Business intelligence (BI)

Running Head: BUSINESS INTELLIGENCE DEVELOPMENT PLAN 10

Business Intelligence Development Plan

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Contents Data Collection………………………………………………………………………………….5 Situational Analysis………………….………………………………………………………….6 Environmental scan………………………………………………………………………….….7 Key Success factors………………………………………………………………………….….8 Strategic Vision…………………………………………………………………………………9 How data mining work? ………………………………………………………………………..9 The implementation of the Understand the concept and formulation of the k-nearest neighbor algorithm (kNN) ………………………………………………………………………………..9 References ……………………………………………………………………………………..10

List of Tables

Table 1.0. SWOT Analysis ……………………………………………………………..6

List of Figures

Figure 1.0. The Action Research Framework………………………………………………………..4

Figure 2.0. Environmental Scan…………………………………………………….….……………..6

Data Collection

In order to gather data, an action research framework will be implemented by the company. An action research is a technique that is aimed at obtaining both the study results and action results. In other words, the prime focus is placed on the study and action is taken as an added advantage. However, in some situations the key emphasis is placed on the action (Dick, 2000). The initial stage of the action research defines the issue that needs to be resolved as indicated in figure 1.0. At this stage, the objectives and state of affairs of the research are identified. Also, the restraints of the study are developed at this stage. At the succeeding stage, data is gathered from the existing condition in the case of the company. In the next stage, the most suitable applications of business intelligence will be recognized from the accessible publications and cases. In 4th stage, information will be interpreted and assessed through the experimentation of business intelligence solutions (Halonen, 2016). At this stage, feedback will be gathered from trying out of the business intelligence solutions. At the last step, proposal will be analyzed and improvised on the basis of the feedback from the inside of the company (Calhoun, 2002).

Figure 1.0. The Action Research Framework

Situational Analysis

A situational analysis involves evaluation of trends, SWOT analysis, network analysis, focus group discussions and informative meetings. It has been detected that a huge percentage of Business Intelligence projects do not succeed (Garcia & Pinzon, 2017). The frequency of unsuccessfulness of the business intelligence plans ranges from 70 percent to 80 percent. It has been discovered that mostly the business intelligence plan fail become of the problems which are not considered by the businesses in the beginning. Additionally, some of the BI plans are withdrawn. The ratio of the successfulness of the BI plans ranges from 10% to 20% (Garcia & Pinzon, 2017). It is mandatory for the effectiveness of a BI plan that the information structure of the organization fulfils the requirements of the business. A strong business framework includes all strategic schemes that the desired project will reach, required operating resources, potential hazards, costs and time limits to finish the project.

SWOT Analysis

SWOT analysis refers to strengths, weaknesses, opportunities and threats as shown in table 1. It aids businesses in recognizing the resources and opportunities to develop effective strategies. SWOT analysis of the hypothetical company is given below.

Table 1. SWOT Analysis

Environmental scan

Environmental scan refers to the investigation and explanation of economic, communal, technological and political occurrences and tendencies that impact an industry, a market or a business as shown in the figure 2.0. It is important to take into account the occurrences, problems tendencies and anticipations of the varying interest groups (Distributed Wikipedia. 2017). Environmental inspection is one among the most significant elements of international environmental evaluation. The international environmental assessment is based on environmental prediction, environmental examination and environmental evaluation. The international environment involve companies, industries, competitors and customers.

Figure 2.0. Environmental Scan

The advantages of execution of a business intelligence solution are dependent upon efficiency, decision development and visibility. Business intelligence solution will help the company in recognizing the areas where the speed is needed and the costs need to be reduced. By doing so, the company will be able to make a comparison with its competitors. Moreover, feedback was taken from all stakeholders of the company to assimilate and prioritize their needs and for the needs suitable to potential business intelligence solution (Halonen, 2016).

Key Success factors

The key success elements for the effectiveness of business intelligence plan are organizational (Garcia & Pinzon, 2017). For instance, if the stakeholders are involve fully, they can recognize the important components to enhance the successfulness and organization of planning and execution ventures that is useful for the successful application of a business intelligence program. In case of hypothetical company, all stakeholders were fully engaged in the planning of implementation of a BI solution. Individual feedback was gathered from the inside of the organization to know the needs of the interest groups and match these needs with the requirements of a BI plan (Halonen, 2016). The support of the top executives in application of the project and management of the change procedure is another significant success factor for a BI solution. The management can assist the companies in fighting against opposition to the project. In the hypothetical company, reporting is done manually and anyone can access the crucial information. So, the support from the top management will perform a central role in the success of the plan.

Strategic Vision

Data analytics being the central business of the hypothetical company, the purpose of execution of a BI solution is to assist top management and delivery organization to attain prominence on projects to create more achievable operations by distinguished development (Halonen, 2016).

How data mining work?

Data mining is implemented to find out the patterns and tendencies in the data to create improvised corporate decisions. Data mining assist the businesses to find out the issues by implementing pattern identification technologies and mathematical tools which could pass unobserved in opposite case (Alexander, n.d.).

Classification technique of data mining will be applied in case of hypothetical company. In classification, every unit in the deposit of data is classified in an already recognized deposit of groups. Various mathematical techniques are used in classification like linear programming, decision trees, statistics and neural network (Zentut. n.d.). For this company, the probability of the success of BI solution will be determined through classification.

The implementation of the Understand the concept and formulation of the k-nearest neighbor algorithm (kNN)

K-nearest neighbor (k-NN) is used for pattern classification issues. It is dependent on calculating the space in the test data and every training data to determine the end classification product (Shrivasta, 2016). There is no single research which investigates the classification productivity of k-NN through varying gap operations. Chi-square distance function will be employed in k-NN for pattern classification issue for the mentioned organization.