ANALYSIS OF THE ADVANTAGES AND DISADVANTAGES OF USING BI-SYSTEMS IN BUSINESS

Abstract

This article presents a comprehensive analysis of the significant aspects related to the utilization of BI systems in business enterprises. By examining the advantages and disadvantages, it provides valuable insights for business leaders and decision-makers contemplating the adoption of BI systems. Understanding the impact of these analytical tools is crucial in enabling enterprises to harness their potential effectively and gain a competitive edge in the dynamic digital business environment. The process of business analytics is categorized into three stages: descriptive analytics, predictive analytics, and prescriptive analytics. These stages aid in understanding and interpreting data, making informed predictions, and deriving actionable insights for strategic decision-making. The study identifies several key advantages associated with the use of BI systems in business. These advantages include the automation of business processes, which enhances efficiency and reduces manual workload. Additionally, BI systems enable accurate and prompt decision-making, enhancing overall productivity. They facilitate seamless collaboration between different departments within the organization and external partners, promoting effective communication and cooperation. BI systems empower enterprises to analyze data, conduct predictive forecasting, optimize stock management, and streamline logistics processes. Moreover, the implementation of BI systems fosters an environment conducive to innovation and continuous development. Despite the manifold advantages, the article also highlights the challenges and disadvantages associated with employing BI systems in business operations. The most notable disadvantages include the high costs of acquiring and implementing these systems. The complexity of integrating BI systems with existing infrastructure is another hurdle that organizations may face. Furthermore, the successful utilization of BI systems necessitates a skilled workforce, thereby requiring investments in employee training and development. Data security is a paramount concern, as increased accessibility to critical data may expose organizations to potential risks of data breaches or other security threats. Lastly, the lack of a research-oriented approach can undermine the full potential of BI systems, hindering the generation of valuable insights and hindering strategic decision-making.