KPH First Unit

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 BUSINESS INTELLIGENCE AND BUSINESS DECISIONS

Q. 6 What do you understand by brainstorming ? How is it done ?

Ans. Brainstorming: Brainstorming is a method for inspiring creative problem solving by encouraging group members to toss out ideas while withholding criticism or judgment. While business people are most likely to actually use the term "brainstorm," the process is used in a very, wide range of settings, from universities to non-profits to performing arts venues. Brainstorming can be accomplished by a large group, a small group, or even an individual. There is no limit to the type of problem or question that can be addressed through brainstorming.

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Working of Brainstorming:

1) Clarify: Explore the vision by identifying the goal, ( wish or challenge; gather data to better understand the challenge, and create challenge questions that invite solutions.

(2) Ideate: Explore ideas through the brainstorming process.

(3) Develop : Formulate solutions by evaluating ideas generated in the ideation process and then select the best solutions.

(4) Implement: Formulate a plan after exploring resources and actions required to put the solution into action.

Q. 7  Difference between decision-support systems and operational system?

Ans. Decision - Support Systems: A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSS serve the management, operations, and planning levels of an organization (usually mid and higher management) and help people make decisions about problems that may be rapidly changing and not easily specified in advance - i.e. Unstructured and Semi- Structured decision problems. Decision support systems can be either fully computerized, human-powered or a combination of both.

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Operational Systems: Operational systems are generally designed to support high-volume transaction processing with minimal back-end reporting. Operational systems are generally process - oriented or process driven, meaning that they are focused on specific business processes or tasks.

Example:

1. Tasks including billing, registration, etc.
2. Operational systems are generally concerned with current data.
3. Data within operational systems are generally updated regularly according to need.
4. Operational systems are generally optimized to perform fast inserts and updates of relatively small volumes of data.
5. Operational systems generally application specific, resulting in a multitude of partially or non integrated systems and redundant data (e.g. billing data is not integrated with payroll data).

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Q. 8  What do you understand by intellectual capitals ? What are its major components ?

Ans. Intellectual capital is a real business asset, although measuring it is a very subjective task. Companies spend millions annually training their employees in business- specific topics and otherwise paying for increased competence in their staff. This capital employed provides a return to the company, one that can contribute toward many years' worth of business value. 

As technology and process improvements become more of a differentiating factor within modern companies, intellectual capital is likely to become an even stronger force in the marketplace.

Major Components: Intellectual capital consists of three elements:

(1) Human capital

(2) Structural capital (or organizational capital)

(3) Relational (customer) capital

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Human Capital:  Refers to the skills competences training and education, and experience and value characteristics of an organization's workforce that in the minds of individuals: knowledge, skills, competences experience, know-how, capabilities and expertise of the human members of the organization.

Relational Capital: All relations a company entertains with external subjects, such as suppliers, partners, clients External capital comprises relationships with customers and suppliers, brand names, trademarks and reputation.

Structural Capital: "That which is left after employee go home for the night" : processes, information systems databases, policies, intellectual property, culture, et Thus, the knowledge. embedded in organizational structures and processes.

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