Project
4000 Words
(APA referencing at least 10-12 references)
By definition, business intelligence (BI) is information that is useful for making significant decisions in your company. Companies all over the world are now adopting BI for their business analytics to help in the decision making process at all levels, departments and executives. However, business intelligence extends to all areas of business, as long as the information is significant enough to impact decisions.
Business Intelligence Ecommerce is now becoming more and more important because of globalization and the importance of making on-the-spot decisions in a market which is characterised by competitiveness for survival. The advent of the PC, the Internet, and ultimately ecommerce, has brought a revolution in business intelligence. However, it has also proven to be a double-edged sword. The sheer volume of information we can gather now is overwhelming for any human team to keep up with, properly analyse, and utilize effectively There is so much information that it becomes unmanageable. Business Intelligence is a means to make the most out of this sheer number of information and especially in Ecommerce.
In this project students have to investigate the role of BI in Ecommerce.
For many Ecommerce businesses it seems a no-brainer when you see the term Business Intelligence (BI) that it is critical to success in ecommerce even if you haven’t the slightest idea what it means.
The Computer’s Role in Business Intelligence for Ecommerce
The advent of the PC, the Internet, and ultimately ecommerce, has brought a revolution in business intelligence. However, it has also proven to be a double-edged sword. The sheer volume of information we can gather now is overwhelming for any human team to keep up with, properly analyse, and utilize effectively. There is so much information that it becomes unmanageable.
A lot of information is available at low cost or, better yet, for free. We all knew it was headed this way, but we probably didn’t anticipate it would come so quickly. We now need computers to analyse our business intelligence for us.
Luckily, computers can go farther than mere rudimentary analysis. With the right business intelligence system, you can have the software decide when to reorder stock at the right time, for example, so you won’t run out of exactly what you need, based on an effective seasonal data analysis.
What Questions Does Business Intelligence Answer?
To fully appreciate the importance and power of business intelligence, here is a list of questions that it helps you answers. Once you go through this list, you will realize that business intelligence is an absolute necessity for ecommerce.
- Advertising-Effectiveness Related Questions
What source of advertising is pulling in the maximum amount of traffic? Which advertising is generating the most sales? What ad creative is converting best?
- Navigation-Effectiveness Related Questions
What elements of navigation people using the most? What are they using the least? What is causing visitors to go around in circles? Are they reaching their desired page upon using the search box?
- Loyalty-Related Questions
What customers buy repeatedly? Where did these customers come from? How do they reach their desired products? How many of them respond to mailers and other forms of marketing communication?
. Marketing Plan Effectiveness Related Questions
How price sensitive are customers? What affiliates are sending in the best traffic?
- SEO (Search Engine Optimization) Related Questions
What key phrases are sending the best traffic? What strategies are leading to the greatest SEO success?
. Social Marketing Related Questions
Are social sites sending you traffic? What is working in your social media efforts, and what is not? Are you able to generate a return on investment from social media?
- Pay Per Click Strategy Related Questions
What keywords are the best converting? Are your PPC efforts bearing fruit?
