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The Impact of Business Intelligence on Organization’s Effectiveness: An Empirical Study

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     In the article, “The impact of business intelligence on organization’s effectiveness: an empirical study”, a quantitative survey on senior managers who enforced BI systems was conducted.  Based on the results of the survey, the respondents that adopted Business Intelligence from Business Intelligence software vendors were selected and they were chosen based on how long they used the software. Based on this segmentation, questionnaires were then sent out[1]. The results were as follows:

[pic 1][2]

As seen in the spreadsheet above, men are dominant is the use of BI and the retail industry comes in last in terms of usage of BI surprisingly. Moreover these results were also found:

BI Systems, effectiveness (10)[3]

BI1: BIS improved coordination with business partners/suppliers Elbashir et al.(2008)

BI2: BIS reduced the cost of transactions with business partners/suppliers

BI3: BIS improved responsiveness to/from suppliers

BI4: BIS intelligence improved efficiency of internal processes

BI5: BIS increased staff productivity

BI6: BIS reduced the cost of effective decision-making

BI7: BIS reduced operational cost

BI8: BIS reduced customer return handling costs

BI9: BIS reduced marketing costs

BI10: BIS reduced time-to-market products/services

The outcomes of this study show that Business Intelligence frameworks have a positive effect on organizational effectiveness, especially when there is a near match between Business Intelligence frameworks and organizational culture, strategy, structure, and process. The impacts of these organizational resources confirm improved environmental fit, arrangement of organizational resources and superior organizational performance. The outcomes designate that organizational strategy has the highest influence on Business Intelligence frameworks’ effectiveness in contrast to further organizational features. The abundant acceptability and application of the Business Intelligence frameworks too reveal the strategic accuracy of the firm from suppliers to satiating the end customers. Business Intelligence frameworks’ success differs in terms of the organization, industry, the size of the company. As a conclusion, it is evident that there is a positive correlation between an organization’s structure, strategy, culture, process, and Business Intelligence frameworks’ effectiveness. Moreover, Business Intelligence frameworks to some facilitate the relationship between organizational factors and in turn effectiveness[4].

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