How BI Experts Can Help Build Better Information Systems
“Most companies have a lot of resources, they have the technology and very smart people, and they have tons and tons of data. But [success] isn’t about data collection, it’s about data management and insight.”
These are the words of Prashanth Southekal, a business analytics author, professor, and head of the Data for Business Performance Institute. In a world rife with raw data, experts agree — it doesn’t matter how much data your organization has unless you know what to do with it.
This is precisely why the job outlook for data scientists and business intelligence (BI) analysts is growing at an unprecedented rate of 36%. Companies must do more than collect data. They need to organize it effectively and understand it fully, which allows them to convert a sea of information into actionable insights. Business processes must adapt to today’s data-driven world, and BI experts can design better information systems that guide companies safely past potential pitfalls.
5 Challenges in Information Management
A well managed information system moves the needle in many key areas, from managing products and customer relationships to providing data-driven insights that improve a company’s success. But useful information systems don’t happen without both expertise and effort. Without reputable experts at the helm, organizations lose the ability to use collected data for the good of both the company and their customers. Common challenges include:
Data Volume
Big data, which refers to complex datasets that require sophisticated tools to analyze, is growing at an astounding rate. Companies can struggle to manage and analyze the sheer amount of collected data — and without an information system that makes data effective, collection is essentially useless.
To increase their storage capacity, many companies turn to data warehouses, which structure and store data so BI analysts can study it and offer insights. Prominent global companies like Amazon and UPS have implemented data warehousing with great success, saving millions of dollars and creating systems that will help them innovate even further.
Data Quality
Organizations draw incorrect conclusions unless their collected data is accurate and complete. As the worldwide volume of data increases, quality becomes an even more crucial part of information management. This is clearly evidenced in Customer Relationship Management (CRM) systems, where faulty datasets can lead to inaccurate assumptions about consumer behavior. According to Oracle, 85% of sellers have made potentially embarrassing mistakes due to faulty CRM data.
How can organizations avoid these embarrassing and often costly mistakes? First, companies must invest in technology that ensures data integrity, merging datasets into a system that can be easily understood and analyzed. With a robust system in place, BI experts can employ data analytics and machine learning to maximize insights and advise companies wisely.
Data Compliance
While organizations benefit from data collection, individuals are rightfully concerned about privacy and security when they provide personal information. Several laws and regulations aim to protect individuals from unauthorized access to their data. For companies operating in multiple locations with varying regulations, compliance can become complex. IT directors and Chief Information Security Officers often work together to ensure an organization’s compliance.
Data Integration
At NL Fisher, a company that develops and constructs wellsites for oil and gas, regular performance review is essential for safety and success. However, the vast information used to compile these reports came from several sources, causing long processing times to delay results. A team of data experts knew there had to be a better way. They created a new data warehouse that centralized all relevant information, reducing reporting time from over a minute per query to under 2 seconds.
When data is collected in different formats across various platforms, it becomes difficult to analyze effectively. Designing new information systems, such as the data warehouse created for NL Fisher, integrates that data, saving time and leading to successful outcomes.
Data Security
Cybercrime is costly: it’s projected to reach $10.5 trillion in 2025, and it’s been on the rise for some time. In 2018, a software vulnerability allowed hackers to steal financial data on Equifax servers from over 147 million Americans. That error cost the company more than $1 billion. Similarly, in 2022, Pegasus Airlines faced a data breach due to human error. Misconfigured security settings left 23 million files containing flight plans and employee data unsecured vulnerable.
Both of these cases highlight the importance of hiring trusted experts to secure data and mitigate disasters before they occur. To avoid the loss of capital and consumer trust, businesses must manage risk effectively. Business intelligence professionals can assess risk, identify potential issues, and employ secure solutions that protect companies and their clients.
4 Benefits of a Well-Managed Information System
When business information technology is implemented correctly, businesses reap major benefits that reach far beyond business intelligence roles. Data-driven strategy establishes positive outcomes, helps teams achieve KPIs, and boosts employee satisfaction across organizations. A robust information system creates:
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Efficiency Improvements
Effective information systems streamline processes, eliminate unnecessary or redundant information, and employ machine learning to automate simple tasks. These improvements enable employees to focus on creative work, complex objectives, and problem-solving tasks that require a human touch. The overall result is improved productivity and clearer focus.
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Cost Reduction
Collecting and storing information can be costly. A well-managed information system prioritizes which information should be stored-long term, reducing waste and cutting storage spending. Moving to cloud-based storage can cut physical infrastructure bills and ongoing maintenance costs. Streamlining operations also saves money, as employees are freed to focus on objectives that improve the bottom line, rather than spending hours on data input and reporting.
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Improved Collaboration
While Information systems are often created by IT and BI departments, they benefit everyone. Every team within an organization utilizes data to inform their work, from project management to marketing to finance. Centralized data systems allow all departments to access the same information, avoiding duplicated or siloed content and cutting lag time in interdepartmental communication.
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Enhanced Customer Experience
Comprehensive information systems not only help businesses, but also enhance the consumer experience. Automated technology improves wait times and helps clients find answers more quickly, while personalized marketing can have a positive impact on customer loyalty. When analyzed correctly, data provides valuable insights about customer preferences and behaviors that create even better products and services in the future.
Components of an Information System
Information systems are typically comprised of five major components:
- Hardware – computers, servers, and other storage devices
- Software – programs, applications, and operating systems
- Databases – raw material that includes facts, figures, and text
- Processes – procedures, workflows, and other organizational elements
- Humans – developers, administrators, and any other users who access the system
Each of these elements must pull its weight. An organization could have excellent hardware and software systems, but poor data analysis processes, which yields mediocre results. Similarly, a company could hire a contracted developer who creates excellent processes, but fail to train permanent employees on how to use those processes effectively. Building a complete information system is paramount.
How to Build an Information System
Before purchasing hardware or writing code for data processing, technology professionals clearly identify the scope, needs, and goals of the system and build a plan to suit those needs. They analyze the current system in place, identifying any gaps or shortcomings. Armed with this information, they can effectively design and develop a new system. Implementation is an important final step that includes testing, training employees, and performing regular maintenance and updates as needed.
Who Develops Information Systems?
Creating and maintaining information systems is no small task. It requires a collaborative effort from a team of computer and information systems managers, Chief Information Officers, data scientists, and other business intelligence professionals. Leaders with field experience and advanced degrees lead these efforts, employing critical leadership skills, applied research, and data-driven strategy to create an information system that will improve outcomes for their entire organization.
Become a Leader in Developing Information Systems
If you want to learn how to lead in the development of information systems, consider earning a DBA in business intelligence. This doctoral degree will prepare you to stand out as a leader as you enhance your skills in change management, strategic thinking, and ethical decision-making as you shape the future of business intelligence.
The online Doctorate of Business Administration in Business Intelligence from Marymount University offers a flexible, 100% online option for BI professionals who want to further their education while continuing to lead in their field. The College of Business, Innovation, Leadership, and Technology (BILT) gives students a robust, multifaceted perspective through an interdisciplinary approach. Your studies will help you stand out as a leader in your field and build your network as you connect with other experienced leaders, faculty and alumni from across the country.
This online DBA teaches you to not only identify but fully seize data-driven opportunities to inform decisions you are making today. Become a BI expert with a DBA in BI from Marymount University Online.