Towards an Understanding Business Intelligence. A Dynamic Capability-Based Framework for Business Intelligence

Abstract

Abstract-Although Business Intelligence (BI) is one of the most essential technologies to be purchased, the implementation of many BI applications fails. The reasons for this failure are not clear and still not well investigated. Resource-based View (RBV) and dynamic capability theory could help to overcome this gap and to provide an appropriate theoretical basis for future research in BI area. It is considered that BI capabilities may be critical functionalities that help organizations to improve their performance and adopt to environmental change. The research objectives for this study are: (1) conceptualization and discussion on BI dynamic capability, (2) building the comprehensive framework of BI capabilities. In order to address these objectives, the remainder of the paper is structured as follows: The first sections provide the theoretical foundations of BI, RBV and dynamic capability theory. Next, the BI capability was conceptualized. Finally, a model of BI as a dynamic capability, was proposed. The study was based mainly on: (1) a critical analysis of literature, (2) an observation of different BI initiatives undertaken in various organizations, as well as on (3) interviews with managers and experts in BI. The results of this study can be used by IT and business leaders as they plan and develop BI capabilities in their organizations.

Relation between dynamic analytical capabilities and competitive advantage: theoretical approach

“…The acquisition, configuration, reconfiguration, and development of available bundles of resources and key competences (or distinguishing capabilities) are essential factors for competitive advantage and the value creation (Olszak, 2014(Olszak, , pp. 1103(Olszak, -1110.…”

“…729-739;Isik at al., 2013, pp. 13-23) or Business Intelligence & Analytics (BI&A) (Davenport & Harris, 2013;Olszak, 2014Olszak, , pp. 1103Olszak, -1110.…”

“…Technology refers to the development and use of computer hardware, software, and data analysis activities. It also covers the management of integrated systems, large databases, the integration of various analytical tools with other systems in the organization, conversion of data into information by visualization and reporting systems, and the use of advanced statistical tools to discover patterns, anticipate trends and optimize business processes (Olszak, 2014(Olszak, , pp. 1103(Olszak, -1110.…”

“…193-203), information technology (Bhatt & Grover, 2005, pp. 253-277), or analytics and Business Intelligence (Davenport & Harris, 2013;Olszak, 2014Olszak, , pp. 1103Olszak, -1110.…”

“…It is a specific and important type of IS capabilities. According to Gartner Group definition, analytical capabilities relate to information access and the analysis of decision-making style within an organization (Olszak, 2014(Olszak, , pp. 1103(Olszak, -1110.…”