Identifying Key Components of Business Intelligence Systems and Their Role in Managerial Decision making
John Lloyd Sr. Physical Design Engineer
Business intelligence systems by definition are used to create knowledge to enable business decision-making(Olszak & Ziemba, 2006).This study examines literature published between 2001 to 2010 and identifies the four most common components of a business intelligence system;ETL tools, data warehouses, OLAP techniques, and data-mining.Functions that each component performs are detailed. How each component is used to facilitate managerial decision-making at
three levels of organizational management (operational, tactical and strategic) is described.
Introduction to the Literature Review
«Business intelligence is designed to support the process of decision-making»(Arnott,Gibson, & Jagielska, 2004, p. 296).Arnott et al. (2004) define the role of business intelligence»to extract the information deemed central to the business,and to present or manipulate that data into information that is useful for managerial decision support»(p. 296). Negash (2004) notes that business intelligence is «used to understand the capabilities available in the firm; the state of the art, trends, and future directions in the markets, the technologies, and the regulatory environment in which the firm competes; and the actions of competitors and the implications of these actions» (p. 177).Business intelligence systems combine operational data with analytical tools to present complex and competitive information to planners and decision makers,in order to improve the timeliness and quality of the decision-making process (Negash, 2004).