Exploring the critical success factors of business intelligence system implementation: an empirical study and proposed integrated model

Business intelligence (BI) systems have become top priority for IT spending because of the perceived potential benefit of such systems to business competitive advantage. However, BI systems are costly and complex to implement with many cases of failure, yet few empirical investigations exist in this evolving area of study. This study explores and evaluates the critical success factors (CSFs) that influence business intelligence system implementation. It adopted a mixed method research approach in three distinct stages. The first was an extensive literature review of the phenomenon followed by the development of the research conceptual framework. The second was a survey of major stakeholders (N=102) familiar with the process of business intelligence system implementation to confirm and validate the critical success factors and other research constructs from the literature review stage. The third was an interview case study in four UK organisations that had implemented a BI system to understand the process and challenges involved, and how the critical success factors are applied in real- life projects. Sixteen CSF variables were derived from the literature and validated in a BI success model. The model posits that to effectively implement a BI system, organisations must understand: a) the interrelationship between the CSFs, b) their relative importance, and c) which sets of CSF have the greatest impact in realising a BI success objective. The study used factor analysis to explore the variable relationships and overall impact, while thematic content analysis was applied to the interview data to gain an insight into the BI implantation process to complement the survey findings. The study found that the CSFs of business intelligence implementation are of four major interrelated cluster dimensions. These are organisational, process, technical and user-related critical factors, which should be considered from the perspective of their interdependence to maximise their input. The study also found that the CSFs have their unique challenges, when it comes to BI system implementation. The findings and the resultant model would benefit practitioners and organisations intending to implement a business intelligence system and how to better align their BI objective with the critical success factors. It would also benefit others seeking a greater understanding of this emerging field of study.