library / libe81001e6bb4bd101
Business Intelligence and Big Data
In a sentence
A scholarly synthesis arguing that organizational success in the digital age depends on building Business Intelligence and Big Data (BI&BD) capabilities to convert data into knowledge, value, and competitive advantage.
Business Intelligence and Big Data: Drivers of Organizational Success makes the case that in a turbulent, information-saturated economy, intangible resources—information and knowledge—are an organization's most strategic assets, and that the ability to intelligently process and analyze them is the key competence separating winners from losers. Drawing on resource-based and dynamic-capabilities theory, knowledge management, and decades of decision-support research, Celina Olszak walks readers through the essence and architecture of BI systems, the techniques and technologies of Big Data, concrete application domains (marketing, CRM, insurance, banking, telecommunications, energy, logistics, health care, HR), and the maturity models and critical success factors that determine whether BI&BD investments actually create business value. It is at once a textbook for students, a research agenda for scholars, and a practical handbook for managers and ICT specialists who want to know not just what BI&BD can do but what determines its successful design, implementation, and value creation.
The four lenses
- Science
- Statistics
- Systems
- Strategy
The model
A path model in which design levers (ICT/BI&BD investment, governance, technology) and contextual conditions (environmental turbulence, analytical/learning culture, human skills) drive psychological and behavioral states (analytical capability, knowledge discovery, decision quality) that in turn produce outcomes such as business value, competitive advantage, and organizational success.
BI&BD Technology Investment and Capabilitydesign lever
The organization's investment in and deployment of Business Intelligence and Big Data infrastructure, tools, and technologies (data warehouses, ETL, OLAP, mining, NoSQL, Hadoop) used to collect, integrate, and analyze data.
Environmental Turbulence and Information Flow Complexitycontextual condition
The degree of change, competition, information excess, and uncertainty in the organization's external environment that creates pressure to anticipate and respond quickly to market signals and stakeholder demands.
Fact-based Analytical and Learning Culturecontextual condition
The organizational culture, leadership support, values, and norms that encourage gathering, analyzing, sharing, and acting on information and knowledge, including openness to change, creativity, and information-based competition.
Human Analytical and Knowledge Skillsdesign lever
The technical, statistical, business, communication, and entrepreneurial skills of employees and managers that enable effective use of BI&BD, including data science competences and willingness to share knowledge.
BI&BD Governance and Strategic Alignmentdesign lever
Mechanisms for managing BI&BD resources, aligning BI&BD initiatives with business strategy, management support and sponsorship, clear vision, and a deliberate data-exploration strategy.
Analytical Capability and Knowledge Discoverypsychological state
The organization's enacted capacity to explore and exploit data—sensing opportunities, mining and analyzing data, and discovering new, previously unknown knowledge and patterns to inform action.
Decision-Making Quality and Speedbehavioral pattern
The improvement in the efficiency, timeliness, accuracy, and breadth of decisions made at operational, tactical, and strategic levels as a result of BI&BD-supported information and knowledge.
Big Data-Based Business Value Creationoutcome metric
The economic and social value derived from BI&BD use, including innovative products and services, optimized processes, improved customer relations, new business models, and risk reduction.
Organizational Success and Competitive Advantageoutcome metric
The ultimate outcome of sustained competitive advantage, organizational efficiency, profitability, and market position achieved through effective use of information, knowledge, and BI&BD.
How they connect
- bibd investment → predicts analytical capability
- human analytical skills → predicts analytical capability
- governance strategy → predicts analytical capability
- analytical learning culture → moderates analytical capability
- analytical capability → predicts decision quality
- decision quality → predicts business value creation
- analytical capability → mediates business value creation
- business value creation → predicts organizational success
- environmental turbulence → moderates business value creation
- governance strategy → influences business value creation
A candidate measure
Business Intelligence and Big Data — derived measurement candidates
BI&BD Technology Investment and Capability
Analytics IT spend; Count of deployed BI&BD components
self-report suitability: medium
Environmental Turbulence and Information Flow Complexity
Market change rate; Competitive intensity index
self-report suitability: medium
Fact-based Analytical and Learning Culture
Culture survey indices; Frequency of fact-based decisions
self-report suitability: high
Human Analytical and Knowledge Skills
Data scientist headcount; Skill/certification levels
self-report suitability: medium
BI&BD Governance and Strategic Alignment
Presence of competence center; Strategy-alignment ratings
self-report suitability: high
Analytical Capability and Knowledge Discovery
Maturity-level placement; Volume of advanced analyses
self-report suitability: medium
Decision-Making Quality and Speed
Decision cycle time; Forecast error reduction
self-report suitability: medium
Big Data-Based Business Value Creation
Revenue from new products; Cost savings; Retention gains
self-report suitability: medium
Organizational Success and Competitive Advantage
Profit margin; Market share; Growth rate
self-report suitability: low
The story
The reader A manager, researcher, or ICT specialist who wants their organization to succeed by turning information into competitive advantage.
External problem
Organizations are drowning in dispersed, inconsistent, fast-growing data yet under-utilize the potential of BI&BD to support decisions.
Internal problem
They feel uncertain whether success is luck or something that can be planned, and overwhelmed by complexity and rapid technological change.
Philosophical problem
It is wrong to let valuable information and knowledge—an organization's most strategic resources—go unused while competitors create new value from them.
The plan
- Understand the changing environment and treat information and knowledge as strategic resources.
- Learn the essence, architecture, and models of Business Intelligence systems.
- Master the techniques and technologies needed to analyze Big Data.
- Identify the application areas where BI&BD deliver value in your industry.
- Assess your BI&BD maturity, address critical success factors, and build a strategy for Big Data-based value creation.
Success
- Faster, better decisions at operational, tactical, and strategic levels.
- Improved customer relationships, business processes, and competitive advantage.
- A fact-based, learning, and creative culture that continuously creates value from data.
At stake
- Isolation and exclusion from economic and social activity for organizations that fall behind technologically.
- Lost value as information and knowledge go unused.
- Failed BI&BD projects due to weak culture, skills, and strategy.