Business Intelligence System modeling Essay Example | Topics and Well Written Essays - 1000 words

Business Intelligence System modeling - Essay Example In order to remain relevant in a competitive business environment, an organization should have a strong change management strategy that must influence all departments within an organization. In this business model, management processes, supportive processes and operational processes are interlinked to avoid departmental miscommunication. Centralization of information and data is vital in ensuring appropriate decision making process and implementation of an organization’s policy (Tennet &Economic group, 2005). Exponential Smooth This system modeling technique is essential in making future projections that are essential for risk aversion and developing financial strategies that can withstand economi9c shocks. A business may be affected by fiscal and monetary factors that may lead to inflation. As such, it is important for any business to develop computer programs that can utilize present performance of a business to detect future trends. One of the essential concepts that need to be applied is triple exponential smoothing. This business modeling technique takes into account seasonal changes when projecting possible business performance. This technique analyses the present business trends and uses them to make future projections. It takes into account the time variable (t), sequence of best time estimate for seasonal change (b), seasonal correction factor sequence c1, and the expected proportion of the forecasted trend (c2) (Tennet &Economic group, 2005). Data envelopment Data envelopment enhances productivity. It is essential in management and cost accounting department of an organization. This technique is used to measure the productive efficiency of decision making units in the organization. Data envelopment utilizes the cost variable such as labor cost in searching for the lowest unit in any given cost output in order to promote an efficient frontier. Any organization that does not have an efficient frontier is considered as ineffective in a competitive business environment. Different variables that include quality of service, number of employees, and safety of the environment can be analyzed and compared with other companies in order to determine strategies that can enhance business performance. The advantage of this technique is that it has the ability of accommodating a multiplicity of outputs and inputs. It is also essential in calculating efficiency by allowing the analysis of output level and size in determining efficiency. Cost management i s essential for any business because it maximizes profit and minimizes cost. Since one of the major factors of any business is to increase profit, data envelopment is useful because it promotes efficiency of costing techniques and developing managerial decision based on cost accounting data (Tennet &Economic group, 2005). Non linear programming This method uses mathematical optimization in solving non linear problems. It applies equalities and inequalities systems in determining long term business survival strategies. This technique is essential in forecasting an organization’s income statement to determine its profitability. In a typical non- convex problem, it can be used to optimize a specific expense among different forms of expenses to determine one that is economical. For instance, it can minimize transport cost by selecting a transport system that is economical. This technique is