CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Business Intelligence (BI) plays a pivotal role in shaping the landscape of modern organizations, providing them with the tools and insights necessary to make informed decisions. BI encompasses a set of technologies, processes, and tools that enable enterprises to collect, analyze, and present business information in a meaningful way. The integration of BI into organizational processes has become increasingly crucial for enhancing operational efficiency, strategic planning, and overall performance. This introduction explores the intricate relationship between Business Intelligence and Organizational Performance, shedding light on how BI initiatives contribute to a competitive edge in today's dynamic business environment. Davenport, T. H., & Harris, J. (2007).
Organizational Performance is a multifaceted concept that encompasses various aspects such as financial success, customer satisfaction, and operational efficiency. Business Intelligence serves as a catalyst for enhancing organizational performance by transforming raw data into actionable insights. Through advanced analytics and data visualization, BI enables businesses to identify patterns, trends, and key performance indicators that drive strategic decision-making. As organizations continue to grapple with an ever-growing volume of data, BI emerges as a critical enabler for extracting valuable insights, fostering a data-driven culture, and facilitating continuous improvement. Chen, H., Chiang, R. H., & Storey, V. C. (2012).
The symbiotic relationship between Business Intelligence and Organizational Performance is substantiated by a wealth of academic research and industry case studies. Scholars argue that effective BI implementation leads to improved decision-making processes, streamlined operations, and a more responsive organizational structure. Empirical evidence suggests that BI adoption positively influences financial performance, making it a strategic imperative for organizations seeking sustained growth and competitive advantage. The references to seminal works in BI literature provide a theoretical foundation for understanding the transformative impact of BI on organizational performance. Sharda, R., Delen, D., & Turban, E. (2014).
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1.2 Statement of the Problem
The integration of Business Intelligence (BI) into organizational practices raises several critical challenges and concerns that need to be addressed to ensure its seamless alignment with organizational performance objectives. One major problem is the complexity associated with BI implementation, as organizations often face difficulties in integrating diverse data sources, ensuring data quality, and establishing a unified data governance framework. The technical intricacies of BI systems may result in suboptimal performance and hinder the organization's ability to harness the full potential of its data. Additionally, there is a growing concern regarding the organizational readiness to embrace a data-driven culture, as the successful adoption of BI relies heavily on employees' ability to interpret and utilize analytical insights in their decision-making processes. Overcoming this challenge requires a strategic approach to change management and continuous efforts to enhance data literacy across different levels of the organization. . Davenport, T. H., & Harris, J. (2007).
Another significant issue revolves around the evolving nature of business environments and the need for BI systems to adapt accordingly. The rapid pace of technological advancements and the emergence of new data sources pose challenges in terms of scalability and flexibility for existing BI architectures. Organizations often struggle to keep their BI systems up-to-date with the latest technologies and methodologies, potentially limiting their ability to extract valuable insights from new and diverse data streams. This problem necessitates a proactive approach to BI system evolution, ensuring that organizations can effectively leverage emerging technologies and adapt their BI strategies to meet the evolving demands of the business landscape. Addressing these issues is paramount for organizations aiming to optimize the synergy between Business Intelligence and Organizational Performance. Chen, H., Chiang, R. H., & Storey, V. C. (2012).Top of FormBottom of Form
1.3 Objectives of the Study
The main objective of the study is to examine Business Intelligence and Organisational Performance. Specific objectives of the study are:
- 1. To understand the impact of different BI implementations on specific performance indicators (KPIs).
- 2. To analyze the relationship between BI adoption and organizational agility in response to market disruptions.
- To explore the role of organizational culture and leadership in promoting effective BI utilization for enhanced performance.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent does the use of real-time dashboards in operations management impact key performance indicators (KPIs) like cycle time, efficiency, and defect rates?
- How does the level of BI integration across various departments (e.g., marketing, sales, finance) impact an organization's ability to adapt to market changes and competitor strategies?
- How do the attitudes and beliefs of employees towards data and analytics (data culture) influence the adoption and utilization of BI tools within an organization?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between Business Intelligence and Organisational Performance.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Business admin sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to GTCO. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
REFERENCES
Davenport, T. H., & Harris, J. (2007). Competing on Analytics: The New Science of Winning. Harvard Business Review.
Chen, H., Chiang, R. H., & Storey, V. C. (2012). Business Intelligence and Analytics: From Big Data to Big Impact. MIS Quarterly.
Sharda, R., Delen, D., & Turban, E. (2014). Business Intelligence: A Managerial Perspective on Analytics. Pearson.
LaValle, S., Hopkins, M., Lesser, E., Shockley, R., & Kruschwitz, N. (2011). Big Data, Analytics and the Path From Insights to Value. MIT Sloan Management Review.
Power, D. J. (2008). Decision Support Systems: Concepts and Resources for Managers. Business Expert Press.
