2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable

Economy (ICDABI)

Analysis of Business Intelligence Impact on

Organizational Performance
2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable Economy (ICDABI) | 978-1-7281-9675-6/20/$31.00 ©2020 IEEE | DOI: 10.1109/ICDABI51230.2020.9325610

Shahnawaz Khan1 Mohamed Redha Qader Thirunavukkarasu K.

Dept. of Information Technology University of Bahrain Department of Computer Science and
University College of Bahrain Sakheer, Bahrain Engineering
Saar, Bahrain mredi@uob.edu.bh Galgotias University
skhan@ucb.edu.bh Uttar Pradesh, India
thiruk.me@gmail.com
Satheesh Abimannan
School of Computer Science and Engineering
Galgotias University
Uttar Pradesh, India
satheesha23@gmail.com

Abstract— Business Intelligence Systems have
attracted a great deal of attention from organizations,
researchers, and practitioners. Business Intelligence
Systems help the organization in making better decisions
and the development of better products and services. In
contemporary times, every organization collects a huge
amount of data about their customers to understand
consumer behavior. Analyzing these data require
sophisticated skills. There are various types of users in the
organizations that require information generated from
this data. Business intelligence systems generate the
required information and patterns. This research
analyzes the impact of the business intelligence systems in
organizations and the role of data warehousing and
information mining.
Keywords— Business Intelligence, Information mining, data
warehousing, organizational performance, decision making
I. INTRODUCTION
The business intelligence system (BIS) is understood as
different sets of processes, technologies, and architectures that
are utilized in different business settings. BIS helps to convert
raw information into business-friendly information. This
information can be utilized by any business organization in
order to drive profits [1]. BIS can be in the form of one main
software or set of small software that ultimately helps in
transforming data into actionable knowledge and intelligence
for the benefit of the organizations. It can be used to target the
customers effectively, or to help in selling the products or
services in a much better manner [2]. Business intelligence
techniques have been utilized ever since technology has come
into the picture. It has already made a major difference to the
operational, tactical, and strategic advantage of the
organizations through better decision making [3].
This research discusses how business intelligence has been
able to bring a major difference to organizations across the
world, and how it has become a major benefit for the
companies that are operating in the area of technology. This
study will explore a secondary form of research in analyzing
the primary techniques in the creation of business intelligence
systems and the impact of a business intelligence system that
will help the clients to create easy solutions for running their
day-to-day business and the same time to utilize the technique
in creating a customized business intelligence and reporting
system.
II. ORGANIZATIONAL IMPACT OF BUSINESS INTELLIGENCE
Any organization implementing business intelligence
systems achieve several benefits. BIS has directly contributed
to the organization becoming a top-level business
organization especially in terms of making good decisions for
the benefits of its customers [4]. It has also helped the top
management of the organizations to make decisions based on
important datasets and point out the new opportunities for the
development of the customers’ businesses in a much better
way when compared to its competitors. The organizations
have utilized the data from the existing market to build their
own consumer behavior patterns [5]. It is something that has
not been done by organizations before. Using BIS systems, it
was able to bring large amounts of customer satisfaction based
on their needs and was able to develop unique search engines,
prediction patterns, data analysis, data sets, and marketing
technologies that was simple to use and futuristic for the
benefit of the customer [6].
Different types of users make use of business intelligence
systems and the above-discussed benefits in the context of
organizations. They can be classified into four different users
namely data analysts, information technology employees,
directors, and top-level executives, and business users.
Analysts mainly use the information from BIS in order to
develop unique business strategies based on the statistics that
have been derived from the different systems that are put in
place by the organizations [7]. The IT employees also make
use of the business intelligence infrastructure to take quick and
effective decisions for the organization. The business users
work with different datasets to create dashboards and
predefined the sets of information that are used in different
scenarios [8].
The information needs for different organizations are
different based on the level of uncertainty. The effectiveness
of business intelligence depends on the planning,
management, and analytic practices [9]. The ability of the
organization to explore and utilize the available information
leads to develop in an effective business intelligence system.
It can be seen as an internal factor and therefore has the ability
to influence the performance of the organization. However, a
research study conducted by [10] on a sample of 228 start-up

1
Corresponding author

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 2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable
Economy (ICDABI)
shows that the business intelligence system has a limited
positive impact. However, the authors have a slightly different
opinion about it. As discussed earlier the business intelligence
system makes use of the information collected about the
products and services by the organization from its customer.
Start-ups have a very limited amount of information and
therefore the business intelligence system does not seem to
help that much but as soon as this information base grows, it
will have a positive impact on the organization. In another
study done by [11] in the context of small and medium
enterprises has presented that implementing BIS has impacted
the various routine positively. Figure 1 illustrates how data
become useful insight for decision making in an organization
and different learning will happen for the better prediction for
an organization.
Figure 1: How BI differ from Machine Learning [image
Source: DataRobot]
III. DATA WAREHOUSING AND INFORMATION MINING ROLE IN
BUSINESS INTELLIGENCE
Several techniques are utilized in business intelligence
systems. Two of the main techniques that are utilized in this
regard are data warehousing and information mining.
Enabling technologies that are linked with BIS are important
to apply the latest innovations and inventions in the field of
technology to drive radical changes in the operations of
modern organizations. These technologies make the
organization capable to improve the processes and
subprocesses that are adopted in their businesses on a daily
basis [12]. Enabling technologies in the field of business
intelligence include better security, a combination of data
solutions, cloud-based services, server visualization, and
various other techniques that are utilized by modern-day
organizations to improve the speed and efficiency of the
business. These technologies are mainly utilized for business
performance management, including business analytics,
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prediction, benchmarking, and performance management in
the context of modern-day organizations [13].
A. Data Warehousing
A data warehouse collects information from several
heterogeneous sources. It has the capability for analyzing the
data collected from heterogeneous sources and supports
analytical reporting. A business data warehouse is understood
as an integrated set of information from different sources that
can be utilized for different purposes such as decision making,
analyzing, reporting and for various other purposes [14].
Other techniques within data warehousing include data
consolidation, data integration, and data cleaning as well.
Information that is collected under data warehousing is
utilized for several purposes such as operations analysis,
customer analysis, and prediction analysis. It is a major tool
that can help bring better utilization of the existing business
operations of an organization so that the company is able to
position their products and services in a better way in the local
market. With the help of techniques such as customer analysis,
the organizations can study important information about its
consumers such as consumer buying preferences, consumer
purchase time scales or income, and budget cycles [15]. It can
also analyze any other information that can be considered very
crucial from an organizational perspective. It also helps
organizations to develop a better product portfolio that can be
utilized in repositioning their product and process in the
market. It improves their targeting and business segmentation
[16].
Figure 2 presents a general business intelligence system
architecture. Two different approaches are taken under data
warehousing namely query-driven approach and update
driven approach. In query driven approach, the technique used
to build heterogeneous databases on top of one another with
the help of integrator and wrappers known as mediators. The
second approach is the update driven approach. It is a modern
approach that is followed by major organizations today.
Figure 2: BI General Architecture
Under this approach, multiple heterogeneous sources are
integrated in advance and stored in a warehouse wherein
detailed querying and analysis technique is utilized in order to
get more information about an organization and its customers
[14]. This is a high-performance approach that is utilized
currently. It helps organizations structure the data that they
 2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable
Economy (ICDABI)

have collected. It summarizes, processes, and integrates the

data in a way that is easy for the organization to access and
make use of the data. There are also various other functions of
data warehousing tools and utilities including data extraction,
data cleaning, data transformation, data loading and
refreshing.
All of the above-discussed functions help organizations
and institutions organize their data in a highly effective way.
They also integrate the data from multiple sources into a
commonly accessible format for the benefit of the
organization. It includes checking the integrity of data,
consolidating the various sets of information, summarizing
them into easily understandable documents [14], [15]. It also
includes creating appropriate partitions wherever needed so
that they can highly organize the information for the benefit
of the organization. Nowadays, the focus is on the quality of
the data that has been collected with the help of data cleaning
and data transformation process.
B. Information Mining
Another important aspect of business intelligence
techniques that have been put in place by organizations today
is information mining. Information mining helps
organizations in processing a large number of patterns of data
and arrange them in the form of databases. These databases
are mainly used for machine learning systems in the form of
statistical data and information that can be extracted from the
sources based on the need and convenience of the operators.
It is mainly associated with the concept of knowledge
discovery in databases [17]. It also helps in different other
processes such as online update form of visualization,
processing of discovered information structures, complexity
considerations, analyzing metrics, creating interferences, data Figure 3: BI System Building steps
preprocessing and various aspects of data management in
modern-day organization for various applications such as IV. CHALLENGES AND ISSUES
chatbots, machine translations [18], [19] and several other
applications. The following figure 3 presents the steps for Business Intelligence Systems have aided in several key
building a business intelligence system. developments for the organizations. However, there are a
several issues related to the social trust and sentiment analysis
It is a concept that is mainly applied in the case of large- [21], [22]. Incorporating data from for-profit or non-profit
scale data gathering and sorting. It includes statistical process, organizations is usually a challenging task. The inclusion of
analytical process, warehousing, extraction, and the sentiment analysis and trust inference will lead to a more
dissemination of the data for the benefit of the organization reliable BIS [22]. As the businesses are shifting to cloud
[16]. It is primarily used in the areas of artificial intelligence technology so the BI systems as well. This shift also brings the
in order to create machine learning material that can be put challenge of data privacy as well [23]. If the organizations
into practical purposes for the benefits of modern-day shifting to the cloud technology are not competent of
organizations. It is also utilized by organizations for several administrating the cloud environment for BIS, it will create a
different operations such as anomaly detection, regression, big challenge for data security and privacy.
classification, clustering, learning, and summarization of
important information. These operations are used by the V. STUDY RESULTS
organizations for reaching their customers and their target This research finds out that business intelligence systems
market. It has also helped in creating the patterns to have been helpful in improving the performance of
understand customer purchasing habits, discovering groups of organizations. However, the organization must put a
products and services that are of interest to customers. It has comprehensive plan in advance to implement business
benefitted the organizations in finding new techniques that can intelligence systems. As there are different types of users in
create programs or techniques that can help understand the the organizations, therefore, the organizations must consider
needs of customers in a better way [20]. the change management. The organizations should train and
encourage the employees to achieve a better positive impact
on the organizational outcomes. Business intelligence systems
are become universal and their user database is increasing.
Therefore, it has important to consider the trust and sentiments
issues seriously. Most of the for-profit and not-for-profit
organizations are usually concerned about the privacy of their
data and have trust issues while sharing their data with BI
systems for analysis. BI systems can help significantly in the

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 2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable
Economy (ICDABI)
time-critical processes for decision making and planning. Data
warehousing have been used by the enterprises since a long
time now and has helped in strategical and tactical decision
making. Therefore, it can be concluded that the use of BIS and
Data warehousing in the enterprises has given a competitive
advantage to the decision makers and the organizations.
VI. CONCLUSION AND FUTURE WORK
This research has explored the business information
systems and how these are utilized in order to more effectively
manage the business activities of its customers whether they
are small or large ones. The study had also put forward
recommendations as to what can be done in order to further
improve the systems and to meet the demand of future
business needs. However, the current study presents an
overview of the usage of business intelligence and data
warehousing in the contemporary business environments. The
authors are working on a more thorough research for
analyzing the impact of data warehousing and business
intelligence systems on various domains and levels in the
businesses.
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