Discuss about the Accounting Information System for Creation and Development.
Business Intelligence (BI):
According to Anandarajan, Anandarajan, and Srinivasan (2012), business intelligence is one of the technologies driven process to analyze data for the presentation of actionable information which helps business managers and corporate executives to prepare set of business decisions. On the other hand, Popovic et al., (2012) also articulated that business intelligence is the set of tools and techniques to transform data in meaningful information. It also discussed that business intelligence technologies are more capable of the handling of more quantity of unstructured and structured data which helps to do the identification, creation, and development of new business opportunities. The term data surfacing is also associated with the functionalities of business intelligence.
The advantages of BI discussed about the process of quicker decision making, searching for different new plans. It also helps any business organization to track the trends of the current market as well as identification of different risks which are associated with the business (Chen, Chiang, & Storey, 2012). In recent days, the BI tools are used as data mining tool and self-service business intelligence program by business officials.
Role of Business Intelligence to Achieve Competitive Advantages
The organization can gain competitive advantages by doing the use of business intelligence which helps to align the strategic objectives based on line of business initiatives (Power, Sharda & Burstein, 2015). Now days it becomes more important that business will be successful to find different ways of competition. So, business intelligence plays the vital role for business organizations to gain more profits. In other context, business intelligence becomes more essential to achieve the success of different business enterprises. It becomes one of the essential tools for different enterprises to gain the competitive advantages in the marketing field. Some of the ways based on which BI can be utized to gain competitive advantages are listed below:
- Measurement of marketing effectiveness: One of the important drivers of advertising migration by spending over the internet has the capabilities to measure proposed outcomes. It also needs to be done based on different directs means like click-through and impressions and based on in-direct means like reviewing sites, consumer sentiment analysis (Power, Sharda & Burstein, 2015). So, BI becomes one of the important tools to manage a large number of data sets.
- Impacts of business intelligence in the field of web-retailing: The web retailer acquired built-in advantages of huge, real time and detailed set of data analysis based on customer behavior to measure the values using business intelligence analytics. In the context of supply chain advantages, business intelligence helps to do both profitability and product cost analysis. It also helps to calculate the values of route optimization.
- Improvement of Negotiations and sales: The Business Intelligence system becomes one of the important assets of the company’s sales force as it helps to get the access different minute reports which helps to make the product improvements, identification of sales trends, preferences of current customers and unknown markets (Sharma & Bhardwaj, 2015). Both the current as well as detailed data becomes an important backup to negotiate with different vendors.
- Identification of opportunities: BI helps the company to assess the capabilities by comparing both the weakness and strengths in relation to the competitors, identification of market conditions and trends and the quick respond to change. Moreover, it also helps the decision makers to acts in a correct and swift manner in relation to the opportunities. It also helps the company to make the identification of profitable and potential customers (Sauter, 2014).
Impacts of Data Mining and Analytics on Decision Making of an Organization with the Example of Tesco Loyalty Card Program
According to Omar et al., (2012), data mining is one of the processes to discover different new techniques, trends, and patterns to extract large amounts of data kept in warehouses with the use of various mathematical and statistical tools and artificial intelligence. Various data mining tools also have the capabilities to make the easy prediction of future trends and behavior by permitting the businesses to make different proactive and knowledge-driven decisions. On the other side, the process of analytics helps decision makers to determine various risks, measuring both the benefits and costs and also calculate the results based on decisions. Now days most numbers of retail industries are implementing loyalty card programme as the comprehensive way to improve the competitive place. One of the important benefits of this plan is customer shares their personal information on different shopping habits. This particular schemes gain lots of popularity in a point where large numbers of industries providing different types of the loyalty programme. For example, Tesco, this is one of the first companies that introduce the plan of the loyalty card or clubcard. With the help of loyalty card prgramme, Tesco accumulates large assets of data based on purchasing patterns at consumer levels where the enterprises realized the characteristics of every customer.
Figure: Tesco Clubcard
Source: ("Tesco | Online Groceries, Homeware, Electricals & Clothing", 2016)
Some of the loyalty plans which Tesco are offering to the clubcard holders are mentioned below:
Clubcard Rewards: In clubcard reward process, the cardholder does not want to use the voucher for the purchasing of groceries, they can check and use different reward plan. With the help of this process, customers also get interested to collect more points for various existing rewards in clubcard.
Green clubcard points: Now days to attract more numbers of customers, Tesco is offering a new plan like green clubcard which provides the opportunity to earn scores of points without spending money. In this, points can be earned if anybody does the re-use of the bag in the store to buy any things.
Special offers: Along with Tesco clubcard, Tesco also offers different types of vouchers which allow acquiring extra points to buy some specified products. Tesco also informs the cardholder customer with new existing plans based on their card points so that they can do the shopping.
Anandarajan, M., Anandarajan, A., & Srinivasan, C. A. (Eds.). (2012).Business intelligence techniques: a perspective from accounting and finance. Springer Science & Business Media.
Chen, H., Chiang, R. H., & Storey, V. C. (2012). Business Intelligence and Analytics: From Big Data to Big Impact. MIS quarterly, 36(4), 1165-1188.
Omar, N. A., Musa, R., Wel, C. A., & Aziz, N. A. (2012). Examining the moderating effects of programme membership duration in the retail loyalty programme: A multi-groups causal analysis approach. World Applied Sciences Journal, 19(3), 314-323.
PopoviÄ, A., Hackney, R., Coelho, P. S., & JakliÄ, J. (2012). Towards business intelligence systems success: Effects of maturity and culture on analytical decision making. Decision Support Systems, 54(1), 729-739.
Power, D. J., Sharda, R., & Burstein, F. (2015). Decision support systems. John Wiley & Sons, Ltd.
Sauter, V. L. (2014). Decision support systems for business intelligence. John Wiley & Sons.
Sharma, A., & Bhardwaj, P. (2015). Perceived Benefits of Loyalty Programmes and their Impact on Purchase Intentions of Customers. PRIMA: Practices & Research in Marketing, 6.
Tesco | Online Groceries, Homeware, Electricals & Clothing. (2016). Tesco.com. Retrieved 22 September 2016, from https://www.tesco.com