Realising the strategic impact of business intelligence tools

Abstract

Purpose

The purpose of this paper is to explore the effectiveness of business intelligence (BI) tools as enablers of knowledge sharing used by employees in the organisation. This practice‐oriented article on the deployment and impact of BI tools in industry suggests a balanced scorecard (BSC) approach to performance management. More specifically, a suite of web 2.0 tools is used in the practice of BI and their impact measured with a BSC.

Design/methodology/approach

The research proposition is that the effectiveness of BI is indeed strategic and relates to its corporate performance. This claim is validated using a global information technology consultancy firm's BI unit as the lead case of an immersive field study. Research engagements with four other firms provide corroborative support.

Findings

The BSC approach to deriving targets and ascertaining outcomes was shown to be applicable to good practice. The converse is equally valid. That is, strategic performance management requires the use of BI in order to be sound. Therefore, tools such as web 2.0 and data analytics, must be outcome driven with planned targets identified.

Practical implications

BI is a necessary activity for deriving improved performance. It aids in the identification of a firm's knowledge strengths, as well as gaps with respect to its environment. The key message to executives is that Peter Drucker was right – we cannot manage what we do not measure!

Originality/value

The use of BI as a strategic knowledge management technique is a composite of a host of web 2.0 tools. It does not stand in isolation from other initiatives for exploiting knowledge in order to drive performance.

Citation

Sharma, R.S. and Djiaw, V. (2011), "Realising the strategic impact of business intelligence tools", VINE, Vol. 41 No. 2, pp. 113-131. https://doi.org/10.1108/03055721111134772