Business Intelligence (BI) is a technique or a tool that is used to transform raw data into vital information to be used for business analysis purposes (Sauter 51). There are five major key benefits of the BI in the manufacturing industry; the BI is significant in reducing labor costs. For instance, in the manufacturing industry, there are very many transactions and the generations of reports. However, when using the BI software, it is easier to reduce labor costs since the software can generate an enormous number of reports within the shortest time possible. Secondly, the BI software is essential in the reduction of the information bottlenecks. Through the use of BI, the end users can easily extract reports at their convenience without depending on the IT departments in the manufacturing industry (Sauter 51). Thirdly, the BI makes data actionable because it makes data collaboration easier. Fourthly, the BI helps the management in the manufacturing industry to make better and faster decisions. Lastly, the BI aligns the organizational operations with the business objectives.
Benefits and disadvantages of outsourcing
Outsourcing has both merits and demerits. Therefore, an organization must weigh the two to determine whether it will be significant to outsource. Various services can be outsourced ranging from payroll, manufacturing and human resource (Oshri et al. 50 2015). Outsourcing has four major merits. Firstly, outsourcing allows swiftness and expertise. The firm may outsource tasks in which it has little expertise. Secondly, outsourcing allows an entity to concentrate on key processes which improve efficiency. Thirdly, outsourcing is an easy way of sharing risks with other organizations. Lastly, outsourcing reduces operational and human resource costs. However, outsourcing has two major demerits. Firstly, outsourcing may lead to data leakage because vital data is shared out. Secondly, outsourcing has hidden costs that many organizations are unaware (Oshri et al. 50 2015).
Importance of Aligning IT to the Business Today
It is difficult for businesses to operate without IT. IT has globalized business operations, and a company can easily reach clients in far countries (Bloom, Nicholas, et al. 2859). IT has made communication easier making the global world seem as a small village thus accelerating business operations. The business operations, especially the advertising, has taken the center stage in the social media. Therefore, aligning the IT applications to the business today is vital in ensuring business success.
Bloom, Nicholas, et al. "The distinct effects of information technology and communication technology on firm organization." Management Science 60.12 (2014): 2859-2885.
Oshri, Willcocks. The Handbooks of Global Outsourcing and Offshore 3rd Edition. Palgrave Macmillan. 2015. Print
Sauter, Vicki L. Decision support systems for business intelligence. John Wiley & Sons, 2014.