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Impact of Business Intelligence on Company Performance: A System Dynamics Approach

Author

Listed:
  • Khare Ira

    (Manipal Institute of Technology, Manipal Academy of Higher Education, India)

  • Rodrigues Lewlyn L.R.

    (Manipal Institute of Technology, Manipal Academy of Higher Education, India)

  • Gulvady Samskrati

    (University of Technology and Applied Sciences, Sultanate of Oman)

  • Bhakta Sudheer S.

    (Manipal Institute of Technology, Manipal Academy of Higher Education, India)

  • Nair Girish K.

    (University of Derby, Al Rayyan International University College, Qatar)

  • Hussain Anisa

    (V-Soft Consulting Group, Inc., USA Jamal Mohammed College, India)

Abstract

Research background Businesses struggle with operational optimisation and seek a solution by implementing Business Intelligence (BI) to boost sales. But, due to the lack of research that use actual data from real-world situations; the impetus of this research is to exploit BI parameters to enhance company performance. Purpose This research aims to develop a System Dynamics (SD) based model to assess whether a Japanese company which manufactures Printed Circuit Boards (PCB) should invest in BI to improve its operations based on the rate of information processing, thereby leading to increased financial performance. Research methodology The authors requested financial statements for three years (2019 to 2021) from the management of the PCB company, followed by validation based on subject experts’ assessments. The model was developed and simulated step-by-step with consideration of the SD approach involving problem identification, model prototyping, trouble shooting and error analysis. Results If BI was used to process data at a rate of 40%, the endogenous factors considered in this study would increase the company’s net profit and accumulated earnings by 25.77% and 48.28%, respectively. Novelty The research is unique in the sense that the model was developed based on inter-relationships between the variables, and the data is based on a real-life situation. Furthermore, the methodology could be applied with the necessary modifications to industries such as service, media, and education.

Suggested Citation

  • Khare Ira & Rodrigues Lewlyn L.R. & Gulvady Samskrati & Bhakta Sudheer S. & Nair Girish K. & Hussain Anisa, 2023. "Impact of Business Intelligence on Company Performance: A System Dynamics Approach," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 183-203, December.
    • Handle: RePEc:vrs:foeste:v:23:y:2023:i:2:p:183-203:n:7
    DOI: 10.2478/foli-2023-0026
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    References listed on IDEAS

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    1. Basile, Luigi Jesus & Carbonara, Nunzia & Pellegrino, Roberta & Panniello, Umberto, 2023. "Business intelligence in the healthcare industry: The utilization of a data-driven approach to support clinical decision making," Technovation, Elsevier, vol. 120(C).
    2. Mehdi Khazaei, 2021. "Relationship of profitability of world’s top companies with entrepreneurship, competitiveness, and business environment indicators," Applied Economics, Taylor & Francis Journals, vol. 53(23), pages 2584-2597, May.
    3. Cheng, Cong & Zhong, Huihui & Cao, Liebing, 2020. "Facilitating speed of internationalization: The roles of business intelligence and organizational agility," Journal of Business Research, Elsevier, vol. 110(C), pages 95-103.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Business Intelligence; accumulated earnings; net profit; production cost; number of goods produces; revenue;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

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