Case Study Sample: Impact of Business Intelligence

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Section 1–Introduction

A multinational corporation selected for this case study is Unilever. It produces and markets consumer goods. The business was established in the 1930s and has had great growth since it began operations. Unilever’s business methods have supported its development despite its competitiveness and commercial difficulties. New technology brings with it some new moral problems. Information is gathered, stored, processed, and disseminated with the help of computer technology. Unilever’s information system processes information using local and international networks, databases, and programmes.

Information is both a source of authority and a route to riches (Ivyland, 2019). Because socioeconomic and political issues are involved, it is crucial to consider ethical implications and how data will be used in a management system (Tien, 2019). Unilever understood that the business-focused application layer required knowledge of business intelligence. To achieve efficacy in the inbound supply chain, Unilever will need the necessary information.

The business may monitor and manage the item’s requirements, receipt, and storage. Unilever has been investing in e-business to enhance brand communication and online marketing while streamlining chain transactions in the technology industry. To address customer requirements, Unilever Technology has collaborated with Unilever R&D. The information system can also assist Unilever with routine business activities in several nations. At Unilever, many real-world methods are utilized to design and manage efficient information flows. This report suggests enhancements to Unilever’s information management, systems integration, business intelligence, and information flow management.

Section 2–Information system administration problems and difficulties (MIS)

Nearly all economic activities rely on technology in the modern, technologically advanced world. Given the technological integration in activities like production, transportation, advertising, and human resources, Unilever PLC must acknowledge the relevance of technological development. It can be divided into specialized product and process enhancement activities.

A few applications include automation software, technology-assisted customer service, product development study, and analytics (Ivyland, 2019). Due to the failure of commercial and government organizations to employ management information systems following the highest ethical standards, there are significant social issues today. These issues can take the shape of software piracy and privacy violation (Tien, 2019).

Confidentiality: Two forces pose a danger to the right to privacy. The ability of computers to be exploited for surveillance is growing, and the importance of information in decision-making is also increasing. Sometimes, decision-makers compromise the privacy of others to obtain information (Tien, 2019; Billand et al., 2016). Unilever must conduct market research to understand the kinds of items that consumers need or utilize.

Reliability: The Information Management Method is credited with enabling a degree of accuracy that is not impossible to achieve with a manual system. Errors frequently result in much higher costs (Ako-Nai, 2005). Intellectual property includes things like computer programmes. Unilever has obtained permission from the vendors to utilize copyrighted software or systems (Tien, 2019).

Access: The general public has access to some data in the form of printouts or image samples photographs kept in libraries. This material includes news articles, the outcomes of scientific experiments, official statistics, and more. Some additional databases must be accessed with access rights to retrieve information. Access rights are a contemporary ethical dilemma (Tien, 2019). By employing an advanced mathematical model, Unilever can examine operations, expenditures, income, market shares, stock values, and other aspects (Ako-Nai, 2005). Unilever is a corporation that processes market data and manufactures fast-moving consumer goods. Market data is often obtained through research organizations, historical documents, and personal analyses.

Unilever Digital Program: Computational modelling is integrally related to organizational transformation. The Unilever Information Program (UIP) is responsible for creating the infrastructure to support the Path to the Growth plan. Finding a speedy data integration solution is a top goal to give users access to various data sources for in-depth analysis (Tien, 2019).

Unilever can improve the accessibility of the distribution chain by utilizing a variety of information systems and several other logistics management innovations.

Section 3–Application and impact of business intelligence

Any firm plan, whether short- or long-term, must be based on reliable business intelligence. Because it does not specifically refer to any analysis, BI is a catch-all phrase. It refers to the methods and equipment used in business analytics to analyze raw data and aid workplace decision-making. Businesses use these data to surpass competitors and enhance overall efficiency (Sherman, 2015). Although most BI analysts need these technologies, other tools may be useful to employees in different areas. Business intelligence combines business intelligence, data collection, visualization, analysis tools and platforms, and best practices to help firms make more data-driven choices (Sherman, 2020).

Unilever selected Thorogood, a financial data specialist, to create surveillance and statistical abilities for its projected long-term, overall organizational, multi-technology global BI endeavour. The program aimed to make information capabilities available worldwide to assist Unilever’s expansion plans (Ivyland, 2019).

The base for value-adding applications embracing 17 business capabilities would be an open enterprise information database, which would replace many of the current warehouse instances. It would require a large investment. Leading technologies would be used in this effort, and a corporate data warehouse would be used to store the capabilities being built. The company might then be assisted in meeting its expectations for actual data and top-notch analytics (Sherman, 2020).

Unilever selected Teradata to build the company’s database system. Cap Gemini would handle program administration, warehousing load, and validation. Unilever chose Thorogood to supply its analysis and tracking solutions.

The task of providing incredibly useful, high-performing, and consumer software platforms would fall to their chosen partner. Rapid, widespread acceptance and realizing the worth of their investment are two of Unilever’s key success factors for the campaign, depending on how well it performs in this publicly public sector (Ako-Nai, 2005).

Unilever picked Thorogood as its analysis and reporting partner because Thorogood has a track record of effectively delivering business analytics applications to Unilever (Tien, 2019).

Thorogood has a wealth of testimonials from other prestigious companies praising its ability to supply services at a reasonable cost and its distributed global expertise (Billand et al., 2016). Excel, PerformancePoint, PowerPivot, SQL Server, and Microsoft SharePoint were the technologies used in the application.

Thorogood has a track record of successfully integrating BI tools, and as a result of their dedication to BI, they can capitalize on emerging tools like Tableau (Smith, 2009). Thorogood’s management team is unified, skilled, and possesses unrivalled levels of business intelligence understanding. This gave the programme continuity and a sense of personal commitment to success.

High levels of BI expertise and speciality have been created and maintained all year because of Thorogood’s design with the aim of development and retention practices (Ako-Nai, 2005). Corporate intelligence is a broad term that covers more than just one specific “thing,” including the methods and strategies for acquiring, preserving, and analyzing data from corporate functions and processes to improve performance. These elements come together to create a comprehensive image of a company that empowers decision-makers to operate in a better, more efficient manner (Sherman, 2015; Sherman, 2020).

Section 4–Role of information and analytics in supporting the development of strategies

A modern, complex company relies heavily on information in all of its forms. An information strategy should demonstrate this dependence and address how this competitive resource should be managed (Sim et al., 2016). Additionally, by assisting in the collection, control, and assessment of the overseas logistics system, the management system could assist Unilever in further improving the overseas logistics process. This assessment also involves the physical Distribution Channels to deliver orders quickly and prevent time wastage (Billand et al., 2016).

Utilizing a decision assistance system can assist in integrating different logistics tasks so that the most financially sensible and strategically advantageous judgments are made using an information system (Smith, 2009). The use of information systems can assist Unilever in streamlining the procuring process by enabling the relevant department to send suppliers direct estimate requests and choose the best offer. On this basis, a raw material purchase synchronization can be accomplished.

The deployment of the Employee Resource Planning process can assist in evaluating the needs of the human resource in the firm. This way, the number of recruits and the type of academic experience they should hold can all be determined through the ERP system (Smith, 2009).

In addition, the built information system can assist Unilever in maintaining healthy customer connections by meeting their specific needs and reacting to them on time. As a result, the customer will become loyal to the firm and continue to acquire its goods and services (Tien, 2019). Unilever’s information system can assist it in supporting HRM Human Resource Practices in many countries. Unilever’s linked authorities can achieve human resource recruiting, training, and development in 190 countries in this manner.

MIS stands for Management Information System, the system that can support HRM activities. This system assists in obtaining and evaluating management-related data such as the number of employees in the organization, the number of employees applying for promotions, increased absenteeism, and so on (Billand et al., 2016).

This way, the information system facilitates quick access to and analysis of data that might assist various human resources management-related operations (Reitsma, 2001). Also, the data system can assist Unilever in supporting numerous business activities ranging from customer care to employee engagement by adding email ids and connections directly associated with high officials. This way, an information system can support numerous company tasks, improving corporate capabilities (Ivyland, 2019).

Customer relationship management can assist a business in obtaining a high level of satisfaction. Customer expectations can also be recognized and met by positioning innovative products or adding fresh products to existing products. In this approach, CRM systems aid in the management of client connections (Sim et al., 2016).

Section 5–Techniques for designing and managing good information flows that are practical.

Systems must handle, manage, and organize all available information and determine which data should not be published and which can or should not. The movement of data from one place to another across time is called information flow. Consider it in terms of an assembly line. The system is fed raw material, usually in the form of data. It is compiled into data and, at times, knowledge before being relocated to a storage location, such as a warehouse. The effective movement of information and materials is the objective of operations management in this key sector (Taylor, 2009).

The effective flow of information is made possible in Unilever factories by computing systems and networks. In order to increase efficiency, business process enhancements are made in Unilever plants using such data. The operational requirements of the organization also have a direct influence on layout ideas. For instance, Unilever keeps inventory operations profitable by employing aisle layouts that shorten the distance that consumer goods must travel within distribution centres.

A better information flow can help the company find and take advantage of new opportunities while lowering external threats. Continuous Value Chain review may lead to the timely closing of crucial gaps that could affect a company’s output (Taylor, 2009). Because of enhanced demands and sales estimates, Unilever PLC’s Value Chain Evaluation effectively increases material and item flow. Inventory management also improves since Unilever PLC can reduce delays by monitoring activities throughout the supply chain (Smith, 2009).

Modern customers value quick responses and simple access to important product information. Unforeseen pauses may impact the relationship between customers and suppliers in information transmission. The Value Chain Analysis and its use by Unilever PLC aid in locating and removing information flow bottlenecks (Tien, 2019).

Solution for Enterprise Data Warehouses and Business Analytics:

• Clearly understand the company’s performance across Unilever’s global companies. The following are some difficulties linked with Unilever PLC’s Value Chain Analysis.
• Due to growing complexity, it might not be possible to separate the operations into main and supporting jobs (Smith, 2009).
• Finding the appropriate information can be difficult, and the partitioning process can be time-consuming.
• Implementing a value network effectively requires both familiarity and in-depth competence.
• Finding crucial information could be challenging if Unilever PLC’s Business Information Management is not well-organized.
• The company risks losing sight of its overarching strategy and vision by separating operations into multiple tasks (Taylor, 2009).

Section 6–Recommendations

Unilever needs to establish strict, open decision-making accountability. Responsibility does not mean assigning blame for poor choices (Reitsma, 2001). Instead, it involves assessing the effects concerning predetermined indicators and determining how widely those assessments should be disseminated throughout the company. The objective is to assist the organization in learning from its successes and failures (Ivyland, 2019).

Businesses might benefit from using BI tools to better analyze customer patterns and behaviour. Most businesses gather consumer feedback in real-time, and this information can help businesses retain existing clients and attract new ones (Ivyland, 2019). These techniques may also help Unilever discover buying trends, enabling customer service agents to foresee needs and deliver better support (Sim et al., 2016).

Finding market dynamics: Unilever may get a competitive edge, directly impact long-term profitability, and get a full picture of what is going on by identifying new opportunities and formulating a plan with supportive evidence. By examining consumer and market trends, employees can forecast new sales trends. They can also discover corporate issues by fusing external market knowledge with internal data (Ivyland, 2019).

Increased operational effectiveness: BI systems help Unilever by consolidating many data sources, allowing managers and staff to spend less time looking for information and more time producing timely and accurate reports. When employees get the most recent and accurate information, they can concentrate on their short- and long-term objectives and consider the effects of their decisions.

Better, more precise choices: Unilever needs to make decisions as rapidly as possible since its rivals react quickly (Ivyland, 2019). Client and revenue loss could occur if problems are not resolved promptly and precisely. Organizations can speed up decision-making by using current data to communicate information to the appropriate parties at the appropriate time (Ako-Nai, 2005).

Prioritize the customer’s input in decision-making. One of the most effective methods for firms to better understand consumer demands and needs is listening more intently to what their customers say. To boost customer impact and the company’s sensitivity to their needs, Unilever should give additional decision-making authority to client-facing employees as one strategy to boost customer impact (Smith, 2009).

As a result, the Unilever firm must ensure that it uses cutting-edge technology and information systems in its logistics to reap many benefits, including quality improvement, increased competitive advantages, cost savings, and proper customer support and product delivery (Taylor, 2009). Unilever can make goods available to the public through its supply chain, which aids income generation (Sim et al., 2016). However, the company must focus on the sustainable development of its production process to make its supply chain more leveraged and match client needs (Study, 2021). Logistics is one industry that could benefit from environmental improvements (Ivyland, 2019). The modernization of Unilever’s IT infrastructure is in the works. For instance, it is improving the energy efficiency of data centres and putting power management strategies into place. Another tool used to decrease the burden of business travel is telepresence video conferencing (Smith, 2009).

Section 7–Conclusion

New ideas and technology have been extremely beneficial to Unilever. The organization has the opportunity to employ technology to obtain a competitive advantage. Unilever was the world’s largest first packaging products company and is today a global leader with a strong presence in emerging areas. Unilever has successfully embraced numerous corporate cultures based on its site of operation.

This is quite significant. In particular, Unilever possesses several competitive advantages in the commercial sector. It is capable of achieving its business goals. New product compounds are being discovered thanks to technological advancements, and safety measures are being implemented to speed up the process. To improve product quality, Unilever can safely use the substitution method with a product currently on the market. Hazardous products that have flaws in their attributes and benefits are discarded. Unilever’s manufacturing capacity can be increased by improving the information management system, which reduces consumption and waste. According to data, Unilever’s business analytics has expanded over the last few years to incorporate additional procedures and activities to improve its effectiveness.

Finally, Unilever can strengthen its market position by implementing various information systems. However, Unilever must examine various factors before implementing an Information Management System. Unilever’s strategic planning process and information network have assisted other organizations and people worldwide improve their routine business processes. This has aided the organization in attaining large profits and has streamlined the working procedure.

References

Ako-Nai, S.A.M., 2005.Executive Information Systems: An identification of factors likely to affect user acceptance, usage and adoption of the Unilever EIS(Doctoral dissertation).

Béchet, M., Lütke Siestrup, T., Uhl, A. and Hulshof, H.J., 2014. Unilever Case Study: Implementing the Real-Time, Digital Enterprise to Unlock Value and Enable Business Growth.

Billand, P., Bravard, C., Chakrabarti, S. and Sarangi, S., 2016. Business intelligence and multimarket competition.Journal of Public Economic Theory,18(2), pp.248-267.

Ivyland. 2019. ‘Unilever’s Business Strategies. December 10. (Accessed: October 6 2022).

Reitsma, S.G., 2001. Management development in Unilever.Journal of Management Development.

Sherman, R. 2015. Business Intelligence Guidebook: From Data Integration to Analytics. First Edition. San Francisco: Morgan Kaufmann.

Sim, S., King, H. and Price, E., 2016. The role of science in shaping sustainable business: Unilever case study.Taking Stock of Industrial Ecology; Clift, R., Druckman, A., Eds, pp.291-302.

Smith, W.S., 2009. Vitality in business: executing a new strategy at Unilever.Journal of Business Strategy.

Stair, R., Chesney, T., Reynolds, G., 2020. Principles of Business Information Systems. Fourth Edition. Andover: Cengage.

Study, C. (2021) Achieving Business Focus in a global BI Programme at Unilever, Thorogood. Available at: https://www.thorogood.com/perspectives/case-studies/achieving-business-focus-in-a-global-bi-programme-at-unilever/ (Accessed: October 6, 2022).

Taylor, B., 2009. A case study of business intelligence applications for business users.

Tien, N.H., 2019. Comparative analysis of the multi-domestic strategy of P&G and Unilever Corporation.International Journal of foreign trade and international business,1(1), pp.5-8.

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