Implementation of business intelligence considering the role of information systems integration and enterprise resource planning

Authors

  • Farzaneh Zafary Islamic Azad University, Science and Research Branch, Author

DOI:

https://doi.org/10.37380/jisib.v10i1.563

Keywords:

Business intelligence, enterprise resource planning, information and communications technology, information systems, integrated systems

Abstract

The aim of this research is the implementation of business intelligence, considering the role of information systems integration and enterprise resource planning on it. According to the objectives of this research, it is practical research, and the work process is based on descriptive, survey, and exploratory research. The study population of the qualitative part of this research includes experts (information technology and communications managers from Tehran Stock Exchange companies and professors). Twenty-five interviews were performed by a non-random and targeted method, until a theoretical saturation of the questionnaire was reached. The study population of the quantitative part includes all the personnel of 167 companies where business intelligence is implemented in their organizations. Two questionnaires were used for gathering the required data for evaluating and measuring the studied variables. Validity is confirmed by experts' opinions. Finally, seven issues of structural factors, behavioral factors, environmental factors, processes, output, consequence, and the effect and their subcomponents are identified as effective items in business intelligence success. Regarding the outcome, importance, and the model coefficient of the main factors, the processes have the most impact on the results. So, organizations should pay more attention to their working processes to improve business intelligence success. Overall, the results regarding the effective factors on successful implementation of business intelligence reflect best practices of firms that have successfully implemented BI systems and provide insights for BI stakeholders that may increase the chances of successful implementation. This study shows the value of integrated information systems and enterprise resource planning in the success of business intelligence implementation. The findings of this study provide an opportunity for other researchers to study a cost optimization approach. It also suggests it is time to investigate suitable approaches by a focus on the appropriate factors for successful business intelligence implementation and by comparative analysis of ways to boost business intelligence preparation. This study also found further factors, in addition to enterprise resource planning and information systems integration, that can be used to select and rank more factors of business intelligence implementation. Furthermore, a model that examines the integration of business intelligence and the other information systems in the company is proposed for future research.

References

Arun, M., & Derrick, D. (2012). The Influence of ERP System Implementation on the Operational Performance of an Organization, International Journal of Information Management, Vol.32, pp.24-34. DOI: https://doi.org/10.1016/j.ijinfomgt.2011.06.004

Avhadi, F., Khayyam, Z., (1398) Evaluation of the Relation Between Business Intelligence and Organizational Training (Case Study: Irancell Company), International Conference of Management, Accounting, Commerce, and Banking in Third Millennium, Tehran, Alborz Arvin Conference Company.

Bagheri, A., Alikhani, A., (1398) Counting the Effects of Business Intelligence through Business Process on the Operation and Mellat Bank of Iran, Fourth National Conference on Management, Accounting, and Commerce with Emphasis on Regional and Global Marketing, Tehran, Shahid Beheshti University, Permanent Office of the Conference.

Banerjee, M., & Mishra, M. (2015). Retail supplychain management practices in India: Abusiness intelligence perspective. Journal of Retailing and Consumer Services, 2-12.

Blenkhorn, D.L. & Fleisher, C.S., 2007, ‘Performance Assessment in Competitive Intelligence: An Exploration, Synthesis, and Research Agenda’, Journal of CompetitiveIntelligence and Management 4(2), 4–21.

Brijs, T. (2013). Cost-benefit analysis and costeffectiveness analysis tool to evaluate investments in safety related to major accidents (M.Sc). Universities Antwerpen.

Chasalow, L. (2009). A model of organizational competencies for business intelligence success.ProQuest,Dissertation, Virginia CommonwealthUniversity.

Chwelos, P., I. Benbasat, and A.S. Dexter, (2014).Research report: empirical test of an EDI adoption model. Information Systems Research,. 12(3): p. 304-321 DOI: https://doi.org/10.1287/isre.12.3.304.9708

Chen, H.; Chiang, R. H. and Storey, V. C. (2012). “Business Intelligence and Analytics: From Big Data to Big Impact”. MIS quarterly, 36(4): 1165-1188 DOI: https://doi.org/10.2307/41703503

Chung, S.H. and Snyder, C.A. (2000) ‘ERP adoption: a technological evolution approach’, Industrial Management & Data Systems, Vol. 102, No. 1, pp.24–32. DOI: https://doi.org/10.1108/14654650010312570

Dredden, G. and Bergdolt, J.C. (2007) ‘Enterprise resource planning: integrating organizational processes’, Air Force Journal of Logistics, Vol. 31, No. 2, pp.49–52.

Elbashir, M., Collier, P., & Davern, M. (2008). Measuring the effects of business intelligence systems: The relationship between business process and organizational performance. International Journal of Accounting Information Systems, 9(3), 135-153. doi: 10.1016/j.accinf.2008.03.001 DOI: https://doi.org/10.1016/j.accinf.2008.03.001

Faridi Chalaei, L., Jafari, Sh., Jafari, S., (2015) Study the Relationship Between Establishment of Business Intelligence System and Organizational Effectiveness (Case Study), the Fourth National Conference of Accounting, Financial Management, and Investment, Golestan Association of Managers and Accountants, Islamic Azad University Azadshahr Branch.

Fink,L. Yogev,N. Even,A(2017). Business intelligence and organizational learning: An empirical investigation of value creation processes. Information & Management 54 (2017) 38–56 DOI: https://doi.org/10.1016/j.im.2016.03.009

Ghazanfari, M., Jafari, M., & Rouhani, S. (2011). A tool to evaluate the business intelligence of enterprise systems. Scientia Iranica E, 1579–1590. DOI: https://doi.org/10.1016/j.scient.2011.11.011

Gutjahr, W., & Nolz, P. (2016). Multicriteria optimization in humanitarian aid. European Journal Of Operational Research, 252(2), 351-366. doi: 10.1016/j.ejor.2015.12.035 DOI: https://doi.org/10.1016/j.ejor.2015.12.035

Hassani Jafarabad, A., Neshat, M., (2016) The Relationship Between Business Intelligence and Organizational Operation, fifth international Conference of Accounting and Management with the Approach of New Research Sciences, Tehran, Iranian Arghavan Communication Company.

Hawking, P. & Sellitto, C., 2010, ‘Business Intelligence (BI) Critical Success Factors’, 21stAustralian Conference on Information Systems, Brisbane, Australia, December 1–3,2010, AIS Electronic Library.

Hoegl, M., & Proserpio, L. (2004). Team member proximity and teamwork in innovative projects. Research Policy, 33(8), 1153-1165. doi: 10.1016/j.respol.2004.06.005 DOI: https://doi.org/10.1016/j.respol.2004.06.005

Hoppe, M. (2013). The intelligence worker as aknowledge activist – an alternative view on intelligence by the use of Burke’s pentad.Journal of Intelligence Studies in Business,59-68. DOI: https://doi.org/10.37380/jisib.v3i1.57

Isik, O., Jones, M. C., & Sidorova, A. (2013) Business intelligence success: The roles of BI capabilities and decision environments.Information & Management, 50: 13–23.doi:10.1016/j.im.2012.12.001 DOI: https://doi.org/10.1016/j.im.2012.12.001

Jalali Aghdam, D., Khademi Shoja, M., (2018) The importance of Business Intelligence, Organizational Resources, and Knowledge Management in the Organization Upgrade and Competition Advantage, the Second National Conference of Knowledge and Engineering Sciences Technology, Iran, Tehran, Iranian Sam Institute of Organizing Conferences of Knowledge and Technology.

Jones, M.C., M. Cline, and S. Ryan, (2016)Exploring knowledge sharing in ERP implementation: an organizational culture framework. Decision Support Systems,. 41(2): p. 411-434. DOI: https://doi.org/10.1016/j.dss.2004.06.017

Kandogan, E., Balakrishnan, A., Haber, E., & Pierce, J. (2014). From Data to Insight: Work Practices of Analysts in the Enterprise. IEEE Computer Graphics And Applications, 34(5), 42-50. doi: 10.1109/mcg.2014.62 DOI: https://doi.org/10.1109/MCG.2014.62

Li, S., Shue, L., & Lee, S. (2008). Business intelligence approach to supporting strategymaking of ISP service management. Expert Systems with Applications, 35(3), 739-754. doi: 10.1016/j.eswa.2007.07.049 DOI: https://doi.org/10.1016/j.eswa.2007.07.049

Lin, Y., Tsai, K., Shiang, W., Kuo, T., & Tsai, C. (2009). Research on using ANP to establish a performance assessment model for business intelligence systems. Expert Systems With Applications, 36(2), 4135-4146. doi: 10.1016/j.eswa.2008.03.00 DOI: https://doi.org/10.1016/j.eswa.2008.03.004

Milan, Kubinaa, Gabriel, Komana Ire (2015). Possibility of Improving Efficiency within Business Intelligence Systems in Companies. Procedia Economics and Finance, Volume 26, 2015, Pages 300–310 DOI: https://doi.org/10.1016/S2212-5671(15)00856-4

Moro, S.; Cortez, P. and Rita, P. (2015). “Business intelligence in banking: A literature analysis from 2002 to 2013 using text mining and latent Dirichlet allocation”. Expert Systems with Applications, 42(3): 1314-1324. DOI: https://doi.org/10.1016/j.eswa.2014.09.024

Muntean, M., Cabău, L., & Rînciog, V. (2014). Social Business Intelligence: A New Perspective for Decision Makers. Procedia - Social and Behavioral Sciences, 124, 562-567. doi: 10.1016/j.sbspro.2014.02.520 DOI: https://doi.org/10.1016/j.sbspro.2014.02.520

Nash, K.S. (2000) ‘Companies don’t learn from previous IT snafus’, Computer World, Vol. 16, No. 21, pp.32–33. DOI: https://doi.org/10.1016/S0262-1762(00)89068-9

Nemikito, S. (2019). The Factors of Satisfaction of Business Intelligence Information Needs (PHD). Vilnius University Faculty of Economics.

Nespeca, A. Maria, S. (2018). The Impact of Business Intelligence Systems on Management Accounting Systems: The Consultant’s Perspective. Lecture Notes in Information Systems and Organization 24, https://doi.org/10.1007/978-3-319-62636-9_19 DOI: https://doi.org/10.1007/978-3-319-62636-9_19

Ngai, E. W. T.; Hu, Y.; Wong, Y. H.; Chen, Y. and Sun, X. (2011). “The application of data mining techniques in financial fraud detection: A classification framework and an academic review of literature”. Decision Support Systems, 50(3): 559-569. DOI: https://doi.org/10.1016/j.dss.2010.08.006

Nofal, M. Yusef, Z. (2013). Integration of Business Intelligence and Enterprise Resource Planning within Organizations. Procedia Technology, Volume 11, 2013, Pages 658–665. DOI: https://doi.org/10.1016/j.protcy.2013.12.242

Nyblom, M. & Behrami, J. & Nikkilä, T. & Søilen, Klaus. (2012). An evaluation of Business Intelligence Software systems in SMEs – a case study. Journal of Intelligence Studies in Business. 2. 51-57. 10.37380/jisib.v2i2.41.

Pall, R. Ogan, Y. (2018). Business intelligence & analytics in management accounting research: Status and future focus. International Journal of Accounting Information Systems 29 (2018) 37–58 DOI: https://doi.org/10.1016/j.accinf.2018.03.001

Parr, A. and Shanks, G. (2000) ‘A model of ERP project implementation’, Journal of InformationTechnology, Vol. 15, No. 4, pp. 289–303. DOI: https://doi.org/10.1080/02683960010009051

Popovič, A. Puklavec, Oliveira, T. (2019). Justifying business intelligence systems adoption in SMEs. Industrial Management & DataSystems, https://doi.org/10.1108/IMDS-02-2018-0085 DOI: https://doi.org/10.1108/IMDS-02-2018-0085

Rabbani, M., Khalesi Ardakani, M., (2018) Study the Effect of Business Intelligence and Management Systems of Communication with the Customer on the Organizational Success (Case Study: Ardakan Bank Branches), International Conference of Approaches and Challenges of Management, and Industrial Engineering, Tehran, Alborz Arvin Conference Company.

Ramakrishnan, T., Jones, M.C. & Sidorova, A. (2012). ‘Factors influencing business intelligence (BI) data collection strategies: An empirical investigation’, Decision Support Systems, 52(2): 486-496. DOI: https://doi.org/10.1016/j.dss.2011.10.009

Ranjan, J. (2008). Business justification with business intelligence. VINE, 38(4), 461-475. doi: 10.1108/03055720810917714 DOI: https://doi.org/10.1108/03055720810917714

Rouhani, S. and Mehri, M. (2016) ‘Does ERP have benefits on the business intelligence readiness? An empirical study’, Int. J. Information Systems and Change Management, Vol. 8, No. 2, pp.81–105. DOI: https://doi.org/10.1504/IJISCM.2016.079559

Sacu, C. and Spruit, M. (2010) BIDM: The Business Intelligence Development Model, Institute of Information and Computing Sciences, Utrecht University, Utrecht, Netherlands.

Shao, Z., Feng, Y., & Liu, L. (2012). The mediating effect of organizational culture and knowledge sharing on transformational leadership and Enterprise Resource Planning systems success: An empirical study in China. Computers in Human Behavior, 28(6), 2400–2413. DOI: https://doi.org/10.1016/j.chb.2012.07.011

Solberg Søilen, K. (2012). An evaluation of Business Intelligence Software systems in SMEs – a case study. Journal Of Intelligence Studies In Business, 2(2). doi: 10.37380/jisib.v2i2.41 DOI: https://doi.org/10.37380/jisib.v2i2.41

Torres,R. Sidorova,,A. Jones,M(2018). Enabling firm performance through business intelligence and analytics: Adynamic capabilities perspective. Information & Management 1 (2019) 1–18.

Wagner, E., & Newell S. (2016). Repairing ERP: Producing Social Order to Create a Working Information System. Journal of Applied Behavioral Science, 42(1), 40-57. DOI: https://doi.org/10.1177/0021886305284290

Wang ,(2015).Bussiness intelligence.Taiwan:Dr Master Culture Limited Company.

Wang, H. Nolz, J., (2016) ERP post-adoption: use and value – an empirical study on Portuguese SMEs, in Knowledge and technologies in innovative information systems, Lecture Notes in Business Information Processing, MCIS, Editor. 2012, Springer: Guimarães, Portugal. p. 67-81. DOI: https://doi.org/10.1007/978-3-642-33244-9_5

Yun, J. M., Choi, M., & Armstrong, D. J. (2018). The impact of relational leadership and social alignment on information security system effectiveness in Korean governmental organizations. International Journal of Information Management, 40, 54–66 DOI: https://doi.org/10.1016/j.ijinfomgt.2018.01.001

Zhou, J., Bi, G., Liu, H., Fang, Y., & Hua, Z. (2018). Understanding employee competence,operational IS alignment, and organizational agility–An ambidexterity perspective Information & Management, 55, 695–708. DOI: https://doi.org/10.1016/j.im.2018.02.002

Downloads

Published

2024-12-11

How to Cite

Zafary, F. (2024). Implementation of business intelligence considering the role of information systems integration and enterprise resource planning. Journal of Intelligence Studies in Business, 10(1), 59-74. https://doi.org/10.37380/jisib.v10i1.563