Strategic capability through business intelligence applications.pdf - Strategic capability through business intelligence applications Daniel Brinkmann A

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Unformatted text preview: Strategic capability through business intelligence applications Daniel Brinkmann A thesis submitted to The University of Gloucestershire in accordance with the requirements of the degree of Doctor of Business Administration in the Faculty of Business, Education and Professional Studies August 2015 Table of Contents Acknowledgements ............................................................................................................................. 6 Abbreviations ...................................................................................................................................... 7 List of Figures ................................................................................................................................... 10 List of Tables..................................................................................................................................... 13 Abstract ............................................................................................................................................. 14 Author’s Declaration ......................................................................................................................... 16 1. 2. Introduction and company background ...................................................................................... 1 1.1 Project background .................................................................................................................. 1 1.2 Research problem.................................................................................................................... 4 1.3 Research aim, questions and objectives ................................................................................. 5 1.4 Health industry market, BI use and AOKN’s market position .................................................. 8 1.5 AOKN as a health insurance company .................................................................................. 14 1.6 Organizational and IT dimensions ......................................................................................... 19 1.7 Thesis structure ..................................................................................................................... 24 Literature review ....................................................................................................................... 26 2.1 Business intelligence ............................................................................................................. 27 2.1.1 BI infrastructure and data warehouse ....................................................................... 33 2.1.2 Big data management and data provision ................................................................ 37 2.1.3 Strategic BI technologies and tools .......................................................................... 43 2.1.4 Planning tools ........................................................................................................... 45 2.1.5 Predictive tools and analytics ................................................................................... 45 2.1.6 Explorative analytics ................................................................................................. 50 2.1.7 Operational BI technologies and tools ...................................................................... 52 2.1.8 Standard tools ........................................................................................................... 52 2.2 Strategy development process and strategic capability ........................................................ 55 2.2.1 Information analysis .................................................................................................. 59 2.2.2 Strategy development ............................................................................................... 60 2.2.3 Strategy implementation ........................................................................................... 60 2.2.4 Strategy review ......................................................................................................... 61 2.2.5 Strategic aspects of IT .............................................................................................. 61 2.2.6 2.3 3. 4. Summary Analysis of Literature sources ............................................................................... 72 Development of provisional conceptual framework ..................................................................77 3.1 Data bases, internal and external data .................................................................................. 79 3.2 Planning, technology and intelligence .................................................................................... 80 3.3 Dissemination ......................................................................................................................... 86 Research methodology and design ..........................................................................................89 4.1 Introduction............................................................................................................................. 89 4.2 Research strategy .................................................................................................................. 91 4.3 Research methodology .......................................................................................................... 96 4.4 Case study design ................................................................................................................ 102 4.5 Data collection ...................................................................................................................... 109 4.5.1 Interview groups and profiles ..................................................................................112 4.5.2 Interview samples and coding .................................................................................119 4.6 5. Strategic capability and competitive advantage ........................................................65 Ethical considerations .......................................................................................................... 124 Case study findings .................................................................................................................126 5.1 Introduction........................................................................................................................... 126 5.2 Findings for first research question ...................................................................................... 138 5.2.1 Establishment of an appropriate infrastructure .......................................................139 5.2.2 Provision of data......................................................................................................142 5.2.3 BI technologies and tools ........................................................................................145 5.2.4 Planning technologies .............................................................................................149 5.2.5 Predictive technologies ...........................................................................................149 5.2.6 Explorative technologies .........................................................................................150 5.2.7 Standard technologies ............................................................................................154 5.2.8 Strategic reporting ...................................................................................................155 5.2.9 Operational reporting ..............................................................................................157 5.2.10 Information receiver.............................................................................................158 5.2.11 Strategic and operational business .....................................................................159 5.3 5.3.1 Findings for second research question ................................................................................ 167 Information analysis (phase 1) ................................................................................168 5.3.2 Strategy/ concept development (phase 2) .............................................................. 169 5.3.3 Strategy implementation and operational business (phase 3) ............................... 169 5.3.4 Strategy review (phase 4) ....................................................................................... 170 5.4 6. Findings for third research question .................................................................................... 172 5.4.1 Technology ............................................................................................................. 173 5.4.2 Software .................................................................................................................. 174 5.4.3 Ways of access ....................................................................................................... 176 5.4.4 Report characteristics ............................................................................................. 177 5.4.5 Addressing BI end users/customers ....................................................................... 178 Proposition, design and development of the new framework ................................................. 184 6.1 Classification of BI technologies and tools within the conceptual framework ..................... 184 6.2 Effective use and integration of BI technologies and tools into strategy development process ............................................................................................................................................ 187 6.3 7. Addition of functions and solutions to current BI technologies and tools ............................ 190 Analysis and evaluation .......................................................................................................... 201 7.1 First research question: classification of BI technologies and tools within the conceptual framework ........................................................................................................................................ 201 7.1.1 Infrastructure ........................................................................................................... 201 7.1.2 Skills ........................................................................................................................ 201 7.1.3 Value ....................................................................................................................... 203 7.1.4 Leadership .............................................................................................................. 205 7.2 Second research question: effective use and integration of BI technologies and tools into strategy development process ......................................................................................................... 207 7.2.1 Information analysis (phase 1) ................................................................................ 207 7.2.2 Strategy/ concept development (phase 2) .............................................................. 209 7.2.3 Strategy implementation and operational business (phase 3) ............................... 210 7.2.4 Strategy review (phase 4) ....................................................................................... 212 7.3 Third research question: addition of functions and solutions to current BI technologies and tools .......................................................................................................................................... 213 7.3.1 Technology ............................................................................................................. 213 7.3.2 Software .................................................................................................................. 216 7.3.3 Ways of access ....................................................................................................... 222 8. 7.3.4 Report characteristics .............................................................................................223 7.3.5 Addressing BI end users/customers .......................................................................228 Conclusions .............................................................................................................................233 8.1 Strategic capability through BI applications ......................................................................... 233 8.2 Contribution to theory ........................................................................................................... 242 8.3 Contribution to practice ........................................................................................................ 245 8.4 Limitations ............................................................................................................................ 250 Reference list ......................................................................................................................................1 Appendix: Interview material ...............................................................................................................1 Number of words: about 66,709 Acknowledgements I would like to thank my supervisors Dr Martin Wynn and Dr Shujun Zhang for their advice, support, encouragement, patience and expert guidance without which I would not have completed this programme and thesis structure. Thanks also go to the staff of University of Gloucestershire German Agency for their support and information of further steps in the DBA thesis process. I would also like to acknowledge the contribution of my colleagues within AOK Niedersachsen, in particular the interview participants and my office colleague, who have provided fantastic support and information throughout the thesis phase. I am also grateful for the assistance provided by fellow students of DBA cohort Cologne 1. Finally I wish to acknowledge the tremendous contribution from my family and my girl-friend, who will now be very grateful to see my stressed and impatient mind no longer. Abbreviations A-LOH-A Allgemeine “Likelihood of Hospitalization”- und Ausgabenprädiktion AMI Access Markets International AOKN Allgemeine Ortskrankenkasse Niedersachsen approx. approximately BaWü Baden-Württemberg BCG Boston Consulting Group BI business intelligence BICC business intelligence competency center BO Business Objects BSC Balanced Scorecard BW Business Warehouse CEO Chief Executive Officer CIO Chief Information Officer CIP Continuous improvement process CRM Customer Relationship Management DBA Doctor of Business Administration DMP Disease-Management-Program DWH Data Warehouse e.g. exempli gratia (for the sake of example) ed. editor eds. editors E-Proc. electronic procurement ERP Enterprise Resource Planning et al. et alii (and others) ETL extract, transform, load f.i. for instance ff. following pages GBL Geschäftsbereichsleiter (head of business area) GE General Electric GEK Gmünder Ersatzkasse GF Geschäftsführer (business manager) GPS Global Positioning System HBM Harvard Business manager HBR Harvard Business Review HTML Hypertext Markup Language (for creating web pages) IBM International Business Machines Corporation Inc. Incorporated IT Information technology KJ1 official statistic of statutory health insurance, premium accounting result KM1 official membership statistic in health industry KPI Key Performance Indicator Ltd. Limited MDK Medizinischer Dienst der Krankenkassen (Medical Review Board of the Statutory Health Insurance Funds) mp3 moving picture experts group 1 layer 3 NGO Non-Governmental Organization novem novem business applications GmbH OLAP Online Analytical Processing oscare® operating system care (software solution for German health insurances) p. page PDF Portable Document Format POT Proof of technology pp. pages PSM propensity score matching Q question RD Regional director RQ research question SAP Systemanalyse und Programmentwicklung GbR (original) SAS Statistical Analysis Systems SPSS Statistical Package for the Social Sciences (original) SWOT strengths, weaknesses, opportunities, threats TK Techniker Krankenkasse TM1 Table Manager 1 (system used to implement collaborative planning, budgeting and forecasting solutions) UB Unternehmensbereich (division) UBL Unternehmensbereichsleiter (head of division) US United States vs. versus WIdO Wissenschaftliches Institut der AOK List of Figures Figure 1.1: Population coverage by statutory health insurance (Federal Association of the AOK, 2012) ................................................................................................................................................... 3 Figure 1.2: BI: degree of brand awareness and usage in different branches (Widdig and Röttger, 2012) ................................................................................................................................................... 9 Figure 1.3: Information systems and use of BI in German health industry ...................................... 12 Figure 1.4: Magic quadrant for BI platforms (according to Gartner, 2013) ....................................... 13 Figure 1.5: AOKN total revenues (in €) and expenses 2007 to 2013 ............................................... 15 Figure 1.6: Insurance relationships development ............................................................................. 16 Figure 1.7: Number of customers and annual percentage change (KM1 September 2013) (AOK Niedersachsen, 2013c) ..................................................................................................................... 16 Figure 1.8: Share of acquisitions and cancellations within AOK system (AOK Niedersachsen, 2013c) ............................................................................................................................................... 17 Figure 1.9: Corporate challenges as defined by the four strategic target fields (AOK Niedersachsen, 2012a) ............................................................................................................................................... 18 Figure 1.10: AOKN IT organization chart ......................................................................................... 19 Figure 1.11: BI and IT infrastructure ................................................................................................. 20 Figure 2.1: BI framework (Kemper et al., 2004) ............................................................................... 29 Figure 2.2: Result of BI degree of maturity (Chamoni & Gluchowski, 2004b) .................................. 32 Figure 2.3: DWH structure (according to O’Brien, 2004) .................................................................. 35 Figure 2.4: Defining big data (Schroeck et al., 2012, p. 3) ............................................................... 39 Figure 2.5: Big data in four dimensions (Schroeck et al., 2012, p. 4)............................................... 40 Figure 2.6: Structure and terms of a controlling circle (according to Stahl, 2009) ........................... 42 Figure 2.7: User and use case demographics - IBM BI product usage ............................................ 54 Figure 2.8: General approach to strategy formulation (according to Andrews, 1987)...................... 56 Figure 2.9: Strategy development process (in four steps) ................................................................ 59 Figure 2.10: Value discipline framework (according to Treacy and Wiersema, 1995) ..................... 62 Figure 2.11: BI competitive advantage and capability model (according to Gonzales, 2011) ......... 70 Figure 3.1: BI arch...
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