The benefits of implementing business intelligence solutions in a South African banking institution

Abstract

Business intelligence (BI) can be described as a “managerial concept” or “process.” It is used to assist organisations to manage business information and information technology to make effective decisions. Measuring both tangible and intangible benefits of BI projects remains a significant challenge for South African banking institutions. The output of BI projects is intelligence, which makes the assessment of value difficult. The aim of this study was to gain an understanding as to what are the benefits of implementing BI solutions for a single South African banking institution, Absa. A phenomenological research methodology was used to collect, analyse and interpret the data. A combination of questionnaires and semi structured interviews was used for data collection purposes. The research gauged the BI users’ perceptions of what are the benefits associated with various BI solutions and how they could be measured. Results showed that Absa uses numerous approaches to calculate the benefits of its BI implementations. The research also identified various tangible and intangible benefits of BI solutions in Absa. Furthermore results suggested that there was a genuine need to capture and measure these benefits however, users of these BI solutions required assistance in the form of a guideline or tools to calculate them. Financial metrics such as ROI, was only partially serving this purpose for Absa. These findings together with insights gleaned from the literature review were then be used to suggest a process for the measurement and identification of BI benefits in Absa. Further recommendations and suggestions for future study are stated in the concluding chapter of the research.