Business Intelligence
Definitions, Managerial Effects and Aspects: A Systematic Literature Review
Dalia Al-Eisawi and Mark Lycett
School of Information Systems, Computing and Mathematics, Brunel University, Kingston Lane, Uxbridge, U.K.
Keywords: Business Intelligence, Systematic Literature Review, Decision Making, Business Performance Management,
Data Management.
Abstract: This paper presents findings from the Systematic Literature Review (SLR) on Business Intelligence (BI), to
clarify key definition alongside managerial effects resulting from its implementation in organizations. In
doing this, the paper aims to assist organizations, decision makers, managers and information system
researchers to validate the existing state of research in BI motivation. The review highlights gaps in the
presented body of existing literature, contradictory answers in relation to BI definition and aspects, in
addition, uncovers themes significant to BI implementation that are not well addressed in the literature. The
need for empirical research is also highlighted, as the majority of the articles analyzed are at the conceptual
and/or theoretical level. In addition, the research recognized a connection between a set of different
managerial aspects affected by BI.
1 INTRODUCTION
Given the emerging importance of BI in
organizations, this paper presents a Systematic
Literature Review (SLR) on the core aspects of BI,
and their effect(s) on certain managerial and
organizational aspects. The SLR followed a course
of action derived from Brereton (2011) based on
accumulating a representative pool of articles,
classifying them according to research questions,
evaluating and synthesizing that literature in relation
to the research questions and, finally, documenting
the review and its outcomes. The review addressed
two key research questions:
RQ1: from a definitional perspective, what are the
core aspects of BI?
RQ2: From a managerial perspective, how are these
aspects affected by BI?
The review, once rationalized, examined 65 studies
spanning from January 2001 to December 2012.
And also proposed a novel and comprehensive
definition of BI that includes a coherent relation
between BI and a set of key managerial elements
that should be mentioned
When defining BI. The coherent relation
indicated that “Decision making”, “Business
Performance Management”, and “Data
Management” are interrelated and cohesive
managerial and key organizational aspects that can
be affected positively when applying and
implementing BI within organizations.
In presenting the review, the paper is organized
as follows. Section 2 provides an explanation of the
method used for the Systematic Literature Review
(essentially following rules in a protocol that is
autonomously validated). Section 3 presents results
of the synthesis of the literature, consisting of
chronological and sequential aspects, alongside
publication details. Section 4 reports the results and
background of the analysis process in relation to the
research questions. Last, Section 4 presents the
conclusions of the exercise.
2 METHODS
In accordance with systematic review guidelines
(Brereton, 2011), the following steps were
undertaken:(1) Recognizing the need for a
systematic literature review; (2) formulating a set of
research questions; (3) accumulating a representative
pool of articles; (4) evaluating and synthesizing the
gathered articles; (5) dividing the papers according
to research questions; and (6), documenting the
review and outcomes.
209
Al-Eisawi D. and Lycett M..
Business Intelligence - Definitions, Managerial Effects and Aspects: A Systematic Literature Review.
DOI: 10.5220/0004005902090214
In Proceedings of the 14th International Conference on Enterprise Information Systems (ICEIS-2012), pages 209-214
ISBN: 978-989-8565-10-5
Copyright
c
2012 SCITEPRESS (Science and Technology Publications, Lda.)
The remainder of this section will present detail
in relation to these steps.
2.1 List of Searched Resources
A primary set of key words were used for the
literature search, these being ‘Business Intelligence’,
‘Decision Making’ and ‘Business Performance
Management’ ,as these specific words were drawn
up for each research question. Initially, the following
databases were searched: Scopus; Science Direct;
ABI Inform; Academic Search Complete (ASC);
and the IEEE/IET electronic library. These sources
were supplemented with selected conference
proceedings and specific journals including The
International Journal of Business Intelligence
Research (IJBIR), Institute of Electrical and
Electronic Engineers proceedings (IEEE) and the
European Conference on Information Systems
proceedings (ECIS). Overall, we established an
ultimate list of 65 papers that matches our search
requirements.
2.2 The Process for Including Study
Papers, Data extraction and
Synthesis
The process for including and excluding gathered
studies is a crucial step in the methods, as it provides
and assures a strong backbone to generating a
quality based literature review. All published studies
that answer the author’s research questions and are
published within the years 2001 –2012 was
integrated in the inclusion list. Moreover, the
included research study must be published in
conference proceedings or journal paper, In order to
insure that all references included will be recorded
in a fully organized structure Refworks system
(www. refworks.com) was used to document
reference information and details for each study. We
synthesized data through classifying themes derived
from the findings and results documented in each
accepted paper. The categorized themes
consequently revealed the creation of the categories
and segments for the results section. We also
conducted a type of analysis called sensitivity
analysis; it is a technique for assessing the riskiness
of a certain investment. For the given research
purposes the sensitivity analysis was used to test
how certain factors affected the field of BI Research.
Key factors analyzed were based on year of
publication, type of study, and finally based on
which Journal or conferences preceding these papers
were published. The sensitivity analyses gave us a
clear idea and explicit information on where to find
prejudiced and biased data. The sensitivity analysis
is also reported in the results section.
3 RESULTS – BACKGROUND OF
THE ANALYSIS PROCESS
3.1 Types of Study Papers
From the 65 studies, 47% were found to be
theoretical or conceptual, and 37% empirical in
nature. A small number of studies (16%) presented
literature reviews. Empirical and literature review
related to BI were less found within the pool of BI
research, most of the studies were either conceptual
or theoretical.
As for the data collection methods used in the
case studies and empirical studies, they were
primarily questionnaires/surveys, interviews by
telephone or face-to-face interviews and, lastly, field
studies. 46 % of the empirical research papers used
questioners and surveys.
3.2 Sequential View of Publications
A statistical analysis for studies engaged in the
review based on almost ten year period from 2001
until 2012 was performed, it showed that within the
last 6 years there is an observed raise in published
papers related to BI implementation in
organizations, and its effects on decision making,
We also noticed that before the year 2000 studies on
BI were almost not present. The observed increase in
BI research is in-line with emergent and increasing
organizational awareness of the significance role of
BI (and spends on technology). Alternatively, this
increase might perhaps just counterpart a common
rise in recent published papers in Information
Systems and Decision Support Systems (Fitriana et
al., 2011).
4 RESULTS – ANSWERING
RESEARCH QUESTIONS
This part of the research illustrates how the literature
provides answers to the research questions. The
current research questions act jointly to provide an
absolute explanation of the research focus.
Information relating BI definitions was collected for
(RQ1) to expand the understanding of traditional
definitions, and extract key managerial aspects
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embedded within those definitions. Papers were then
analyzed to provide a more detailed understanding
of BI in relation to those (addressing RQ2).
4.1 The Core Aspects of BI
Definitions within the analyzed papers were
recognized as answering RQ1, these papers
emphasized, or had a direct relation to a certain
attributes which relates to ‘Definitions’ of BI such as
Decision Making ,BPM, Data Management
,Knowledge Management, and finally better
organizational relations. A closer assessment noticed
from analyzing a set of definitions resulted in
proposing that when defining BI it is always linked
with any of the linked aspects as follows:
BI Definition can contain a direct link with BI
role in DM, decision making is defined as process
that assist managers to make a choice about a course
of action, decisions can be categorized as structured
or unstructured; they also can be classified according
to managerial levels such as strategic decisions, and
tactical.
BI Definition can contain a direct link with BI
role in BPM. “(BPM) is a key business initiative that
enables companies to align strategic and operational
objectives with business activities in order to fully
manage performance through better informed
decision making and action”(Shi and Lu, 2010).
BI Definition can contain a direct link with BI
role in Data Management and control, data
management and control refers here to how BI can
assist organization in controlling the large amount of
data generated daily, monthly, or annually.
BI Definition can contain a direct link with one
or more of the above given attributes.
BI Definition did have a weaker direct relation
contained by its definitions with aspects such as
business knowledge, and effective organizational
relationships. However, these two aspects might be
required as very important facets, which are
indirectly affected by BI, and the benefit of BI on
them is required to be as an intangible benefit
sometimes impossible to enumerate. They are
however significant, and often unseen sources of
business value.
The current section aimed at delivering an initial
level of transparency by presenting and scrutinizing
the results of analyzing a number of definitions
available in the literature of the BI concept, as in the
Table in the Appendix , covering the years 2001-
2012 it was looked at a sample of 12 different
definitions . The content of column (Direct relation
of BI) denotes the significant attributes that were
proposed from the authors understanding of BI
definitions and that can present a direct relation as a
role or effect on specific managerial and
organizational aspects. Moreover, revealing these
relations will have an impact in assisting the author
finding answers for RQ2. A number of these
definitions were obviously stated in the article,
whereas others were implicit in the text. Since the
current review is concept-centric explicitly, the
author performed a qualitative content analysis on
the collected sample that answers RQ1; the content
analysis is explained as in the following definition;
“A research method for the subjective interpretation
of the content of text data through the systematic
classification process of coding and identifying
themes or patterns” (Zhang and Wildemuth,
2009).The content analysis of the definitions
revealed the following outcomes,
It was not comprehensible withier BI is required
to be a ‘Process’ or a “Product” ,the “process is
composed of methods that organizations use to
create useful information or intelligence that will
support companies and organizations succeed and
have a competitive advantage in the global
economy” (Jordan, Rainer& Marshall, 2008).And a
“product is information that will permit
organizations to forecast and expect the performance
and behaviours of their competitors, suppliers,
customers, technologies, acquisitions, markets,
products and services” (Jordan, Rainer& Marshall,
2008). As for other indicated that BI can be both a
process and a product.
Only two definitions out of the 12 given, pointed
within their content to a direct relation between BI
role with all the three roles defined previously by the
author, within the definitions almost 90% of
definitions mentioned a direct relation between BI
and DM, and few had a relation with data
management, BPM, both, or all three attributes.
Since most of study papers collected for the
purpose of this research found to be theoretical
based, the author noticed that few of the given
definitions were extracted form an empirical and
observed practice. Therefore, this will lead to a
delay in the understanding of what BI characterizes
to business leaders and researchers.
And finally, It was not clear weather BI is
required be a technological or managerial concept,
or it can be both.
As a result, applying a content analysis on the
collected definitions realized a main and general
concern as follows; “BI did not yet reach a
standardized and unified definition”.
BusinessIntelligence-Definitions,ManagerialEffectsandAspects:ASystematicLiteratureReview
211
4.2 How are these Aspects Affected by
BI?
Another synthesis for the purpose of answering RQ2
was undertaken; the synthesis shows that 55% of
papers illustrate a role of BI in (DM), 22 % Role on
BI in Data Management and Control, and 23% are
related to (BPM), and these statistics can be more
explained as follows:
(BI effect on DM): most of the papers searched
agreed that BI has a direct effect on DM; according
to literature BI has turn out to be a vital aspect of
decision-making, not only at the top, but at each
particular hierarchical level. That is the reason
behind the needs for it to be associated with the
business and organizational strategy in order to be
capable to support analytical decision-making.
Nevertheless, this relation is turning to be as a
known fact rather than just a proposition since it has
been researched and proven in large number of study
papers.
(BI effect on BPM): as defined earlier BPM“ is a key
business initiative that enables companies to align
strategic and operational objectives with business
activities in order to fully manage performance
through better informed decision making and
action”(Shi and Lu, 2010). According to the
synthesized literature, BPM will start within the
coming future to be required as being the last
constituent of BI, and the following stage in the
growth of BI, organization, and information systems.
If BPM is a consequence of BI and better decision
making, and contains many of its technologies, tools
and techniques, then BI itself can play as a key role
and deliver the insight needed to improve overall
business performance .This was hypothesized by the
authors from a theoretical viewpoint and sensible
perspective.
(BI effect on Data Management): Data Management
and control refers here to how BI can assist
organization in controlling the large amount of data
generated daily, monthly or annually. This effect
was related in most papers to the use of Data
Warehouse technology, that have the ability to assist
the transformation of organizational operational data
system into an analytical data system construction,
and that can sustain business requirements and
needs. Thus, this formation enables business
executive to attain a chronological view of
operational data, moreover, eliminating the load on
organizational Information technology assets and
enabling mangers to create positive decisions instead
of unconsidered ones.
As a conclusion for answering RQ2: “Decision
Making”, “Business Performance Management”,
and “Data Management” are interrelated and
cohesive managerial and key organizational aspects
that can be affected positively when applying and
implementing BI within organizations as the bellow
figure.
Figure 1: The cohesive effects of BI on managerial
aspects.
5 CONCLUSIONS
The paper presented a global view of BI definition,
and a global understanding of its effects and roles
derived from a state of the art (SLR) process. Thus,
the research presented clear face validity for
researchers, managers, and decision makers to help
them understand the managerial facets of BI. Within
the (SLR) the author researched a total of 65
published papers. The results from analyzing papers
showed that the predominance of the papers were
published by Journals that are only dedicated for BI
research, such as the International Journal of
Business Intelligence (IJBIR) ,Other papers may be
related to special interest group on computer
personnel research and conference preceding. Also,
it was observed that there is a noticed increase in BI
published research, and this increase might be an
indication of the emergent organizational awareness
of the significance role of BI. The review process
investigated that the empirical and case studies
related to BI were scarcely obtainable within the
pool of BI research; most of the studies were either
conceptual or theoretical.
The research results from answering the first
research question revealed that the existing
definition of BI extracted from the literature, and
extracted from applying a content analysis on the set
of definitions did not yet reach a standardized and
unified definition. Therefore, the author proposed a
coherent relation between BI and a set of key
managerial elements which are; 1. (DM) 2. (BPM)
and 3. Data Management, that should be all
ICEIS2012-14thInternationalConferenceonEnterpriseInformationSystems
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mentioned when defining BI as follows:
“Business intelligence is a combination of
processes, products, and technologies that have the
ability in supporting organization, and can have a
direct key role in Data management by storing, and
analyzing the data collected from internal and
external sources ,and on Decision Making by
creating knowledge ,and finally on Business
Performance management “
The systematic review process also collected
papers that investigated the effect of BI on those
managerial aspects. 55% of papers illustrated a
direct effect of BI on decision making, 22 % of the
papers illustrated the effect of BI on Data
Management and 23% showed an effect on BPM.
Consequently, and as a results the author concluded
a general understanding from the second research
question as follows:
Decision Making, Business Performance
Management, and Data Management are interrelated
and cohesive managerial and key organizational
aspects that can be positively affected when
applying and implementing BI within organizations.
As future lines of work, we will expand the
analysis of organizational features recognized by BI
and its implementations this is, defining more
substantial and insubstantial effects of its presence in
organizations and where exactly inside an
organization they are playing their significant roles,
yet how can they be evaluated and quantified.
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BusinessIntelligence-Definitions,ManagerialEffectsandAspects:ASystematicLiteratureReview
213
APPENDIX
A Review of BI Traditional Definitions
Author Year BI Explanation
Is there a Direct relation with the following within
the definition?
DM BPM
Data
control
Better
relations
management
Knowledge
Management
Ortiz, 2003
2003
"(BI) is a set of products, which are sets of tools and
technologies designed to efficiently extract useful information
from oceans of data"
No No Yes No Yes
Dharan & Swami, 2004
2004
"BI is a term that encompasses a broad range of analytical
software and solutions for gathering, consolidating, analysing
and providing access to information in a way that is supposed
to let an enterprise's users make better business decisions"
Yes No Yes No No
Xu, Zhang & Jiang, 2005
2005
"The concept of Business Intelligence (BI) is brought up by
Gartner Group since 1996. It is defined as the application of a
set of methodologies and technologies, that improve enterprise
operation effectiveness, support management/decision to
achieve competitive advantages."
Yes Yes No No No
Xie & Zhou, 2008 2008
"Business intelligence systems are interactive computer-based
structures and subsystems intended to help decision makers use
communication technologies, data, documents, knowledge, and
analytical models to identify and solve problems. The new
generation of BIS offers the potential for significantly
improving operational and strategic performance for
organizations of various sizes and types".
Yes Yes No
No Yes
Viaene, 2008
2008
"BI refers to a broad category of applications and technologies
for gathering, storing, analyzing, and providing access to data
that helps Decision making process”
Yes No Yes No No
Yoav & Kolodner, 2009
2009
"BI is a system that supports activities such as data analysis,
managerial decision making, and business-performance
measurement".
Yes Yes Yes No No
Wixom & Watson, 2007
2010
"Business intelligence (BI) is an umbrella term that is
commonly used to describe the technologies, applications, and
processes for gathering, storing, accessing, and analysing data
to help users make better decisions."
Yes No Yes No No
Foley & Guillemette,
2010
2012
"A combination of processes, politics, culture, and
technologies for gathering, manipulating, storing, and
analysing the data collected from internal and external sources
in order to communicate information, create knowledge and
inform decision making. BI helps report business performance,
uncover new business opportunities and make better business
decisions “
Yes Yes Yes No Yes
Patrick; Christian;
Christian; Peter &
Martin, 2010
2010
"Business Intelligence (BI) a concept provides a means to
obtain crucial information to improve the decision making
process”
Yes No No NO NO
Hill, Ariyachandra &
Frolick, 2011 10 prince
2011
"(BI) is seen as the ultimate solution that will help
organizations leverage information to make informed,
intelligent business decisions"
Yes No Yes No No
Glancy & Yadav, 2011
2011
"Business intelligence (BI) a system that provide relevant
competitive intelligence, combine it with a business ‘internal
information, provide expert information, incorporate advanced
analytical decision techniques, and are able to inform the
executive of the relevance of the knowledge created from the
system."
Yes Yes Yes No Yes
Gluchowski &
Gluchowski, 2011
2011
"BI is a data driven decision support system (DSS) that
combines data gathering, data storage, and knowledge
management with analysis in the interests of better managerial
decision making"
Yes No Yes No Yes
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