Sample Business Studies Paper on Business Intelligence Strategy

Business Intelligence Strategy

Business intelligent strategies are essential for any business because they assist in decision-making, especially when organizations are operating in a highly competitive environment. Business intelligence involves utilization of numerous computerized methods, as well as processes, in transforming data into information, which consequently turn into knowledge (Popovic, Hackney, Coelho, & Jaklic, 2012). Many firms are progressing aggressively towards computerized support systems to counter competitive pressures. Firms can maintain their competitive advantages if they if they organize their activities strategically through information systems. This study attempts to elaborate on business intelligence systems’ achievement through information systems (IS), and their effects on the culture of analytical decision making.

Effects of Information Systems on Business Intelligence Strategy

The article “Towards business intelligence systems success: Effects of maturity and culture on analytical decision making” strives to explain why information is crucial for the success of any organization. According to Popovic, et al. (2012), information systems have a positive impact on the business intelligent systems. The hypothesis of this study is that information systems that are based on an analytical decision-making culture can enhance business intelligent strategy for organizational performance. Information systems are vital for managers in processing the raw data, which generate business intelligence (Herschel, 2012). Consequently, business intelligence process is utilized to make decisions that enhance performance in organizations.

This study covers on information system (IS) in relation to the business intelligent system (BIS). The procedure that the researchers utilized in their study incorporates use of a structured questionnaire having seven-point Likert scale, as well as seven-point semantic differentials (Popovic, et al., 2012). The statistical analysis data was undertaken from a mixture of 181 medium, as well as large organizations in Slovenia. The participants were organized as a focus group, in addition to semi-structured interviews where participants were picked at random. A survey was carried out to collect the data while the data analysis was performed using Structural Equation Modeling. After validating the variables in the model, the researchers tested the hypothesis through examining the coefficients.

The variables that the study utilized include analytical capabilities, BIS maturity, data integration, information content quality, information access quality, utilization of information in business processes and analytical decision-making culture. The variables mentioned in this study are measured differently based on accessibility, speed of performance, and sustainability. Measurements were established on the basis of literature review and through expert opinions. Utilization of information in business processes were measured through evaluating how the existing information was utilized in managing business processes. Measuring analytical decision-making culture involved determining whether the organizational decision-making characteristics were practical and understandable. Measurements were also made in terms of reliability and validity, where estimate were recorded using Cronbach’s Alpha (a measure of internal uniformity), composite reliability, and average variance ((Popovic, et al., 2012).

Critique of the Study

A business intelligence strategy offers a roadmap for business to evaluate their performances, maintain competitive advantages, as well as utilize their data to assess customer needs. Successful businesses usually invest on tactics that could not only enhance the speed of processing and transmitting information, but also evaluating the value of information passing along the information value chains (Popovic, et al., 2012). If firms would want the information that they have to enhance their performance, such information must be utilized within business processes to facilitate decision-making process, as well as fulfilling consumer needs. Firms must consider integration of data, as well as provision of analytical capacities of business data, to facilitate their business intelligence strategy.

Organizations tend to perform efficiently if they invest adequately on information systems. This article is attractive because it offers to explain why information systems are crucial for the effective decision making that consequently lead to organizational success. The article has emphasized that information that decision-makers acquire through business intelligence may not create any impact if it is fails to be utilized effectively in making decisions. Thamir and Poulis (2015) asserted that business intelligence strategy enables firms to combine analytical tools with data and knowledge management, which allow end users to have adequate information to make decisions. Quality information, which is rich in content, and accessible to end users, is linked to success in organizational management and performance. Organizations do not just land into business intelligence, but also undergo a process to maturity.

The research was valuable because it demonstrated how businesses could evaluate the quality of information that they have to enhance their performance. The research paid specific attention to information quality, which is critical in determining the degree at which the available information is utilized in organizations. The accountability of decision making is linked to information systems, where tools for assessing and monitoring the decision-making reasoning among human agents are incorporated into a model (Skyrius, Kazakevieiene & Bujauskas, 2013). Business intelligence systems are usually data-oriented and centered on data warehousing where they offer analysis and integration of organizational data. For information to be valuable for managerial decision making, such information must be available at the point of need, at the right format.

The study was practical for businesspersons, who understand the need to analyze their data efficiently to facilitate organizational performance. According to Stair and Reynolds (2015), information systems manipulate and disseminate data, in addition to allowing for feedback, which assist firms to attain their goals and enhance customer services. The study of information systems incorporates information quality, which is the character that information possesses to attain the needs and expectations of the stakeholders. Process optimization, which focuses on the adjustment of some variables, also demonstrates practicality of the study.

The study was ethically done because it defines information systems and BIS at their maturity stages. Information is perceived as the source of influence for the managers since it holds the key to prosperity if executed effectively. The study focuses on the positive impact created by information systems on business performance. Ethics are observed when the evaluation of information systems considers all views, and endeavor to incorporate large amounts of data to identify the appropriate patterns (Herschel, 2012). The act of enhancing corporate information systems is an ethical one. Ethics include moral choices that leaders make in the strife to improve performance. The broad issue of ethics in management is how information is accessed and controlled as the individuals concerned maintain privacy during information dissemination.

Despite rapid development on information technology, further research should be carried out on information systems to examine how culture sensitivity can be incorporated into the business intelligence. Information systems for management do not accomplish fully the rising expectations of users, particularly on complex information requirements. The efficient fulfillment of management information needs is lacking in the advancement of business intelligence systems. The study of business intelligence should expound more on employees’ actual needs, rather than just offering the rapid processing and delivery of information (Popovic, et al., 2012). This will assist in linking business strategies with the business process management.

The results of this study are vital in the examination of validity and reliability of measurements utilized in the model, and is applicable to firm managers, who are responsible for decision making in their organizations. Information systems are closely connected to decision-making processes; hence, it is vital to ensure that every decision selected is in line with the business intelligence strategy in order to enhance performance (Herschel, 2012). Organizations that have employed business intelligence strategy in their operations have managed to attain their goals faster than those that have ignored the strategy. The next step in the study of information systems and BIS should be to identify new opportunities to enhance performance without incurring too much cost. The management should work on refining the data so that the form can succeed in tracking new information.

Conclusion

Business intelligence plays a vital role in organization development through improving employee performance, as well as establishing competitive advantages. Performance measurement periods are becoming shorter, thus, compelling the management to devise ways to influence the organizational outcomes. Thus, the need to develop effective business strategy to enhance performance and raising awareness in information systems has remained acute in organizations. Information systems are critical in business intelligence because they facilitate in making appropriate decisions that consequently improve performance in organizations. Organizational performance is influenced by how individuals in charge execute information systems to fit the organizational culture. The business intelligence approach has continued to evolve due to the rapid change of technology; hence, the firm’s management should always be vigilant of such changes to avoid losing the competitive advantag

References

Herschel, R. T. (2012). Organizational applications of business intelligence management: Emerging trends. Hershey, PA: Business Science Reference.

Popovič, A., Hackney, R., Coelho, P. S., & Jaklič, J. (2012). Towards business intelligence systems success: Effects of maturity and culture on analytical decision making. Decision Support Systems54(1), 729-739.

Skyrius, R., Kazakevièiene, G., & Bujauskas, V. (2013). From management information systems to business intelligence: the development of management information needs. IJIMAI2(3), 31-37.

Stair, R. M., & Reynolds, G. W. (2015). Fundamentals of information systems. Boston: Thomson/Course Technology.

Thamir, A., & Poulis, E. (2015). Business Intelligence Capabilities and Implementation Strategies. International Journal Of Global Business8(1), 34-45.