Businesses have collected data for many years. Most of the data they collect has been for historical purposes, such as how much of an item has sold and what are the profits gained from those sales. Business intelligence allows one to take that data, manipulate as you see fit and generate reports. The data then has to be extracted and trends analyzed so that businesses can find more opportunities and new customer segments. This is known as business analytics. However that may sound simple, there are current business and technology conditions that complicate the effective application of business analytics to business intelligence and knowledge management data. I will discuss some of these conditions as well as some of the prospects for improvement.
Businesses have come to realize that the years of data that they have been collecting is of value and have launched major business intelligence initiatives in their organizations. However, many businesses are making a huge mistake in how they are handling the data and fail to realize that data does not equal information. Most businesses generate a lot of data, but relatively few use it effectively to create a competitive edge.
In order to turn data into information, Scott Staples (2009) states that companies need to follow a three-step process. This includes having a data warehouse, where a company's data resides and rules on how the data should be structured. Then the business intelligence is used to slice and dice the data and generate reports. And the third step being the business analytics, where companies need to extract the data, analyze trends, uncover opportunities, find new customer segments, and so forth.
One of the current business and technology conditions that complicates effective application of...