Abstract
ABSTRACTBusiness intelligence (BI) technologies have received much attention from both academics and practitioners, and the emerging field of business analytics (BA) is beginning to generate academic research. However, the impact of BI and the relative importance of BA on corporate performance management (CPM) have not yet been investigated. To address this gap, we modeled a CPM framework based on the Integrative model of IT business value and on information processing theory. Data were collected from a global survey of senior managers in 337 companies. Findings suggest that the more effective the BI implementation, the more effective the CPM-related planning and analytic practices. BI effectiveness is strongly related to BA, planning and to measurement. In contrast, BA effectiveness is strongly related to planning but less so to measurement. The study suggests that although both BI and BA contribute to corporate management practices, the information needs are different based on the level of uncertainty versus ambiguity characteristic of the management practice.
Highlights
Making key strategic decisions in a dynamic business environment is a challenge faced by many organizations today
As more advanced analytics techniques are adopted in organizations, the use of Business Intelligence (BI) system-based aggregated data might decline in favour of storage systems that maintain data in more granular formats
We explored the relative importance of the BI system versus Business Analytics (BA)
Summary
Making key strategic decisions in a dynamic business environment is a challenge faced by many organizations today. Most organizations today perform well in applying management systems in the areas of budgeting, financial and management reporting, and business intelligence analysis, the use of such systems for corporate-level decision making is not as prominent. A corporate performance management (CPM) system is a tool that can help organizations address this challenge. These systems combine management practices and information technologies (IT) to enable organizational performance [22; 93]. Business Intelligence (BI) technologies are thought to support CPM [56], yet, while research suggests that BI can help improve the effectiveness of operational processes [2; 20; 28], its impact on management practices has been less studied [113]
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