The other approach is to set out an over-arching strategy model which will ultimately determine the processes and outcome of the commissioning. This article is intended to provide both an overview and introduction to the fundamentals.

Essentially the business intelligence tool consists of a mechanism (usually an application software package) whose main function is to extract information from within the already existing information resources, classify and interpret that information based on the agreed industry or sector algorithms, process that information into data sets that can point towards patterns or trends before finally establishing protocols for disseminating the resultant information to the end-users.

Whilst this may appear to be a relatively straightforward process that is based on logic, the reality is that there are many pitfalls to be found within this seeming linear activity structure. The degree of success with which each individual firm will be able to use its business intelligence can ultimately be traced back to the commissioning strategy when various tools where being selected.

The tools can very broadly be classified as consisting of spreadsheet based programs and their variants, data reports or queries, online analytical processing systems, digital Business Intelligence Dashboard Suites and mining software. These in turn will feed into localized information protocols that drive performance management. The combination for each of these tools will depend on the particular needs and constraints facing the business in question.

The vital thing at this stage is to appreciate what you want as decision maker and being aware of the availability spectrum on the market. At this stage, it is best to agree a mix of either all or a combination of the tools to be embedded within the overall strategy. It is very important to understand that not every tool detailed in the list above will be suitable for every business or for different segments within the same business.

Some people even argue that experimentation is called for in the preliminary stages before settling onto a particular combination of tools. If the business has the time and resources, the trial and error approach might give them more time to select the best combination. Alternatively they might decide to commission purpose-built tools that are designed to cater for the specific demands of a project. This is where business intelligence is highly specialized and consequently highly accurate.

Finally cost is always an issue especially if the senior decision makers are of the view that other priorities are more likely to directly impact on the bottom line. The costs are likely to go even higher if the components are bought on a standalone basis rather than as part of a package. However the skeleton overview above provides a framework through which each business will be able to assess what is available in the technology markets and then commission the appropriate business intelligence tool or combination of tools.

However it is increasingly becoming clear that social media is a particularly powerful tool in the struggle to obtain relevant business intelligence as well as to communicate with existing customers and potential customers. This article touches on some of the new opportunities for businesses to interact with users of social media as well as understanding what they are saying about the markets.

A cryptic comment or a customer complaint can go viral within minutes. We have heard of those employees who sent unfortunate emails that became global. Other employees used FaceBook to say uncomplimentary things about their colleagues or employers and ending up losing their jobs. Previously these issues could be contained within the normal customer service channels. These days that is not always possible.

Users of social media and bloggers can devastate a customer by merely highlighting problems that occur. A case in point is that of a well known supermarket where one of the employees was caught on camera misusing some of the products intended for consumption by the customers. Apart from the normal disciplinary processes, the supermarket had to launch a concerted social media campaign to try and rebuild their reputation. Even people who did not use social media ended up becoming aware of the issue through the print media that picked up the story.

It is no longer acceptable for senior managers to ignore social media as a means of obtaining business intelligence. The first stage is to make sure that there is a social media presence for the company on most of the major social media networks.

This can be achieved via the use external agency staff or in-house employees who monitor what is happening to the brand. They will note perceptions and gather management information that should feedback into the business intelligence structures.

Once a presence has been established the company can do one of two things. First of all it can work to enhance its message and publicity through creating its own buzz on the net. This does not necessarily have to involve advertising.

Product reviews and invitations for customer feedback have been known to attract quite large followings. This enables the firm to access the online market and retain some control over its image and brand awareness. The second route is to look at the possibilities of countering any negative perceptions as well as reacting to negative feedback through corrective management action.

Businesses can also use social media to enhance user experiences by acting on customer feedback and offering alternative experiences. One example is that of the airline reviews through which previous customers can place comments about their travels and how they were treated. Good business intelligence should use this opportunity to tell their side of the story as well. If the problems that have been identified and improvements are being made, then it is up to business intelligence champions to publicize this within the social media world.