How Technology Helps Businesses Make Informed Decisions

Business performance can be measured using IT systems in terms of collecting data, performing data analysis and representing it in a manner suitable for a business to make informed decisions on different business aspects. Managers of businesses can use technology to examine the details about different activities that are ongoing in the company. When using technology to analyze a specific area of your business, you need to identify the metric you want to track. Once you have the value collected over time, you compare the results to evaluate the performance of the business functions of your company.

 

Metrics like sales, operational costs and the average time you solve client issues can be analyzed by different IT systems. These IT functions help in the identification of measures that are leading (future predictions) and lagging (past performance report) like website traffic, customer satisfaction, to strategize about the business. As we have seen, technology is undoubtedly a core aspect of any business which helps us to look at how we can track business processes, customer behavior to make better business decisions. We are going to look at four different ways business benefits from technology.

 

  1. Development of a balanced scorecard

 

A balanced scorecard is a structured report of nonfinancial and financial information; it is a metric of business performance. In this metric, a business gathers reporting data that is compiled from different functional databases. An evaluation is conducted on each input, calculations and output requirements are also considered. Identification of the governing rules on how data is collected is placed together with the frequency of updates before an analysis of the data is done. Applications like SAP’s BusinessObjects, HostAnalytics or Oracle’s Hyperion management software are used to set position targets and allocate resources to analyze the collected data to compare with the business objectives of each department. Additionally, business intelligence software like SAS Business Intelligenceor IBM’s Cognos can also be used in examining operational data.

 

  1. Tracking the company’s goals, objective, and mission.

 

These parameters are identified for each department in the company. Reports are prepared to ensure that a comprehensive coverage of the functions of each section of the company is done, after aligning the corporate plans and the business performance measurement strategy. Ideally, to achieve these goals, business activities need to be measured through a different process that involves the collection of data, transforming and validating the data for analysis.

 

  1. Placement of a business monitoring systems

 

This can be achieved by managing the businesses workflow processes like scheduling tasks and distributing resources. Real-time data is produced by IT monitoring solutions when tracking transactions and processes. The results are then analyzed by the IT systems to improve the productivity and efficiency of operations in the business.

 

4.Establishment of a management and alerting system

 

Computer programming has allowed the triggering of alerts when certain business conditions are met. For instance, most banks perform automatic transfers of money. When a confirmation message is not received, an email alert is created which is sent to the support team who investigate why there has been a delay in the confirmation. IT solutions that are developed for management and event alerts prevent costly impacts on business processes. Once the issues are resolved, basic qa training and placement can be done to the staff in order to know how to deal with alerts and issues that come up in the business process.

 

Business analytic tools such as Adeptra or Omniture Site catalyst help businesses get an in-depth understanding of customer contact issues, sampling website metrics like keyword search term and page views. Programmers usually place a code on each webpage that sends the information of the customers who visit the website to a data warehouse where analysts can view, filter and analyze the data. Using the data that is collected to make business decisions, helps in understanding customer needs and responding to them effectively as the business improves its performance.

 

Conclusion

 

How can the value of IT to business be proved? The ability to measure the business results sourced from IT services drives better business decisions that measuring the costs of business. IT helps in focusing the business goals and planning for the future of the company. The IT department can deliver value to the company by improved business processes and strategic decisions.

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About the Author: Robert Cordray is a freelance writer and expert in business and finance. With over 20 years of business experience, Robert is now retired and hopes others can benefit from his writing.

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