MITS5507: Business Intelligence and CPM Analysis Report

This report analyzes the academic article "Business Intelligence Effectiveness and Corporate Performance Management: An Empirical Analysis" by Richards and Popovic. The report examines the relationship between Business Intelligence (BI) and Corporate Performance Management (CPM), focusing on how BI implementation impacts business analytics and corporate-level management practices. The analysis includes a review of the article's research questions, literature review, research methodology (online survey), and findings, emphasizing the positive correlation between BI effectiveness and Business Analytics. The study highlights the importance of BI in organizing data and its impact on management practices, particularly in measurement, planning, and analysis. The report also discusses the survey's demographic information, results, and the implications of the study's findings for theory and practice, including an integrated prototype for corporate-level business management and support for data and information processing theory. The report concludes by underscoring the significance of BI systems in enhancing CPM and contributing to informed decision-making within organizations.

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Student name
Student ID
Unit title
A review of “Business Intelligence Effectiveness and Corporate performance Management:
An Empirical Analysis article by Gregory Richards and Ales Popovic
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Key terms: Business Intelligence BI, Business Analytics BA, Corporate Performance
Management CPM
Introduction
The purpose of this report is analyzing business intelligence (BI) technologies and its impacts
on business analytics (BA). In the report, it has been observed that academics and
practitioners have developed the need to analyze business analytics BA and how it improves
corporate performance management (CPM). The article reviewed in this report, “Business
Intelligence Effectiveness and Corporate performance Management: An Empirical Analysis”
attempts to address the importance of Business Intelligence and its integration with Business
Analytics on Corporate Performance Management. In reviewing the article, the key sections
identified include; the research questions that the researchers sought to answer, the literature
review studies that the authors conducted regarding the topic, the research method applied
and results and concludes with a discussion of the findings [1].
Developing this report not only assists in realizing the importance of BI technologies to
CPM, but also shows how to conduct a strategic research on unique issues surrounding
business process management. The article reviewed acts as a blueprint guiding one on how to
create an effective research on any business management concept [2].Therefore, this report is
significant to professionals in the business management field as well as scholars studying the
same.
Article analysis
The intention of the article under review is to test and prove the widely accepted theory that
an effective BI implementation results in improved CPM-related planning and analytic
practices. The authors suggest that BI effectiveness sturdily links to BA, measurement and
planning. Contrary, the effectiveness of BA strongly relates to scheduling but less so to
dimension. The authors begin by describing the term corporate performance management and
its importance to the success of a business. They describe it as a management tool used by
organizations in corporate-level decision making. Unlike other management areas of financial
budgeting and reporting management as well as analysis of BI which all apply management
systems, such systems are not prominent in CPM. Such systems integrate management
practices and information technology, boosting organizational performance [3].
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The authors note that the use of data by organizations in making informed decisions has been
applied since the early 1900s. Today, however, organizations are handling vast volumes of
data resulting in forming advanced analytics functions. Functions like data mining which
search for patterns not obvious applying to the standardized BI tools. From the perception of
communal performance management, the core activities involve measurement, planning, and
analysis. The BI system may not essentially support BA because of the diverse range of
information technology used. Hence, despite the systems strongly support measurement and
planning, not all of them deliver the capacity that is needed by the decision-makers. The
analysis of the effectiveness of Business Intelligence System and its relation to Corporate
Performance Management clearly demonstrates the prominence of such systems.
Research Questions
In the article, several research questions have been highlighted regarding the above
reasoning. They include;
i. “How does the effectiveness of Business Intelligence System execution impacts
practices of corporate-level management?"
ii. What extent of influence does Business Intelligence System have on Business
Analytics' effectiveness in corporate institutions?"
iii. “What is the relative importance of the Business Intelligence System on Corporate
Performance Management in comparison to the impact that BA has on CPM?
Answering the questions would create new insights on the BI value literature by looking at its
impact on CPM practices.
Literature Review
In the literature review section of the article, the author offers a number of definitions of
Business Intelligence and Business Analytics that have been framed, as well as their
theoretical foundations. One definition describes Business Intelligence as the application of
appropriate technology to deliver data to decision-makers and using the data to derive
meaningful insights [1]. Business Intelligence is the application of a collection of software
and technologies that use data to derive meaning analysis and provide a basis for decision
making across different levels of the corporate environment. [2] Some of the theoretical
foundations relating to BA and BI include; a software application which gives info to
decision-makers that assist them in maintaining business performance. Also, the literature
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evaluation segment highlights insights into corporate management practices. Any
organization has its own management practices that enable it to achieve business objectives.
Corporate management practices refer to the activities that an organization carries out that
deem to direct in the implementation of good business strategy [3]. An example used to back-
up the definitions is; the practice of management accounting which involves a range of ways
like “activity-based costing” and “balanced scorecards” which are both instigated by
following sets of unique processes.
Another important issue that the literature review tries to address is the kind of value that
Business Analytics and Business Intelligence add to the overall operation of the organization.
The article points out a suggestion from many authors indicating the operational effect
processes of sales and BI systems, inventory management, and marketing. An example that is
suggested is in the marketing and sales whereby BI system offers information according to
the demand of the customers across various segments. This assists managers to offer products
that match customer needs. In addition, business rules are easily converted into
programmable way thus can be incorporated into the Business Intelligence System, making
fast decision making among managers. The programmed business rules become an important
tool for administration control that enables the exchange of information across all levels of
administration.
However, the authors point out the lack of sufficient literature discussing the effects of
Business Intelligence systems on Corporate Management Practices. It leads to an assumption
that the BI systems serve the same roles to the operational processes, which is offering
historical information and allowing information exchange among managers.
Data Collection Technique
The researchers used an online survey method to collect data for the study. The survey
questions were created on the basis of the research hypotheses as well as feedback from
industry partners. Participants in the survey included senior managers from
PricewaterhouseCoopers (PwC) as well as the Canadian Advanced Technology Association
(CATA). An analysis of received complete replies using Partial Least Square and
SmartPLS3 analysis tool was done. The target of the survey was on senior managers,
executives, and members of the board amongst participating companies. For the study,
respondents were assessing the impacts of unique BI components and the various
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methodologies of the BI system and the techniques applied in practices of managers which
form an aggregate assessment of its general efficiency.
The rationality of a PLS-based study is that, unobservable concepts may be analyzed by
collecting data on observed items that relate to that particular concept. For the study, the main
basis is on the impacts that BI system has on CPM practices as restrained by the apparent
effectiveness of matching methods. The study sought direction from the partners of the
industry and circulated literature to determine constructs and measures.
Results of the study
The results of the study are presented in tables and figures providing the demographic
information of the respondents as well as their organizations. The results indicate a robust
relationship between the implementation of the BI system and BA effectiveness. They show
that BI systems assist in organizing data for use in BA. Another variance established in the
study indicates that BI system efficiency accounts for a judicious part of the variation in the
effectiveness of Business Analytics. There are factors that are used in explaining this result.
One is that using BI systems is voluntary, in that, managers involved in the decision-making
process can access important business information from different platforms. Second most BI
systems, data are aggregated, but advanced analytics only needs using raw data. Hence as
enhanced analytical practices are being embraced in establishments, applying aggregated data
from the BI system might reduce in favor of systems storage that store data in more granular
setups. BI system efficiency has got a significant inspiration in all the management applies.
The influence of BA is not evident, and the effect its size is not necessary for measuring, but
it is for scheduling. This finding is unfailing with the theory of information processing
because planning may be considered to be more vague organization practice than dimension.
Dimension has a robust relationship with process efficiency, though planning has a weak but
still significant relationship. Moreover, the findings indicate a strong relationship with
process efficiency, while planning has a less important relationship [4].
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Demographic information on responding organizations
Respondents
Board member 10%
Manager 31%
Executive 46%
Effect sizes and p-values
Analytic planning 0.042 0.022
Analytics Measurement 0.108 0.137
BIS Measurement 0.525 0.017
BIS Analytics 0.137 0.1
Discussion
The researchers are strongly influencing BA and have a feebler but important relationship
with the rest of management performance. By disparity, BA is found to have an important
influence on preparation, but its impact on dimension is smaller and not essential [5]
After examining possible heterogeneity of the results applying control variables as identified,
Evaluation of the reversion weights was undertaken to utilize the PLS_MGA approach. A
slight difference was noted for the dimension practice between small and large organizations.
Conclusion
Several significant implications for theory are revealed from the study. The most arrived
upon implication is that it offers an integrated prototype for any corporate level business
management. This study also provides proof of the theory of data and information processing
with regards to different applications in Business Analytics and Business Intelligence [6]
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References
[1] Aare, M., Kleiven, S., Abdullah, F., Nuernberg, A., Rabinovici, R., Abe, Y., ... & Allen,
D. J. Taphonomy–Edged, Incised, Hacking, and Impaling Traumas. ANTE-, PERI-, and
POST-MORTEM CONDITION, 492.
[2] Richards, G., Yeoh, W., Chong, A. Y. L., & Popovič, A. (2019). Business intelligence
effectiveness and corporate performance management: an empirical analysis. Journal of
Computer Information Systems, 59(2), 188-196.
[3] Richards, G., Yeoh, W., Chong, A. Y. L., & Popovic, A. (2014, January). An empirical
study of business intelligence impact on corporate performance management. In PACIS
2014: Proceedings of the Pacific Asia Conference on Information Systems 2014 (pp. 1-16).
AIS eLiberary.
[5] Steg, L. E., Van Den Berg, A. E., & De Groot, J. I. (2013). Environmental psychology:
An introduction. BPS Blackwell.
[6] Steg, L. E., Van Den Berg, A. E., & De Groot, J. I. (2013). Environmental psychology:
An introduction. BPS Blackwell.
[7] Caffau, E., Bonifacio, P., Starkenburg, E., Martin, N., Youakim, K., Henden, A. A., ... &
Jablonka, P. (2019). VizieR Online Data Catalog: Pristine survey II. Bright stars abundances
(Caffau+, 2017). VizieR Online Data Catalog, 1133.
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