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A Business Intelligence Model for Smes Based on Tacit Knowledge M A Business Intelligence Model for SMEs Based on Tacit Knowledge M. Sadok, H. Lesca To cite this version: M. Sadok, H. Lesca. A Business Intelligence Model for SMEs Based on Tacit Knowledge. 2009, 9p. halshs-00540288 HAL Id: halshs-00540288 https://halshs.archives-ouvertes.fr/halshs-00540288 Submitted on 26 Nov 2010 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. CAHIER DE RECHERCHE n°2009-12 E5 A business intelligence model for SMEs based on tacit knowledge. SADOK Moufida LESCA Humbert Unité Mixte de Recherche CNRS / Université Pierre Mendès France Grenoble 2 150 rue de la Chimie – BP 47 – 38040 GRENOBLE cedex 9 Tél. : 04 76 63 53 81 Fax : 04 76 54 60 68 Communications of the IBIMA, Volume 7, number 20, 2009 A Business Intelligence Model for SMEs Based on Tacit Knowledge Moufida SADOK, Institute of Technology in Communications, Tunisia, [email protected] Humbert LESCA, Laboratory CERAG UMR 5820 CNRS, France, [email protected] Abstract training (Fleck, 1996). In an environment This paper proposes a specific model of business characterized by uncertainty and complexity, tacit intelligence in relation with SMEs practices, knowledge helps to create sustainable competitive culture and competitive environment. This model is advantage for companies (Howells, 1996; Nonaka based on the mobilization of corporate tacit and Takeuchi, 1995). In this setting, it is crucial to knowledge and informal information, aiming at integrate disparate global sources of knowledge interpreting anticipatory environmental available within the organizations (Desouza and information and assist strategic decision making. Awazu, 2006). An empirical survey assessing the existing business In the case of a large company, efforts can be intelligence practices in 20 French SMEs has planned to formalize knowledge that is required to identified seven necessary acceptance conditions of interpret and exploit environmental information. In a business intelligence project as well as a SMEs, such efforts are unrealistic: almost all managerial tool allowing tacit knowledge mobilized knowledge is tacit. The selection and traceability. interpretation of environmental information require human competences and knowledge. And yet many Keywords: business intelligence, tacit knowledge, SMEs would like to optimize their business SMEs, sense-making intelligence process at lower cost. Because of their specific features, it seems clear that SMEs have 1. Introduction distinctive needs in developing knowledge In highly competitive markets, and because of a management practices (Sparrow, 2001). In addition, complex and accelerated evolution of the economic small firm’s adaptation and competitiveness depend and technological context, firms need to focus on on its knowledge, detection and interpretation of the proactively managing their business intelligence trends in its environment (Beal, 2000; Raymond, process to ensure survival and to respond 2003). efficiently to turbulent environmental changes Thus, the main purpose of this paper is to propose an (Hambrick, 1982; Jain, 1984; Montgomery and original model aiming at helping SMEs to develop Weinberg, 1998; Ebrahimi, 2000; May et al., 2000; their environmental intelligence by means of Choo, 2002). Business intelligence is the process of business intelligence process, while remaining close gathering and interpreting pertinent information to their current practices and culture in order to about external environment, the knowledge of facilitate the acceptance of the associated which can assist strategic decisions, and generate organizational changes. It seeks to produce or sustain long-term competitive advantages (Gilad «actionable knowledge» (as formulated by Argyris, and Gilad, 1988; Fuld, 1995; Thomas et al., 1993). 1996), in order to improve the management of useful Many other benefits can be derived from using tacit knowledge for the interpretation and use of business intelligence (e.g. see Lönnqvist and business intelligence information. Pirttimäki, 2006). Business intelligence requires Our contributions in this paper are three-fold. First, also a sense-making process and constitutes a we propose a business intelligence model, supported privileged means of knowledge creation in the by a managerial tool and in relation with SMEs enterprise (huber, 1991; Choo, 1996) in relation practices and culture, through the identification of with its environment. In this regard, Herschel and the necessary acceptance conditions of business Jones (2005) contend the importance of integration intelligence project. Second, despite the fact that of knowledge management and business researchers have studied intelligence activities based intelligence in order to improve decision making on explicit organizational knowledge, only a few and firm performance. The study of Heinrichs and have discussed the role played by tacit knowledge in Lim (2005) to evaluate the impact of competitive intelligence management settings. Third, an intelligence tool implementation on knowledge empirical survey of 20 French SMEs which involved creation and strategic use of information shows that personnel interviews was conducted in order to knowledge workers can produce greater assess the existing business intelligence practices and competitive advantage for the organization when to build a model of business intelligence based on the they are assisted by efficient competitive tools. mobilization of the corporate tacit kowledge and In fact, knowledge is a strategically important informal information. resource (Wernerfelt, 1984; Stewart, 1997; Solow, The rest of the paper is organized as follows. The 1997; Malone, 2002). It can be explicit, easily first part is a presentation of business intelligence formulated and transferred to others (Johannesses activities. The second part focuses on the crucial step et al., 2001), or tacit (Polanyi, 1964), that is, in business intelligence related to collective sense- difficult to express, formalize, or share (Lubit, making and highlights the specific role of tacit 2001) because it is deeply rooted in practice and knowledge during this phase. The third part deals experience and transmitted by apprenticeship and with the research methodology, while the fourth reports the results and discusses the study’s findings and their implications. In the fifth part, a Several contributions have shown that personal specific business intelligence model is proposed. sources have a richer content, allowing weak signals detection (Ansoff, 1975; Daft and Lengel, 1986) as 2. Business intelligence process well as a better comprehension and interpretation of Business intelligence is a collective process the problems in a situation of highly perceived through which the enterprise is actively seeking strategic uncertainty (Daft et al., 1988). relevant and timely environmental information The tracking step refers to the proactive information referred to as “weak signals” (Ansoff, 1975), to acquisition about key environmental actors or events grasp business opportunities, increase anticipative and aims to identify environmental trackers or capacity, and reduce uncertainty (Blanco et al., gatekeepers (MacDonald, 1995) which are of two 2003). It is also an iterative learning and an types: adaptive process that helps companies reduce - “Sedentary” trackers who work in their offices with business risk and cope with unstable and documentary sources and databases. unpredictable external events. Lesca (2003) - “Nomad” trackers who move to reach for external proposed a model referred to as VAS-IC (a French sources. It is the case of the salesperson, for example. formulation of Anticipative Strategic The knowledge memorization step manages the Environmental Scanning-Collective Intelligence) traceability and capitalization of the corporate with a core process of collective sense-making. The knowledge created during the business intelligence main steps of VAS-IC are described in figure 1 process. This step requires the construction of a below. knowledge base to set up an intelligent and dynamic The targeting step aims to identify the storage by creating useful links to structure and environmental actors and themes to be monitored organize the collected knowledge. The knowledge and therefore to optimize the costs and time base provides an important support to the ongoing dedicated to the environmental scanning activity. business intelligence process when it is assisted by The target definition must be made in a dynamic efficient retrieval mechanisms that are able to way according to the operational users’ needs. The conduct approximate and heuristic search based on targting phase aims also to specify the information semantic, dependence and hierarchical links. needs and sources. Two types of information The diffusion step deals with the dissemination of the sources can be distinguished: collective sense-making findings to the appropriate - Informal: through contacts with customers, users. In the same way, a potential user can initiate competitors, suppliers, distributors;
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