When it comes to business intelligence, data is the key to all decisions. In layman’s terms, business intelligence is using a combination of data analysis and various tools to assist the business decision.
Gone are the days when just the collection of data and its analysis was done by a small team of one or two persons trained in that area. Today, artificial intelligence has made it possible to delegate a large portion of this task to technology and its tools.
In effect, what this means is that artificial intelligence has made business intelligence much more sophisticated than it was a decade or so back.
Artificial Intelligence Augments Business Intelligence
In order to effect any change in the business environment or structure, especially one which is in favor of technology and which might result in the firing of human resources in an organization, there is always an initial reluctance.
Business intelligence when combined with artificial intelligence can result in the following benefits:
- Better analysis of the data, which in turn means a better understanding of consumer behavior.
- Faster and more accurate information for the decision-makers, which in turn leads to quick and better decision making.
- Identification of loopholes in the processes and systems.
- Sophisticated prediction models can help in deciding between two or three choices.
- Easier to compare data sets with past performance and that of the competitors.
Importance of Knowledge of Artificial Intelligence for Managers and Executives
Considering the numerous benefits of artificial intelligence in business decision-making, it is imperative that managers and executives who take decisions and implement them have an understanding of the basic concepts of artificial intelligence.
In fact, business intelligence that uses the tools of machine learning, as well as artificial intelligence, is often referred to as augmented business intelligence. It is not enough that managers and executives are aware that technology has driven the data and analysis that they are using for their decision-making. It is equally important for them to understand the process through which technology is collecting that data and analyzing it.
For instance, if the procedure is not known to the humans involved in decision-making, there is no way for them to identify the problems that may exist with that process or system. Further, an understanding of the process also helps in better understanding the nuances of the data set, which may have been missed by the machines.
We look at the following reasons why data science for managers is crucial in this day and age.
- Setting Better Goals – As a business, it is important to use data to set your goals. However, the quality and quantity of your data are highly dependent on the technology. Good quality analysis of the data using machine learning tools is equally important. Augmented business intelligence helps managers set better goals along with providing them a pathway to achieve those goals.
- Fraud Prevention – If business-minded professionals are trained in data science, then it can certainly help in the prevention of fraud. When it comes to any financial fraud, it is data that stands out that can help in the identification of fraud. The specialty of a data scientist is that they can easily find out that one needle in a haystack (in terms of dealing with huge sums of data). This certainly results in designing better systems for fraud detection and prevention.
- Improved Product Development – Product development is one aspect of business decision-making that requires inputs from multiple functions – customer feedback, costing department, research and development, and after-sales service requirements of customers. From knowing which products sell the most and which features of those products are the most liked, business intelligence can help in finding the best answers.
- Greater Personalization of Services – The best aspect of using data science and artificial intelligence in a service industry is the minute details about the customer and his behavior. Creating a customized experience for the customers can yield dramatically better results in terms of the bottom line. For instance, if a particular customer is more prone to place orders around midnight, augmented business intelligence can analyze this behavior and push notifications or text messages at the most opportune time.
Like any technology, the field of artificial intelligence and machine tools is ever-evolving. This means that decision-makers must also keep upskilling and the knowledge of artificial intelligence can make a huge difference to the quality of decision-making. Trend analysis and testing of various metrics involved in any decision is also a crucial aspect of business intelligence that can direct actions.
While the fear that the use of technology can make certain jobs and people redundant may have some basis in reality, the fact is that artificial intelligence will surely lead to a change in certain jobs.
