Week 1 - BI Buy-In

Question 1

What data do you search for to support decision making?

Answer 1

Some examples include:
 Increase revenue
 Increase customers
 Reduce costs
 Create or break into new markets
 Attract and retain talent
 Attract and retain customers.

Question 2

A good priority includes what 3 components?

Answer 2

 WHAT: what is it the organisation should achieve/focus on?
 WHY: why should the organisation do this?
 HOW: how will the organisation achieve this?

Question 3

What are the three levels of management decision-making?

Answer 3

• Strategic
• Tactical
• Operational

Question 4

What is the nature of strategic decision-making?

Answer 4

 Long term
 Complex
 Example: aim to be a market leader

Question 5

What is the nature of tactical decision-making?

Answer 5

 Medium term
 Less complex
 Example: launching a new product

Question 6

What is the nature of operational decision-making?

Answer 6

 Day-to-day
 Simple and routine
 Example: regular ordering of supplies

Question 7

What are the four types of questions?

Answer 7

• Descriptive
• Diagnostic
• Predictive
• Prescriptive

Question 8

What is the nature of descriptive questions?

Answer 8

 Leads to well-defined problems and opportunities.
 What happened?
 What is happening?

Question 9

What is the nature of diagnostic questions?

Answer 9

 Leads to understanding.
 Why did it/is it happening?

Question 10

What is the nature of predictive questions?

Answer 10

 Insight via prediction (forecasting).
 What will happen?
 Why will it happen?

Question 11

What is the nature of prescriptive questions?

Answer 11

 Best possible decisions and actions.
 What should I do?
 Why should I do it?

Question 12

What is an example of a descriptive question?

Answer 12

• What were the sales figures for the last quarter?
• What is the current market share of our product?
• Which demographic groups are most likely to purchase our product?
• What is the customer satisfaction score for our product?

Question 13

What is an example of a predictive question?

Answer 13

• What is the expected sales growth for the next year?
• What is the likelihood of a recession in the coming year?
• What are the potential risks associated with this investment?
• What is the projected demand for our product in the next quarter?

Question 14

What is an example of a prescriptive question?

Answer 14

• What marketing strategies should we implement to increase sales?
• What changes should we make to our pricing strategy to improve profitability?
• What actions should we take to mitigate the risks associated with this investment?
• How can we improve customer satisfaction with our product?