Impact of introduction of business intelligence tools in organization - Research Paper Example

?Examining the Impact of Introduction of Business Intelligence Tools in an Organization Aims of the Dissertation Ever changing newer technologies have transformed businesses all over the world and these technologies are actually determining the future viability of a said business in today’s competitive environment. An organization today is more or less global in some way or the other, therefore, the competition is not constrained to geographical boundaries. The effect of this threat is evident and companies are being more proactive in investing in software suites that would provide them with the competitive edge over their rivals. Economies in many ways are becoming more and more technology dependent these days and this means that the organizations performing business in these economies too should equip themselves with technology and use it to outperform their competitors. (Craig & Douglas, 1996, pp. 70-81) Many theorists have argued over the recent times that organizations should employ technology to make them more agile and flexible (De Waal, n.d.). To serve this purpose, many renowned business managers came up with the idea of using statistical measures to best translate the data they have. Data is only an asset if it can be transformed into some useful information by the means of which decision making could be made easier and business managers can forecast their production plans and marketing strategies. The aim that this dissertation has to fulfill is the examination of how a particular business intelligence tool or a combination of business analysis tool can benefit an organization. Business Analysis or analytics is a specific mix of business and technical knowledge and a very specialized business line in its own right. Companies therefore are moving away from conventional approaches to a paradigm where information management is a very important determinant. The researcher therefore aims to examine the information landscape of an organization before the implementation of a business intelligence tool and the after effects of the implementation. He will also look into the different technologies available and how each technology varies with the organization type and organization size. Moreover, he will also take into consideration the success stories of many different organizations that are reaping huge rewards with a successful Business Intelligence tool implementation! The researcher will look to find and interview concerned business managers such as Sales managers, Brands managers, Credit managers, Compliance managers and Technical managers. This array of managers don’t only show the diversity of application of Business Intelligence technology but also show the various set of departments can benefit from one Business Intelligence implementation in an organizations. 2. Objectives The objectives of this research are very well defined and cater to a very specific niche of applications. They are as follows: To examine what effect on organization’s performance can a specific Business Intelligence application bring To examine how organization can define certain Key Performance Indicators and use them to gain business edge How reporting and dashboards can simplify a manager’s job To assess the value of historic data and how can it be used to work like a decision support system To study if Business Intelligence applications are compatible with other information providing software available in the organization? To differentiate between different Business Intelligence Technologies available and recommend the ideal match for a specific organization To calculate a typical ROI on Business Intelligence Suite Implementation To study how to streamline the general architecture of a BI implementation with the organization’s IT architecture 3. Background Organizations over the years have tried their best to forecast or predict things. In the recent past these studies were based on study of current happenings and events. Since the introduction of computers at the workplace, these studies became much more result oriented. The problem of course was the real life distorted data. This distorted data has always made sure that predicted results are not 100% correct. Pattern recognition was also then given importance. The earliest form of Business Intelligence tools was some reporting tools which captured filtered business events. These tools have evolved since then and now they are a million dollar product and specialized implementations of these tools not only require special knowledge but in fact a complete specialized department. The question still remains as trivial as it gets, is it really worthwhile to implement a business intelligence product at the organization and if yes, what advantage can an organization get in the long term (Pratte, 2001). 4. Literature Review The knowledge in an organization moves to and fro and different systems such as the Enterprise Resource Planning (ERP) and Customer Relationship Management Systems (CRM) are responsible for maintaining the flow of this data movement. The enormous software such as SAP and MS Dynamics provide tremendous capability to the users but lack in providing insight on the data. These systems can of course capture all the transactions taking place with all their minutest details but cannot really explain what the figures or numbers represent. (lixandru, 2011) Business Intelligence represents software which specifically is responsible for extracting, transforming and loading data(BIS, 2012). After this ETL activity is done, data is then analyzed as on the standards of different mathematical and statistical models. These systems can filter data on the most granular level and provide relative information to the sub-systems. These systems also allow for ad hoc query and reporting, thus, letting an organization know where it stands on that very moments. By detecting favorable and unfavorable events and factors, these applications also help to bridge down the gap of communication with the customers. During the last decade, five types of BI styles have evolved. Enterprise Reporting is aimed at making perfect, fixed reports for the top level management to have an ‘at a glance’ look at the information available. Cube Analysis provide middle line managers to perform simple drill in and drill out using particular dimensions such as time. Ad hoc Query and Analysis is made for power users who can perform analysis as per the requirement from the end user. These users can go to the lowest level of measure and extract data. Data Mining is meant for users who are professional analysts. Such analysts are usually called in by organizations when they completely need to revamp their research regarding their business processes. Last style is the automatic alerts and trigger generation. These alerts can be generated if any alarming change in data occurs. It’s a form of advanced reporting and can be primarily used to monitor other systems performance. BI Systems are a must in any organization because of their reporting, analysis and prediction capabilities. It’s a young tool but with enormous potential through. If used in the right way, BI tool can give you the unparalleled edge (Torres, 2010). 5. Research Methods This research paper is to examine the impact of introduction of business intelligence tools in an organization and on the stakeholders associated with the organization, to aid in data analysis and efficient decision making to enhance businesses. In order to meet the aims and objectives of this paper’s extract both exploratory and non-exploratory research are to be conducted to compile data, draw findings and analyze them to make appropriate recommendations. The qualitative analysis can be termed as a form of systematic empirical inquiry into meaning of attributes that derive the organizational behavior in holistic view. The data for such analysis is assembled by conducting structured and unstructured open ended enquiry soliciting voxpopuli from the individuals closely associated with the decision making process. The variation in the test subjects is to nullify the effect of influence upon the subjects by the enquirer. Methods like survey questionnaires, interviews, focused groups, ethnography, pilot testing and thematic apperception tests are conducted to gather required data in structured form to cater to wider range of scenarios. Quantitative approach to research is more experimental and scientific in nature which relies primarily on collecting and analyzing statistical data as described by Kaplan and Duchon (1988). The data for such analysis is collected by close ended specific questions, targeted to assemble information in a specific format and along pre-define boundaries. Data accumulation will be conducted via self-supervised questionnaire which can be circulated internally within the organization, online or in form of handouts. The questionnaires can consist of open ended and close ended questions and will be hosted using Survey Monkey or Google Docs. The online questionnaires however, are much easier to conduct and circulate. The questionnaires will be designed in accordance to the organizational and test sample’s demographics. The individuals belonging to the upper tier of organizational charts will be provided with open-ended questions in contrast with the subjects belonging to the lower levels in hierarchy. As both tiers will be able to concentrate on different areas of practice, making intelligence solution aligned. 6. Research Design Data collected will be used for qualitative analysis too, which would include pre-research decision making of deciding upon sample sizes, determining methods to draw samples and treating incoming data for anomalies and errors. This a crucial element of the study, as it identifies the areas of interests, susceptibility of existing systems and define the needs and criteria for implemented BI solutions. The enquiry is to be designed into sections, consisting of general sections and specific sections according to subjects’ organizational roles and responsibilities. The general section will consist of closed ended questions to assemble data for quantitative approach, to determine test subjects’ likings and responses towards facts presented. This section assays to measure the impact of the implementation or lack of business intelligence practices. The enquiry is designed to encourage representative responses on each statement. The answers can be selected from a given range of responses such as: Strongly Agree, Agree, Neutral, Disagree, and Strongly Disagree. A pilot test will be conducted for the questionnaire to gauge the design and development of the questionnaire in order to determine the data collected is meaningful and reliable, as validity is an attribute which is desired from test data. Using coefficient alpha method, a tolerance level will be determined using pilot test data, to create a benchmark to be used later. Reliability and validity will be measured later. Sample size, confidence level and confidence intervals will be set according to the variables and available data. Sample size will be dependent on the number of employees in the organization from all levels to form a representative sample. To avoid bias, sampling methods will be employed, simple random sampling in this case; allowing each employee an equal chance to be selected. All selected employees will be asked for their consent and willingness to be part of this research. No employee will be coerced into participating and consent form will be signeddefining the terms of the research, treating all information confidential. The data collected for qualitative section will be analyzed for its high level semantic values by organizing the responses in accordance of the questions to compare consistencies and contradictions. This data can be rearranged systematically to focus on a particular attribute pertinent to specific group. The focus therefore, defines the outcome of the collected data which could vary. The group data is analyzed using dedicated statistical tools such as Statistical Package for Social Sciences (SPSS) which canvass for the frequency of responses and generate a report in quantifiable-readable format. The findings will then be summarized and added to the descriptive narration to capture all elements and context of the data. This report will be able to fully dissect and demonstrate the areas that will make use of business intelligence and enhance business productivity. Chi-Square will be used for checking the dependence or independence of the data. Different correlations will also be studied and latest release of SPSS will be used. 7. Project Plan(you need to make a Gantt chart Omar since you know the exact dates of the submission of your project and the timeline you got) References Lixandru, Lulian., 2011. An Introduction to Business Intelligence. Bitsoftware.eu Technology Blog, [blog] 11 March. Available at: [Accessed 30 March 2012] Kaplan, B. and Duchon, D., 1988. Combining Qualitative and Quantitative Methods Information Systems Research: A Case Study, Management Information Systems Quarterly, [online] Available at: [Accessed 30 March 2012] Craig, S. C. and Douglas, P. S. 1996. Developing Strategy for Global Markets: An Evolutionary Perspective, Columbia Journal of World Business (Spring), p. 70-81 De Waal, A. Andre., The Role of Information Technologyin the High Performance Organization. Centre for Organizational Performance Pratte, Dan., 2001. Business Intelligence Tools are Key to Building Profits. Techrepublic.com Technology Blog. [blog] 10 July. Available at: [Accessed 30 March 2012] Business Intelligence Software., 2012. Business-Software.com. [online] Available at: [Accessed 30 March 2012] Torres, Jesus., 2010. Business Intelligence- A Necessity for Growth. Ezine Articles, [online] 18 January. 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