Enhancing the Business Value of Business Intelligence: The Role of Shared Knowledge and Assimilation

Abstract

ABSTRACTBusiness intelligence (BI) systems have attracted significant interest from senior executives and consultants for their ability to exploit organizational data and provide operational and strategic benefits through improved management control systems. A large body of literature indicates that organizations have largely failed to use their business intelligence investments effectively to exploit the wealth of data they capture in their ERP systems. As a result, BI has too often failed to support organizations' managerial decision making at both the strategic and operational levels and, thus, failed to enhance business value. Whether and how organizations achieve business benefits from their BI investments remains unclear. This study draws on the strategic alignment and IT assimilation literature to develop a research model that theorizes the importance of BI systems assimilation, and the need for shared knowledge among the strategic and operational levels as the drivers of BI business value. Results from the study confirm the crucial role of BI assimilation in translating organizational resources into capabilities that enhance the business value of BI. The findings also contribute evidence on the importance of shared domain knowledge and the interrelations between senior business, IT executives, and operational-level managers for enhancing BI assimilation.