Business Analytics for Improved Decision-Making: Nisa Case Study Sample

Introduction Of Business Analytics for Improved Decision-Making

Business analytics is a process which assists the company in using the data to improve the decision-making of business. The Companies must undertake the use of data such that better decisions can be taken for growth of business. There are many areas which undertake the use of data for evaluating the business and for this data analytics is used. The current study is based on Nisa which is an independently owned retail business located in the UK. The company was founded in the year 1977 as a wholly owned subsidiary of the Co-operative Group.

The current study will discuss the key concepts and processes relating to data management. In addition to this, the benefits and limitations of using data management for decision-making will be highlighted. Furthermore, the different approaches to analysing information will be evaluated along with the appropriateness of the selected data will be discussed. Moreover, the different examples of effective or poor ethical behaviour will be discussed relating to data management. At last, the development of appropriate data management processes for Nisa will be undertaken to improve decision-making within the business

P1. Explaining the concept and process which outlines data management

Data management is defined as the practice of gathering data and accessing and organizing data for improving business performance. It is very necessary for the company to gather the relevant data and apply different tools to evaluate the data. With this evaluation of the data, it can be used in a better way for taking important decisions of business. Currently, the competition is very high and for this, it is very necessary that appropriate decisions are taken for the running of the business successfully (What Is Data Management? 2023). Hence, for this, it is necessary for Nisa that they must undertake the use of effective data management so that better decisions can be taken. The use of the data management process is very crucial for the business as it will be helping the company to grow and develop and this will improve the efficiency of the business.

The use and compliance of a data management system are very important for the company as it will assist the business in managing the work in a better and more effective way. Thus, as a result of this, the efficiency of the business will improve and better decisions can be taken by the company. This data management is being used by Nisa in order to take all the decisions of the business in a better way so that the operational efficiency of the business is improved. The data is treated as a valuable asset for the business because it is used by the company in order to evaluate the performance of the business (Maheshwari, Gautam and Jaggi, 2021). The data is helpful for the companies as this provides a base for decision making and as a result of these effective decisions is taken. In addition to this, the use of data management processes within the business improves the quality of work as well. This is particularly because of the reason that good set of data will be helping the company in better evaluation of the strategies of the company and as a result of this the working efficiency of the company will increase.

The major importance of using the data management process for Nisa is that it provides a wider base for the company to take better decisions. The use of an effective data management process is very important for the company as it will analyse the data and try to take better decisions. The analysis of data will provide a wide knowledge of the business operations and as a result of this, the working efficiency of the business is improved. In addition to this, data management is also very important for Nisa as it provides reliable information and changes of errors are very minimum. This is particularly because of the reason that when effective data is used then as a result of this efficiency is increased and good decisions are taken by a company.

For example, Nisa needs to decide the expense amount to be spent on marketing activities. Then, in this case, the company will be requiring past data and information relating to marketing expenses which the company earlier did. Then after studying the past data, the company will decide the marketing expenses for the current period. For this, the company take an average of the past four years of marketing expense. In addition to this, another way of deciding the expense is to increase the past year's expense by 2-3% so that it can be used within the company.

P2. Benefits and limitations of data management

The use of data management is beneficial for companies in this highly competitive environment. This is pertaining to the fact that the use of data management is assistive in managing the working of the company and running the business successfully. The major benefits of using data analytics by Nisa are as follows-

• The major benefit enjoyed by Nisa by using the data management system is that it assists the company in building a secure and reliable system for decision-making. The use of data provides concrete facts and figures which provide accurate information relating to the business and its services (Akter and et.al., 2022). Hence this can be used by the business to take decisions in a better manner so that the performance of the company is improved.
• Along with this another benefit of using a data management system by Nisa is that it helps in understanding the market and consumer in a better way. The reason underlying this fact is that there are different types of consumers requiring different things. Hence, for this, it is very necessary that data relating to the market and consumer is evaluated by the company and then decisions are taken so that business can run effectively.
• Moreover, creating security is another benefit which the company enjoys while using the database management system. The data management system is the one which assists the company in evaluating the data such that proper decisions can be taken. Hence, the data is being used as a security because the data can be reviewed anytime and this improves decision-making as well. Thus, for this, it is beneficial that this data can be used by the company to review it later.
• In addition to this, the improvement in data sharing is another benefit which Nisa enjoys while working with data management. This is particularly because of the reason that when a company complies with all the principles of data management then this assists the company in having a good set of data. Then this data can also be used by other companies and competitors in order to take some of the decisions. This will improve the working of the company and as a result of this operational efficiency of the company will be increased.
• Along with these benefits, there are some challenges as well that Nisa faces while operating. The different drawback which the company faces is as follows-The most common drawback of using a data management system is that it results in an increase in cost for the company (Ciampi and et.al., 2021). The reason underlying the fact is that when different data management systems are used then there is a lot of cost involved. Hence, as a result of this, the cost for the company is improved which is not good.In addition to this, another drawback of using database management is that it is very complex to be used. The reason underlying the fact is that there are many different types of data management tools present and it is not necessary that the company have knowledge of every data tool (Raut and et.al., 2019). Hence, many-a-times it is difficult for the company to handle these database management tools.Along with this, another drawback which the company is facing while using these data management tools and techniques is that there are many new and frequent changes taking place within the external environment. Thus, it is not necessary that company is able to adapt to all these changes effectively. Thus, many times this poses a problem as the company is using an outdated version of technology and as a result of this it will not be providing better results.

P3. Various approaches for analysing the information and data

With the above evaluation it is clear that data analysis is very important in order to take better decisions. There are different ways through which are can analyse the information and data and reach to some conclusion. The different types of data analysis technique and methods available to the company are as follows-

• Regression analysis- The regression analysis is a type of data analysis tool with his helpful to the company in evaluating the collected date of. This tool is used in order to analyse the relationship between a set of different variables being tested. In case the company needs to evaluate the relationship between any of the variables then the use of regression is being undertaken to stop the aim of this analysis tool is to everybody how a variable impact to the dependent variable and assistant in identifying the Trends and pattern please within that changes. The benefit of using this technique is that it will guide the company to analyse the relation between the correlated variables. On the other side, the drawback is that it is only applicable in case there is one independent and another dependent variable.
• Monte Carlo simulation- The use of Monte Carlo simulation method is another technique for evaluating the data. There are many different decisions to be taken within the business and there are different outcomes which can be brought with that decision (Hamilton and Sodeman, 2020). Thus it is very necessary for the company that it evaluates all the possible outcomes and then only take the decision. This Monte Carlo simulation approach is a computerised that makes which is used in order to generate the possible outcomes and their probability distribution. The benefit of using this technique is that it is helpful and applicable in every field and this provides a base to the company to grow and develop. On the other side, the limitation of using this technique is that the negative impact affect the working to a great extent.
• Cluster analysis- Western analysis is another type of data analysis technique where in different structure is being identified within the data set. The data set includes different type of structure being present within them. Hence, it is the responsibility of the evaluator that the effectively analysis the pattern and structure within the data. Under this technique the data analysis is being undertaken by sorting different data points into some homogenous groups that is the data which is similar. This simply means that a grouping all the similar points into a single cluster so that the evaluation can take place affectively. Hence the data analyst uses this technique in order to evaluate the data very easily as all the similar points is under one group. The benefit of using this type of analysis technique is that it provides a deeper understanding relating to data and how it is grouped together. Further the limitation of it includes the fact that grouping or making cluster is the main issue while using this type of technique.
• Descriptive analytics- Another type of data analysis tool is descriptive analytics. This is a type of analytics which is used in order to evaluate the data which is historical in nature. This is particularly undertaken in case where data is older and large in number. As the name suggest the descriptive Data Analytics is a tool where in descriptions take place in form of visualisation like pie chart pie chart tables and many other. All the data and its summary is being presented with help of Pie Charts and different type of other chart (Understanding the Different Types of Analytics: Descriptive, Diagnostic, Predictive and Prescriptive, 2023). This is very simple way of understanding the data and assisting the company taking effective decisions. This method is very easy to use in any of the situation and this is the major benefit of using this kind of technique for any problem. The drawback of using this is that it provides the theoretical discussion only relating to the problem and not any practical measures.
• Diagnostic analytics- Another technique of evaluating the data is the Diagnostic Analytics. This is a type of analysis tool where in the focus is on why anything happened. This tool assists in discovering the reason why anything happened and try to find solutions to it (Ardito and et.al., 2019). It also help the company in analysing and finding the root cause of any problem and try to find perfect solution to it. The benefit of using the diagnostic tool of data analytics is that it provides more detailed view as compared to descriptive analysis. On the other side, the drawback is that it keeps the historic data as base and this does not provide the accurate information.

All these tools are assistive to companies in order to analyse the data for taking better decisions. These tools will provide a base to the company and will help them to work in more efficient and effective way. Also, it will help the companies in deciding the future strategies as it will be providing a better base to grow and develop the strategies.

P4. Appropriateness of selected data analysis method

With the above evaluation it is clear that there are different types of data analysis Tools and techniques which can be used by Nisa in order to complete the working. Thus out of all the above technique discuss the most appropriate for the company is the use of Diagnostic analytics and regression analysis. The combination of both these technique will be helpful to Nisa in order to take informed and better decisions for the growth and development of the business. The reason for selecting regression analysis is that it assist in adult find the relationship between the two different variables this relationship will help the company to decide that how investment needs to be done and in what proportion. In addition to this, diagnostic analysis will help the company in order to solve the problem easily and effectively. The reason underlying the fact is that the Diagnostic analytics help in solving the problem effectively and different steps will be outline in order to solve the problem effectively. The combination of both these method will be helping the company in order to take decisions for the betterment of company and it will improve the efficiency of the business.

For example, the company wants to identify that which social media technique will be more helpful to the company in order to attract last number of the consumers (Awan and et.al., 2021). Hence, in this case the company will undertake the use of Diagnostic analysis in order to evaluate all the different options and analyse which option will be much better for the company. In addition to this, the use of regression analysis will also be helpful in this case as the dependency can be checked on the use of social media and the profits of the company. Here the profits will be a dependent variable which will be depending on the use of social media. The different social media platform like Facebook, Twitter, Instagram will be analysed and the impact of these strategies over the profit of the company will be evaluated (Chehbi-Gamoura and et.al., 2020). In case profits will be more in case of Facebook then Facebook will be treated as the strategy helpful in attracting large number of customers. On the other hand in case Twitter will be having more higher result 10th it will be treated as the best strategy to attract consumer. Thus, with this it is clear that the use of appropriate data analysis tool will be helpful for companies in order to find proper solution to the problem and try to improve the performance of the company.

P5. Examples of effective or poor ethical behaviour

For the company to be successfully working it is very necessary that ethical working is being done by the company. The ethical working includes the compliance with the ethical principles like honesty fairness professionalism equity and many other different related aspects. All these element needs to be undertaken while working within the company. This is very necessary for the company that they must work ethically so that all the values and principles are being followed by the company. In case company will not be working on ethical principles that this will not attract customer towards the company. Thus, if company is not undertaking the work ethically then the product and services will not be good. Thus it is very necessary for Nisa that they effectively comply with all the ethical principles and behaviours of working. In case of data analysis the ethical working is very necessary for the company to be successful in its operations. The reason behind this fact is that when ethical working is not followed while using the data then it can provide wrong outcomes as well.

For example, there are different data sets which are owned by some people specifically. Hence for the use of these data must be prior formation being taken by the company. In case undertaking the use of such data without the permission then it is against the ethical working (Dagilien? and Klovien?, 2019). Hence it is very necessary for that the first take the permission of the owner of the data and then only use it within the analysis. Along with this, it is also very necessary for me that they behave ethically so that effective decisions can be taken by the business. In addition to this another example of ethical behaviour by the company is that there are different designs which can be used by the company. Hence, for the effective ethical working it is necessary that company takes permission from the design owner before using the design (Côrte-Real, Ruivo and Oliveira, 2020). Hence it is very necessary for Nisa that they effectively take the permissions before using these designs. In addition to this, design used must not be harming the sentiment of any consumer group. There are many different ways of completing a single task. And it is very necessary for Nisa that they effectively undertake the best method to complete the task which is not unethical and affecting or harming the sentiments of any person involved within the working. This is very necessary as ethical working will be helping the company to secure a good position within the highly competitive environment.

In the views of ur Rehman and et.al., (2019) ethics need to be followed on the basis of both aspects that is moral and legal grounds. This is very essential as it will help the company in developing the working in better manner. Also, when the working will be good then this will be motivating the company to work in better and effective way. In case the work is done in ethical way then it will be providing a strong legal base to the company as they are working in correct and ethical manner

P6. Developing appropriate data management processes for improving decision making

Using an effective data management process is very necessary for Nisa to improve its working. Hence, good data management process to be used by Nisa for taking informed decision is as follows-

• Identifying business objectives- The first stage is of identifying the appropriate business objective. This business objective will provide a direction to the company that how they have to evaluate the data.
• Creating strong data process- The next stage is of creating a strong data based. Within this stage the company find the data to the business objective (Schmitt, 2023). For completing the business objective the use of data is very necessary hence the related data is being gathered and collected.
• Find the right technology- Identifying the right technology is the next step which can be used for me so an order to find solution to the problem. Within this stage the company tries to find the appropriate data analysis technology which will be used in order to analyse the data and try to take proper and effective decisions.
• Establish effective data governance- The next stage is to establish a good data governance system. Within this governance system the company will add maintain the quality of the data and will ensure that there is privacy and transparency being present within the data evaluation.
• Train and execute- The last stage comes of training and execution. Within this stage Nisha will try to give training to the Employees who are using the data analysis tools and will help them to Executive plan in the intended manner only. This execution is very important so that the vesis objectives we said can be attended by the company.

Conclusion

The above report concluded that data analysis is very important in order to evaluate the data. The above report highlighted that there are different type of approaches which can be used in order to evaluate the data. These approaches included use of regression analysis cluster analysis and many other different tools. For the company the most appropriate data analysis tool was the combination of regression and Diagnostic analytic. At last it was evaluated that data management process is helpful in analysing and solving any of the problem.

References

Books and Journals

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Online

• Understanding the Different Types of Analytics: Descriptive, Diagnostic, Predictive and Prescriptive. 2023. [Online]. Available through: <https://iterationinsights.com/article/understanding-the-different-types-of-analytics/#:~:text=There%20are%20different%20types%20of,complexity%20it%20takes%20to%20execute.>
• What Is Data Management? 2023. [Online]. Available through: < https://www.oracle.com/in/database/what-is-data-management/ >