Business intelligence and organizational performance

International Journal of Accounting Information Systems, 2008

Business intelligence (BI) systems provide the ability to analyse business information in order to support and improve management decision making across a broad range of business activities. They leverage the large data infrastructure investments (e.g. ERP systems) made by firms, and have the potential to realise the substantial value locked up in a firm's data resources. While substantial business investment in BI systems is continuing to accelerate, there is a complete absence of a specific and rigorous method to measure the realised business value, if any. By exploiting the lessons learned from prior attempts to measure business value of IT-intensive systems, we develop a new measure that is based on an understanding of the characteristics of BI systems in a process-oriented framework. We then employ the measure in an examination of the relationship between the business process performance and organizational performance, finding significant differences in the strength of the relationship between industry sectors. This study reinforces the need to consider the specific context of use when designing performance measurement for IT-intensive systems, and highlights the need for further research examining contextual moderators to the realisation of such performance benefits. Crown . Part of the challenge lies in the unique nature of different information technologies, their heterogeneous applications, and their subsequent qualitative as well as quantitative impacts. These characteristics require the use of performance measures that are specific to the technologies in question and consistent with management objectives and business plans regarding . For instance, it may not be appropriate to use accounting measures such as firm profitability and return on investment (ROI) when measuring the business performance of a transactional IT tool such as transaction processing systems (TPS), or a typical decision support system (DSS) . This is because such measures are often neither consistent with the firm's strategic intention regarding the technology, nor sufficiently close to the immediate influence of such systems.

Proceedings of the 7th Conference on 7th …, 2007

In today's competitive marketplace, companies must focus scarce resources on the strategies most likely to yield success. Business Intelligence Systems (BIS) help them achieve this focus giving the complete vision to learn from the past, monitor and communicate the present, and gain insight into the future. Depending upon the level of BIS maturity companies have different information quality they can base their decision upon. The better the quality of information, the more sound business decisions companies can take and also appropriately carry out business process change for improving their performance. For all these reasons, we try to show throughout a case study, how BIS enhancement contributed to business process improvement in a Slovenian transport company.

Purpose – The purpose of this study was to identify the influence of organizational strategy, structure, process and culture on organizational effectiveness and the possible mediating role of business intelligence (BI) systems among them. Design/methodology/approach – Sample data for this study were collected from 225 organizational units in Bangladesh and analyzed using the partial least squares method, a statistical analysis technique based on the structural equation modeling. Findings – The results revealed that organizational factors, such as organizational strategy, structure, process, and culture positively affect both BI systems’ effectiveness and organizational effectiveness. Furthermore, BI systems’ effectiveness partially mediates the impact of organizational strategy, structure, process and culture on organizational effectiveness. Originality/value – BI systems are context-specific and can influence organizational effectiveness. Dearth in research on the influence of organizational factors to BI systems motivates this study to contribute in BI systems literature by proposing a theoretical model and investigating the mediating role of BI systems among various organizational factors and organizational effectiveness.

2009

Business performance management (BPM) is a key business initiative that enables companies to align strategic and operational objectives with business activities in order to fully manage performance through better informed decision making and action. Effec

Business intelligence (BI) has been proliferated due to its growing application for business decision support. Research on organizational factors may offer significant use in BI implementation. However, a limited number of studies focus on organizational factors for revealing adverse impact on effective decision support. The aim of this theoretical study is to conduct a literature analysis to identify organizational factors relevant to BI implementation. Through a systematic literature review, a qualitative content analysis on 49 relevant sample articles for generating themes inductively is adopted to reveal organizational factors. Findings suggest two contexts: information management that integrates factors such as technological capability and personnel capability and organizational context that integrates factors such as organizational capability, managerial decision, and organizational culture for facilitating embedding information management capability for BI implementation in businesses. It is hoped that these contextual understanding can be useful for further BI implementations.

"Purpose – This research aims to develop a framework for measuring readiness level of Business Intelligence (BI) implementation. Design/methodology/approach – We formulated our farmework by using Critical Success Factors (CSFs) of BI implementation. The weight of each dimension in the framework is determined by using Analytic Hierarchy Process (AHP). The validation of the model is performed by involving five (5) BI experts. Findings – The proposed framework comprises of three categories: organizational, process and technology. The number of aspects for organizational, process and technology are nine, four, and five respectively. Among other aspects, strategic alignment, committed management support and sponsorship, clear vision and well-established business case, and business-centric championship and balanced team composition are considered the most important aspects to measure BI implementation readiness. Practical implication – In order to gain success in BI implementation, it is necessary that organizations conduct assessment on its current condition to identify their weaknesses. Originality/value – We proposed a framework for measuring BI implementation readiness, which is currently unavailable. Current researchs in BI mainly focus in the implementation aspects, whereas our research focuses on pre-implementation aspects.We hope by considering our proposed framework, organizetions can provide better BI services in its implementation, thus BI gives more value to help organization in decision making. "

Interdisciplinary Description of Complex Systems, 2019

Both business process management (BPM) and corporate performance management (CPM) are receiving much attention in academic circles, as well as in business practice. One of the main reasons behind their adoption within organizations is enhancing overall organizational performance (OP). Therefore, this article aims to explore the link between BPM and CPM and how their maturities affect their alignment. Moreover, the article deals with the impact of BPM-CPM alignment to OP. Although there are some studies dealing with empirical confirmation that either BPM or CPM increases OP, to the best of authors' knowledge, none of the studies tries to investigate their combined impact in terms of an alignment empirically. Hence, this article focuses on shedding some light on the importance of BPM-CPM alignment and its connection to OP. A survey has been conducted in medium sized and large organizations operating in Slovenia and Croatia resulting in a total of 159 answers. Observed organizations have been segmented in two clusters, using k-means algorithm: low-performers and high-performers, revealing statistically significant differences between them for all observed variables. Results also indicate that the BPM-CPM alignment increases when both BPM and CPM maturities are higher. Furthermore, OP of the observed organizations has been examined through named two clusters. The Mann-Whitney U test revealed there are statistically significant differences between OP variables among low-performers and high-performance clusters, indicating the relationship of BPM-CPM alignment with OP.

International Journal of Sustainable Strategic Management, 2015

This research examined the factors that contributed to the use of information from a business intelligence system (BIS) in management decision making and the relationship to organisation and business process performance. Business intelligence (BI) is a timely topic, as organisations continue to invest in systems to leverage big data and gain sustainable competitive advantage. Few studies have examined whether organisational performance benefits result from management use of information from the BIS in decision-making processes. This research surveyed 259 managers with access to a BIS for use in their decision-making processes. A partial least squares structural equation modeling (PLS-SEM) approach was used to analyse the results. The global model indicated that the ​use of information from the BIS in management decision making contributed to organisational performance benefits. Information content quality, information access quality, and analytical decision-making culture contributed to use of information in the global model.

Singaporean Journal of Business Economics and Management Studies, 2017

Business performance management (BPM) is a key business initiative that enables companies to align strategic and operational objectives with business activities in order to fully manage performance through better informed decision making and action. Effective business performance requires an organization to model and monitor not only its tactics but also its strategies and the assumption on which these strategies are built. Thus, the aim of this paper was to examine the processes, methodologies and technologies underlying BPM in Ethiopian medium and large size manufacturing firms, the relation between BPM and business intelligence. Further the researchers tried to propose a framework for integrating corporate performance management and business intelligence in a holistic approach of managing business performance using AMOS Graphics techniques of path analysis.

Handbook of Research on Strategic Fit and Design in Business Ecosystems, 2019

Organizational structures have changed as a result of the widespread use of information technology, as well as the development of software programs and its daily use in all departments. When such technologies became more widespread throughout every sector, enterprises began to understand its effectiveness and have established information technology department requirements in their organizations. With time, these requirements have become integrated into whole organizations, thereby increasing the importance of business intelligence. Competitors, increasing uncertainties, and risks of the sector have resulted in the further development of the concept of business intelligence to support organizations and senior management wishing to achieve a competitive advantage and make strategic decisions. In other words, analyzing data and sharing it among the departments within the organization became significantly important as senior management use this information to make strategic decisions.