MAHARANA PRATAP GROUP OF INSTITUTIONS

KOTHI MANDHANA, KANPUR

(Approved by UGC, New Delhi and Affiliated to CSJMU, Kanpur)

Digital Notes
[Department of Computer Applications]

Subject Name : Knowledge Management

Subject Code : BCA-S310
Course : BCA
Branch : BCA
Semester : VIth
Prepared by : Mr. Narendra Kumar Sharma

Reference No./BCA/Narendra/BCA-S310/3/6
 Unit – 1

Business Intelligence and Business Decisions

1. Business Intelligence
BI (Business Intelligence) is a set of processes, architectures, and technologies that convert raw
data into meaningful information that drives profitable business actions. It is a suite of software
and services to transform data into actionable intelligence and knowledge.
BI has a direct impact on organization's strategic, tactical and operational business decisions. BI
supports fact-based decision making using historical data rather than assumptions and gut
feeling.
BI tools perform data analysis and create reports, summaries, dashboards, maps, graphs, and
charts to provide users with detailed intelligence about the nature of the business.

1.1 Why is BI important?

 Measurement: creating KPI (Key Performance Indicators) based on historic data
 Identify and set benchmarks for varied processes.
 With BI systems organizations can identify market trends and spot business problems that
need to be addressed.
 BI helps on data visualization that enhances the data quality and thereby the quality of
decision making.
 BI systems can be used not just by enterprises but SME (Small and Medium Enterprises)

1.2 How Business Intelligence systems are implemented?

Here are the steps:
Step 1) Raw Data from corporate databases is extracted. The data could be spread across
multiple systems heterogeneous systems.
Step 2) The data is cleaned and transformed into the data warehouse. The table can be linked,
and data cubes are formed.
Step 3) Using BI system the user can ask quires, request ad-hoc reports or conduct any other
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analysis.
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1.3 BI Processes Include:
Over the past few years, business intelligence has evolved to include more processes and
activities to help improve performance. These processes include:

 Data mining: Using databases, statistics and machine learning to uncover trends in large
datasets.

 Reporting: Sharing data analysis to stakeholders so they can draw conclusions and make
decisions.

 Performance metrics and benchmarking: Comparing current performance data to

historical data to track performance against goals, typically using customized dashboards.

 Descriptive analytics: Using preliminary data analysis to find out what happened.

 Querying: Asking the data specific questions, BI pulling the answers from the datasets.

 Statistical analysis: Taking the results from descriptive analytics and further exploring
the data using statistics such as how this trend happened and why.

 Data visualization: Turning data analysis into visual representations such as charts,
graphs, and histograms to more easily consume data.

 Visual analysis: Exploring data through visual storytelling to communicate insights on

the fly and stay in the flow of analysis.

 Data preparation: Compiling multiple data sources, identifying the dimensions and
measurements, preparing it for data analysis.

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1.4 Examples of Business Intelligence System used in Practice

Example 1:

In an Online Transaction Processing (OLTP) system information that could be fed into product
database could be
 add a product line
 change a product price
Correspondingly, in a Business Intelligence system query that would be executed for the product
subject area could be did the addition of new product line or change in product price increase
revenues
In an advertising database of OLTP system query that could be executed
 Changed in advertisement options
 Increase radio budget
Correspondingly, in BI system query that could be executed would be how many new clients
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added due to change in radio budget

In OLTP system dealing with customer demographic data bases data that could be fed would be
 increase customer credit limit
 change in customer salary level
Correspondingly in the OLAP system query that could be executed would be can customer
profile changes support support higher product price

Example 2:
A hotel owner uses BI analytical applications to gather statistical information regarding average
occupancy and room rate. It helps to find aggregate revenue generated per room.
It also collects statistics on market share and data from customer surveys from each hotel to
decides its competitive position in various markets.
By analyzing these trends year by year, month by month and day by day helps management to
offer discounts on room rentals.

Example 3:
A bank gives branch managers access to BI applications. It helps branch manager to determine
who are the most profitable customers and which customers they should work on.
The use of BI tools frees information technology staff from the task of generating analytical
reports for the departments. It also gives department personnel access to a richer data source.

1.5 Four Types of BI users

Following given are the four key players who are used Business Intelligence System:

1. The Professional Data Analyst:

The data analyst is a statistician who always needs to drill deep down into data. BI system helps
them to get fresh insights to develop unique business strategies.

2. The IT users:
The IT user also plays a dominant role in maintaining the BI infrastructure.

3. The head of the company:

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CEO or CXO can increase the profit of their business by improving operational efficiency in
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their business.
4. The Business Users
Business intelligence users can be found from across the organization. There are mainly two
types of business users
1. Casual business intelligence user
2. The power user.
The difference between both of them is that a power user has the capability of working with
complex data sets, while the casual user need will make him use dashboards to evaluate
predefined sets of data.

1.6 Advantages of Business Intelligence

Here are some of the advantages of using Business Intelligence System:

1. Boost productivity
With a BI program, It is possible for businesses to create reports with a single click thus saves
lots of time and resources. It also allows employees to be more productive on their tasks.

2. To improve visibility
BI also helps to improve the visibility of these processes and make it possible to identify any
areas which need attention.

3. Fix Accountability
BI system assigns accountability in the organization as there must be someone who should own
accountability and ownership for the organization's performance against its set goals.

4. It gives a bird's eye view:

BI system also helps organizations as decision makers get an overall bird's eye view through
typical BI features like dashboards and scorecards.

5. It streamlines business processes:

BI takes out all complexity associated with business processes. It also automates analytics by
offering predictive analysis, computer modeling, benchmarking and other methodologies.
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6. It allows for easy analytics.

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BI software has democratized its usage, allowing even nontechnical or non-analysts users to
collect and process data quickly. This also allows putting the power of analytics from the hand's
many people.

1.7 BI System Disadvantages

1. Cost:
Business intelligence can prove costly for small as well as for medium-sized enterprises. The use
of such type of system may be expensive for routine business transactions.

2. Complexity:
Another drawback of BI is its complexity in implementation of data warehouse. It can be so
complex that it can make business techniques rigid to deal with.

3. Limited use
Like all improved technologies, BI was first established keeping in consideration the buying
competence of rich firms. Therefore, BI system is yet not affordable for many small and medium
size companies.

4. Time Consuming Implementation

It takes almost one and half year for data warehousing system to be completely implemented.
Therefore, it is a time-consuming process.

1.8 Trends in Business Intelligence

The following are some business intelligence and analytics trends that you should be aware of.

Artificial Intelligence: Gartner' report indicates that AI and machine learning now take on
complex tasks done by human intelligence. This capability is being leveraged to come up with
real-time data analysis and dashboard reporting.

Collaborative BI: BI software combined with collaboration tools, including social media, and
other latest technologies enhance the working and sharing by teams for collaborative decision
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making.
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Embedded BI: Embedded BI allows the integration of BI software or some of its features into
another business application for enhancing and extending it's reporting functionality.

Cloud Analytics: BI applications will be soon offered in the cloud, and more businesses will be
shifting to this technology. As per their predictions within a couple of years, the spending on
cloud-based analytics will grow 4.5 times faster.

2. Decision Making
Decision-making is an integral part of modern management. Essentially, Rational or sound
decision making is taken as primary function of management. Every manager takes hundreds and
hundreds of decisions subconsciously or consciously making it as the key component in the role
of a manager. Decisions play important roles as they determine both organizational and
managerial activities. A decision can be defined as a course of action purposely chosen from a
set of alternatives to achieve organizational or managerial objectives or goals. Decision making
process is continuous and indispensable component of managing any organization or business
activities. Decisions are made to sustain the activities of all business activities and organizational
functioning.
Decisions are made at every level of management to ensure organizational or business goals are
achieved. Further, the decisions make up one of core functional values that every organization
adopts and implements to ensure optimum growth and drivability in terms of services and or
products offered.

2.1 Decision Making Process

Decision making is the process of making choices by identifying a decision, gathering
information, and assessing alternative resolutions.

Using a step-by-step decision-making process can help you make more deliberate, thoughtful
decisions by organizing relevant information and defining alternatives. This approach increases
the chances that you will choose the most satisfying alternative possible.
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 Figure: 7 Steps of the Decision-Making Process

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the decision you
must make. This first step is very important.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is needed,
the best sources of information, and how to get it. This step involves both internal and external
“work.” Some information is internal: you’ll seek it through a process of self-assessment. Other
information is external: you’ll find it online, in books, from other people, and from other sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct new
alternatives. In this step, you will list all possible and desirable alternatives.
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Step 4: Weigh the evidence
Draw on your information and emotions to imagine what it would be like if you carried out each
of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or
resolved through the use of each alternative. As you go through this difficult internal process,
you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching
your goal. Finally, place the alternatives in a priority order, based upon your own value system.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems to be
best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may
very likely be the same or similar to the alternative you placed at the top of your list at the end of
Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative you
chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has resolved
the need you identified in Step 1. If the decision has not met the identified need, you may want to
repeat certain steps of the process to make a new decision. For example, you might want to
gather more detailed or somewhat different information or explore additional alternatives.

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3. Decision Support System (DSS)
A decision support system (DSS) is an information system that aids a business in decision-
making activities that require judgment, determination, and a sequence of actions. The
information system assists the mid- and high-level management of an organization by analyzing
huge volumes of unstructured data and accumulating information that can help to solve problems
and help in decision-making. A DSS is either human-powered, automated, or a combination of
both.

3.1 Purpose of a Decision Support System

A decision support system produces detailed information reports by gathering and analyzing
data. Hence, a DSS is different from a normal operations application, whose goal is to collect
data and not analyze it.
In an organization, a DSS is used by the planning departments – such as the operations
department – which collects data and creates a report that can be used by managers for decision-
making. Mainly, a DSS is used in sales projection, for inventory and operations-related data, and
to present information to customers in an easy-to-understand manner.

3.2 Components of a Decision Support System

The three main components of a DSS framework are:

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1. Model Management System
The model management system stores models that managers can use in their decision-making.
The models are used in decision-making regarding the financial health of the organization and
forecasting demand for a good or service.

2. User Interface
The user interface includes tools that help the end-user of a DSS to navigate through the system.

3. Knowledge Base
The knowledge base includes information from internal sources (information collected in a
transaction process system) and external sources (newspapers and online databases).

3.3 Types of Decision Support Systems

1. Communication-driven: Allows companies to support tasks that require more than one
person to work on the task. It includes integrated tools such as Microsoft SharePoint
Workspace and Google Docs.
2. Model-driven: Allows access to and the management of financial, organizational, and
statistical models. Data is collected, and parameters are determined using the information
provided by users. The information is created into a decision-making model to analyze
situations. An example of a model-driven DSS is Dicodess – an open-source model-
driven DSS.
3. Knowledge-driven: Provides factual and specialized solutions to situations by using
stored facts, procedures, rules, or interactive decision-making structures like flowcharts.
4. Document-driven: Manages unstructured information in different electronic formats.
5. Data-driven: Helps companies to store and analyze internal and external data.

3.4 Advantages of a Decision Support System

1. A decision support system increases the speed and efficiency of decision-making
activities. It is possible, as a DSS can collect and analyze real-time data.
2. It promotes training within the organization, as specific skills must be developed to
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implement and run a DSS within an organization.

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 3. It automates monotonous managerial processes, which means more of the manager’s time
can be spent on decision-making
4. It improves interpersonal communication within the organization.

3.5 Disadvantages of a Decision Support System

1. The cost to develop and implement a DSS is a huge capital investment, which makes it
less accessible to smaller organizations.
2. A company can develop a dependence on a DSS, as it is integrated into daily decision-
making processes to improve efficiency and speed. However, managers tend to rely on
the system too much, which takes away the subjectivity aspect of decision-making.
3. A DSS may lead to information overload because an information system tends to
consider all aspects of a problem. It creates a dilemma for end-users, as they are left with
multiple choices.
4. Implementation of a DSS can cause fear and backlash from lower-level employees. It is
because many of them are not comfortable with new technology and are afraid of losing
their jobs to technology.

4. Group Decision Support System (GDSS)

A group decision support system (GDSS) is an interactive computer-based system that facilitates
a number of decision-makers (working together in a group) in finding solutions to problems that
are unstructured in nature. They are designed in such a way that they take input from multiple
users interacting simultaneously with the systems to arrive at a decision as a group.
The tools and techniques provided by the group decision support system improve the quality and
effectiveness of the group meetings. Groupware and web-based tools for electronic meetings and
videoconferencing also support some of the group decision making processes, but their main
function is to make communication possible between the decision-makers.
In a group decision support system (GDSS) electronic meeting, each participant is provided with
a computer. The computers are connected to each other, to the facilitator’s computer and to the
file server. A projection screen is available at the front of the room. The facilitator and the
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participants can both project digital text and images onto this screen.
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A group decision support system (GDSS) meeting comprises different phases, such as idea
generation, discussion, voting, vote counting and so on. The facilitator manages and controls the
execution of these phases. The use of various software tools in the meeting is also controlled by
the facilitator.

4.1 Components of Group Decision Support System (GDSS)

A group decision support system (GDSS) is composed of 3 main components, namely hardware,
software tools, and people.
 Hardware: It includes electronic hardware like the computer, equipment used for
networking, electronic display boards and audiovisual equipment. It also includes the
conference facility, including the physical set up – the room, the tables, and the chairs –
laid out in such a manner that they can support group discussion and teamwork.
 Software Tools: It includes various tools and techniques, such as electronic
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questionnaires, electronic brainstorming tools, idea organizers, tools for setting priority,
policy formation tool, etc. The use of these software tools in a group meeting helps the
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 group decision-makers to plan, organize ideas, gather information, establish priorities,
take decisions and document the meeting proceedings. As a result, meetings become
more productive.
 People: It compromises the members participating in the meeting, a trained facilitator
who helps with the proceedings of the meeting, and an expert staff to support the
hardware and software. The GDSS components together provide a favorable environment
for carrying out group meetings.

4.2 Features of Group Decision Support System (GDSS)

 Ease of Use: It consists of an interactive interface that makes working with GDSS simple
and easy.
 Better Decision Making: It provides the conference room setting and various software
tools that facilitate users at different locations to make decisions as a group resulting in
better decisions.
 Emphasis on Semi-structured and Unstructured Decisions: It provides important
information that assists middle and higher-level management in making semi-structured
and unstructured decisions.
 Specific and General Support: The facilitator controls the different phases of the group
decision support system meeting (idea generation, discussion, voting and vote counting,
etc.) what is displayed on the central screen and the type of ranking and voting that takes
place, etc. In addition, the facilitator also provides general support to the group and helps
them to use the system.
 Supports all Phases of the Decision Making: It can support all the four phases of
decision making, viz intelligence, design, choice, and implementation.
 Supports Positive Group Behavior: In a group meeting, as participants can share their
ideas more openly without the fear of being criticized, they display more positive group
behavior towards the subject matter of the meeting.

4.3 Group Decision Support System (GDSS) Software Tools

Group decision support system software tools help the decision-makers in organizing their ideas,
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gathering required information and setting and ranking priorities. Some of these tools are as
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follows:
  Electronic Questionnaire: The information generated using the questionnaires helps the
organizers of the meeting to identify the issues that need immediate attention, thereby
enabling the organizers to create a meeting plan in advance.
 Electronic Brainstorming Tools: It allows the participants to simultaneously contribute
their ideas on the subject matter of the meeting. As the identity of each participant
remains secret, individuals participate in the meeting without the fear of criticism.
 Idea Organizer: It helps in bringing together, evaluating and categorizing the ideas that
are produced during the brainstorming activity.
 Tools for Setting Priority: It includes a collection of techniques, such as simple voting,
ranking in order and some weighted techniques that are used for voting and setting
priorities in a group meeting.
 Policy Formation Tool: It provides the necessary support for converting the wordings of
policy statements into an agreement.

5. Groupware
Groupware refers to software that allows multiple users work together on one project while
sitting in locally and remotely with each other at the real time, so it is also known as
“Collaboration Software“.
With the help of groupware, multiple users can exchange emails, documents, shared database
access, organized online meeting in between various users and they able to see each other as well
as view information to other users, collective writing, calendaring, task management, scheduling,
and more activities.

5.1 Types of Groupware System

Groupware is classified into two categories as per its functions, like as:

Synchronous Groupware: It is a real-time groupware because it allowing multiple users to

perform their works at a same time. A primary need of synchronous groupware is real-time
coordination in between all connected users with this software, so they need shared audio
channels for making the communication.
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Asynchronous Groupware: In this groupware, multiple users perform their tasks at different
time duration. Asynchronous groupware allows different services like as email handling, file
sharing, structured messages, workflow, collaborative writing system, and other.

5.2 Groupware Workflow

Groupware contains highly-structured communication in between multiple clients, this structure
can done different large and small scale organization to organization, task management
groupware system that offers to common workflow along with these companies, and their tasks
are managed by team managers and finally assigned to a worker. Then those workers can get
notifications related to assignment and begins working. When, workers end their assigned work,
or they change status of their work then team manager automatically get notification related it.

Examples of Groupware Software

There are Examples of Groupware tool; such as –
 GROVE (GRoup Outline Viewing Editor)
 Novell GroupWise
 Lotus Notes/Dominos
 Groove
 Microsoft Exchange
 BeyondMail
 Eudora
 FirstClass
 Telefinder
 Microsoft Word
 Excel
 Lotus WordPro
 Corel WordPerfect
 Netscape Navigator
 Microsoft Explorer
 Net Meeting
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Other Examples of Groupware (Collaborating) Software are:
 Wrike
 ConnectWise Control
 Smartsheet
 ProjectManager
 Clarizen
 Jira
 Trello
 Zoho Projects
 Flock
 G-Suite
 Salesforce
 Basecamp
 Huddle
 Xero
 WordPress

5.3 Tools of Groupware

There are three categories of groupware tools; like as
Communication Tools: These tools help to send all types of messages and files, emails, file
sharing, web publishing, and more.
Conferencing Tools: These tools are used for making real-time interaction like as chat, forums,
video and audio conferencing, etc.
Collaborative Management Tools: These types of tools are used for handling group activities
such as workflow system, information management system, project management system, etc.

5.4 Applications of Groupware

There are three types of Groupware Software Application; like as
Single Function Groupware Applications: These applications are used for only single function
purpose; for examples E-mail handling, Text based conferencing, file sharing, etc.
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Multi-functions Groupware Applications: These applications are implemented for multi-

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functions areas like as E-mail handling, Text based conferencing, file sharing, etc.
General functions Groupware Applications: For examples are Word processors, spreadsheets
with e-mail, collaborative authoring features, and more.
Web Browser Groupware Applications: These are internet based groupware applications; like
as E-mail, news conferencing, etc.
Operating System Groupware Applications: For example – Bundled applications

5.5 Advantages and Features of Groupware

In this section, we will spread light on the several benefits of Groupware. Below explain each
one:
 It offers to make communication and collaboration in between team of clients like as
online chat, forum discussion, and private mailboxes.
 It allows right to you for monitoring all status, which is done by all clients.
 All team of members have to right for making telecommute.
 Saving to travel cost because doesn’t need any physical meeting while using of
Groupware software.
 It helps to solve for several issues like as a group.
 With using of groupware, team manager can manage all team members without sitting in
own office.
 Groupware helps to make structure which allowing all team members for viewing their
goals, purpose, and set up tasks schedules.
 It helps to make creativity in between all users, so all users have to right for sharing their
ideas which help to improve work efficiency they work on.
 Easy to manage your schedule with built in calendar.
 You have option to save documents like as faxes, spreadsheets, email, and other related
to your business files, and you can access this file anywhere while linking internet.
 You can keep track your using resources like as projectors, vehicle, conference hall, and
other.
5.6 Disadvantages of Groupware
There are various drawbacks and challenges of groupware; below explain each one-
 It is not trust able system because it is totally depended on the server, if this server
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performance gets down then all users get disconnected to each other.
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 Harder to convince clients for using groupware software

  Need to skill users that how to use it.
 Non-verbal communication cannot be used in between all users.
 It has logistical and security problem.
 It is more expensive because it needs more money to buy and better maintain them.
 Groupware environment, in which big challenge to observe gestures and facial
expressions and hear voice inflections

References:
1. Decision support system, EIS, 2000
2. W.H.Inmon, “Building Data Warehousing”, Willey, 1998.
3. Han, Jiawei, Kamber, Michelinal, “ Data Mining Concepts & Techniques”, Harcourt
India, 2001
4. https://www.guru99.com/business-intelligence-definition-example.html
5. https://www.umassd.edu/fycm/decision-making/process/
6. https://corporatefinanceinstitute.com/resources/knowledge/other/decision-support-
system-dss/
7. https://www.managementstudyhq.com/features-and-components-of-group-decision-
support-system.html
8. https://digitalthinkerhelp.com/what-is-groupware-definition-types-examples-applications-
benefits/

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