Business Intelligence A Comprehensive Approach To Information Needs Technologies and Culture 1st Edtion by Rimvydas Skyrius 9783030670320 3030670325 Download
Business Intelligence A Comprehensive Approach To Information Needs Technologies and Culture 1st Edtion by Rimvydas Skyrius 9783030670320 3030670325 Download
Rimvydas Skyrius
Business
Intelligence
A Comprehensive Approach
to Information Needs, Technologies and
Culture
Progress in IS
“PROGRESS in IS” encompasses the various areas of Information Systems in theory
and practice, presenting cutting-edge advances in the field. It is aimed especially at
researchers, doctoral students, and advanced practitioners. The series features both
research monographs that make substantial contributions to our state of knowledge
and handbooks and other edited volumes, in which a team of experts is organized by
one or more leading authorities to write individual chapters on various aspects of the
topic. “PROGRESS in IS” is edited by a global team of leading IS experts. The
editorial board expressly welcomes new members to this group. Individual volumes
in this series are supported by a minimum of two members of the editorial board, and
a code of conduct mandatory for all members of the board ensures the quality and
cutting-edge nature of the titles published under this series.
Business Intelligence
A Comprehensive Approach to Information
Needs, Technologies and Culture
Rimvydas Skyrius
Economic Informatics
Vilnius University
Vilnius, Lithuania
This Springer imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Foreword
Business has always been an early adopter of advanced management techniques and
technologies, expected to provide significant support to value creation. Over several
decades of the use of digital information technologies in business, however, success
stories have been mixed with disappointments and confusing experience. This can be
especially true for the subfield of business intelligence (BI) activities, where the
expectations and stakes are considerably higher. Most executives and organizations
are well familiar with information technologies, systems, and frameworks for their
use and expected value, but quite often they are uncertain about how to best deploy
them to create this value. This book by professor Rimvydas Skyrius of Vilnius
University in Lithuania, Business Intelligence: A Comprehensive Approach to
Information Needs, Technologies and Culture, summarizes much of what the author
has researched and learned in the field over the years, and presents this experience to
the potential audience of business executives and managers, BI professionals, and
concerned researchers and students who want to take a less technology-oriented
approach to the field.
In the field of business intelligence, fast and tumultuous developments bring
possibilities, expectations, and a good deal of confusion to accompany them. This
book comes at a time when the situation in the field experiences both significant
developments and challenges. The developments are rather visible: large surge of
interest in analytics, fast development of artificial intelligence techniques, and
utilization of global information resources, to name a few. The challenges, however,
are no less visible: despite huge technical advances, many obstacles still remain,
numerous contradictions remain unsolved, and many BI projects fail or do not bring
the promised benefits. As numerous research works and real-life cases show, mere
possession of advanced technology and voluminous information resources is no
longer considered adequate for fulfilling business information needs. This explains
the rising interest in managerial and human issues.
The focus of the book is under-researched managerial and human issues in
BI. The book addresses several important research gaps—relation between BI
maturity and agility, role and features of BI culture, and definition of and relations
v
vi Foreword
This book reflects my beliefs about the informing activities in business that have
formed drop by drop over the last 30 years, starting with decision support, later
moving on to business intelligence, business analytics, and other advanced
informing activities that produce insights for a business user. The important source
of guiding cues for all this time has been the collected empirics targeted at business
information needs—that is, the research interest has been driven much more by
issues of user pull than by issues of technology push. Another source of guidance, no
less important than the empirics, has been the people who talked to me, listened to
my sometimes incongruous and naïve ideas, read my work, and provided advice.
Although I am not able to mention every one of these wonderful people that
provided shoulder in one way or another, I would like to use this occasion to mention
at least those who come to mind in the first place.
First and foremost, I want to express my deepest thanks to the people at Springer
who directly dealt with my book—Dr. Christian Rauscher for believing in my work,
Ms. Sujatha Chakkala and Ms. Rajeswari Sathyamurthy for their patience, meticu-
lous attention to detail, and for maintaining the overall positive background to our
communication, and all the other people at the publisher whom I never met, but
whose solid professionalism was felt all the time.
I also want to use this occasion and thank my numerous colleagues whose support
has been vital over many years. First of all, these are my direct colleagues from the
Department of economic informatics at the Vilnius University, and many ideas have
been first tested among them. My year-long exchange stay with the University of
Illinois at Chicago has been quite a while ago, but the people over there helped a lot
to get our sometimes messy body of knowledge into order and provided guidelines
that stand until now. Special thanks here go to Professors Sharon Reeves, Aditya
Saharia, Aris Ouksel, Yair Babbad, Bronius Vaškelis, and late Irena Baleisis.
Heartfelt thanks go to Dr. Eli Cohen and Elizabeth Boyd of Informing Science
Institute, together with Professors Terence Grandon Gill and Michael Jones, and
Professors Tom Wilson and Elena Maceviciute of Information Research for
supporting my modest findings. I also wish to thank my PhD students and all
vii
viii Acknowledgements
other students for their often-fresh opinion on emerging issues in research. Special
thanks go to Chris Butler for the courage to read my first chapters and perceive them
from the business angle.
Last but not least, I want to thank my family, and in the first place my wife Ruta,
for their support and patience. The time I have spent on preparing this book could
have been given to family, but I had them covering my back all the time; it is largely
their support in making this book come to reality.
Yours sincerely
Rimvydas Skyrius
Contents
ix
x Contents
1.1 Introduction
The stormy and kaleidoscopic development of the field of business intelligence (BI),
mostly attributed to advances in information technology (IT), has created significant
confusion in the area of business informing and an imbalance between IT and human
issues, to the favor of the former. Early in the era of decision support systems,
Feldman and March (1981) have noted a controversy between information engi-
neering, represented by information systems (IS), and information behavior,
represented by intelligence: “some strange human behavior may contain a coding
of intelligence that is not adequately reflected in engineering models”. It is quite
ironic that in the field of business intelligence the dominating emphasis has been
made on information technology as being intelligent, while the intelligent need to be
aware arises from intelligence activities of the people, and this aspect has received a
lot less emphasis. The current book is a modest attempt by the author to reduce this
imbalance.
No rational activity is performed without having information on its environment,
and business activities are no exception. Many sources have stated that information
is an important asset, together with capital, people, competencies, know-how and the
like. However, such statements emerged almost exclusively with the growth and
spread of IT, while information already has been important for centuries. The
specific nature of business information lies in the ability to organize and coordinate
all other assets. This makes information a very special resource overarching other
resources, and therefore possessing special importance. To organize this information
efficiently, information systems are developed that use contemporary information
technology and advanced processing logic to handle information properly. Any
information system is a unity of people and technology; essentially, information
systems are systems of people and relations between people, and technology role
comes after that. Business intelligence is one of such systems that aims at supporting
deeper and more complete understanding of activity and its environment by
employing tools and methods of advanced informing. The need for this kind of
systems has been recognized by Nobel prize winner Herbert Simon as early as 1971:
“Designing an intelligence system means deciding: when to gather information
(much of it will be preserved indefinitely in the environment if we do not want to
harvest it now); where and in what form to store it; how to rework and condense it;
how to index and give access to it; and when and on whose initiative to communicate
it to others” (Simon, 1971).
The objective of the book. As stated above, the current book is an attempt to
balance the human and technology aspects of BI to their fair shares. “Fair”, of
course, is a subjective concept in the eye of the beholder, but a certain experience,
spent by the author researching business decision support and BI, has formed a belief
that many troubles haunting BI installations originate from human and managerial
issues. It would be unfair to blame BI technologies, developed by highly creative and
professional people in the software development field, for BI failures. Digital
technology does exactly what it is intended to do, and failure to create expected
value is most likely a result of inflated expectations and inadequate preparations.
Meanwhile, according to Gill (2015), large white spots remain in understanding how
people and organizations perform intelligence. The orientation towards the virtues of
technology has prevailed for a long time and continues to do so, while the direction
towards the understanding of the client and community that are actual users of the
information has been receiving considerably less attention.
There are many other areas where intelligence activities are the axis of the job,
and BI obviously has its roots in informing activities from other fields—scientific
research, political and military intelligence, law enforcement etc. BI is not a new
concept, and deemed by some to be a fading one. Yet, when assessed against its
potential to impact business awareness, coordination and insightfulness, it is not
likely to fade anytime, as the same can be said about any intelligence activities. From
the emergence of the term, the field has been rather confusing and torn apart by
confronting opinions and discussions on terms and boundaries. As a marketing term,
BI may have lost some of its flair, but the need to perform intelligence activities is
not going to disappear. So if this book moves the attention of researchers and
practitioners just a little to the space of human issues in BI, it’s goal will be achieved.
The End.
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