Business Performance Management or Corporate Performance Management

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Chapter 2 Existing BI value models and contributing factors

Introduction

Chapter two evaluates the current published academic literature focusing on the topic of BI value evaluations. As a starting point, the scientific search process is discussed in detail. The reason for the discussion is threefold. First, it allows future researchers to assess the findings of the literature review based on the process followed. Second, the legitimacy of the findings presented can be repeated using the same search criteria (content validity). Third, it also contributes to the reliability of the study. The findings of this research effort can subsequently become the foundation for future research efforts. The meaning of the concept of BI and business value is a well debated topic amongst scholars (Arnott & Pervan 2005; Schryen 2010; 2013; Shollo & Kautz 2010;Watson 2009). Due to the ambiguous nature and lack of cohesion when defining both concepts, the second section of the chapter focuses on the clarification of the term Business Intelligence and business value.Finally, a list of academic literature focusing on the key focus of the research (the value of Business Intelligence in organisations) are considered and presented. BI studies focus on various aspects of the implementation process. For example, some studies focus on preconditions to achieve business value such as organisational maturity and organisational readiness. Understandably, the existence of certain preconditions as well as the level of organisational maturity and readiness influences the implementation success of BI interventions. Another focus point of studies focusing on BI value is the level on which benefits or success factors are identified. For example whilst some studies focus on identifying success factors or benefits on process level some studies focus on organisational level and on both process and organisational level. All these approaches were considered and classified in a sensible concept-centric approach.
The chapter outline is diagrammatically depicted in the figure 3.

Background

In general, authors are in agreement that BI implementations do add value to organisations (Elbashir et al. 2008; Yogev et al. 2012). Despite the consensus amongst scholars, and the obvious benefits of BI implementations in particular the interpretation of enormous amounts of data since the introduction of the concept of big data, the challenge still lies in identifying and measuring more than just the obvious benefits (Lӧnnqvist & Pirttimäki 2006; Popovič et al. 2010; Smith & Crossland 2008). Numerous factors have been identified as contributing to the challenge, namely: a lack of measurement tools, knowledgeable resources to assist in the measurement process as well as hidden benefits as a result of implementations. Despite the challenges, the measurement of these benefits and subsequent business value remains important to organisations (Schryen 2010, 2013; Solomon 1996; Viva Business Intelligence Inc. 2000). This perspective is supported by the increase in the number of academic publications over the past decade (Jourdan, Rainer & Marshall 2008; Schryen 2013) and the priority allocated to BI projects despite financially challenging times (Farrokhi & Pokorádi 2012). During an extensive academic literature review, it became evident that a number of academic materials were published in the last decade contemplating: (a) the meaning of BI; and (b) the nature of the perceived value of Business Intelligence (direct or indirect). Subsequently, research obtained while focused on a vast field including the multidimensional definition of BI (Shollo & Kautz 2010; Pirttimäki 2007) as well as the value of BI using various methodologies (Dinter et al. 2011), existing IT models (Gibson & Arnott 2005), techniques (Elbashir et al. 2008) and dimensions (Farrokhi & Pokorádi 2012). For this reason, it has become important to categorize and synthesize related literature in an attempt to make sense of the current BI value research. Although the focus of the research aims to investigate the value reaped by South African based organisations as a result of BI implementations, the original literature review scope was not limited to this particular environment.

1.1 Background
1.2 Problem statement
1.2.1 Problem 1
1.2.2 Problem 2
1.2.3 Problem 3
1.3 Research questions
1.3.1 Primary research question
1.3.2 Secondary research questions
1.4 Significance of the study
1.4.1 In-depth analysis
1.4.2 Unique research methodology approach
1.4.3 Investigation of intangible benefits
1.4.4 Definition of value and timing of investigation
1.4.5 Practical contribution
1.4.6 Research output
1.4.7 Motivation of the study as part of IS
1.4.8 Unique theoretical framework
1.5 Research design
1.6 Research tasks
1.7 Thesis outline
1.8 Chapter conclusion
2.1 Introduction
2.2 Background
2.3 Scientific search process
2.3.1 Cooper’s taxonomy
2.3.2 The search process
2.4 Clarification of terminology
2.4.1 The meaning of Business Intelligence
2.4.2 BI as a diverse term
2.4.3 Technological broad term
2.4.3.1 Competitive Intelligence (CI)
-ix2.4.3.2 Knowledge Management (KM)
2.4.3.3 Business Performance Management or Corporate Performance Management
2.4.4 Context
2.4.5 BI as an evolving discipline
2.4.6 Coverage of BI as a discipline
2.5 BI definition
2.6 BI in South Africa
2.7 The meaning of business value
2.7.1 Value in business context
2.7.2 Perception of value
2.7.3 Scope of the study
2.7.4 Context of the study
2.7.5 Level of analysis
2.7.6 Time of investigation
2.7.7 Measurement tool
2.7.8 Value dimensions
2.7.9 Theory used
2.7.10 Success versus value
2.7.11 Value taxonomy.
2.7.12 Philosophical view of value
2.7.13 Conclusion
2.8 BI business value research
2.8.1 Preconditions for realized value
2.8.2 BI maturity models
2.8.3 BI readiness assessments
2.8.4 BI success models
2.8.5 Value investigations at the organisational level of analysis
2.8.6 Value investigations at the process level of analysis
2.8.7 Value at the organisational and process level of analysis interrelationships
2.9 BI value research in South Africa
2.10 Challenges and limitations
2.11 Chapter conclusion
3.1 Introduction
3.2 IT evaluation methods –x3.2.1 Financial calculation methods
3.2.2 Proprietary evaluation methods
3.3 Theoretical framework
3.4 The original balanced scorecard.
3.5 The strategy map
3.6 The IT balanced scorecard
3.7 The BI balanced scorecard literature evaluation
3.7.1 Balanced scorecard approach for BI (Vinciguerra 2004)
3.7.2 BI value scorecard (Hawking 2011)
3.8 Chapter conclusion
4.1 Introduction
4.2 Philosophical assumption
4.3 Research method (strategy): Multiple-case studies
4.3.1 Description of multiple-case studies
4.4 Sources of evidence
4.4.1 Interviews
4.4.1.1 The interview process: Phase one
4.4.1.2 The interview process: Phase two
4.4.2 Physical artefacts
4.4.3 Technical architecture documentation
4.4.4 Company websites
4.5 Working with data
4.5.1 Data analysis approach
4.5.2 Data analysis process
4.6 Written record
4.7 Ethical considerations
4.8 Chapter conclusion
5.1 Introduction
5.2 Development approach
5.3 The Business Intelligence balanced scorecard
5.3.1 BI balanced scorecard perspectives and objectives
5.3.2 BI balanced scorecard measureable items (KPIs)
5.3.2.1 Business value perspective KPIs
5.3.2.2 User orientation perspective KPIs
5.3.2.3 Operational excellence KPIs
5.3.2.4 Future orientation KPIs
5.3.3 Verification of BI balanced scorecard measureable items (KPIs)
5.3.3.1 Verification of business value KPIs
5.3.3.2 Verification of user orientation KPIs
5.3.3.3 Verification of operational excellence KPIs
5.3.3.4 Verification of future orientation KPIs
5.3.3.5 CSF as verification method: limitations, challenges and exclusions
5.4 Preliminary Business Intelligence balanced scorecard strategy map
5.5 Empirical instrument: Semi-structured interview template
5.6 Instrument verification
5.7 Chapter conclusion
6.1 Introduction
6.2 Case study 1: Organisation A
6.2.1 Business value perspective
6.2.2 User orientation perspective
6.2.3 Operational excellence perspective
6.2.4 Future orientation perspective.
6.2.5 Organisation A: Conclusion
6.2.6 Organisation A: Map to research questions
6.3 Case study 2: Organisation B
6.3.1 Business value perspective
6.3.2 User orientation perspective
6.3.3 Operational excellence perspective
6.3.4 Future orientation perspective
6.3.5 Organisation B: Conclusion
6.3.6 Organisation B: Map to research questions
6.4 Case study 3: Organisation C
6.4.1 Business value perspective
6.4.2 User orientation perspective
6.4.3 Operational excellence perspective
6.4.4 Future orientation perspective
6.4.5 Organisation C: Conclusion
6.4.6 Organisation C: Map to research questions
6.5 Case study 4: Organisation D
6.5.1 Business value perspective
6.5.2 User orientation perspective
6.5.3 Operational excellence perspective
6.5.4 Future orientation perspective
6.5.5 Organisation D: Conclusion
6.5.6 Organisation D: Map to research questions
6.6 Cross-case analysis
6.6.1 Business value perspective
6.6.2 User orientation perspective
6.6.3 Operational excellence perspective
6.6.4 Future orientation perspective
6.7 Chapter conclusion
7.1 Introduction
7.2 Development approach
7.3 The Business Intelligence balanced scorecard (intermediate version)
7.3.1 Future orientation perspective
7.3.2 Operational excellence perspective
7.3.3 User orientation perspective
7.3.4 Business value perspective 1
7.3.5 Interrelationship amongst perspectives and objectives – A practical example
7.4 Difference between preliminary BI balanced scorecard and intermediate BI balanced scorecard
7.4.1 Perspectives
7.4.2 Objectives
7.4.3 Relationships between objectives
7.5 Chapter conclusion
8.1 Introduction
8.2 Verification process
8.3 Results of the verification process
8.4 Response to feedback and considerations
8.5 BI balanced scorecard (verified version)
8.6 Relevance of BI balanced scorecard to current literature
8.7 Chapter conclusion and recommendations
9.1 Introduction
9.2 Research contribution
9.3 Assumptions
9.4 Limitations
9.5 Challenges
9.6 Future research opportunities
9.7 Summary
9.8 Conclusion of the study