A domain is simply the context within which business intelligence is applied. Most businesses are comprised of relatively standard business functions or departments, such as the following:
- Sales
- Marketing
- Manufacturing/production
- Logistics
- Research and development
- Purchasing
- Human resources
- Accounting/finance
Each of these business functions or departments represents a domain within which business intelligence can be used to answer questions that can assist us in making better decisions.
The domain helps in narrowing down the focus regarding which questions can be answered and what decisions need to be made. For example, within the context of sales, a business might want to know which sales personnel are performing better and which sales personnel are performing worse. Business intelligence can provide this insight as well as help determine which activities enable certain sales professionals to outperform others. This information can then be used to train and mentor sales personnel who are performing more poorly.
Within the context of marketing, a business can use business intelligence to determine which types of marketing campaigns, such as email, radio, print, TV, and the web, are most effective in attracting new customers. This then informs the business where they should spend their marketing budget.
Within the context of manufacturing, a business can use business intelligence to determine the mean time between failure (MTBF) for machines that are used in the production of goods. This information can be used by the business to determine whether preventative maintenance would be beneficial and how often such preventative maintenance should occur.
Clearly, there are endless examples of where business intelligence can make an organization more efficient, effective, and profitable. Deciding on a domain in which to employ business intelligence techniques is a key step in enabling business intelligence undertakings within organizations since the domain dictates which key questions can be answered, the possible benefits, as well as which data is required in order to answer those questions.