Business Intelligence BI — Benefits of BI for sm

In order to examine the necessity, effectiveness and efficiency of business intelligence, one has to define it in its most basic terms as well as determine the necessity of it. Generally speaking, business intelligence is mostly referred to the materialization of tools in order to support proper decision making which may include informational technology, customer data as well as industry standards. The main concept in business intelligence or BI is simply enabling the best possible decision making in order to improve on business practices as well as profitability. Essentially BI should result in effectiveness and efficiency by preparing and enabling the most obvious, viable and effective decision. As previously mentioned, it is obvious that BI can and is a part of large business; however, the small and midsize business may not have the same ability or desire to use BI.

First and most importantly, one should determine the necessity of implementing and using BI in small and mid size business. Small and mid size businesses have comparatively rather limited resources in terms of funding, human capital, material and market shares. Hence it becomes even more important to be more effective in product development, production, marketing, advertising and sales in order to grow market shares as well as increase competitiveness and profitability. That is where BI becomes even more important; by allowing for collection of data and analyses, the given organization may be enabled to pursue more effective modes of operation which in turn are meant to steer the company toward more competitive standing in terms of effectiveness and efficiency.

Secondly, it is important to explore the ability of small and mid size business to take advantage of BI by effectively and efficiently implementing it. One of the most significant factors is the nature of cost and available resources. In general terms, the limitations of resources may be the greatest burden to overcome, however, the smaller organizations may have alternatives. Historically large external service providers such as IBM, GeoVu and HP have provided a wide range of BI services to large business. Those services range from design, planning, hardware, and software. Though most of even those large service providers offer solutions for small and mid size businesses, it is expensive and may require internal resources that may prevent those organizations from using those external services. For instance, the cost could depend on factors such as the required hardware and software as well as quantity of users.

Consequently it is important to determine the alternatives and choices of small and mid size businesses to utilize BI in an appropriate manner. Two of the rather common software applications that have been used in small and mid size businesses are File Maker Pro and Microsoft Access.

File Maker is produced by File Maker Inc. In essence, File Maker software allows for organizational data collection by enabling the user to take advantage of database driven data collection, storage and access. File Maker allows the user to design specific databases for individual projects which in terms allow for data collection and analysis. File Maker inc. offers several versions including packages for individuals, academia, non profits, government and small businesses. Essentially this particular software is designed to make data collection and data sharing universal, real time, as well as available to all key personnel.

Similarly, Microsoft Office Access is designed to enable the end user to take advantage of database and its valuable impact on data collection and data analysis. Similarly to File Maker products, there are several versions including standalone MS Access as well as the combination of all MS office suite, with different licensing agreements depending on end users.

The main difference between Microsoft Office Access and File Maker products is within their cross functionality and market shares. Microsoft Access is cross compatible with a wide range of Microsoft Office products such as MS Word, Excel, Outlook, and Power Point, which are all very popular and commonly used in business, government, non profits and academia. Another rather not obvious but important advantage of MS is its existence in Academia: most universities and higher education institutions either use of recommend using MS software due to price advantages as well hardware availability on campuses. This naturally leads to generation after generation of college graduates that are virtually proficient in using MS products hence resulting in reduced costs of training for employers which in turns creates greater market shares.

On the other hand, there maybe advantage to using File Maker products. The manufacturer argues that its products are superior to MS Access because of its better security features, improved macros and queries, better graphic user interface (GUI), and most importantly the self explaining nature of its products.
Both software are available on Windows and Mac platform and cost less than $200 for basic versions, whereby per user licensing may increase the cost. Additional cost may depend on additional components such as server space, script ad on as well as individualize programming.

Moreover it is important to explore as to how such software can have practical application in every aspects of small business. There are several general ways in which such software can be significant.

First and foremost, database driven application allow for individualization of data collection. For instance in Microsoft Access, the user can chose from many options such as how to name each field in tables, format in which data are saved or retrieved, report format and details, specific queries, individual modules and end result output. Such customization and/or need based designed may have several impacts, including creation of expertise, experimental design to improve decision making, and flexibility to change at will without delays or reliance on third party.

Secondly, the availability of such detailed reports and information creates a robust mode of inter organizational communication by providing the same quality and quantity of information to all stakeholders and participants. For instance, departmental decision makers have uniform data which can be their base of decisions as well as their ability to cross organize departmental and/or individual internal and external efforts.

Thirdly, since all the stakeholders and participant have the same information, the decision making process becomes more transparent which in turn may positively impact the decision making process as well as cross coordination among different divisions and decision makers. Similarly, uniform data availability may impact the customer service aspect of business by allowing the decision makers to provide continuous and uniform service based on constant information.

Fourth, uniform data availability will create a viable platform for performance measurement: data availability may enable the decision makers to mine and examine the results of departmental and/or individual contribution/s and performance/s which in turn will enable the decision makers to have the quantitative platform for fair and viable performance evaluation. For instance, budget projections can be judged retrospectively based on their accuracy and viability which in turn may enable the appraisal of management and/or all participants in compiling budget projections. 

Fifth, business intelligence and use of appropriate software such as MS Access or File Maker Pro may create a more effective mode of communication and decision making among small businesses and their respective vendors. For instance, it may enable the sma

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.

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