Role of Business Intelligence in Driving Competitive Advantage: A Case Study of Tesla

Discover how Tesla, a leading automobile company, leverages business intelligence and data analytics to gain a competitive edge.

  • 54000+ Project Delivered
  • 500+ Experts 24x7 Online Help
  • No AI Generated Content
- +
35% Off
£ 6.69
Estimated Cost
£ 4.35
8 Pages 2110Words

Introduction to Role of Business Intelligence: A Case Study of Tesla

Enhance your academic journey with New Assignment Help's specialized services in the UK.

Business Intelligence is a key factor which helps a company to analyze the data of procedural and technical structure (Seidloya et al., 2019). It will emphasize the company’s activities to achieve a better strategy to meet the competitive edge. Business Intelligence Report is used to define the process in which the specific Business Intelligence Tool is used for the company growth. With this way BI reports find a way to improve the decision-making process and business developments.

In the above picture it is clear that there are many components used in the Business Intelligence Process. Applying these components in a company can make a drastic change in its growth.

Concepts, Theories and Frameworks:

In order to define concepts and theories and frameworks there are some chapters which are to be explained. This theory helps to improve the growth and maintains the flow of sales and finance. Also improves the analytical process of Business Intelligence. The chapters are discussed below:

Decision making process:

Decision making process is the very initial stage to achieve a goal. Mostly it is learned from the past experiences or any competitive market. It is the important element to innovate something new. Decision making processes are divided into two parts; one is organizational and another one is technical. Organizational decision-making process helps a company to cooperate with employees and other internal efficiency which can be used for the competitive edge. With this process a company can function in an efficient manner. The other key factor is technical decision making, which helps a company to make more innovative and unique products and enhance the quality of products. Apart from this the company should use their own business intelligence. This strategy will make them different from other companies. In this picture below the steps of decision making are mentioned.

In this Hube’s decision-making figure there are five components which are included in decision making. (Urumsah, and Ramadhansyah, 2019).

Intelligence: Intelligence is the key factor for decision making and it helps to identify and investigate the problem.

Design: Designing a decision and executing it properly can emphasize the point very much which also helps to operate the mission easily.

Choice: This contains the solution and alternative options to rectify any mistakes or faults.

Implementation: with the help of implementation, it will be easier to adapt more new things and make it even more unique. As a result, implementation can be successful or unsuccessful both.

Monitoring: Monitoring means keeping an eye on something with care. This helps to find the flaws instantly and get them rectified.

As a result of this theory the problems get examined thoroughly which helps to identify the main issue. This states the different values and goals. There will be a high chance to implement or develop a new alternative backup. So, in case of an unsuccessful solution there will be an alternate backup.

Business intelligence used in Tesla:

Tesla’s exceptional business intelligence gives people a scope to integrate and analyse business information with effective development and decision making. The main thing in Tesla cars is their autopilot system. This is one of the outstanding features in the market. Tesla’s on-board computers run on sonar and radar processing systems along with deep neural network algorithms. Tesla has its own specialized team who are the business experts and they monitor all the decisions. They use many BI technologies like SAP, OBIEE, BO etc. The Sonar and radar processing is passive and active to work with. Also, In AI tesla uses artificial chips which provide them a better safety to build a planning. Tesla’s organizational teams make sure to monitor all the manufacturing processes and maintain a scale to keep a follow up with the product’s performance. Because of its unique business intelligence Tesla has earned the goodwill of having the best rating under Ethical Consumer’s Carbon Management and reporting category. Tesla is mostly focused on producing products which will not harm the climate but consumers can have a smooth drive. Tesla made use of all the databases they receive from customers and gather information for the customers’ requirements. Then they use it to implement in the vehicles.

Tesla’s BI helped them to produce their main specification which is the sensor data from the cars and letting it design the map ten times more accurately than others. With the help of BI tesla gets the faster analysis and they have an exact intuitive dashboard. Which makes them different from others. In the case of organizational efficiency Tesla has increased its capability to work sufficiently. As they collect the data from customers it emphasizes them to take correct decisions and work over it. They can improve the customers' experiences with implementing new things with every product and make them as per choice.

Business intelligence is a conglomeration of data, analysis, technologies, tools which together presents insightful information that helps to make business decisions more effective. It is a necessity for achieving effective decisions in business and making them more efficient to achieve greater business goals. Scholars throughout have argued that data analysis must determine business decisions of companies (Sallis et al., 2021). Decisions taken by organized and reputed companies that will affect their future prospects must not be based on any feelings other than data. The central aim of business intelligence is to provide a ground for a company on which it will make a decision based on data that are rigorously collected, analyzed, stored and ultimately presented (Rikardsson et al., 2018). As data is the prime factor in business intelligence it will surely help the company to recognize patterned problems and also to eliminate them for achieving better results in the future. At the same time, it will help the organization to recognize potential improvements.

Competitive Advantage

Competitive advantage is basically the advantage that a company has if it manufactures products at a cheaper rate and provides quality services than other companies of the same industry. Now as business intelligence will have data, the company might use that data to improve their competitive advantage. It is seen that not only the business intelligence tools are required but also the business intelligence management plays an important role too. If the business intelligence management is of sound quality then it will benefit the company with an advantageous position in the market (Abusweilem et al., 2019). It has been seen that high quality business intelligence management and data quality are interrelated to make a profound improvement in the manager’s decision. In totality, the company can have an advantage in the market if their business intelligence management is strong.

In the concerned UK based automobile company, Tesla, it has been found that the usage of business intelligence has improved their performance and has helped them to form successful strategies in the market. Tesla has a wide range of data, starting from manufacturing, telecommunications, finance and many more that they use to provide skilled services to their customer base. This company has always tried to improve their business by applying data like financial reports. Tesla has their own business goals and they have developed and used business strategies to improve and manage those goals. The company promises to provide better services to their customers with business intelligence that will store, integrate and analyze business information to achieve better decision making and also will provide valuable insight to other enterprises. However, as the world is changing, customers all around are keen to prefer a company’s performance rather than promises. The data that an organization will collect through the business intelligence process might help to make that promise a reality.

Tesla has been using business intelligence for a quite long time (Ajitha et al., 2021). A company as big as Tesla has an organized integrated managerial team who work efficiently for the management of data. The data helps to make sound decisions. Tesla not only uses the traditional frameworks of data analysis, but also has introduced modern technologies to achieve competency. For instance, Tesla has introduced Artificial Intelligence which has been considered a milestone in the automobile business in the near future. With the Tesla Autopilot V7.0, the company launched the usage of AI in the industry which gave them a boost in the market and they went ahead of their rivals (Kumari et al., 2021). The Tesla AI cars are heavily modernized and have various automatic features like auto control of traffic, auto lane change and many more, which gave them a heavy competitive advantage in the market against other companies like BMW, Audi, Jaguar and others. Tesla with the usage of this artificial intelligence in their products gets an opportunity to produce a huge database that not only makes their cars a rare specimen in the automobile industry but also makes them capable to have an access to the data that will be analyzed, stored and used for future benefits. So with the introduction of AI, Tesla has unlocked a futuristic level of collecting, analyzing and interrogating data that will benefit the company to make decisions in the future and would also help to predict various things regarding the products. This will help Tesla to understand their own system, to predict the actual time it might require updates and all these will make the company to be the most successful and customer friendly company of automobiles in the world.

Tesla has shown how with the usage of AI they have created a database which will make their company efficient, especially with the two important features of all electric propulsion and self independent driving, making them the most unique automobile company in the world. However, Tesla too has ground for improvements, by which they can achieve competitive advantage while using business intelligence. With AI and Big Data, Tesla has already out-weighed other automobile companies who had also brought AI powered products in the market. Tesla can achieve more advantage if they focus more on bettering their online shopping experiences for the customers, and provide a more competitive pricing by using their business intelligence.


Business intelligence has been of greater benefit for the companies that are using it. The intelligence provides insights which solve issues inside the company. Cataloguing data benefits the company to plan better for the future and to execute those plans in a more effective way. Tesla, one of the most successful automobile companies in the world, has been strategically using business intelligence, a cluster of data that has been helpful to better the company's customer service and manufacture of products. Tesla, the automobile company of the discussion here, with their elite business intelligence has been serving the world with unique and rare products. With better management and addressing of certain issues on competitive advantage the company would soar high in the future.


  • Sallis, J.E., Gripsrud, G., Olsson, U.H. and Silkoset, R., 2021. Research Methods and Data Analysis for Business Decisions. Springer, Massachusetts, United States. doi, 10, pp.978-3.
  • Rikhardsson, P. and Yigitbasioglu, O., 2018. Business intelligence & analytics in management accounting research: Status and future focus. International Journal of Accounting Information Systems, 29, pp.37-58.
  • Abusweilem, M. and Abualoush, S., 2019. The impact of knowledge management process and business intelligence on organizational performance. Management Science Letters, 9(12), pp.2143-2156
  • Ajitha, P.V. and Nagra, A., 2021. An Overview of Artificial Intelligence in Automobile Industry–A Case Study on Tesla Cars. Solid State Technology, 64(2), pp.503-512.
  • Kumari, D. and Bhat, S., 2021. Application of Artificial Intelligence Technology in Tesla-A Case Study. International Journal of Applied Engineering and Management Letters (IJAEML), 5(2), pp.205-218.
  • Seidlova, R., Poživil, J. and Seidl, J., 2019. Marketing and business intelligence with help of ant colony algorithm. Journal of Strategic Marketing, 27(5), pp.451-463.
  • Urumsah, D. and Ramadhansyah, H., 2019. Investigating the influence of business intelligence on the quality of decision making in an Indonesian fertilizer company. Journal of Contemporary Accounting, pp.120-129.


35% OFF
Get best price for your work
  • 54000+ Project Delivered
  • 500+ Experts 24*7 Online Help

offer valid for limited time only*