
Structured data is data that adheres to a predefined data model and is therefore easy to
analyse. Structured data conforms to a tabular format with the relationship between different
rows and columns. Common examples of structured data are Excel files or SQL databases.
Each of these has structured rows and columns that can be sorted (Beal, 2019).
Structured data depends on the existence of a data model, a model of how data can be stored,
processed, and accessed. Due to a data model, each field is discrete and can be accessed
separately or together, with data from other fields. This makes structured data extremely
H. D. S. Enura Indula (COL/A-060329) Business Intelligence
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powerful: it is possible to quickly add data from various locations in the database (Beal,
2019). Structured data is considered the most "traditional" form of data storage because early
versions of database management systems (DBMS) could store, process, and access
structured data (Beal, 2019).
Un – Structured Data
Unstructured data is information that does not have a predefined data model or that is not
organized in a predefined way. Unstructured information usually contains text, but it can also
contain data such as dates, numbers, and facts. This results in irregularities and ambiguities
that make it difficult to understand the use of traditional programs over data stored in
structured databases. Common examples of unstructured data include audio, video, and non-
SQL databases (Beal, 2019).
Unstructured data storage and processing capacity has increased significantly in recent years,
thanks to many new technologies and tools available on the market that can store specialized
types of unstructured data. MongoDB, for example, is optimized for storing documents.
Apache Giraph, on the other hand, is optimized to store relationships between nodes (Beal,
2019).
The ability to analyse unstructured data is particularly relevant in the context of Big Data, as
much of the data in organizations is not structured. Think of images, videos or PDF
documents. The ability to extract unstructured data value is one of the key drivers of the rapid
growth of Big Data (Beal, 2019).
Well, the first thing to understand is that not all data is created equal. This means the data
generated from social media apps are completely different from the data generated by
pointof-sales or supply chain systems (Sint, Schaffert and Stroka, 2019).
Some data is structured or semi-structured, but most is unstructured. The way this data is
collected, processed, and analyzed all depends on its format.
To clear things up, let’s compare the distinct differences between structured, semi –
structured and unstructured data (Sint, Schaffert and Stroka, 2019).
From an operational point of view at Zara clothing company, hierarchy management is also
essential to improve basic data management efforts. Some industries, such as sales, may have
a direct interest in the organization of the line in order to segment the territory and obtain
sales commissions.
It is unlikely that a single hierarchical representation for each data entity will meet the needs
of all LOBs in a large company. Multiple representations are not rare, but they increase the
cost of the project. Maintaining a single hierarchy can be very difficult. As different
perspectives develop, companies run the risk of compromising the main reason they
participate in an MDM project: an agreed vision of master data throughout the company.
Finding the right balance is the key (Framework, 2019).
Most likely, a multidomain MDM repository has relational relationships (for example, a
customer has multiple addresses or accounts, an asset is associated with a particular account,
H. D. S. Enura Indula (COL/A-060329) Business Intelligence
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etc.). These types of relationships are inherent in the structure of the repository and are
conceptually different from hierarchical management (Framework, 2019). Also, your MDM
repository may not support hierarchy management. Its implementation may not be a problem,
as some organizations choose to manage hierarchies outside an MDM multi-domain
operating centre and in an analytical environment. Expert advice is always useful to advise on
the best approach (Sint, Schaffert and Stroka, 2019).
In conclusion, the reader can clearly see how and why data is so important for a brand and a
company. As Zara clothing brand is a leading company in the apparel market, the
abovementioned data classifications play a huge role (Framework, 2019). These will help the
company to run smoothly and it can reduce the issues regarding the different data pointed
issues. In addition, data classification can help the Zara company to maintain the standards
and compete with its’ competitors more effectively. Therefore, by reading this section of the
report the reader can have vivid idea about what is data classification, differences between
data types and wat is the importance of data classification.
1.5 What are the application softwares used in the given process models?
Zara's three management levels separate the management positions from the organization.
The administrative rank of the worker in the organization determines the degree of authority,
the status he/she enjoys, and the chain of command he/she can control. Within the Zara
franchises, there are three levels of management. Managers at these levels have different
roles to play in order for the organization to function without problems. The levels are as
follows:
• Top-Level Management/ Administrative level
• Middle-Level Management/ Executory level
• Low-level Management/ Supervisory level
The Zara clothing company consist of above three levels of management. Senior management
has the key to different decisions in the company. Senior management has a chief executive
officer, a chief financial officer, a chief operating officer, and so on. Middle managers mainly
interpret plans and actions in Zara. Finally, the lower level management implements the plans
and continues the workload of the company. This is a rough idea of the management levels in
Zara society. To get a clear idea of these levels, let's look at the next section (Chand, 2019).
Top – Level Management
Top level management is additionally referred to as the executive level. They coordinate
services and have an interest in planning. the top - level administration consists of the board
of administrators, the chief director, the chief financial officer and the director of operations
or the president and also the vice-president (Studiousguy.com, 2019).
The top – level management controls the management of objectives and policies, still because
of the ultimate source of authority for the organization. They apply the management and
coordination of all the corporate activities organized by the assorted departments of the
company, together with its budget, its techniques and its agendas (Studiousguy.com, 2019).
Top – level management is accountable to shareholders for the performance of the
organization. This level performs several functions, but three of them are the most important:
Additionally, the reader should also have an idea about the decisions which these managerial
levels are being taking inside the company. There are three main decisions processes for the
three main managerial levels in a company (Studiousguy.com, 2019).
• Top – Level Management: Unstructured Decisions
• Middle – Level Management: Semi Structured Decisions
• Lower – Level Management: Structured Decisions
To take these different types of decisions the organizations use application softwares and
different application platforms. This is how the application softwares and business processes
correlate with each other. In this next section of the study, the reader will have a vivid idea
about the different decision-making processes which are taking inside an organization and
different application platforms which are using to take those decisions.
Automating structured business processes has been the main task of applications for many
years. However, more recently, organizations have realized that software systems also can
improve unstructured business processes. In these scenarios, people are accountable, not
applications. Rather than passively providing comments or waiting for departure, they run the
Figure 10 - Application platforms must support unstructured business processes, where applications act as tools
As the figure suggests, users might even see applications used to support unstructured
business processes as tools instead of applications. Typically, it's difficult to explain what's
happening as a process: it's more like people working informally with shared information, as
shown by the example on the right in the figure. And because the figure conjointly shows, the
demarcation line between applications and the application platform will become quite
arbitrary for a software system that supports unstructured processes. It's vital to grasp how
this sort of business process has become critical (Courses.lumenlearning.com, 2019).
Most companies have spent years automating their structured business processes, which
means that they have already obtained most of the benefits available in this area. Providing
better support for unstructured business processes is much less mature in most organizations,
which implies that there is still a lot of value (Capterra.com, 2019).
When considering Zara franchise, they are using an important application software to
generate the unstructured decisions effectively. Top – Level managers thrives on this
software most of the time. Top – Level management at Zara franchise uses ESS – Executive
Support System to generate the top-level ideas and decisions. ESS is a major part of the
organization as all the other levels which are below the top – level management have a direct
influence on this level.
Middle level management is the level at which all plans to be performed are interpreted for
workers. Some might say that this is the backbone of society, which has many responsibilities
within the organization. At this level, some of the key features include interpretation policies
framed by senior managers. As the marketing director presents to his sellers the sales policy
of the company according to which credit sales will be made. In addition, prepare the
organization, designate employees, motivate employees, create cooperation, etc. (Beal, 2019).
When considering Zara franchise, they are using important application softwares to generate
the semi-structured decisions effectively. Middle – Level managers thrives on these softwares
most of the time. Middle – Level management at Zara franchise uses two main application
softwares which are, MIS – Management Information System and DIS – Decision
Support System to generate the mid-level ideas and decisions. MIS and DIS are major parts
H. D. S. Enura Indula (COL/A-060329) Business Intelligence
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of the organization as the other level which is below the mid – level management have a
direct influence on this level (Beal, 2019).
A DSS must provide information to managers whenever it is needed in a form they can easily
understand. A typical DSS places the information under the manager’s direct control.
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According to Hogue and Watson, the unique executive user configuration of the DSS is based
on the following characteristics: (Segal, 2019)
• Executive Decisions are the Focal Points: The data for the DSS and associated models
are organized around the executive’s decisions rather than around existing databases.
• Specialize in Easy-to-use Software: The DSS specializes in easy-to-use software that
uses simple English commands rather than technical computer terms
• Employs Interactive Processing: The rapid response time of a DSS permits interactive
processing.
• Use and Control Rests with the User: The use and control of the DSS rests with the
user and not the central information management department.
• Flexible and Adaptable: The DSS is flexible and adaptable to change in the
executive’s style or in the external environment.
An MIS is a DSS if, and only if, it is designed with the primary objective of managerial
decision support. Thus, a DSS is a specialized MIS designed to support a manager’s skills at
all stages of decision-making, namely identifying the problem, choosing the relevant data,
selecting the approach to be used in making the decision, and evaluating the alternative
courses of action (Segal, 2019).
Although there are similarities between MIS and DSS, there are also some differences.
Compared to a MIS, a typical DSS provides more advanced analysis and better access to
several models that managers can use to examine a deeper situation. In addition, an DSS
tends to be more interactive than MIS (Segal, 2019).
It allows managers to communicate directly (often both ways) with computer programs that
control the system and obtain the results of several analyzes almost immediately. Finally, a
DSS is often based on information from external sources as well as internal sources, which
fall largely within the domain of MIS (Segal, 2019).
A structured business process executes a predefined sequence of steps. The process can have
many options, with different steps performed by different instances of the process at different
times. However, the creators of the process have determined the possible steps in advance.
Figure 14 application implements a repeatable sequence of well- Application platforms must support structured business
processes, w-defined steps here an
Most often, an organization bakes a structured business process into software to make the
process cheaper, faster, more consistent, and less error-prone. Whatever the motivation, the
organization’s application platform must provide effective support for this kind of process.
When considering Zara franchise, they are using an important application software to
generate the structured decisions effectively. Lower – Level managers thrives on this
software most of the time. Lower – Level management at Zara franchise uses TPS –
Transaction Process System to generate the lower-level ideas and decisions. TPS also hold
a key position on an organization as all the interpreted ideas and decisions come to life
through these application softwares (Zandbergen, 2019).
But what’s required for an application platform to effectively support software that
implements structured business processes? For a typical organization, the answers are clear:
• The platform must support a large set of packaged applications for structured
processes. Many organizations use similar business processes—billing, employee
onboarding, and lots more—and so packaged applications provide a relatively low-
cost way to automate these processes. Thousands of vendors sell these today,
including Microsoft, SAP, Oracle, and others (Segal, 2019).
• The platform must provide effective support for creating custom applications.
Packaged applications are a good choice for automating common processes. But since
every organization has the same set of packages to choose from, these applications
don’t typically provide much competitive advantage—it’s hard to differentiate with
off-theshelf software. Accordingly, creating custom applications that carry out unique
business processes is essential for most firms (Zandbergen, 2019).
Today, for example, an application platform should support running software in the public
cloud. Every organization strives to improve its operational efficiency; packaged applications
allow this (Zandbergen, 2019). Every organization also needs to have a strategy, a way to
differentiate itself from its competitors; custom applications allow this. Whether an
organization chooses to be a business leader with custom software or a follower with
packages, its application platform must support both options for structured business processes
(Segal, 2019).
1.6 Evaluate the benefits and drawbacks of using application software as a mechanism
for business processing.
ESS is the hierarchy of the application platforms as it is used in the highest level of the
company. Even ESS has its own advantages and disadvantages. In this section, the author
will be discussing about the Advantages and Disadvantages Executive Support System (ESS).
To have a vivid idea, let’s take a look at the below table (nibusinessinfo.co.uk, 2019).
Can Access and integrate internal, external A good internal data management process is
data which range for broad required.
These are some of the benefits and drawbacks of ESS. These points should be understood by
the CEOs and COOs of a company to gain the upper hand in the relevant market. Like-wise,
the author will be talking about the middle and lower level managing application softwares in
the below sections (nibusinessinfo.co.uk, 2019).
Being used by knowledge workers, it is possible to consider using decision support systems
in any knowledge domain. In fact, they are so widespread that people don't consider that they
are using DSS. The spreadsheet is a simple DSS that is very commonly used in many
different situations (Thadani, 2019).
When you use a search engine, you have used a DSS to organize a huge amount of
information, in the form of text files, images and videos, in order to make your decision. Of
Has been seen to improve collaboration and False sense of being objective - humans still
communication within groups. feed information in and decide how exactly
to process it.
Reduces training times because the Disgruntled employees who feel they are
experience of experts is available within the now only doing clerical work.
program’s algorithms.
Management information systems give business owners the ability to collect, process and
interpret data. Data sets can include nearly all aspects of business operations, including sales
revenues, production costs and employee output. Business owners examine MIS data,
compare it to previous time frames and adjust their production strategies. While MIS affords
some noticeable advantages for owners and managers, it also carries some significant
drawbacks. In this section, the author will be discussing about the Advantages and
Disadvantages of
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Management Information System (MIS). To have a vivid idea, let’s take a look at the below
table (Thadani, 2019).
These are some of the benefits and drawbacks of MIS. MIS facilities integration of
specialized activities by keeping each department aware of the problem and requirements of
other departments. It connects all decision centers in the organization (Thadani, 2019).
Therefore, these points should be understood by the regional managers and project managers
who are the middle level managers of a company to gain the upper hand in the relevant
market.
A transaction processing system is a computer database system that balances and controls
purchases of goods and services within a business network. A common example is a
company's online store. The transaction processing system coordinates the warehousing and
distribution of the item, the credit and bank transaction from the consumer's payment account
and the business's management of inventory, sales, profits and payroll. This complex system
has many advantages and disadvantages (nibusinessinfo.co.uk, 2019).
In this section, the author will be discussing about the Advantages and Disadvantages of
Transaction Processing System (TPS). To have a vivid idea, let’s take a look at the below
table.
These systems are most efficient and have Potential for inaccurate information.
excellent response times.
In some ways, the main benefit of a transaction processing system can also be a disadvantage:
the handling of several thousand operations at once. TPS must simultaneously coordinate
thousands, even millions, of purchases, debit consumers' bank accounts, hold each person's
private banking and address information and ship out or process the order to the consumer.
Transaction processing systems are a combination of software and hardware used to handle
immense quantities of consumer and business data. Because of this, viral security breaches
may occur in this system, especially because consumers' private information is held within
the database. Therefore, as the lower – level managers it is really hard to use these systems.
Hence, they should be careful and responsible when using these systems
(nibusinessinfo.co.uk, 2019).
Task 2
Compare the tools and technologies associated with the business intelligence
functionalities and support available for business decision making at various levels
within the organization.
In the next section, the reader will understand about those decision-making processes and
what is the support available in those levels to make those decision separately. First, let’s take
a look at the Strategic Decision making at Zara and the support available for it. Then. Tactical
and Operational decision making will be taking into account.
2.1 Compare the types of support available for Business Decision making at different
levels of the organizational structure.
A strategic decision is what you think is a long-term investment that helps change the
direction of the activities of any organization. Such a decision can be very risky due to the
rapid evolution of the market, but if it is successful, it offers a competitive advantage over its
competitors. The decision will be taken by the top executives of a company and shareholders
will be consulted for this purpose (Harrison and Pelletier, 2019).
Upper management must translate the vast scope of mission and vision into concrete
achievements over time. In other words, upper management needs a strategic plan. Decisions
related to strategy involve company-wide matters enacted over the long term. The goals are
what the company hopes to accomplish at least a year – more often five years – into the
future. Executive Support Systems are the main supporting factor for the decision-making
processes at organizations (Harrison and Pelletier, 2019). Strategic decisions can be easily
made by using ESS and can have accurate data. The author has already talked about these
systems in the previous section. Therefore, to get a vivid idea, the reader can go through it
again. However, below the author has mentioned some of the uses of Executive support
systems (Harrison and Pelletier, 2019). ESS supports, facilitates, and makes decisions for
senior executives by providing easy access to both internal and external information. ESS can
also be considered a specialized form of a Decision Support System. The focus on ESS is on
easy to use user interfaces and graphical displays.
The benefits of this is that they offer strong reports and drill down capabilities. Drill down
capabilities are when you move from summary information to detailed data by focusing in on
something.
ESSs are important because they help top-level executives analyze, compare and highlight
trends in important areas so they can monitor performance and identify opportunities and
problems. Over recent years however, the popularity of ESS has decreased due to Business
Intelligence, analytic(s), and digital dashboards. These are the support available in strategic
level in Zara franchise (Harrison and Pelletier, 2019).
The second type of decision is called tactical decision making. Such a decision can be made
by a group of managers, but the shareholders are not involved because it is a medium-term
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decision that has less effect than a strategic decision. The result of such a decision is visible
in less than a year or so and has no impact on the company's management change
(BerishaNamani, 2019).
Zara's unique approach to advertising and marketing is an example of this decision. This is an
additional factor in your business model that adds a lot to your success. They spend 0.3% of
their total income on advertising and marketing (Berisha-Namani, 2019).
This percentage is much lower than that of competitors in their markets, because on average
companies such as GAP and H&M spend about 3 to 4% of their total income for a similar
expense, proving that Zara retains an advantage successfully. In terms of costs compared to
its competitors in marketing activities. (Berisha-Namani, 2019).
To successfully complete its peers, Zara uses several useful locations, store designs and
product life cycles as an effective marketing tool. They open their stores in the markets of
choice for maximum visibility. And as mentioned earlier, your product is in stores for a very
short period of time, which leads the customer to go several times and make a quick purchase
decision, since this product may not be recovered when you visit the store even the next day
(BerishaNamani, 2019). Zara also spends a lot of time designing its stores: each store is
remodeled every five years to keep up with current trends.
Once upper management decides the overall direction of the company, it’s up to middle
management to choose smaller tactical objectives that, put together, accomplish strategic
goals. Middle managers create tactical plans, which have more detail than strategic plans. The
tactics often are geared toward some function or department such as production, where a
possible objective could involve some measurable efficiency or quality improvement. Middle
management’s choices and plans see fruition in a year or less (Adekeye, 2019).
Managers in this tier oversee other middle managers or operational managers. Management
Information Systems and Decision Support Systems are the main supporting factors for the
decision-making processes at organizations in this level. Tactical decisions can be easily
made by using MIS and DSS and can have accurate data. The author has already talked about
these systems in the previous section. Therefore, to get a vivid idea, the reader can go through
it again (Adekeye, 2019).
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Operational Decisions in Zara
Operational decisions are those that are taken regularly. The effects of such decisions are
often minimal and generally do not last more than a week. Therefore, these decisions are
usually made by staff and do not require much attention from the higher levels of
management (Berisha-Namani, 2019).
The example of such a decision in Zara is its centralized logistics and distribution. They need
to maintain control and have optimized their supply chain very effectively on many different
levels. In one week, there are two specific orders or days and times prescribed with shipments
usually prepared at night in LA Corunna (Berisha-Namani, 2019).
There are specific moments for the departure of trucks and expeditions to reach the stores, the
clothes are previously suspended, already labeled and have a price, even those fixed by air.
Due to this clearly defined rhythm, customers do not know the time and days needed to reach
stores to obtain new arrivals and new designs (Adekeye, 2019). It is very interesting to know
that within a standard period of 6 months; the product must be extracted from the sketch to
the store. Zara does this in a remarkably short time of only 2 weeks (Berisha-Namani, 2019).
Also called first-line management, operational management is the level directly responsible
for employees. By choosing their own goals on a daily, weekly or monthly basis, first-line
management accomplishes the objectives of middle management. The scope of operational
management covers departments, sections or teams. Inventory, scheduling and budgeting are
examples of plans and decisions that operational managers adopt. Goals might include a
certain number of sales for the day (Harrison and Pelletier, 2019).
Transaction Processing Systems are the main supporting factors for the decision-making
processes at organizations at this level. Operational decisions can be easily made by using
TPS and can have accurate data. The author has already talked about these systems in the
previous section. Therefore, to get a vivid idea, the reader can go through it again. However,
below the author has mentioned some of the uses of Transaction Support systems (Berisha-
Namani, 2019).
TPSs provide an execution environment that ensures the integrity, availability, and security of
data. They also ensure fast response time and high transaction throughput. In addition, TPSs
2.2 What are the business intelligence tools commonly used in selected organization?
Justify with specific examples of the key features of business intelligence functionality.
Hence, in this section the author will be talking about the BI tools which are commonly used
by the Zara franchise, and the key features and functionalities of those BI tools. By reading
this section, the reader can a gain knowledge on most common BI tools and its’ features.
Use of BI Tools in Zara
Zara has used management information systems (MIS) and has advanced in many areas. This
resulted in great success for the company. This included the Business Intelligence (BI)
application that involves technologies, collection practices, integration and presentation
applications, and commercial information analysis. Business intelligence focuses on
promoting better business decision making (Technologyadvice.com, 2019).
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BI describes a set of information about concepts and methods for better business decision
making. This is achieved through the use of a fact-based support system. Intelligence systems
are data-based and are sometimes used in information systems for managers. Predictive views
on business operations can be provided through the use of BI systems. Predictive views on
business operations can be provided through the use of BI systems since historical and
current data is collected in a database that compares the performance of other companies in
the same sector (Financesonline.com, 2019).
In Zara's franchise, they use two main business intelligence tools/software to maintain the
workload. Which are;
• Dematic BI Tool - Supply Chain Management & Logistics
• TradeGecko BI Tool - Inventory Management Software
Dematic designs develop and deliver solutions that optimize your supply chain, improve
performance and increase productivity. They understand the economic drivers of their
business and are in tune with the constantly changing market trends. Its industry-leading
automation software and technologies will allow your organization to meet customer
demands, job challenges and asset and space utilization requirements. With more than 75
years of solid design and delivery experience, Dematic solutions will strengthen and improve
your supply chain and catapult your organization into the future (Financesonline.com, 2019).
Since Zara has a large network and therefore handles large volumes of data, a corporate
information system has been used in the company. It is usually a type of computer system
that involves a business class, which generally provides a complete, high-volume, data-based
service that a large organization can support. With this system, a technological platform is
provided that allows the company to have information that can be shared at all useful levels
of management. Business systems are essential to eliminate the problem of information
fragmentation. This happens when there are many information systems in a company. The
problem is solved by developing a standard data structure (Technologyadvice.com, 2019).
Zara is a great organization. Business systems are housed in many data centers and include a
content management system as the main application. Zara's team is made up of technology
professionals. These include content specialists, network and systems engineers, Flash
developers, database administrators and business administrators, software developers, quality
control managers and IT support technicians. application. All these specialists work together
to provide companies with a competitive advantage by allowing them to react quickly
(Technologyadvice.com, 2019).
The Zara is devoted to integrating information technology appropriately into all areas of its
operations and activities. The range of services and resources available to its clients is
attributed to the commitment of integration of IT properly in the organization. The client
services group in the Zara partners with staff and clients to identify and meet each group’s
technological requirements. This group of technical advisors associates with departments to
execute a roadmap for a team’s technological vision and then defines this vision within entity
projects.
Significant support is needed for an invariable innovation. Zara IT Group is dedicated to
community development through technology and works closely with business partners. The
IT group is dedicated to the development of the community through technology and works
closely with business partners. The IT group has the technical support and tools they need to
present new ideas and disseminate them to the general community. This ensures that
customer needs are met. An increasingly advanced technological infrastructure has allowed
Most companies have started their business intelligence adventure using Excel spreadsheets.
Also, at that time, spreadsheets were probably enough to create dashboards and simple
graphics to give management a holistic view of business data, such as sales, revenue, costs
and personnel. There was no exception for the Zara franchise. Before the company was in full
swing, they used Excel spreadsheets (Adair, 2019).
Keep the above points in mind. Let’s look at the most important BI features for an
organization as well as for the Zara. The most important business intelligence features
include:
1. Ranking Reports
Ranking reports allow you to easily see the best performing and low performance facets of
your business, from products to marketing campaigns and vendors. You can show
classifications in several dimensions and specify several criteria to guide your results (Izenda,
2019).
2. What-If Analysis
If you want to know how a future decision will affect your business, you can perform an
analysis of "what would happen if" using historical data to predict possible impacts. The
scenario analysis tools give you an objective view of the risks and benefits inherent in each
potential decision and allow you to better plan your future (Izenda, 2019).
4. Interactive Reports
Interactive reports allow users to condense the massive amounts of collected data into a wide
variety of possible views. Users can take advantages of features like statistical analysis and
regression to identify trends, anomalies and outliers in the data (Izenda, 2019).
5. Geospatial Mapping
Applications using location intelligence can take your information and transform it into
graphical and cartographic representations, simplifying your geographical data. At a glance,
judging which regions are performing better than others — and which ones need particular
attention — becomes much easier (Eiloart, 2019).
6. Operational Reports
At the end of each day, business intelligence features like these can provide your
organization’s executives with a detailed summary of the daily events, giving them the
information, they need to make critical decisions (Adair, 2019).
7. Pivot Tables
Pivot tables can automatically extract important features from a large and messy data set.
They can perform calculations such as sorting, counting or averaging the data stored in one
table and displaying the results summarized in another table. Pivot tables are essential tools to
analyze information and discover hidden trends (Izenda, 2019).
8. Ad-Hoc Reports
Instead of burdening your IT department with requests for detailed reports, ad-hoc reports are
one of several important features of BI that let your nontechnical end-users generate their
own reports on the fly. Users can pick and choose the elements that they wish to be included
in the report, emphasizing only those aspects that are relevant to their query (Eiloart, 2019).
The characteristics mentioned above are mainly used by the Zara organization to conquer the
market. Several authorized staff members will use these functions and analyze the data,
mainly their competitors, and will take the necessary measures to maintain the growth of the
company. (Izenda, 2019).
The figure below will emphasize that the characteristics mentioned above are the most sought
after by buyers in the last year of 2018 (Eiloart, 2019).
Based on the responses of representatives from more than 600 companies, we have compiled
a list of the key features that business intelligence software buyers are looking for in 2018
(Izenda, 2019).
Our respondents represented several different sectors, from government entities and law firms
to guitar retailers and manufacturers of electronic products for the aerospace industry. Their
responses provided us with data on the characteristics most sought by market players for a
business intelligence system (Adair, 2019).
With so many data formats and applications to extract, it is important that your BI platform
can integrate so many different types of data under one roof, perfectly combining disparate
forms of information in a single database. exploitable report (Eiloart, 2019).
In conclusion, in general, most respondents want basic functions of their business intelligence
software: panels, visualizations and reports. But many buyers have also expressed interest in
more advanced analytical capabilities, for example. Predictive analysis, data mining, ETL,
OLAP and exploration functions (Eiloart, 2019).
It seems that buyers' needs are generally basic or that the gap can be based on awareness.
Buyers are more aware of the standard features of Business Intelligence and may not be
familiar with advanced analysis tools, their features and how the features can help their
business in its current state (Eiloart, 2019).
A tendency to prioritize familiarity is evident. When choosing a decision support software,
buyers tend to be interested in the features they know, hoping to streamline the decision-
making process (Eiloart, 2019).
This means that buyers should explore the options in greater depth to make informed
decisions about BI software. A complete portrait of the characteristics of the industry can
give the supplier the option to transform the data of one-dimensional information into an
insightful work tool.
Task 3
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3.1 Design a simple business intelligence tool/application with user friendly and
functional interfaces that can perform a specific task to support problem solving or
decision making at an advanced level the selected organization.
More and more sectors are not only attracted to data collection, but they can also benefit
from it, and the retail sector is one of them. It is an extremely data-based industry that needs
as much information as it can get at any time. Therefore, a retail board is more appropriate
to be injected into this newly designed BI tool for the Zara clothing brand. If Zara's top-
level administration gives a person access to this board, he/she can simply enter credentials
and connect to that credential. Once connected to the system, the user can simply view the
board and continue the analysis easily. Zara senior executives can use the previous control
panel to identify customer trends and adapt their strategies appropriately. That is why it is
interesting to measure these metrics in different periods and visualize them together in a
single graph, to have a more global vision of the evolution of society. Therefore, this user
interface can help Zara in many ways by providing a critical design review in terms of
meeting the business or user requirements and identifying the customization integrated into
the design.
Zara is a global commercial franchise and it is important to also focus on information from
other countries. By comparing each aspect, users can identify the defects that the business
faces. Once the user has an overview of customers' shopping and shopping habits, they can
focus on items and stock. To always have the right items at hand and avoid shortages, it is a
good idea to make a list of the 5 main articles, which are among the 10 main articles. In this
way, Zara can anticipate its inventory and avoid pending orders, which will leave customers
unsatisfied and damage both the image and the shortages. Inventory management is an
integral part of the Zara franchise, which replenishes the inventory every week. If an action is
renewed monthly or for 3 months as a normal activity, it is actually easier. However, with
Zara, this is the next level because they renew stocks every week.
Monitoring of depleted items is a priority to keep the business above performance. If the
company faces shortages or long periods of shortages, management should be concerned
about the effectiveness of inventory and supply chain management. In parallel, establishing a
list of the most profitable products by volume of sales can also be of interest to the company
to identify the most profitable products and determine if they are also the easiest to sell.
Therefore, this user interface can help Zara in many ways.
The previous dashboard model will focus more on online sales. Zara has a composite base of
online customers and it is important to pay them the same attention as store visitors. With
professional online retail, data collection is easier and more abundant. In today's connected
economy, consumers know their competitors more than ever. In addition, they are surrounded
by many different ways of shopping, which gives them even more opportunities to change
and makes loyalty more difficult.
Hence the need to be even more rigorous and creative to foster customer satisfaction and
retention, and this is where data analysis comes in. Zara focuses on customer satisfaction and
really keeps his word. In the online retail business in Zara also needs attention. Therefore,
this newly designed BI tool gives users access to millions of customers, as well as their
preferences and history.
With retail boards like this one, Zara has all the key performance indicators they need to
track, compiled in an effective overview. Starting with an estimate of the total number of
orders, Zara has an approximate size of the company's transactions during the year. The
company can calculate an average order per customer to get an idea of their behavior, but this
metric is best tracked for short and long periods and compared to obtain a more reliable
average. Therefore, this user interface can also help Zara in the manner mentioned above.
The Zara clothing brand offers a variety of products in the market. As a result, inventory
management and updating is an important part of the business. Through the previous control
panel, users can identify existing, depleted and overdue products. In the total orders of a
company, the figure calculates the number of orders placed in the business during the day,
month or year. This will help the company know what the peak periods are and adjust the
stock accordingly, to avoid any lack of stock or lack of stock. It will also help you adapt to
staff management and avoid errors or defects due to staff overload. To perform the tasks
mentioned above, Zara Administration Board users can use this board, which will make their
lives easier. When designing this BI tool, the author has always opted for one-click solutions
because users do not like to click on so many buttons to get information or numbers.
Therefore, by using these interfaces, users can easily obtain management of their inventory
and products. Therefore, thanks to this panel, users can effectively identify the products and
their management aspect quite easily. The best thing about this is that administrators can
view the inventory and product management of their country, as well as other countries, and
make a smooth exchange of products between them. The most important thing of these
dashboards is, all the databases are inter connected row ach other and users can access
basically each department’s data using just one click. Therefore, this user interface can
also help Zara in the manner mentioned above.
The Customer Feedback is a part of every company’s units and plays an important role for
the company’s image. Providing an exceptional customer service means that the teams are
surpassing customers’ expectations, who often set the bar high: it is hence highly important
for the business to track the metrics that will reach these expectations. There’s no exception
for Zara clothing brand. As a huge franchise, their customers have set the bar pretty high on
customer service and it is very important for the company image. Due to that sole purpose,
the author has injected a customer feedback and rating matric to the newly created BI tool.
Above the reader can see a customer feedback dashboard focusing on a team’s performance
on a daily and monthly basis. It is divided in two parts each analyzing an aspect of their work.
Finally, and this is what every business aims for, above support dashboard template displays
the most important of all KPIs: customer feedback and satisfaction. You can measure it with
simple, short questions surveys at the end of every online visit or store visit, emails exchange
or directly on the mobile app, to evaluate Zara’s support service quality in the eyes of the
customers. When customers recognize the efforts a brand is making, their loyalty follows,
and so does business growth. Hence, this is an important part of the Zara business as well as
the BI tools. In conclusion, this BI tool can help the Zara brand to evolve much better and
achieve greatness through different statistics and analytics. That’s why this BI tool is more
efficient and graphical than the other BI tools in the market.
Working Smarter
We all know that in the modern business landscape, data-driven decision making is not
optional. It’s a must for doing business, and is an imperative part of making sure your
customers are happy and your employees are maximizing their productivity. Though BI tools
are handy for analyzing both historical and current data, they’re also useful for capturing
evolving trends and seasonality of data to predict future values (Williams and Williams,
2010).
Do It Yourself
As we have said, the data is important, but it can also be confusing. While there are many
options to outsource the analysis of your data, expecting someone else to understand your
numbers is counterproductive. One of the key aspects of today's powerful BI platforms is its
ability to deliver real-time information to users without the need for a degree in computer
science or engineering. BI tools allow you to adopt a more independent approach to analyze,
visualize and project future performance with your data, while allowing you to obtain results
that you can use. Most BI tools contain integrated interactivity and data mining tools that
guide you in the analysis of your own data. The best of these tools allows you to
automatically adapt the user experience to your skills, all without having to wait for someone
to do it. you. This helps you use your own data as efficiently as possible and make sense
when you need it most. In addition, BI tools are generally designed with deep integration
with other key business applications and systems, such as CRM, logistics, project
management systems, human resources platforms and more. They can even be integrated and
integrated into existing websites, adding powerful panels and interactive reports to your
internal or public websites. This means that the rich data sets that you have accumulated will
no longer be compartmentalized or difficult to extract when prior analysis and forecasting are
needed (Azeroual, 2018).
The idea of adding a new technology to your company’s stack may feel overwhelming. But
business intelligence isn’t the next new thing. Modern BI is the “New Normal”. Going
beyond basic reporting, BI gives you the power to use your own data to your advantage. With
a better big picture, the ability to make smart business decisions through a do-it-yourself
approach, and the opportunity to better your bottom line, the right BI tool needs to be a
“must” for a company. Below the reader can see the impact of BI tools and technologies for
the company Zara. Above mentioned factors are general idea and below the author has gone a
little deeper. Hence, let’s move into the next section (Azeroual, 2018).
Zara produces around 450 million items a year. How can you remain so effective with the
considerable volume that your supply chain traverses? Regular deliveries in small batches
occur with clock accuracy twice a week in all stores worldwide (Paola Palladino, 2010).
That's what Zara does best: make sure everything goes well, control its manufacturing chain
and supply chains better than most of its competitors. These are done by your analysis
department using BI tools (Paola Palladino, 2010).
Inditex is a gigantic retailer, which produces more than 840 million garments in a year, most
of which are sold by Zara. Before leaving a centralized warehouse, each garment is labeled
with an RFID chip, which allows you to track that inventory until it is sold to a customer
(Paola Palladino, 2010). The sales data for each SKU, the inventory levels in each store and
the speed at which a particular SKU moves from the shelf to the point of sale are sent in real
Figure 27 - Zara’s Data Processing Center receives real-time data from around the world using BI
tools
When the garment arrives at the store, the RFID allows the inventory to determine which
items should be replenished and where they are, making the inventory and inventory up to
80% faster than before. If a customer needs a particular reference, sellers can better serve it
by placing it immediately in or near the store. In addition, each Zara site receives inventory
refills twice a week, which adapts to this store's real-time updates to inventory data at the unit
inventory level (Dowsett, 2019).
Sales tracking data is essential so Zara can offer customers the trends they really want and
eliminate designs that are not attractive to customers. Zara's design team is an equal team of
more than 350 designers who are inspired by the podium to design everyday clothes. Every
morning, they explore sales data from stores around the world to determine which items are
sold and adapt their designs accordingly. They also receive qualitative comments from
authorized sales employees who send their comments to the central office daily, for example,
"customers don't like the zipper" or "they want it to last longer" (Dowsett, 2019).
At the beginning of the planning process, Zara orders its manufacturers very small batches of
any design (even 4 to 6 shirts per store). Most Zara factories are located near Europe and
North Africa, allowing them to manufacture new models near home and send them to their
stores in 2-3 weeks. Then they test these designs in the store, and if the data suggests that the
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designs are taking off, Zara can quickly order more inventory in the correct sizes, where
necessary. Such store-level data allows Zara to be hyperlocal to meet the needs of its
customers, since tastes may vary from one neighborhood to another.
Zara’s Results vs. Competitors (Through Decision Making and BI Tools)
Zara sells more than 11,000 different items a year, compared to 2,000 to 4,000 for its
competitors. However, Zara also shows the lowest end-of-year inventory levels in the fashion
sector. This adjusted working capital management compensates for their higher production
costs and allows them to achieve rapid turnover rates (SCM Globe, 2019).
In Zara, only 15% to 25% of the lines are designed before the season and more than 50% of
the items are designed and manufactured in the middle of a season depending on what is
becoming popular. This contrasts directly with a nearby competitor like H&M, where 80% of
the drawings are designed before the season and 20% in real time during the season. Most
other retailers commit 100% of their designs before the season and often end up with excess
inventory, which they must then drastically reduce at the end of the season. Zara's rapid
replenishment cycles create a sense of scarcity that could actually generate more demand
(SCM Globe, 2019).
Information systems are frequently exposed to various types of threats that can lead to
different types of damage that can lead to significant financial losses. The damage to
information security can vary from small losses to the total destruction of the information
system. The effects of different threats vary considerably: some affect the confidentiality or
integrity of the data, others affect the availability of a system (Sowells, 2019). Today,
organizations are struggling to understand threats to their information assets and find ways to
combat them, which remains a problem. In this section, the author analyzes the legal and
security aspects that may be involved in the company's facilities in Zara. In addition, all these
security concerns are parallel to the company's business intelligence.
Social Media Attacks - Cybercriminals are leveraging social media as a medium to distribute
a complex geographical attack called "water holing". The attackers identify and infect a
cluster of websites they believe members of the targeted organization will visit (Information
Security Buzz, 2019).
Mobile Malware - Security experts have recognized the security risks of mobile devices in
the early stages of their internet connectivity. The minimal unfair play of mobile phones
among the long list of recent attacks has worried users much less than they should. Given the
relentless dependence on our culture of mobile phones and the few target cybercriminals, this
creates a catastrophic threat (Information Security Buzz, 2019).
Third-party Entry - Cybercriminals prefer the path of least resistance. Target is the poster
child of a major network attack through third-party entry points (Information Security Buzz,
2019).
Neglecting Proper Configuration- Big data tools come with the ability to be customized to
fit an organization's needs. Companies continue to neglect the importance of properly
configuring security settings (Information Security Buzz, 2019).
Social Engineering - Cybercriminals know intrusion techniques have a shelf life They have
turned to reliable non-technical methods fake social engineering, which rely on social
interaction and psychological manipulation to gain access to confidential data. This form of
intrusion is unpredictable and effective (Sowells, 2019).
The Computer Fraud and Abuse Act of 1986 (CFA Act) - is the cornerstone of many
computer-related federal laws and enforcement efforts. It was amended in October 1996 by
the National Information Infrastructure Protection Act of 1996, which modified several
sections of the previous act and increased the penalties for selected crimes. The punishment
for offenses prosecuted under this statute varies from fines to imprisonment up to 20 years, or
both. The severity of the penalty depends on the value of the information obtained and
whether the offense is judged to have been committed: (Chen and C. Storey, 2019)
• For purposes of commercial advantage
• For private financial gain
• In furtherance of a criminal act
Computer Security Act of 1987 - It was one of the first attempts to protect federal computer
systems by establishing minimum acceptable security practices (Chen and C. Storey, 2019).
Privacy Laws
Health Insurance Portability and Accountability Act Of 1996 (HIPAA) - also known as
the Kennedy- Kassebaum Act, protects the confidentiality and security of health care data by
Copyright Law
Intellectual property is a protected asset in the United States. The copyright laws of the
United States extend this privilege to published words, including electronic formats. Fair use
allows the use of copyrighted material for news coverage, teaching, scholarships and a series
of similar activities, provided that its use is for educational or educational purposes. library,
nonprofit or excessive (Chen and C. Storey, 2019). As long as the original author of these
works is duly recognized, including an exact description of the location of the sources
(citation), and the work is not presented as their own, it is quite permissible to include parts
of another person's work.
as a reference (Tallan, 2019).
These are the most common and important laws for the security of data and information in a
business. There is no exception for the Zara brand as well. Regardless of the size of the
business, these laws are always related to an organization. Taking into account the laws and
policies mentioned above, let's now turn to the legal / regulatory problems of the author's own
business intelligence tool for the company (Chen and C. Storey, 2019).
Service level agreements (SLA’s) should be designed for achieving multiple goals:
• quality services for reliability, predictability, scalability and cost management; • metrics
tied to the returns on investment (and equity) for operations that are considered
“core” or “prime value drivers” for the internal organization.
Thus, paradoxically, outsourcing can be used to shed light on insourced functions to improve
ROI, ROE and overall shareholder value (Tallan, 2019).
Confidentiality
Outsourcing contracts should include BI-type data and insights in the definition of
“confidential information.” Of course, whose “confidential information” its is should be
defined as well. Trade Secrets: Protection and Survival. The insights and process changes
derived from BI / BA analysis should be protected as trade secrets. Non-disclosure
agreements should segregate “confidential information” from “trade secrets” so that “trade
secrets” can survive the expiration of the non-disclosure period (Sowells, 2019).
Imagine having the ability to view your company's information in a social login interface
designed to be customizable according to your personal preferences. Imagine a program that
promotes configuration, mobility and updates on the fly to keep you informed as new data
becomes available. These information analysis and transfer capabilities are the future of
business intelligence for finance. This software is available for companies of all shapes and
sizes (Sharma, 2019).
Each year, new technological advances offer even greater opportunities in the field of
business information. For modern companies, especially those that deal with Internet
marketing and information transfer, it is important to stay at the forefront of Business
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Intelligence technology (commonly called BI). Previously, a company had to hire teams of
full-service analysts to meet its BI needs. Now, with the unprecedented increase in the
understanding of software and social networks, companies can access information that is
more accurate, accessible and easy to understand than ever. And the best part is that it can
cost a fraction of the price (Sharma, 2019).
The Future Business Intelligence
Various business intelligence companies have developed such software programs in order to
help business owners gain a comprehensive view of their company’s data. While there are
many different advantages that come with integrating a computer application with a specific
organization’s business intelligence for finance, there are a few aspects of this technology
that make it superlatively advantageous (Digumarti, 2019). One the fundamental successes of
any
Business Intelligence initiative is developing a consistent, single “version of the truth” across
all sources of information, yet this is also one of the most challenging (Loshin, n.d.). As
many economists and technical experts have pointed out in recent years, technology is not
slowing down, but is growing steadily. This means that old and obsolete methods are less and
less relevant (Digumarti, 2019). However, when companies use business intelligence for their
finance software, the need for periodic review of their systems is significantly reduced. This
is because the software can be updated from the program, often without human interaction
with the program. This means that business intelligence software can remain relevant for a
long time (Loshin, n.d.).
It not only helps you as a business adapt to the changing economy, but it also undergoes
adaptation itself. In addition to the adaptive qualities of BI software, there are also financial
implications that can save businesses money while increasing the effectiveness and efficiency
of their enterprise. In years past, companies would either need to create entire departments to
conduct analytical processes, or else outsource their BI needs to a different company. Both of
these practices came with a high price and lacked the efficiency that many companies were
looking for. However, now—for a fraction of the cost—businesses can access information
faster and with more accuracy (Loshin, n.d.).
This is the future of business intelligence which can be relatively achievable. Though there
are some concepts of Artificial Intelligence in combining with Business Intelligence, which
can be a game changer if and only if it can make it through. Therefore, for now the above-
Inditex, the world's largest clothing retailer and owner of Zara stocks up on Artificial
Intelligence, Big Data and analytics into its business strategy to stay ahead in the race of
competition. The biggest fashion retailer is hooking up with tech companies and hiring talent
from startups and partnering Analytics and investments, which offers an AI-powered
consumer behavior forecast platform (Sharma, 2019).
Most of the traditional fashion industries are lagging behind because they run on a bi-annual
or seasonal basis where it takes huge production lead time and typically low cost-centers.
This involves high stock inventory which leads to increase the price of holding that particular
stock, but ZARA trumps over such inefficiencies by leveraging big data. It understands the
taste and preferences of the customer by data analytics and manufactures the product
accordingly to attract customer attention, as customers are king of the market. But still the
company is testing ways to improve stock handling and they tied up with California based
Fetch Robotics to measure the stock inventory and test the robots (Sharma, 2019).
This is the best example of Zara using the technology and the future at their stores. Though it
has some realistic issues, this marketing campaign brought millions to the revenue. The
advertisement campaign was called, “SHOP THE LOOK” which was an augmented reality
piece of work, that was done superbly. Shoppers were able to see a live picture of what they
have bought or going to buy through these technologies, and the robots like figures will dress
what you bought in order to have a better third person look. Through this people tended to go
to the Zara stores more often. Some people just went to the store to check the advertisement
and ended up by buying something for them (Digumarti, 2019). The campaign was that good
and it was something people haven’t seen in the fashion industry by that time. This was a
huge step for the brand and this was all possible because of the use of business intelligence
and better decision making (Digumarti, 2019).
Retailers use customer-centric technologies, such as augmented reality (AR) applications,
virtual assistants and artificial intelligence chatbots, to stay in the mainstream of digital
retailers. Retailers are now investing in artificial intelligence and expect to reach $ 7.3 billion
in the next five years and integrate the automation, chatbot and analysis solution into the
market.
Competitors such as the great H&M brand are also turning to advanced analysis, new
technologies and supply chain management to generate profits and run smoothly. As a result,
4.4 Evaluate how organizations could use business intelligence to extend their target
audience and make them more competitive within the market, taking security
legislation into consideration.
Developing a business is a great challenge. It requires dedication, foresight and insight. If you
build this business from scratch, the bets are even greater. However, success is at the
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crossroads of business acumen and hard work. Successful business owners know the needs of
their ideal clients. They know where they are. And they know how to convey the message.
This includes the collection and proper use of data that drive, inform and encourage new
actions. That's where business analytics comes into the discovery of self-service data with
data governance and a touch of planning and forecasting. Here are five ways in which
business analysis can help you grow your business in a data-based way (Sullivan, 2001).
Expansion planning
Suppose you're ready to grow your business and open a branch, store, restaurant, or office in
a new location. And he has a ton of information about his growing customer base, the
maintenance of his equipment and other assets, the compensation of his employees and his
delivery or distribution programs. Did you know that you can use everything to develop a
detailed expansion plan based on your knowledge? (Sullivan, 2001)
With business analytics, you can find information about visualizations and panels, and then
study them in more detail using Business Intelligence and reports. In addition, you can
interact with the results and use the information to create your expansion plan (Sullivan,
2001).
Technology Integration
When customers use business intelligence tools for marketing, they create a fully integrated
marketing approach. Customers use all available channels and resources to research and
discuss a product or service and make the decision to buy or not. As a result, marketers must
integrate data from all available platforms to design the best interactions. The integration of
marketing technology is the best way to convey a unified message throughout the customer's
experience with your business (Better Buys, 2019). Unifying the message throughout a
customer's journey is important to provide a seamless customer experience. This can be
achieved by integrating real-time data to customize customer responses. When marketing
technologies are integrated, companies provide their customers with consistent messages
across all platforms, ensuring that the brand remains in the client's mind (Better Buys, 2019).
Social Analytics
These tools collect information from conversations and user actions on all online platforms.
Social analytics provides marketing departments with information about customer behavior
and thinking processes. These scans examine page navigation statistics and social networks.
Web analysis provides marketers with information about what's on your site, what links and
ads bring customers to your site, and is more successful. This data helps marketers make
better decisions about their business. content and messages on your site. The analysis of
social networks gives marketing specialists a unique vision of the hearts and minds of their
customers. This information allows companies to obtain more information about their target
audience and improve their ability to interact with their customers. The analysis of social
networks provides actionable information, such as campaign tracking. Campaign tracking
evaluates the performance of a campaign and determines the factors that affect its
performance. Social analysis promotes an intimate understanding of customer opinions,
which is important to improve engagement, campaign strategies and performance monitoring.
Customer Data
When all customer data is collected, they can be used to make more informed marketing
decisions. When companies have more accurate data, they can interact better with their
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customers. Therefore, unified customer data is important. When customer data is not unified,
marketing specialists communicate inaccurate and obsolete messages to their customers and
do not take advantage of all the data they have. Business Intelligence tools collect data from
multiple domains and organize them in a unified format. This data provides information
about customers and where they come from, allowing marketing specialists to know where
each customer comes from. These tools are the most effective business intelligence for
marketing and sales. The role of business intelligence in marketing allows companies to make
better and more informed marketing decisions (SplashBI, 2019).
In conclusion, it cannot impress everyone with a single message, so it is useless to try to
market the masses. For a marketing campaign to really have an impact, it must respond
directly to the unique wishes and needs of a specific group of customers. As you have seen,
there are ways to effectively determine your target market so that you can adapt your
marketing strategy to those customers. And once it has established itself as a reliable brand in
a target market, try expanding your target market using the techniques we have mentioned
here. These are the BI application for marketing purposes (SplashBI, 2019).
Conclusion
In an organization, managers have a key role in the success of operations. The managers have
to take decisions that directly affect the organization. A bad decision by a poorly informed
source will lead to disastrous outcomes. The decisions are taken at individual level right to
the organizational level. The implementation of BI will improve the decisions taken by the
mangers. The BI systems will in fact empower all the employees with enough information
and make them capable of decision making.
In an organization a lot of data is present. Data can be related to customers, suppliers,
invoices, purchase orders, pay slips, employee information, sales data, financial data, training
data, product data, client data, etc. It becomes cumbersome to manage such huge amounts of
everincreasing data. BI systems can make the management of these huge amounts of data
easy by using technologies like OLAP and Data Warehousing. From this paper, we can
conclude that the implementation of Business Intelligence will result in three mains;
• Lower Costs
• Increased Revenue
• Satisfied Customers
In conclusion, business intelligence and business analysis are the essential elements that a
company needs to effectively manage its information. Both terminologies seem to have
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similarities that allow students to infer that they are connected. In fact, it should be
recognized that analysis is a function of business intelligence. The information analyzed by
the analysis to predict the future is the same as that obtained from the business intelligence
component. BI and BA are committed to ensuring that the business progresses rapidly. It has
been discovered that most industries that run BI platforms have more sophisticated tools
capable of performing different types of analysis, including descriptive analysis, visual model
discoveries, prediction models and more. data mining. The two components of the company
also showed many advantages for what seemed to contribute to competitiveness. Based on
the articulations discussed in this document, it is therefore important that organizations
support high levels of analysis-based systems that can revolutionize the organization's ability
to rediscover and use the information it already has. . This is attributed to the fact that today,
it is intrinsically important not only to analyze the activity, but also to examine the actions in
response to an analysis and consider them as process change parameters. of the company.
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