Identification of Performance Measurement Factors Affecting Business Intelligence Success in Retailing: An Empirical Investigation

Abstract

Business Intelligence (BI) tools are enabling retailers to achieve competitive advantage by getting new information and knowledge with the use of efficient analytical components like reporting, OLAP technologies, and data mining. Focusing on organised food and groceries retail sector, this study explores performance attributes of BI tools from the perceptions of employees and their impact on business performance. This study is part of a larger research work comprising qualitative and quantitative approaches.  Based on the literature survey and personal interviews with few select retail analysts of food and grocery, twenty important performance attributes were identified. Factor analysis was performed on these attributes; six major factors were identified as - 1).Technology Effectiveness; 2). Managerial Effectiveness; 3).Customer Performance 4).Operational Performance; 5).Marketing Effectiveness and 6). Financial Performance. The main effecting attributes from the factor analysis were found to be: quality decision making, identifying customer purchasing patterns, better stock optimisation, better organisation of trade spend and improved return on investment.

Keywords: Business Intelligence, Data Warehousing, Performance measurement factors, OLAP, RFID