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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

Run the assessment

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

  1. Understand the changing environment and treat information and knowledge as strategic resources.
  2. Learn the essence, architecture, and models of Business Intelligence systems.
  3. Master the techniques and technologies needed to analyze Big Data.
  4. Identify the application areas where BI&BD deliver value in your industry.
  5. 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.