5BU010 Business Intelligence Assignment Sample
Module Code And Title : 5BU010 Business Intelligence Assignment Sample
1. Introduction
Nowadays, most of the retail organization is seeking to develop a Business Intelligence model which collects meaningful market data and analyses it for the improvement of the organization. In this report, the main implications of Business Intelligence in improving the business condition and approach of an organization and recommendation to improve the business opportunities of Sainsbury’s will be discussed in detail.
2. Critical analysis and evaluation of business intelligence in Sainsbury’s
Description of the company
Sainsbury’s is the most renowned retail organization of the UK as it has been observed that the management of the company believes in innovation and creativity and for that reason the company executes BI for the smooth flow of the business. Moreover, the company was inaugurated in 1869 in the United Kingdom and after the foundation the company is expanding day by day and there are many stores of Sainsbury’s in the UK (sainsburys.co.uk. 2022). One of the main focuses of the company is to satisfy the customers of the company by providing quality retail products which indicates that the company is customer centric. According to the website of the company, Sainsbury’s has more than 600 supermarkets in the UK and every stores provide sustainable shopping experience to thane customers of the company, In addition to that, currently there are more than 189,000 employees in this company who play a crucial role in managing the entire business activities of the company.
Briefly evaluating the technologies and strategies for Business Intelligence in Sainsbury’s
The retail market of the UK is changing day by day and for that reason Sainsbury’s wanted to build an innovative BI model which will make effective marketing strategies for the company. One of the main approaches of BI is to provide essential business information to the organization by using data analytics and that generates a positive impact in improving the business decision making process of the company (Liang and Liu, 2018). Most of the retail organizations face multiple problems in handling a lot of data and that also creates problems in data analysis which impacts the business strategy of the organization and for that reason, a retail company needs to use BI. Additionally, the main benefits of BI is that it plays a crucial role in making operational strategy for the company by using innovative technology such as data mining. Data mining is extremely impactful in collecting essential information for the company and it also helps the company in designing cost effective marketing approaches which ensures the growth of the company. BI is mainly used by Sainsbury’s to set proper marketing objectives and goals for the company while without the successful implementation of BI it is extremely difficult to set an optimum direction for the development of the business.
Sainsbury’s also believes in using predictive analysis tools which is generally used to understand or predict the consumer behaviour. BI also helps in improving the Supply Chain Management (SCM) of a retail company by supporting the SCM of the company and handling the end to end operation of the retail organization (Frere, 2020). Another biggest advantage of BI is that it helps a company in enhancing the digital capability of the company which is really required to improve the business efficiency in the modern era. Moreover, product posting is one of the most crucial things for Sainsbury’s as BI plays a vital function and uses predictive analysis to position the retail products of the company which increases the sales of the company. It needs to be starred that without an effective demand forecasting the efficiency of SCM may be decreased and for that reason the proper execution of BI is immensely essential which helps to anticipate the demand of the customer base of the company. BI basically creates an Information system for the company by using an online analytical process which is extremely essential in managing the complex database of the company. In other responses, BI plays a crucial role in data transformation and integration with the help of data warehouses and it matters a lot in forecasting.
Figure 1: Technologies and strategies for Business Intelligence in Sainsbury’s (Source: Frere, 2020)
The management of Sainsbury’s has implanted BI which helps the company in making proper strategy with the help of innovative technology and that is useful in achieving the objective of the company. However Sainsbury’s has invested a lot of money in improving the BI of the company which directly impacts the organizational growth. Modern retail companies of the UK needs to use this framework which may be costly at initial stage, however, after that it plays a vital role in improving the profit level of the company. Considering the performance highlight of the company it may be argued that in 2021 the retail sales growth of the company increases by 7.3% which indicates the implementation of BI was successful for the company (sainsburys.co.uk. 2022). Data driven decision making is one of the most essential parts of business every retail organization in the UK needs to maintain in order to reach the goals of the company. In the modern era, most companies are looking to design a Business Intelligence Solution by using SQL and OLTP databases which mainly use to analyse the collected data (KETBI, 2019). Digital capability always represents the digital skills an organization needs to maintain to achieve more competitiveness in the existing industry.
BI plays a major role in enhancing the digital capabilities of the company which also focuses on digital creation which creates a positive impact in solving the existing problems of the company. Moreover, the practice of digital proficiency is extremely essential to maintain the digital communication which helps the company in maintaining a good relationship with the stakeholders of the company. In addition to that, if Sainsbury’s will be able to access the digital capability of the company with the help of BI then it generates a beneficial impact and ensures the growth of the company in this retail industry.
Prime functions of Business Intelligence in Sainsbury’s
It may be stated that there are many benefits of BI for Sainsbury’s such as it plays a crucial role in strategic decisions or controlling while if the company will not be able to design a perfect strategy then the sales of the company may be affected. Many studies state that BI is completely associated with the decision making process of HRM of a company providing essential information and that increases the performance of the organization (Sousa and Dias, 2020). Nowadays, the operational cost of the retail industry is increasing day by day and Sainsbury’s also faces these problems while the successful execution of BI is immensely useful, decreasing the entire operational cost of the company. BI also indicates that a modern retail industry may not be able to achieve sustainable growth without proper data analysis and integration as the main function of BI is to analyse the market data for the development of the company. BI also helps the organization in managing the stocks of the company in a professional manner as it anticipates he demand of customers and sends a message to the company to update the stocks which is extremely innovative and influential. One of the biggest benefits of BI solutions is that it provides extra security to the organization which decreases the risk factors of the company.
Figure 2: Key functions and role of Business Intelligence in Sainsbury’s (Source: Taming et al., 2021)
Data transparency needs to be maintained by every retail organization of the world even though the company may not be able to maintain the data transparency then it may affect the customer’s mind. BI also helps the company in ensuring the data transparency of the company by executing transparent marketing policies and that may create a positive impact in enhancing the competitive advantage of the company. Additionally, if modern organizations will be able to improve BI through machine algorithms then it will be impactful in improving the BI for the company (Taming et al., 2021). One of the main benefits of machine learning is that it always provides real time data to the company which may play an essential in making proper marketing strategies for the organization according to the market situation. Additionally, there are multiple risks which are intimately associated with the retail industries of the UK and these risks are rising day by day and for that reason, Sainsbury’s decided to incorporate BI with the business plan of the company. The prime feature of BI is data visualizations as it presents the market data in a unique easy such as presenting the data with the help of pie graph, bubble graph, bar graph, pivot table analyses and many more which is impactful to understanding the market more effectively.
Financial stability and profit level of the business is extremely essential for the growth of the business, however many retail organizations of the UK are not able to enjoy financial stability. It has been observed that most of the organizations are not able to implement BI even though without the exception of BI solutions an organization will not be able to recognize and identify different conditions of the market. Many organizations of the world use Industry 4.0 and incorporate the BI solution of the organization which increases the data circulation speed of industrial data as well as improves the business decision making process (Bordereau et al., 2018).
3. Recommendations
It needs to be stated that the use of BI always results in benefits for Sainsbury’s even though there is a requirement of huge improvement as the marketing is becoming more competitive. In addition to that, if the organization will be able to recruit more IT employees and provide IT training to other employees then the implementation of BI will be more successful. Moreover, the organization needs to understand the market data in a more structured manner and for that reason Sainsbury’s needs to use innovative data presentation and analysis tools. It is also essential for the company to understand the contemporary issues by using Artificial Intelligence and machine learning within the BI solution which may make the model more developed and improved.
The recommendation for the company are as follows:-
- It should be recommended that if the company recruit skilful IT employees the efficiency of BI will be increased
- The proper implementation of AI and machine learning will be helpful for the company in delivering the BI solution which ensures the growth of the company
- The management of the company needs to invest more money to improve the BI software of the company which may result in the competitiveness of the organization.
4. Conclusion
Finally, it may be concluded that, BI is one of the most common elements which needs to be implemented by retail organizations of the UK as it creates extra value and attracts a huge number of customers to the company.
References
About.sainsburys.co.uk. 2022. About us. [online] Available at: <https://www.about.sainsburys.co.uk/about-us> [Accessed 7 January 2022].
AL KETBI, W.R., 2019. Facilitating Decisions by Using a Data–Driven-Decision Making for Management Using Business Intelligence Case Study: Social-Services Departments in the Emirate of Sharjah (Doctoral dissertation, The British University in Dubai (BUiD)).
Bordeleau, F.E., Mosconi, E. and Santa-Eulalia, L.A., 2018, January. Business Intelligence in Industry 4.0: State of the art and research opportunities. In Proceedings of the 51st Hawaii International Conference on System Sciences.
Freire, M.A., 2020. Supply chain business intelligence: model proposal and implementation to support the online sales supply chain end to end operation of a portuguese electronics retail company (Doctoral dissertation).
Liang, T.P. and Liu, Y.H., 2018. Research landscape of business intelligence and big data analytics: A bibliometrics study. Expert Systems with Applications, 111, pp.2-10.
Sousa, M.J. and Dias, I., 2020. Business intelligence for human capital management. International Journal of Business Intelligence Research (IJBIR), 11(1), pp.38-49.
Tamang, M.D., Shukla, V.K., Anwar, S. and Punhani, R., 2021, April. Improving Business Intelligence through Machine Learning Algorithms. In 2021 2nd International Conference on Intelligent Engineering and Management (ICIEM) (pp. 63-68). IEEE.
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