How Business Intelligence Creates Value: An Empirical Investigation

Authors:
Nir Yogev;Adir Even;Lior Fink
Affiliations:
Department of Industrial Engineering and Management, Ben-Gurion University of the Negev, Beer-Sheva, Israel;Department of Industrial Engineering and Management, Ben-Gurion University of the Negev, Beer-Sheva, Israel;Department of Industrial Engineering and Management, Ben-Gurion University of the Negev, Beer-Sheva, Israel
Venue:
International Journal of Business Intelligence Research
Year:
2013

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Abstract

This study examines the business value associated with business intelligence BI systems, based on the premise that business value is largely contingent on system type and its unique contribution. The study adopts a process-oriented approach to evaluating the value contribution of BI, arguing that it stems from improvements in business processes. The study develops and tests a research model that explains the unique mechanisms through which BI creates business value. The model draws on the resource-based view to identify key assets and capabilities that determine the impact of BI on business processes and, consequently, on organizational performance. Analysis of data collected from 159 managers and IT/BI experts, using structural equation modeling SEM techniques, shows that BI largely contributes to business value by improving both operational and strategic business processes.