BI System Effectiveness

BI is a system of data conversion that ranges from immediate feedback to complex risk management. The main goal of BI implementation is to facilitate interactions between data management and information sharing to help analysts and managers with both analysis and task execution. Proactive BI includes real-time data warehousing, data mining, automated anomaly and exception detection, proactive alerting with automatic recipient determination, seamless follow-through workflow, automatic learning and refinement, geographic information systems, and data visualization. Consequently, BI systems combine data gathering, storage, access, analysis, and knowledge management with analytical tools to present complex internal and competitive information for planners and decision-makers, and thus help them make better and faster decisions. Furthermore, BI may support effective decision-making under time pressure and supplies accurate and useful information to appropriate decision-makers, such as faster access to information, easier information query and analysis, higher interactivity, and improved data consistency. Information solutions providers such as Microsoft and IBM Cognos developed powerful BI tools and solutions to help enterprises increase the effectiveness of BI.

To measure system effectiveness, BI supports organizational decision-making in increasingly complex operating environments, thus yielding multiple benefits in relation to BI implementation. BI comprises both technical and organizational elements that present its users with historical information for analysis to enable effective decision-making and management support. BI measurements generally serve two main purposes: the first is to prove that BI solutions are worth the investment; the second is to help manage the BI process, namely to ensure the BI solutions satisfy user needs and that the process is efficient. Four measurable benefits of BI: it can help avoid unnecessary costs, decisions based on good BI may increase revenues, BI information may help improve resource allocation decisions and thus maximize profitable investments, and the direct link between a BI decision and business performance could be measured.

Additionally, the implementation of BI systems makes an organization more agile. BI solutions enable enterprises understand their internal and external environments through systematic information acquisition, collation, analysis, interpretation, and exploitation. Investing in BI solutions for marketing activities can help enterprises quickly launch products or services, satisfy consumer needs in relation to tracking systems, manage trade and customer interactions, and help enhance marketing and sales. BI is used to understand firm capabilities, as well as the current status and future trends in the markets, technologies, and regulatory environments relevant to a firm.

To summarize, researchers and practitioners have argued that BI implementation has diverse effects. BI success represents the attainment of multiple benefits, such as improved profitability, reduced costs, and improved efficiency. BI capabilities can help an organization improve both agility in the face of change and overall performance. Therefore, for practical BI management reasons, to identify the critical elements of BISE and establish a predictive model and rules for the effectiveness of BI system implementation is extremely helpful.