Impact of BI Tools on Business Decisions and Development of Leadership Traits in Managers

Abstract

The Information Technology managers have to take operational, tactical and strategic decision in complex, global economic, technology and regulatory environment. The management needs data for efficient and quality decisions. With the help of business intelligence (BI) tool the managers can take quality operational, tactical and strategic decision. The focus of the study was to determine the impact of business intelligence tool on decision levels and how these decisions help in developing leadership traits in managers of IT Organizations at Pune. The quantitative research methodology is followed and the questionnaire survey is designed to capture the impact of BI tool based quality decision-making on operational, tactical and strategic decision and development of leadership traits in managers. The study used statistical test such as MANOVA to determine relationship between BI tool based quality decision-making & decision categories and Chi-Square test of contingency to determine relationship between BI tool based quality decision-making & development of leadership traits in managers. The study result confirms that there is positive impact of BI tool based quality decision-making on tactical & strategic decisions and development of leadership traits in managers. The study also proposes newer areas of research. Key Words-Business intelligence tools; Business Decision; Leadership traits development in managers; Quality of Decision-making; Business analytics; Competitive intelligence 1. INTRODUCTION The decision-making in management is an essential skill required at all level and the quality of decision impacts the performance of the organization. The top management has to take strategic and complex decisions which affect the long-term direction of the business based on the organization's vision, goals and values, the middle management have to take tactical and less complex decision to meet the strategic objective and finally the front-line management is responsible for operational and routine decision as depicted in figure 1. Figure 1. Organizational level and impact of decision adapted from (BBC, n.d.; Taylor, 2009) [1] [2] Operational decisions are high in volume but have relatively low economic impact/value on the organization, tactical decision has middle volume and middle economic impact on the business and strategic decisions are of high economic value and low volume in nature (Taylor, 2009). [2] The information technology managers have to take operational, tactical and strategic decision in complex, global economic, technology and regulatory environment and require data for efficient and quality decision. According to According to Rodrigues and Hickson (1995) a decision-making process in which information and means of implementation were readily available most likely result to a successful decision [3]. Good and quality decision in organization leads to sustainable organization growth and organizations should be better equipped with tools and processes for meeting the short and long term goals. With the help of business intelligence (BI) tool the managers can take quality operational, tactical and strategic decision leading to sustainable business growth. The successful decision based on BI tool boosts the confidence and morale of the managers. It is a known fact that motivated and confident managers have high efficiency and productivity in the organization. The BI tool based quality decision helps in building leadership traits (confident & motivated) which enables building of efficient organization in competitive environment.