business intelligence empirical studies on top 50 finnish companies by mika hannula and virpi...
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Business Intelligence Empirical StudiesOn
Top 50 Finnish CompaniesBy
Mika Hannula and Virpi PirttimakiJournal of American Academy of Business Mar03
Yes! You guessed right.
This is Helsinki.
Aim of the Study
To Find out what Business Intelligence represents for Finnish firms.
Paper was published in 2003.
Author’s understanding of BI
- Systematic process.- Acquire information- Analyse information
- Make decisions
Challenges for BI
- Rapidly changing environment- Loads of Information due to
technological advancements- Cost of BI operations
Solution
- Up-to-date information.- Info -> Knowledge -> Decision
- Managerial input
Objectives of the Study
To examine- The Initiation and Organisation of BI
- Future prospects- Benefits obtained from the Activities.
Medium
BI officials of 46 companies were interviewed via
Telephone.
Participation
- Cover letters and Questionnaires were mailed.
- 46 / 50 companies invited , listed in the magazine Talouselämä,
agreed to be interviewed.
Results
Usage since
> 10 years38%
5 - 10 years27%
3 - 5 years27%
1 - 3 years3%
< 1 year5%
> 10 years5 - 10 years3 - 5 years1 - 3 years< 1 year
Reason to start use
Need for enhanced information
Knowledge of Business Environment
Consider it a prerequisite
Trend
0 10 20 30 40 50 60 70 80 90
% companies
% companies
Better Info Quality
Better observation of threats and opportunities
Growth of knowledge base
Increase of Sharing information
Improved efficiency
Easier information acquisition
Quick decision making ability
Time saving
Cost saving
0 10 20 30 40 50 60 70 80 90 100
% companies
% companies
Benefits
Popular topics for Info
Competitors Customers Trends Country specific market info0
10
20
30
40
50
60
70
80
90
100
% companies
% companies
Important sources of Information
Own personnel (internal) Customers Market research institutes Competitors0
10
20
30
40
50
60
70
80
90
% companies
% companies
Users of BI
Top level Top level mostly Mid level others0
10
20
30
40
50
60
70
80
90
100
% companies
% companies
Change in Investment on BI
Inc greatly Inc slightly Remain same Dec slightly Dec greatly0
5
10
15
20
25
30
35
40
45
50
% companies
% companies
Targets for development
Recognising Info
Use of internal info
Efficient Acquisition of info
Use of Technology
Human resourses
Measuring benefits
0 10 20 30 40 50 60 70 80 90
Series 1
Series 1
Technology and BI
- Only 25% companies believe BI as a technology
- These companies believe that technology makes BI process easier.
- They believe that use of technology will increase in the coming years.
Conclusion- BI has already penetrated the Finnish
corporate- Enhanced information is the major
reason for use of BI- BI processes are costly and time
consuming but the firms care more for Data acquisition and analysis.
Optimistic or Pragmatic ?But definitely not Negative
- 92% of the officials invited participated.- Wide range of benefits claimed.
- No negative feedback. - Very positive feedbacks from all around.
What does it indicate?
The companies that use BI have all gained from its use.
The gains differ but so do the requirements.
My Evaluation
Medium : Very goodChoice of Participants: Fair
Choice of companies : Good
Thank you