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Business Intelligence and Knowledge Management
Advancements in technology have allowed all companies and individuals with the Internet to have access in an increased amount of data and information. It’s easy to assume that more data and more information translates into more knowledge and benefits for companies. That, however, is not necessarily true. The critical aspect is what companies do with the data; how they analyze it; what decision they make from the information; and how those decisions are made. Data without a means in place to accurately analyze it and a process to make calculated decisions does not benefit a company (Argosy, 2018). Data can, however, when used effectively can enhance productivity and competitiveness and be a beneficial to companies.
The costs of large information systems and be substantial at the front-end. A company needs to take that into account, but also consider the return on investment (ROI) that comes with it. Companies can also use other methods, such as a break-even analysis, pay back period analysis and net present value, to determine which system costs to invest in.
More data does not always mean better decisions. Even as companies invest eight- and nine-figure sums to analyze the information streaming in from its suppliers and customers, many employees still lack the processes and skills to make good use of the analysis (Shan, 2011). Just because companies have access to a lot of data does not mean that the information will be processed effectively. The company needs to make sure their employees are trained on how to analyze the data and how to put it to work (Bantleman, 2012). Even if the data is put through an IT system, the employees and managers will need to possess the skills to put that information to good use. Sometimes having too much data can overwhelm employees and even managers. This will cause them to make bad decisions and therefore making decision that could hurt the organization rather than help it.