Medium- Sized Companies Benefit from the Use of Business Technology Software

Topics: Decision making, Data warehouse, Data analysis Pages: 5 (1626 words) Published: January 12, 2013
How can small and medium- sized companies benefit from the use of business technology software? The purpose for the majority of the small and medium-sized companies is to improve their sales or growth. Nowadays, the online sales and the electronic data analysis represent a crucial phase to achieve this. Since a considerable number of years now, the use of software in the decision making by the large companies has been a regular practice. The competition this business faces is fearful, and the decisions are in some cases critical. On the other hand this scenario does not always apply for the small and medium ones. There are three main reasons for this. First, their sales are not as considerable as they can be for the large business. This means they do not confront the same decision-making pressure as the large ones do. Furthermore the potential negative consequences from bad decisions do not impact as hard as it does in large business. Second, the characteristics inherent to this type of business such as the attraction of customers according the location and design of the facility, or the extensive display of goods to facilitate the selection of them (1) generates often a switch of consumers. Ergo, purchases from another business due to attractive circumstances, for instance provisional especial price in a product or service are common situation. As a result the potential “single-time customers” can provoke a significant variability of consumers. Third, the early development of the company itself can be a family whom traditions and habits can influence the decisions. In this instance the hierarchical position plays a central roll in the decision making process. In several occasions this decisions are made experience-based and what is more risky, ignoring the market trends. Moreover in other cases, there is not a specific department or person in charge of neither the decisions nor the direction the company must go. The loose of one client, although is not the ideal scenario, cannot compromise most of the profits in the company. Nevertheless this altogether can produce a company with a limited customer portfolio despite the large variability of them. The implementation of new technologies allows companies to significantly increase their ability to achieve favorable positions in both domestic and international markets. However these tools must not represent an excessive expense. Especially in developing countries such as Mexico, the deficiencies of governmental programs to support these businesses, and the capital are limited. Hence this obliges the companies to pursuit low cost tools in order to manage their requirements. In contrast the continuous use of technologies to enhance productivity by the large companies or franchises, has putted progressively pressure in this challenging situation. “Business intelligence (BI) is an umbrella term that refers to a variety of software applications used to analyze an organization’s raw data.” (Şerbănescu 2011). In addition “the technologies for this support depend on a complex and powerful entity known as warehouse data”. (Stefan 2009) The purpose in this systems type was determined by “the requests of dynamic multidimensional systems able to support the intelligence decisional processes and having predictable abilities.” (Stefan 2009) There are four core issues in the companies in order to make decisions, data mining, referred to sifting through very large amounts of data for useful information (2) analytical processing, querying and reporting. To accomplish the activities aforementioned companies must be able to manage data warehouse. Stefan (2009) states that this data aims to support management decision making for business performance. Additionally to data-based decisions there are different options in the market for the small and medium business. And they are ranging from consulting services, sales strategy imitation from other businesses to specific software. However the...
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