Impact of Business Intelligence Systems on Profitability - Empirical Study

Authors

DOI:

https://doi.org/10.34190/eckm.24.2.1504

Keywords:

business intelligence, banking

Abstract

There is a research gap regarding the impact of Business Intelligence (BI) implementation on banks' profitability ratios. In particular, this relates to the financial profitability ratios of banks operating under the conditions of the Polish economy after 2015. The main research problem addressed in this study is whether the implementation of Business Intelligence systems has a positive impact on the profitability indicators of commercial banks. The main hypothesis formulated is that the use of a Business Intelligence management system between 2009 and 2020 improves the profitability of Polish commercial banks. The First Differences Generalized Method of Moments (FDGMM) panel dynamic model estimation method was used to evaluate this impact. The parameters of the models based on financial indicators were calculated for each of the selected indicators, and the analysis used those models for which the lagged BI variable, related to the timing of system implementation, proved statistically significant. Based on the obtained parameters of the models, long-term multipliers were calculated. The study determined the probability of the impact of using the business intelligence system on the selected indicators. The study was conducted on a group of the five largest out of the thirteen commercial banks listed on the Warsaw Stock Exchange in 2020. The assets of the surveyed banks comprise 50% of the assets of commercial banks in Poland. The study identified the impact of BI system use on selected profitability indicators of commercial banks. The generalized results of the study enable us to identify causal relationships between the use of the BI system in commercial banks and profitability, as measured by ROE and ROA. The research implications of this study may suggest to top management that implementing business intelligence systems can benefit the organization.

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Published

2023-09-05