Evaluating the Impact of Business Intelligence Tools on Organizational Performance in Food and Groceries Retail
Keywords:Business Intelligence (BI), Analytics, Data Warehouse, Organized Food and Groceries Retail, Organizational Performance.
AbstractWhile retailers are spending a significant portion of its information technology (IT) budgets on BI and related technology in order to handle the ever increasing volumes of data, the actual benefits derived from these tools needs to be explored. The study focuses on the organized food and groceries retail, and explores benefits of business intelligence (BI) and hypothesisâ€Ÿs a structural causal relationship among its intrinsic attributes, and impact on organizational performance. A focus group of selected senior marketing employees was used to develop and validate the research model. Based on findings from the literature survey and focus group, a survey instrument was developed to empirically validate the research model. Data collected from senior marketing executives and managers from six organized food and groceries retail was analyzed using exploratory factor analysis, confirmatory factor analysis, and structural equation modeling. Five major categories of BI were identified: (1) access to data quality, (2) improved managerial effectiveness, (3) improved operational effectiveness, (4) improved customer orientation and (5) improved organizational efficiency. From the structural causal relationship analysis, a significant relationship was found between intrinsic attributes and benefits of BI and data quality. The structural equation model also suggests a significant relationship between BI and data quality on organizational performance.
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