BUSINESS INTELLIGENCE & CORPORATE STRATEGY

INTRODUCTION

Business Intelligence (BI) relates to the processes, technologies, and tools needed to transform data into information, information into knowledge, and knowledge into strategy that drive a business to initiate actions and generate profit. BI is utilized to acquire information about companies and competitors with the help of software and hardware which support conversion of data into relevant information. ?

BI is used extensively by corporations after for robust strategic decisions.??Its utility can be gauged from result delivery represented by superior results-

a) knowledge-based decisions to diversify business, access new markets, compete and establish leadership. ?

b) increased profit, sustained dividend payment, enriched image and improved corporate value.???? ?

Notwithstanding such outcomes, the popularity and success of BI have plunged. This is related to a host of reasons, like economic downturn, resource crisis and input cost elevation. Such frailties have led the decision makers in the corporations to employ new tools for decision-making. The search for a strategic solution complemented by Artificial Intelligence (AI) is gaining popularity. ??

A clear comprehension about the association between AI integrated BI (new system) and decision making assumes importance. Usually, decision making efficiency is promoted when the usability of such technologically advanced system is understood, making it feasible for strategic thinkers in corporations to make right choices. In this respect, it is relevant to note that decision making in such technology centric environment stems from-

-performance assessment (what is happening)

-critical review (why and how things will happen)

-forecast of future actions (what could happen)

In simple words top management in corporations needs to assess the effectiveness of current plans in delivering desired results. Such a comprehension is the impact of new system aided information slicing and dicing to develop new patterns and decipher the benefits.

It is worthwhile to note that the corporations utilize new system supported social media (Twitter, Facebook, YouTube, Linkedin, TikTok etc) to decipher the acquisition and usage behaviour of target audience; their motivation to recommend the brands, products and services; interest of prospects and loyal customers to use the products and services repeatedly. Further, the corporations seek to understand the behaviour of visitors to link their websites to the new system, facilitating objective information sharing; sales of products and services; and retention of competitive advantage. ??

ADVENT OF SOCIAL MEDIA & NEW SYSTEMS

The first social media website was called ‘Six Degrees’ in 1997. The name was anchored on the ‘six degrees of separation’ theory that lasted till 2001. The social site was not integrated to new system and as a result, it failed to garner the dynamism to slice and dice user data to configure patterns and relate them to product and services acquisition practices in diverse age classes. The site allowed registered and non-registered users to build profiles, cultivate friendship and connect to few users. With the passage of time, social media, complemented by new technology, evolved into a dynamic engine, aiding blogging and direct messaging. The year 1997 was the watershed year. ICQ emerged and this is in addition to America Online and AOL’s messenger. In the year 2000 the usage of internet became universal, accounting for 100 million individuals. It helped public to stay connected. At present young generation utilize common applications like Snapchat, Periscope etc, though they may not have used MySpace.

In the absence of new technology supported new systems, the explosive growth of social media sites in 2003 did not guarantee access of corporations to the brains of people, predict the purchase and disposal behaviour. The social media giants like Twitter and Facebook could not be used to customize products and services and win the loyalty of target class. The notable exception was MySpace that allowed users to endorse their music and be heard via recording agency and artists.

In addition, technology enabled LinkedIn has been popular among professionals, making it possible to network with all engaged in industry to stimulate professional opportunities, promote professional services and accommodate advertising. At the present, a vast majority of social sites is similar to LinkedIn but they differ from it in terms of utility, like connecting professionals and businessmen. On the other hand, Twitter is used to broadcast and communicate news, views and latest headlines. Facebook supports socialization.

There has been a rise in the FTSE 100 companies linking their corporate websites to social media. Moreover, the companies have shown that their usage of social media has increased by multiple folds or more on monthly basis, with approximately an average of 22,000 followers. Technology innovation heightened the use of social media, maximizing customer reach and rationalizing advertising spend. These magnify return on marketing, providing the foundation of competitive advantage. Notwithstanding such an outcome, lethargy on the part of corporations to utilize social media channels and leverage these into corporate decision-making process is visible. In view of this, the following questions need to be answered-

?-can social media replace BI?

-will social media usage stimulate competitive advantage of corporations?