Final answer:
A Business Intelligence (BI) system is what Lotsa Fabric, Inc. installed. It processes and analyzes data to help the company make informed business decisions, aiming to increase effectiveness and profitability by turning data into actionable insights.
Step-by-step explanation:
Lotsa Fabric, Inc. just installed a computer-based system for continually gathering internal and external information about fabric sales. This system is known as a Business Intelligence (BI) system. A BI system is designed to handle massive amounts of data to help businesses make better decisions. These systems take in data from various sources, analyze it, and provide actionable insights to users. In the context of Lotsa Fabric, Inc., such a system might gather data on fabric sales, customer preferences, supply chain performance, and external market trends.
Comparing the modern use of data-driven decision-making with the past, like in the 1970s where sources like the Farmer's Almanac were used, showcases the evolution of information use. Just as farmers now utilize GPS, historical rainfall patterns, and other detailed services to make informed decisions, a fabric company can use a BI system to improve sales strategies and identify market opportunities, ultimately maintaining profitability. The ability of such systems to decrease uncertainty and inform strategic choices cannot be overstated in today's Information Age.