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Higher Nationals

Internal verification of assessment decisions – BTEC (RQF)


INTERNAL VERIFICATION – ASSESSMENT DECISIONS

Program title HND in Computing


Ms. Induni
Assessor jayathilaka Internal Verifier
Unit 14: Business Intelligence
Unit(s)

Assignment title Applying BI solutions to enhance and improve business operations


R.I.B.Sanjuna
Pasandul
Student’s name Rathnamalala
List which assessment criteria Pass Merit Distinction

the Assessor has awarded.

INTERNAL VERIFIER CHECKLIST

Do the assessment criteria awarded match


those shown in the assignment brief? Y/N

Is the Pass/Merit/Distinction grade awarded


justified by the assessor’s comments on the Y/N

student work?
Has the work been assessed
Y/N
accurately?
Is the feedback to the student:
Give details:
• Constructive? Y/N
• Linked to relevant assessment criteria? Y/N
• Identifying opportunities for Y/N
improved performance?
• Agreeing actions? Y/N
Does the assessment decision need

Y/N
amending?

Assessor signature Date

Internal Verifier signature Date

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Sanjuna Rathnamalala Business intelligence Assignment 01
Programme Leader signature (if required)

Date

Confirm action completed


Remedial action taken
Give details:

Assessor signature Date

Internal Verifier
Date
signature
Program Leader
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Sanjuna Rathnamalala Business intelligence Assignment 01
Higher Nationals - Summative Assignment Feedback Form
Student Name/ID R.I.B.Sanjuna Pasandul Rathnamalala / KUR00143068

Unit 14: Business Intelligence


Unit Title
Assignment Number Assessor
Date Received
Submission Date 1st submission
Date Received 2nd
Re-submission Date submission
Assessor Feedback:
LO1 Discuss business processes and the mechanisms used to support business decision-making.
Pass, Merit & Distinction P1 M1 D1
Descripts

LO2 Compare the tools and technologies associated with business intelligence functionality.
Pass, Merit & Distinction P2 M2 D2
Descripts

LO3 Demonstrate the use of business intelligence tools and technologies


Pass, Merit & Distinction P3 P4 M3 D3
Descripts

LO4 Discuss the impact of business intelligence tools and technologies for
effective decision-making purposes and the legal/regulatory context in which
they are used.
Pass, Merit & Distinction P5 P6 M4 D4
Descripts

Grade: Assessor Signature: Date:

Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation has taken place and grades
decisions have been agreed at the assessment board.

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Sanjuna Rathnamalala Business intelligence Assignment 01
Assignment Feedback
Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor Date
signature

Student signature [email protected] Date 2024.01.21

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Sanjuna Rathnamalala Business intelligence Assignment 01
Pearson Higher Nationals in
Computing
Unit 14: Business
Intelligence Assignment 01

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Sanjuna Rathnamalala Business intelligence Assignment 01
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Sanjuna Rathnamalala Business intelligence Assignment 01
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2024.01.21
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Sanjuna Rathnamalala Business intelligence Assignment 01
Higher National Diploma in Business
Assignment Brief
Student Name /ID Number R.I.B.Sanjuna Pasandul Rathnamalala / KUR00143068

Unit Number and Title Unit 14 : Business Intelligence

Academic Year 2021/2022

Unit Tutor

Assignment Title Business Process Support Mechanisms

Issue Date

Submission Date

IV Name & Date

Submission format

The submission should be 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. Follow Harvard referencing system for in-text citations, reference list and
the bibliography.. The recommended word limit is 4,000–4,500 words, although you will not be
penalised for exceeding the total word limit.

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Sanjuna Rathnamalala Business intelligence Assignment 01
Unit Learning Outcomes:

LO1 Discuss business processes and the mechanisms used to support business
decision-making.
LO2 Compare the tools and technologies associated with business intelligence
functionality
LO3 Demonstrate the use of business intelligence tools and technologies
LO4 Discuss the impact of business intelligence tools and technologies for effective
decision-making purposes and the legal/regulatory context in which they are used

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Sanjuna Rathnamalala Business intelligence Assignment 01
Assignment Brief and Guidance:

Data and information are core to any organizational business process. Meaningful information is
a necessity to drive profitable business actions. The concept of Business Intelligence (BI) has
evolved through technologies such as Decision Support Systems (DSS) to a number of tools,
technologies, architectures and methods which involves data cleaning, data integration, data
mining, data evaluation and data representation. Hence BI can be identified as a software suite
of software and services to transform data into actionable intelligence and knowledge.

Scenario
Yard of Ale is a large-scale brewery in Sri Lanka and well establish company control 20% market
share of beer market which is the 2nd biggest market share from entire beer market. The
company have automated production line include mills, Brewhouse and bottling plant and each
control by separate embedded software system not allowed to access operational data stores
but can be configured to generate CSV or excel operational data file at the end of each batch.
The company consists of multiple departments responsible for each operations of the
organization such as Production, Engineering, HR/Legal, finance, Sales and marketing,
Procurement, Administration, Quality control, Research and development, IT and each and
every department have its own operational systems to record keeping purposes and each
operational application software developed by professionally. Each department manages by a
department manager. For an example, production department manages by the production
manager and he is responsible for manage all production related operations in sub departments.
Mills ,Brewhouse ,Bottling plant, raw material and finish products stores and each sub
department managed by operational manager. This hierarchical configuration replicates
throughout most of the department. Upper management of brewery required to consolidate all
these data in to one data warehouse with the data contain in the legacy system as well. Other
than that upper management required to incorporate every external data about company and
products from various data collection and research agencies the business intelligent system.
Those external data available as JSON/XML data files, plain text reports, social media

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Sanjuna Rathnamalala Business intelligence Assignment 01
comments/posts and all negative and positive online comments about organization and
products.

Upper management of company believe more you know about organization and the external
environment you have better completive advantage. Have potential to control bigger market
share and effectively become number 1 beer in Sri Lanka

Task 1
Analyse the business processes and the supporting processes of the organization given in
the scenario and differentiate between semi structured and unstructured data. Evaluate
the benefits and drawbacks of using application software to handle the business processes
in Yard of Ale.

Task 2
Compare how strategic, tactical and operational decisions are supported within the
organization for business decision making process. You have to furthermore compare and
contrast how various information systems (TPS,MIS,DSS) could be utilized to enhance
those decisions with related to key features of BI framework . Justify your answer with
relevant to the functionalities of business intelligence.

Task 3
Chief Engineer is the tactical manager of engineering department who oversees all repairs and
maintenance of the total eight sectors of the factory that include water purification plant,
Mill, Brewhouse, bottling plant, waste treatment plant, factory maintenance and repair/
fabrication shop. Each sector consists of two or more sub sectors and each subsector have 4-
10 of machines. Chief engineer requires to track the maintenance and repair all the
machineries with minimal disruption to production and he must maintain healthy inventory
of spare parts which consist of over 5000s items, track the progress of every jobs, Identify

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Sanjuna Rathnamalala Business intelligence Assignment 01
problematic arias, Track engineers and mechanics work logs and efficiency and monitor
system downtime.

3.1. Explain what business intelligence is and the tools and technologies associated with it by
taking relevant examples to the organization given in the scenario.

3.2. Design a Managerial dash board for chief engineer using various data visualizations
methodologies that includes 6-8 widgets to present required information. Apply appropriate
customizations that can utilize to improve the managerial dashboard designed above .
Critically evaluate how your Dashboard design and the suggested enhancement could
optimize chief engineer’s performance by delivering accurate and reliable information to
increase his effectiveness.

Task 4
4.1. Discuss how organizational decision-making process can be improved by implementing
business intelligence tools. Conduct a research to identify the organizations that have utilized
new business intelligent innovations and trends to improve their performance and to extend
BI systems to target audience, provide better competitive advantage within the market.

4.2. Sharing data within the organization through a BI tool can raise legal, ethical and
professional concerns. Explore the legal issues that may result when using business
intelligence tools (Eg: Data protection laws, Cyber security, etc.) and evaluate how the
chosen organization and extend the target audience / gain a competitive advantage by
securely exploiting Business Intelligence tools.

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Sanjuna Rathnamalala Business intelligence Assignment 01
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Sanjuna Rathnamalala Business intelligence Assignment 01
Grading Rubric

Achieve
Grading Criteria d Feedback

LO1 Discuss business processes and the


mechanisms
used to support business decision-making.

P1 Examine, using examples, the terms


‘Business
Process’ and ‘Supporting Processes’.
M1 Differentiate between unstructured
and semi-
structured data within an organisation.
D1 Evaluate the benefits and drawbacks of
using
application software as a mechanism for
business
processing.
LO2 Compare the tools and technologies
associated
with business intelligence functionality

P2 Compare the types of support available


for business
decision-making at varying levels within
an
organization.
M2 Justify, with specific examples, the key
features of

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Sanjuna Rathnamalala Business intelligence Assignment 01
business intelligence functionality.
D2 Compare and contrast a range of information
systems and technologies that can be used to support
organisations at operational, tactical and strategic
levels.
LO3 Demonstrate the use of business intelligence tools
and technologies

P3 Determine, with examples, what business


intelligence is and the tools and techniques associated
with it.

P4 Design a business intelligence tool, application or


interface that can perform a specific task to support
problem-solving or decision-making at an advanced
level.

M3 Customise the design to ensure that it is user


friendly and has a functional interface.

D3 Provide a critical review of the design in terms of


how it meetsa specific user or business requirement and identify

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Sanjuna Rathnamalala Business intelligence Assignment 01
what customisation has been integrated into the
design.

LO4 Discuss the impact of business intelligence tools


and technologies for effective decision-making
purposes and the legal/regulatory context in which
they are used
P5 Discuss how business intelligence tools can
contribute to effective decision-making.
P6 Explore the legal issues involved in the secure
exploitation of business intelligence tools.

M4 Conduct research to identify specific examples of


organisations that have used business intelligence
tools to enhance or improve operations
D4 Evaluate how organisations could use business
intelligence to extend their target audience and make
them more competitive within the market, taking
security legislation into consideration.

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Sanjuna Rathnamalala Business intelligence Assignment 01
Table of Contents
1.0. Task 01.................................................................................................................................................. 19
1.1. Business process................................................................................................................................19
1.1.1. Production process.....................................................................................................................19
1.1.2. Sales and Marketing process......................................................................................................20
1.1.3. Procurement process..................................................................................................................20
1.2. Supporting process............................................................................................................................20
1.2.1. IT process....................................................................................................................................20
1.2.2. Research and Development process...........................................................................................21
1.2.3. Quality Control process..............................................................................................................21
1.3. Data Consolidation and Business Intelligence................................................................................21
2.0. Task 02.................................................................................................................................................. 22
2.1. Decision Support Systems at Different Organizational Levels............................................................22
2.1.1. Strategic Decision making...........................................................................................................22
2.1.2. Tactical Decision Making............................................................................................................23
2.1.3. Operational Decision-Making.....................................................................................................24
2.2. Comparison of Decision Support Systems.....................................................................................25
2.2.1. Management Information Systems............................................................................................25
2.2.2. Transaction Processing Systems.................................................................................................26
2.2.3. Managed Security services (MSS)...............................................................................................26
3.0. Task 03.................................................................................................................................................. 27
3.1. Business Intelligence.........................................................................................................................27
3.1.1. Key components of BI.................................................................................................................27
3.1.2. Business Intelligence Tools.........................................................................................................29
3.1.3. Business Intelligence Techniques................................................................................................32
3.2. Challenges in BI.................................................................................................................................33
4.0. Task 4.................................................................................................................................................... 34
4.1. Effective Decision-Making from BI.....................................................................................................34
4.1.1. Data driven decision making.......................................................................................................34
4.1.2. Real Time monitoring.................................................................................................................35
4.1.3. Improved Operational efficiency................................................................................................35
4.1.4. Better customer Insights.............................................................................................................35
4.1.5. Enhanced Strategic planning......................................................................................................36
4.2. Legal Issues in Secure exploitation of BI tools...................................................................................36
4.2.1. Data Privacy................................................................................................................................36
4.2.2. Security.......................................................................................................................................36
4.2.3. Compliance.................................................................................................................................37
4.2.4. Intellectual property...................................................................................................................37
4.3. Protecting BI systems........................................................................................................................37
4.3.1. Data security...............................................................................................................................37

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Sanjuna Rathnamalala Business intelligence Assignment 01
4.3.2. Security Policy.............................................................................................................................38
4.3.3. Regular security assessments.....................................................................................................38
4.3.4. Security controls.........................................................................................................................39
4.3.5. Monitoring and Audit.................................................................................................................39
4.3.6. Employee training.......................................................................................................................40
4.3.7. Disaster recovery plan................................................................................................................40
References....................................................................................................................................................42

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Sanjuna Rathnamalala Business intelligence Assignment 01
Figure 1: Business Process............................................................................................................................20
Figure 2: Power BI........................................................................................................................................31
Figure 3:Tableau...........................................................................................................................................32
Figure 4: SAS Business Intelligence...............................................................................................................33

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Sanjuna Rathnamalala Business intelligence Assignment 01
1.0. Task 01

Leading the Sri Lankan beer market, Yard of Ale Brewery is the second largest in the
sector with a healthy 20% market share. The brewery runs a number of departments, each
headed by a manager who is in charge of particular facets of the company's operations.
The upper management wants to improve its competitive advantage by combining data
from various sources, such as external data from research agencies and social media and
internal operational systems. In light of the Yard of Ale Brewery, this assignment
examines the ideas of "Business Processes" and "Supporting Processes."

1.1. Business process

Business processes are a sequence of planned actions taken by an organization's


employees in order to accomplish particular goals. Business processes in the context of
Yard of Ale Brewery include all of the final steps involved in making and distributing
beer to consumers.

Figure 1: Business Process

1.1.1. Production process

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Sanjuna Rathnamalala Business intelligence Assignment 01
The process of production entails converting raw ingredients into completed beer
products. It includes smaller operations such as bottling, brewing, and milling that are
overseen by an operational manager who reports to the production department.
Example: In order to produce the mash, a critical stage in the brewing process, the milling
process entails grinding raw materials like malted barley.

1.1.2. Sales and Marketing process

The promotion, distribution, and sale of the brewery's goods are all part of this process.
Reaching consumers and growing market share require it.
Example: Introducing a brand-new beer variety and creating advertising campaigns to
support it.

1.1.3. Procurement process

This procedure entails locating and purchasing the raw ingredients required to produce
beer.
As an illustration, consider negotiating contracts with suppliers to guarantee a consistent
and affordable supply of hops, malt, and other ingredients.

(Pratt, 2022)

1.2. Supporting process

The processes that aid and improve the effectiveness of business processes are known as
supporting processes. Despite the fact that they might not be directly involved in core
production or service delivery, they are vital to the operation as a whole.

1.2.1. IT process

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Sanjuna Rathnamalala Business intelligence Assignment 01
The IT department ensures data security and smooth operation of the Yard of Ale
Brewery's various operational systems.
Keeping the mills, brewhouse, and bottling plant's embedded software systems up to date
and maintained is one example.

1.2.2. Research and Development process

This process includes developing new products, improving quality, and innovating
brewing methods.
For instance, investigating and testing out novel brewing techniques to produce
distinctive beer flavours.

1.2.3. Quality Control process

putting the beer products through rigorous testing and adhering to quality standards to
ensure their consistent quality.
For instance, routinely testing beer samples for microbiological contamination, flavour
consistency, and alcohol content.
(Pratt, 2022)

1.3. Data Consolidation and Business Intelligence

 The upper management of Yard of Ale Brewery understands the value of


combining data from multiple sources, such as external data from research
agencies and social media and internal operational systems.

 Utilizing a data warehouse to integrate and analyse data for better decision-
making.

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Sanjuna Rathnamalala Business intelligence Assignment 01
 Incorporating external data such as customer feedback from social media to
understand market sentiments.
(Digdash, 2023)

2.0. Task 02

2.1. Decision Support Systems at Different Organizational Levels

Successful organizations depend on effective decision-making, and different


organizational levels use different kinds of decision support systems. This assignment
compares different levels of decision support systems with an emphasis on tactical,
operational, and strategic decision making.
(Segal, 2022)

2.1.1. Strategic Decision making

An organization's long-term vision and mission are shaped by its strategic decisions.
Decision support tools like business intelligence (BI) and executive information systems
(EIS) are vital in this situation.

1) Executive Information systems (EIS)

Executive Information Systems (EIS) are specialized tools that furnish top-level
executives with concise insights into key performance indicators and strategic metrics.
This enables informed decision-making aligned with long-term organizational goals. By
offering summarized information, EIS facilitates a comprehensive understanding of the
overall health and performance of the organization. This strategic tool empowers
executives to navigate complexities, prioritize objectives, and ensure that their decisions
contribute effectively to the success of the business. EIS plays a pivotal role in enhancing
the decision-making process at the executive level, fostering a proactive and informed
approach to managing and steering the organization toward sustained success.

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Sanjuna Rathnamalala Business intelligence Assignment 01
2) Business Intelligence (BI)

The process of looking through current and historical data to find trends, patterns, and
insights is known as business intelligence (BI). It is essential for making strategic
decisions because it offers useful data on consumer behavior, market trends, and
competitive environments. Through a thorough analysis of data, business intelligence (BI)
empowers organizations to make well-informed decisions and fosters a deeper
understanding of their business environment. Businesses can maximize performance, gain
a competitive edge in the market, and adapt to changing conditions with the help of this
analytical approach. Essentially, business intelligence (BI) converts unprocessed data into
useful intelligence that helps organizations make strategic and well-informed decisions.
(Techtarget, 2021)

2.1.2. Tactical Decision Making

Tactical decisions serve as a crucial link between overarching strategic goals and the
practicalities of daily operations. Decision support systems like Management Information
Systems (MIS) and Key Performance Indicators (KPIs) play a pivotal role in this context.
MIS provides valuable information for effective decision-making, while KPIs offer
measurable benchmarks to assess performance. Together, these tools empower managers
to align operational activities with strategic objectives, ensuring a cohesive and goal-
oriented approach. This synergy enhances organizational efficiency and agility,
facilitating informed decision-making at the tactical level for sustained success.
(Thor Olavsrud, Josh Fruhlinger, 2023)

1) Management Information System (MIS)

Management Information System (MIS) is a system that produces reports and data for
mid-level managers to oversee departmental performance. It facilitates tactical decision-
making by offering real-time operational data, enabling managers to assess and adapt
their strategies promptly. MIS serves as a crucial tool in organizational management,

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Sanjuna Rathnamalala Business intelligence Assignment 01
providing timely and relevant information to support effective decision-making at the
mid-management level. This system enhances efficiency and responsiveness by offering
insights into ongoing operations, empowering managers to make informed adjustments
for optimal departmental performance.

2) Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are quantifiable metrics that gauge the achievement
of particular business goals. Serving as measurable indicators, KPIs facilitate tactical
decision-making by providing benchmarks for assessing departmental accomplishments
and ensuring alignment with overarching strategic objectives. These metrics offer a
tangible means of tracking and evaluating performance, enabling organizations to make
informed decisions, enhance efficiency, and stay on course toward their strategic targets.

2.1.3. Operational Decision-Making

Operational decisions impact daily activities and require quick, routine assessments.
Decision support systems like Transaction Processing Systems (TPS) and Operational
Support Systems (OSS) are crucial at this level.

1) Transaction Processing Systems (TPS)

Transactional Processing System (TPS) is a real-time data capture and processing system.
It efficiently handles routine transactions like order processing and inventory
management, ensuring timely and accurate results. TPS plays a pivotal role in supporting
operational decisions by providing instant access to transactional data. Its seamless
functionality ensures businesses can make informed decisions based on up-to-the-minute
information, optimizing processes and maintaining precision in tasks essential for day-to-
day operations.

2) Operational Support Systems (OSS)

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Sanjuna Rathnamalala Business intelligence Assignment 01
Open-Source Software (OSS) streamlines daily operational tasks, emphasizing
streamlined workflows and optimal resource allocation. It plays a pivotal role in
operational decision-making by furnishing lower-tier managers with tools to efficiently
oversee day-to-day activities. By offering accessible and adaptable solutions, OSS
enhances the effectiveness of managerial processes, ensuring smooth operations and
enabling organizations to make informed decisions for sustained productivity.
(quixy, 2023)

2.2. Comparison of Decision Support Systems

Management Information Systems (MIS) focus on providing strategic information for


managerial decision-making, while Transaction Processing Systems (TPS) primarily
handle routine, operational transactions. MIS emphasizes analysis and planning, while
TPS ensures efficient and accurate processing of day-to-day transactions within an
organization.

2.2.1. Management Information Systems

Management Information System (MIS) plays a crucial role in organizational decision-


making by focusing on generating reports and information for managerial use. This
system encompasses various types, including Transaction Processing Systems (TPS),
Management Support Systems (MSS), Decision Support Systems (DSS), and Expert
Systems. TPS ensures efficient data processing in day-to-day operations, while MSS aids
middle managers in monitoring and controlling activities. DSS supports decision-making
processes by providing interactive tools for analysis, and Expert Systems leverage
specialized knowledge to assist in complex decision scenarios.

The importance of MIS lies in its ability to offer a comprehensive platform for managers
to analyse data, track operations, and make informed decisions. By synthesizing
information from different organizational levels, MIS enhances managerial efficiency and
effectiveness. It facilitates timely access to relevant data, fostering a proactive approach

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Sanjuna Rathnamalala Business intelligence Assignment 01
to problem-solving and strategic planning. Ultimately, MIS empowers organizations to
adapt to dynamic environments and achieve their objectives through informed decision-
making.
(Segal, 2022)

2.2.2. Transaction Processing Systems

Transaction Processing System (TPS) is a crucial function that captures and processes
transactional data in real-time, facilitating seamless daily operations within an
organization. TPS includes Batch Processing Systems, ensuring immediate access to
transaction results. The real-time nature of TPS is vital for maintaining accuracy,
reliability, and consistency in processing transactions.

By capturing and processing data as it occurs, TPS minimizes the risk of errors and
enhances the efficiency of daily business activities. Batch Processing Systems under the
TPS umbrella further contribute to the immediate availability of transaction results. This
immediacy is essential for decision-making processes and enables organizations to
respond promptly to evolving circumstances.

In essence, TPS serves as the backbone of operational processes, providing a foundation


for reliable and precise transaction handling. Its significance lies in its ability to uphold
data integrity, support timely decision-making, and ensure the overall smooth functioning
of an organization's day-to-day activities.

2.2.3. Managed Security services (MSS)

Managed Security Services (MSS) represents a contemporary evolution in decision


support systems, assuming a pivotal role in bolstering cybersecurity. Unlike traditional
decision support systems, MSS is specifically tailored for security, offering proactive
monitoring, threat detection, and incident response. It leverages advanced technologies
like artificial intelligence and machine learning to swiftly identify and mitigate cyber
threats. MSS providers offer round-the-clock surveillance, enabling real-time threat

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Sanjuna Rathnamalala Business intelligence Assignment 01
analysis and immediate response, a feature often absent in conventional decision support
systems. Additionally, MSS integrates threat intelligence, enabling organizations to stay
abreast of emerging risks.

In contrast, traditional decision support systems primarily focus on general business


intelligence and lack the specialized security functionalities inherent in MSS. The latter's
emphasis on continuous vigilance and rapid incident resolution makes it indispensable in
today's dynamic cybersecurity landscape, reflecting a paradigm shift towards specialized
and adaptive decision support in the realm of digital security.
(Segal, 2022)

3.0. Task 03

3.1. Business Intelligence

Business Intelligence (BI) is a process that involves collecting, analyzing, and presenting
data to help organizations make informed decisions. It utilizes software and tools to
transform raw data into actionable insights, fostering business growth and improving
overall performance. BI involves various key processes, including data mining, reporting,
and data visualization. The goal is to provide users with a clear understanding of data
through reports, dashboards, charts, and graphs, allowing them to recognize trends, draw
conclusions, and make informed decisions.

3.1.1. Key components of BI

1. Data Sources and Integration: BI starts with data. Organizations accumulate


data from various sources such as transactional systems, customer interactions,
social media, and more. The first step in BI involves integrating this disparate data
into a unified and accessible repository. Data integration ensures that decision-
makers have a comprehensive view of the organization's operations.

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Sanjuna Rathnamalala Business intelligence Assignment 01
Example: Consider a retail company that collects data from point-of-sale systems, online
transactions, and customer feedback. BI tools can integrate this data to provide a
consolidated view of sales performance, customer preferences, and inventory levels.

2. Data Warehousing: Data warehousing involves the creation and maintenance of


a centralized repository for storing structured and organized data. This repository,
known as a data warehouse, facilitates efficient querying and reporting. It acts as
the backbone of BI, providing a foundation for analysis and reporting tools.
Example: A financial institution might use a data warehouse to store transactional data
from multiple branches and channels. This enables comprehensive financial reporting and
analysis across the organization.

3. Data Analysis and Reporting: The heart of BI lies in the ability to analyse and
report on data. BI tools offer a range of analytical capabilities, from basic
reporting to advanced analytics, such as data mining and predictive modelling.
Visualization tools help transform complex data sets into comprehensible charts,
graphs, and dashboards.
Example: An e-commerce company analysing website traffic data might use BI tools to
create visualizations depicting user behaviour, conversion rates, and popular products.
Decision-makers can use these insights to optimize the online shopping experience.

4. Querying and Reporting Tools: BI tools often include querying and reporting
functionalities, allowing users to extract specific information from the data
warehouse. Users can create customized reports and dashboards to monitor key
performance indicators (KPIs) and track progress toward business goals.
Example: A sales manager can use BI tools to query the data warehouse for sales
performance metrics, generate reports on top-performing products, and create dashboards
illustrating sales trends over time.

5. Business Performance Management: BI extends beyond retrospective analysis


to forward-looking processes. Business Performance Management (BPM)
involves setting goals, monitoring performance against those goals, and taking

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corrective actions. BI tools assist organizations in aligning their activities with
strategic objectives.
Example: A manufacturing company using BI for BPM might set production efficiency
targets, monitor real-time production data, and adjust operations to optimize output and
minimize downtime.

6. Data Mining and Predictive Analytics: Data mining and predictive analytics
leverage advanced algorithms to identify patterns, trends, and potential future
outcomes. These techniques go beyond traditional reporting by uncovering hidden
insights and supporting proactive decision-making.
Example: A telecommunications company might use predictive analytics to forecast
network traffic, helping them anticipate and mitigate potential issues before they impact
service quality.
(Stedman, 2023)

3.1.2. Business Intelligence Tools

1. Power BI: Tool Overview: Power BI, developed by Microsoft, is a comprehensive


suite of business analytics tools. It enables users to connect to various data sources,
transform raw data into meaningful insights, and create interactive dashboards and
reports.
Use Case: A retail chain can use Power BI to analyse sales data, track inventory levels,
and visualize store performance. The tool's integration with other Microsoft products
allows seamless collaboration and data sharing.

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Figure 2: Power BI

2. Tableau: Tool Overview: Tableau is a powerful data visualization and business


intelligence tool that helps users create interactive and shareable dashboards. It allows for
the integration of various data sources and supports real-time data analysis.
Use Case: An e-commerce company can use Tableau to visualize website traffic, analyse
customer behaviour, and optimize marketing strategies. The tool's intuitive interface
facilitates quick and insightful data exploration.

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Figure 3:Tableau

3. QlikView/Qlik Sense: Tool Overview: QlikView and Qlik Sense, developed by Qlik,
offer associative data modelling and visualization capabilities. These tools empower users
to explore data relationships and uncover hidden insights through interactive dashboards.
Use Case: A healthcare organization can use Qlik Sense to analyse patient data, track
treatment outcomes, and identify patterns that contribute to better decision-making in
patient care and resource allocation.

4. SAS Business Intelligence: Tool Overview: SAS Business Intelligence is a


comprehensive suite that includes various modules for reporting, analytics, and data
visualization. It is widely used for advanced analytics, predictive modelling, and
statistical analysis.
Use Case: An insurance company can leverage SAS Business Intelligence for risk
assessment, fraud detection, and predictive modelling to optimize underwriting processes
and improve claims management.

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Figure 4: SAS Business Intelligence

5. Apache Hadoop: Tool Overview: While not a BI tool per se, Apache Hadoop is an
open-source framework for distributed storage and processing of large datasets. It is often
used in conjunction with BI tools to handle big data and support advanced analytics.
Use Case: A financial institution dealing with massive volumes of transactional data can
use Apache Hadoop to store and process this data efficiently, enabling BI tools to extract
meaningful insights.
(Haije, 2022)

3.1.3. Business Intelligence Techniques

1. Machine Learning Algorithms: Technique Overview: Machine learning algorithms


are increasingly integrated into BI tools to enable predictive analytics. These algorithms
learn from historical data patterns and make predictions about future outcomes.
Use Case: An online streaming service can use machine learning algorithms to analyse
user preferences, predict content recommendations, and enhance the overall user
experience.

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Sanjuna Rathnamalala Business intelligence Assignment 01
2. Data Virtualization: Technique Overview: Data virtualization enables organizations to
access and use data without physically consolidating it into a single repository. This
technique is useful for real-time data integration and analysis.
Use Case: A multinational corporation with distributed data sources can use data
virtualization to analyse real-time market trends, allowing decision-makers to respond
promptly to changing conditions.

3. Data Governance: Technique Overview: Data governance involves establishing


policies, processes, and controls to ensure data quality, integrity, and security. It is a
crucial aspect of BI, especially in industries with stringent regulatory requirements.
Use Case: In the healthcare sector, where data privacy and compliance are paramount,
data governance ensures that patient information is handled securely and in accordance
with regulatory standards.

(Misiuro, 2022)

3.2. Challenges in BI

1. Data Quality and Integration: Ensuring the quality and consistency of data from
diverse sources remains a significant challenge in BI. Inaccurate or incomplete
data can lead to flawed insights and misguided decision-making.

2. Data Security and Privacy: With the increasing volume of sensitive data being
collected and analysed, organizations face the challenge of safeguarding this
information against unauthorized access and cyber threats.

3. User Adoption: BI tools are most effective when embraced by end-users across
various departments. Encouraging widespread adoption and ensuring that users
have the necessary skills to leverage these tools can be challenging.

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4. Scalability: As organizations grow and accumulate more data, scalability
becomes a concern. BI systems need to handle larger volumes of data without
sacrificing performance.
(Evans, 2023)

4.0. Task 4

4.1. Effective Decision-Making from BI

Organizations today deal with a dizzying amount of data generated by numerous internal
and external sources in the dynamic world of business. Business intelligence (BI) tools,
which offer a methodical way to turn raw data into actionable insights, have become
essential tools for navigating this sea of information. We examine the ways in which BI
tools support efficient decision-making in this thorough analysis, including data-driven
decision-making, real-time monitoring, operational effectiveness, customer insights, and
strategic planning.

4.1.1. Data driven decision making

BI tools' promotion of data-driven decision-making is one of their primary contributions


to well-informed decision-making. Conventional decision-making frequently depended
on experience and gut feeling, but BI tools let businesses base choices on data and
patterns. Business executives can make well-informed decisions by examining past data
and predicting future trends.
Take into consideration Yard of Ale, a sizable Sri Lankan brewery. The production
manager can forecast demand, determine product preferences, and analyze historical sales
data with BI tools. By optimizing production schedules and guaranteeing that the right
products are available at the right time, this data-driven approach ultimately affects the
bottom line.

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Sanjuna Rathnamalala Business intelligence Assignment 01
4.1.2. Real Time monitoring

Business Intelligence (BI) tools enable organizations to monitor key performance


indicators (KPIs) and market conditions in real-time. Because of their agility, businesses
are able to react quickly to changes in internal operations, market trends, and customer
demand. Decision-makers are able to quickly adjust strategies and seize new
opportunities thanks to real-time monitoring.
Upper management at Yard of Ale can monitor sales trends, production efficiency, and
inventory levels thanks to real-time monitoring. The brewery can ensure customer
satisfaction and capitalize on market trends by adjusting production schedules and
allocating resources in response to a sudden surge in demand for a particular product.

4.1.3. Improved Operational efficiency

Business Intelligence (BI) tools are essential for locating inefficiencies and waste in an
organization. Businesses can make data-driven decisions that result in significant cost
savings and operational efficiency by analysing operational data. This entails maximizing
workflows, simplifying procedures, and making sure resources are distributed wisely.
BI tools can identify bottlenecks or inefficiencies in the mills, brewhouse, and bottling
plant by analysing data from the automated production line for Yard of Ale. These
insights can be used by the chief engineer to optimize machine performance, expedite
maintenance schedules, and ultimately lower operating expenses.

4.1.4. Better customer Insights

By offering insightful data on consumer behaviour, preferences, and requirements,


business intelligence (BI) tools support efficient decision-making. Businesses can better
meet customer expectations by customizing their products and services with an
understanding of customer data, which boosts customer satisfaction and loyalty.
BI tools can be used to analyse customer data in the context of Yard of Ale in order to
spot trends in beer preferences, buying behaviour, and customer feedback. By creating

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Sanjuna Rathnamalala Business intelligence Assignment 01
tailored campaigns and introducing new products based on consumer preferences, the
marketing department can improve overall customer satisfaction.

4.1.5. Enhanced Strategic planning

BI tools' ability to improve strategic planning is arguably one of their most important
contributions. BI tools enable businesses to create more successful strategic plans by
giving them insights into market trends, industry competition, and new opportunities.
Businesses can stay ahead of the competition and adjust to shifting market conditions by
using this forward-thinking strategy.
BI tools can be used by Yard of Ale to examine market trends, rivalry among
competitors, and outside variables that impact the beer sector. The brewery is able to
foresee changes in consumer preferences, spot possible threats, and take advantage of
market expansion opportunities thanks to its data-driven strategic planning.

(Medlyn, 2023)

4.2. Legal Issues in Secure exploitation of BI tools

Even though BI tools have many advantages, their safe use presents certain legal issues,
especially with regard to data privacy, security, compliance, and intellectual property.

4.2.1. Data Privacy


BI tools frequently entail the gathering and examination of sizable datasets, some of
which contain delicate client and employee data. Organizations must obtain the necessary
consents, put security measures in place, and give individuals control over their data in
order to ensure compliance with data protection laws like the CCPA and GDPR.

4.2.2. Security
It is crucial to make sure BI tools are secure because they handle sensitive business data.
Strong access controls, encryption of data while it's in transit and at rest, frequent

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Sanjuna Rathnamalala Business intelligence Assignment 01
vulnerability assessments, and swift resolution of security flaws are all part of this process
to stop unwanted access.

4.2.3. Compliance
Legal requirements pertaining to data privacy, security, and industry-specific
specifications must be complied with by organizations. This entails maintaining up to
date knowledge of pertinent laws, putting in place the controls that are required, and
carrying out frequent evaluations to guarantee continued compliance.

4.2.4. Intellectual property


Using BI tools may require examining confidential company information. Businesses
need to make sure they are not violating any intellectual property rights, like copyrights
or patents. Addressing this legal aspect requires taking important actions like obtaining
the necessary licenses, permissions, or anonymizing data.

(lagressiere, n.d.)

4.3. Protecting BI systems

4.3.1. Data security

Data encryption: Protecting sensitive data requires the use of strong encryption
protocols. By using sophisticated encryption techniques, businesses can reduce the risk of
data breaches and unauthorized disclosures by making sure that even in the event of
unauthorized access, the data is secure and unintelligible.

Access Monitoring and Control: Vigilantly monitoring and controlling access to


Business Intelligence (BI) systems is crucial for improving data security. Strict access
controls and user activity monitoring are important tools for preventing unwanted access
and guaranteeing that only authorized users can access and alter sensitive data in BI
systems, enhancing system security as a whole.

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Sanjuna Rathnamalala Business intelligence Assignment 01
Frequent Security Updates and Assessments: Maintaining data security is a continuous
effort. To keep ahead of emerging threats, security measures must be regularly evaluated
and updated. Organizations can strengthen their defences and preserve the integrity and
confidentiality of their sensitive data by regularly performing security audits,
vulnerability assessments, and the timely application of updates and patches.

4.3.2. Security Policy

Security Guidelines: Creating a strong security policy is essential to protecting


organizational resources. To protect information security, this document should include a
thorough description of the policies, processes, and recommended practices. It is essential
to communicate this policy clearly to all parties involved in order to create a commitment
to protecting sensitive data and a common understanding.

Positions and Accountabilities: Establish accountability by clearly defining roles and


responsibilities for all parties involved. Clearly state who is in charge of putting security
measures in place and keeping them up to date. This covers positions like management,
end users, and system administrators. It guarantees a coordinated effort and aids in
maintaining a proactive security posture against possible threats by designating specific
responsibilities.

Regular updates: A security policy needs to be flexible given how frequently


cyberthreats change. Update the policy frequently to take into account new risks,
developments in technology, and adjustments to the organizational structure. The
organization's security posture is maintained by the policy's ability to withstand changing
circumstances through regular reviews and revisions as well as ongoing training for
stakeholders.

4.3.3. Regular security assessments

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Sanjuna Rathnamalala Business intelligence Assignment 01
Maintaining a strong cybersecurity posture requires regular security assessments. Regular
evaluations carried out by impartial outside parties assist in locating possible weak points
and gaps in an organization's defences. Through the proactive mitigation of security
threats and the provision of insightful information about potential risks, these assessments
ultimately improve the system's overall resilience.
It is critical to address vulnerabilities and gaps as soon as assessments reveal them. This
entails putting corrective measures in place, like software patches, configuration updates,
or improved policies. Prompt mitigation actions assist in plugging security holes,
lowering the possibility of exploitation and possible breaches. A continuous improvement
cycle is facilitated by routine assessments and efficient remediation, which keep the
security posture flexible and resilient in the face of changing cyberthreats.

4.3.4. Security controls

Organizations use encryption and access controls to protect sensitive data in order to
improve cybersecurity. Access controls limit user rights, making sure that only people
with permission can access particular information or systems. By transforming data into a
secure code, encryption reduces the possibility of unwanted interception. Intrusion
detection systems and firewalls are examples of network security measures that
strengthen defence against outside threats. Data loss prevention tools guard against
unintentional or malicious leaks by monitoring, detecting, and preventing unauthorized
data transfers. In today's networked and data-driven world, this multimodal approach
strengthens the confidentiality and integrity of digital assets by providing a strong
security framework.

4.3.5. Monitoring and Audit

Strong cybersecurity requires effective auditing and monitoring procedures. To identify


potential security risks, system access is continuously monitored, and logs and user
activity are examined. This proactive strategy aids in quickly identifying anomalies and
vulnerabilities. Any suspicious activity triggers immediate alerts, allowing for a prompt
response to reduce risks. This diligent approach to auditing and monitoring guarantees a

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Sanjuna Rathnamalala Business intelligence Assignment 01
proactive approach to protecting systems, anticipating possible security breaches, and
preserving the integrity of information security protocols.

4.3.6. Employee training

Employee training must be conducted on a regular basis to improve organizational


security. To help staff develop a proactive security mindset, this involves regular training
sessions on security best practices. To further reduce cyber threats, training staff members
on social engineering and phishing awareness is essential. Employees can become more
vigilant and better safeguard sensitive data by keeping up with the most recent strategies
employed by cybercriminals. A knowledgeable workforce creates a culture of
cybersecurity within the company and is a powerful barrier against possible security
breaches.

4.3.7. Disaster recovery plan

Organizations must have a strong disaster recovery plan (DRP) in place to reduce
downtime and protect sensitive data in the event of unanticipated circumstances. A
thorough evaluation of all possible risks, such as system malfunctions, cyberattacks, and
natural disasters, should be included in the plan. It must specify precise protocols for data
restoration, backup, and continuity of business. It is essential to regularly review and
update the DRP in order to keep up with changing threats and technological
developments. By going through this iterative process, the plan is guaranteed to stay in
line with organizational goals and integrates insights from both simulated and real-world
incidents. A proactive and responsive approach to disaster recovery is made possible by
continuous refinement, which increases an organization's resilience.
Frequent testing is necessary to confirm the disaster recovery plan's efficacy.
Comprehensive drills and simulations are a useful tool for finding gaps, evaluating the
effectiveness of response protocols, and acquainting stakeholders with their
responsibilities. Regular reviews guarantee that the plan is current and takes
organizational structure, technology, and infrastructure changes into account. Test results
analysis enables modifications to be made to enhance overall readiness and response

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Sanjuna Rathnamalala Business intelligence Assignment 01
capabilities. This proactive approach fosters a resilient and adaptable culture within the
organization by reducing potential risks and boosting confidence among stakeholders and
employees.
(Smallcombe, 2021)

Incorporating business intelligence tools into organizational decision-making procedures


is a revolutionary way to handle the complexity of today's business environment. For
businesses like Yard of Ale to succeed, BI tools offer a comprehensive framework that
supports data-driven decision-making and improves strategic planning. However, careful
consideration of legal issues, proactive data protection measures, and compliance
assurance are necessary for the secure exploitation of these tools.

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Sanjuna Rathnamalala Business intelligence Assignment 01
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