Designing a Model for Implementation of Business Intelligence in the Banking Industry

Designing a Model for Implementation of Business Intelligence in the Banking Industry

Salah Rezaie (Department of IT Management, Economics and Management Faculty, Science and Research Branch, Islamic Azad University, Tehran, Iran), Seyed Javad Mirabedini (Computer Faculty, Central Tehran Branch, Islamic Azad University, Tehran, Iran) and Ataollah Abtahi (Department of IT Management, Economics and Management faculty, Science and Research Branch, Islamic Azad University, Tehran, Iran)
Copyright: © 2018 |Pages: 27
DOI: 10.4018/IJEIS.2018010105

Abstract

Numerous researches have been carried out on implementation and employment of business intelligence, but in the past researches only specific aspects and dimensions have been studied while factors affecting implementation process and interactions between them are not widely considered. In such circumstances, it is vital to identify key factors affecting business intelligence implementation process and determine communication structures between these factors. In the present article, reviewing the related literature and obtaining experts' opinions using fuzzy Delphi techniques is first, followed by key factors affecting the process of business intelligence implementation and important criteria of effectiveness for business intelligence in the Iranian banking industry were identified, and then using a method of interpretive structural modeling, relationships between factors were determined and analyzed. Finally, the interactive structure of the factors, i.e. business intelligence implementation, a model is presented. Using confirmatory factor analysis and path analysis methods, model validation was conducted. Leading to the determination that while that transition for some companies has been attempted, not all current efforts have been successful.
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Introduction

In recent years, business intelligence technologies have become a significant concept in the information systems management, mixed with progressive organization’s culture and stood on the forefront of information technologies in supporting decision making. In order to have a quick reaction to the market changes, organizations need managerial information systems to make different causal analyses about organization and its environment. Meanwhile, business intelligence systems which are the most complicated information systems provide a tool based on which information needs of the organization are properly fulfilled. In fact, business intelligence systems provide updated, reliable and sufficient trade information making it possible to deduct and understand concepts lying in trade information through process of discovery and analysis (Azoff & Charlesworth, 2004).

Gartner (2009), a leading company in business analysis, carried out a research on 1500 information senior managers throughout the world and identified business intelligence as the first priority of technology. Thus, implementation and establishment of business intelligence systems have turned into a major priority for organizations information senior managers (Yeoh & Koronios, 2010). But implementation of business intelligence system like other organizational solutions for information technology had different results in different companies. Some organizations have reported that their business intelligence systems have been successful while others reported that they failed in its implementation (Sangar & Iahad, 2013). In fact today many organizations have adopted business intelligence systems for improving decision making process, however, not implementations of all have been successful despite being used by so many organizations (Zare Ravasan & Rabiee, 2014).

Implementation of information systems at organization level has been a vital step that can lead to disorders and problems in the organization especially regarding implementation of business intelligence system where there are more complications and problems since such systems relate to decision making which is a complex and abstract task influenced by environment’s potential and condition. Implementing business intelligence system requires diverse infrastructure and is financially considered as an expensive project implemented throughout organization. Research shows that about 50-70 percent of business intelligence projects fail at the stage of implementation (Taqwa & Noori, 2014). In fact, implementing business intelligence technology is often accompanied by much suffering of failures leading to waste of time and resources (Bargshady et al., 2014). Thus, while market for business intelligence seems turbulent, establishment of business intelligence system is complicated and expensive. Generally, development and implementation of business intelligence has high risks ad hazards for organizations (Farrokhi & Pokoradi, 2012). Therefore, despite the fact that implementing business intelligence has become a major priority for organizations’ information senior managers, not all have been successful in its implementation (Yeoh & Koronios, 2010).

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