Advertisement

Abstract

‘Business Intelligence’ (BI) has been widely used to describe the process of gathering, analyzing and transforming large amounts of data into information useful for decision making. This paper examines BI from a decisionmaker’s perspective in an IT governance context through a case study of a large Scandinavian financial institution. The key findings indicate that BI is primarily used to inform structured operational decisions and as an instrument for dialogue in unstructured strategic decisions. Our study shows how ‘hard facts’ provided by BI are used as a foundation for opening a dialogue and as a supporting instrument to make arguments seem more convincing during decision-making discussions. We also found that standard performance reporting is used more for operational decision making, whereas predictive analytics are utilized primarily in strategic decision making. These results can assist managers looking to improve their operational and strategic decision-making processes by indicating the appropriate type of BI for each type of decision.

Keywords

Business Intelligence decision making case study strategic decisions predictive analytics 

References

  1. Arnott, D., Pervan, G.: Eight Key Issues for the Decision Support Systems Discipline. Decision Support Systems 44(3), 657–672 (2008)CrossRefGoogle Scholar
  2. Blumberg, R., Atre, S.: The Problem with Unstructured Data. DM Review Magazine (2003) Google Scholar
  3. Baars, H., Kemper, H.-G.: Management Support with Structured and Unstructured Data - an Integrated Business Intelligence Framework. Information Systems Management 25(2), 132–148 (2008)CrossRefGoogle Scholar
  4. Benbasat, I., Goldstein, D.K., Mead, M.: The case research strategy in studies of information systems. MIS Quarterly 11, 369–386 (1987)CrossRefGoogle Scholar
  5. Chaudhury, S., Dayal, U.: An Overview of Data Warehousing and OLAP Technology. ACM SIGMOD Record 26(1), 65–74 (1997)CrossRefGoogle Scholar
  6. Choo, W.C.: The Knowing Organisation: How Organisations Use Information to Construct Meaning, Create Knowledge, and Make Decisions. Oxford University Press, Oxford (1998)Google Scholar
  7. Chung, W., Hsinchun, C., Nunamaker Jr., J.F.: A Visual Framework for Knowledge Discovery on the Web: An Empirical Study of Business Intelligence Exploration. Journal of Management Information Systems 21(4), 57–84 (2005)Google Scholar
  8. Clark, T.D., Jones, M.C., Armstrong, C.: The Dynamic Structure of Management Support Systems: Theory Development, Research Focus and Direction. MIS Querterly 31(3), 579–615 (2007)Google Scholar
  9. Davenport, T.H.: Competing on Analytics. Harvard Business Review 84(1), 98–107 (2006)Google Scholar
  10. Davenport, T.H.: Bi and Organisational Decissions. International Journal of Business Intelligence Research 1(1), 1–12 (2010)CrossRefMathSciNetGoogle Scholar
  11. Davenport, T.H., Prusak, L.: Working Knowledge: How Do Organisations Manage What They Know. Harvard Business School Press, Boston (1998)Google Scholar
  12. Dekkers, J.V., Johan, Batenburg, R.: Organising for Business Intelligence: A Framework for Aligning the Use and Development of Information. In: BLED 2007 (2007)Google Scholar
  13. Dybå, T., Dingsøyr, T.: Empirical Studies of Agile Software Development: A Systematic Review. Information and Software Technology 50(9), 833–859 (2008)CrossRefGoogle Scholar
  14. Eisenhardt Strauss, A., Corbin, J.: Basics of qualitative research: Grounded theory procedures and techniques, 3rd edn. Sage Publictions, Newbury Park (2008)Google Scholar
  15. Fowler, A.: The Role of Ai-Based Technology in Support of the Knowledge Management Value Activity Cycle. The Journal of Strategic Information Systems 9(2-3), 107–128 (2000)CrossRefGoogle Scholar
  16. Fuld, L.: Be Prepared. Harvard Business Review 81(11), 20–21 (2003)Google Scholar
  17. Golfarelli, M., Stefano, R., Iuris, C.: Beyond Data Warehousing: What’s Next in Business Intelligence? In: Proceedings of the 7th ACM international workshop on Data warehousing and OLAP. ACM, Washington, DC, USA (2004)Google Scholar
  18. Google Ngram Viewer (2011), http://ngrams.googlelabs.com/
  19. Gorry, G.A., Scott, M.M.S.: A Framework for Management Information Systems. Sloan Management Review 13(1), 55–72 (1971)Google Scholar
  20. Gray J., Bosworth A., Layman A., Pirabesh H.: Data cube: a relational aggregation operator generalizing groupby, cross-tab, and sub-totals. Microsoft Technical Report (1996) Google Scholar
  21. Hostmann, M., Reichert, P., Borsuk, M., Schweizer, S., Spörri, C., Tockner, K., Truffer, B.: Concepts of decision support for river rehabilitation. Environmental Modelling and Software 22, 188–201 (2007)CrossRefGoogle Scholar
  22. Inmon, W.H.: Building the Data Warehouse, 4th edn. Wiley, Indianapolis (2005)Google Scholar
  23. Isik, O., Jones, M., Sidorova, A.: Business Intelligence Success: An Empirical Evaluation of the Role of BI Capabilities and the Decision Environment. In: Proceedings of the SIGDSS/TUN, Business Intelligence Congress II, Saint Louis, MI, USA (2010)Google Scholar
  24. Kimball, R., Ross, M.: The Data Warehouse Toolkit, 2nd edn. John Wiley & Sons, Chichester (2002)Google Scholar
  25. Kinsinger, P.C.: The Business Intelligence Challenge in the Context of Regional Risk. Thunderbird International Business Review 49(4), 535–541 (2007)CrossRefGoogle Scholar
  26. Luhn, H.P.: A Business Intelligence System. IBM Journal (1958) Google Scholar
  27. March, G.J.: A Premier in Decision Making: How decisions happen, 1st edn. Free Press, New York (1995)Google Scholar
  28. Martinsons, M.G.: A Strategic Vision for Managing Business Intelligence. Information Strategy: The Executive’s Journal 10(3), 17 (1994)Google Scholar
  29. May, T.: The New Know: Innovation Powered by Analytics. Wiley & Sons, New Jersey (2009)Google Scholar
  30. Negash, S.: Business Intelligence. Communications of AIS 13, 177–195 (2004)Google Scholar
  31. Presthus, W., Brevik, E.: E-business in entertainment: Insights from the use of Business Intelligence in the Norwegian music industry. In: Proceedings of AMCIS 2010, Paper 40 (2010) Google Scholar
  32. Rockart, J., De Long, D.: Executive Support Systems. Dow Jones-Irwin, Homewood (1988)Google Scholar
  33. Simon, H.A.: The New Science of Management Decision, 3rd revised edn., 1st edn. 1960. Prentice-Hall, Englewood Cliffs (1977)Google Scholar
  34. Shariat, M., Hightower, J.R.: Conceptualizing Business Intelligence Architecture. Marketing Management Journal 17(2), 40–46 (2007)Google Scholar
  35. Shollo A., Kautz K.: Towards an Understanding of Business Intelligence. In: Australasian Conference on Information Systems, Brisbane, Qeensland (2010) Google Scholar
  36. Sprague, R.H.: A Framework for the Development of Decision Support Systems. MIS Quartely 4(4), 1–26 (1980)CrossRefGoogle Scholar
  37. Steiger, D.: Decision Support as Knowledge Creation: A Business Intelligence Design Theory. International Journal of Business Intelligence Research (IJBIR) 1(1), 29–47 (2010)CrossRefGoogle Scholar
  38. Strauss, A., Corbin, J.: Basics of qualitative research: Grounded theory procedures and techniques, 3rd edn. Sage Publictions, Newbury Park (2008)Google Scholar
  39. Tzu, S.: The art of war. Filiquarian Publications, LLC (2006)Google Scholar
  40. Tingling, P.M., Brydon, M.J.: Is Decision-based Evidence Making necessarily bad? MIT Sloan Management Review 51(4), 71–76 (2010)Google Scholar
  41. Webster, J., Watson, R.T.: Analyzing the Past to Prepare for the Future: Writing a Literature Review. MIS Quarterly 26(2), 13–23 (2002)Google Scholar
  42. Wixom, B., Watson, H.: The BI-Based Organisation. International Journal of Business Intelligence Research (IJBIR) 1(1), 13–28 (2010)CrossRefGoogle Scholar
  43. Yi-Ming, T., Liang-Cheng, C.: Dynamic Interactive Framework to Link Business Intelligence with Strategy. International Journal of Information Technology & Management 6(1), 2 (2007)Google Scholar

Copyright information

© IFIP International Federation for Information Processing 2011

Authors and Affiliations

  • Arisa Shollo

There are no affiliations available

Personalised recommendations