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Relationship Between Business Intelligence and Supply Chain Management for Marketing Decisions

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Relationship Between Business Intelligence and Supply Chain Management for Marketing Decisions Universal Journal of Industrial and Business Management 2(2): 31-35, 2014 http://www.hrpub.org DOI: 10.13189/ ujibm.2014.020202 Relationship between Business Intelligence and Supply Chain Management for Marketing Decisions Neven Šerić1, *, Ante Rozga1, Ante Luetić2 1Faculty of Economics, University of Split, Cvite Fiskovića 5 2Split Shipyard,Put Supavla 21. *Corresponding Author: [email protected] Copyright © 2014 Horizon Research Publishing All rights reserved. Abstract The companies that apply the concept of to support marketing managers in making strategic and tactic business intelligence in their marketing decisions in some of decisions. The purpose of this study was to capture the the following ways were included in this study: at the level of companies that apply the concept of business intelligence in the entire system or specific marketing strategy of companies their business. While researching on the orientation on (e.g. marketing department, research development, supply chain and supply chain management, companies commercial, etc.), apply business intelligence only in certain selected were those which have been able to confirm that marketing processes or projects, used in business from the they have at least one link in the supply chain in order to be technology and platform for data warehouse, data mining, included in the sample. Also, they were supposed to be active OLAP tools, using advanced analytical techniques of when applying business intelligence for marketing function. simulation and visualization applications. Variables examined were categorized into four groups: business intelligence, supply chain management, information 2. Sample Selection and Questionnaire visibility and integration. Factor analysis was used to facilitate the connection of these groups of variables, i.e. For the purpose of this paper the most interesting reduction of number of variables. Then, we tested the empirical statistical research involve survey sampling. The correlation between the newly formed variables. There was a questionnaire was verified by several professors from significant statistical correlation between business Faculty of Economics in Split and Zagreb, Faculty of Social intelligence, supply chain management, information Sciences in Zagreb as well as practitioners of business visibility and integration among the partners in the intelligence. production chain. ANOVA was conducted to compare Before the final definition of the survey, pilot study was differences in the mean values of variables in relation to the conducted by the interviewer to test questions on a smaller activity, size and legal form. This paper will analyze the number of respondents. The purpose of this pre-testing was relationship between business intelligence and supply chain confirmation of the basic assumptions of the proposed model, management for strategic and tactic marketing decisions. validation of the research instrument and remove the ambiguity. In addition to the implementation, the purpose Keywords Business Intelligence, Supply Chain was to determine its clarity and appropriateness for the Management, Factor Analysis, Correlation, Marketing research. The method of data collection was via internet. Decisions 321 enterprises responded to the questionnaire. Given that the intention was to investigate those companies that apply business intelligence in their marketing work, prior to processing we exempt companies that replied to the 1. Introduction questionnaire’s last assertion of business intelligence (“In your enterprise business intelligence is not yet systematically In the context of this research business intelligence is seen organized”). There were 25 companies as such. In addition to as a concept of conscious, organized, continuous, legal and these companies, the exempted were three who had not legitimate gathering, analyzing and using data and responded to this question, which means that the usable information for strategic and tactics marketing decisions. It responses was 293, and the response was achieved by 29.3%. is carried out using information technology, but also in other As expected response rate for online surveys is variable, in ways. It is aimed to collect the relevant knowledge about the case of 30% of companies it is considered to be customers, suppliers, competitors, and other market factors acceptable. that directly or indirectly affect the company's business, and The main instrument for the implementation of this study 32 Relationship between Business Intelligence and Supply Chain Management for Marketing Decisions was a questionnaire consisting of closed questions with Claims relating to the management of the supply chain are multiple choice answers that involve using a Likert scale grouped into five dimensions. The first dimension is related with five degrees of intensity. Likert scale attitude is based to agility and had four claims. Cronbach's alpha was 0.894. on the assumption that every statement/particles on the scale The second dimension was related to the adaptability and has equal importance and weight in terms of how much had three claims. Cronbach's alpha was 0.817. The third reflects the attitude toward a particular issue or problem. The dimension is related to the alignment and had three claims. survey participants have to chose the answer from 1 = Cronbach's alpha was 0.732. The fourth dimension is related strongly disagree to 5 = strongly agree. For the purposes of to the proactivity and consisted of four variables. Cronbach's this research, a measurement of the perception of alpha was 0.900. The fifth dimension was related to the respondents was employed. This was chosen for two reasons: performance and consisted of six statements. Cronbach's (1) the effects of the use of business intelligence are alpha was 0.896. intangible or qualitative, which are not suitable for the After testing the internal consistency, the factor analysis objective measurement, (2) most of the information by their was performed in order to create five latent variables in order nature confidential or strategic, is therefore not suitable for to facilitate handling in the later stage of analysis. All the publication. Studies have shown that managerial assessment results were satisfactory in accordance with the requirements and management estimates do not differ significantly from of factor analysis. Take the same indicators on the validity of the objective values obtained from external sources. the factor analysis and the creation of variables related to business intelligence. 3. Creating Variables Related To 5. Business Intelligence, Supply Chain Business Intelligence Management and Marketing Claims related to business intelligence are grouped into Decisions five groups. Internal consistency was examined using Making strategic marketing decisions represents a specific Cronbach’s alpha. The first group includes claims related to phase in marketing management. A research has shown that the sources and reliability of data and information. There is different models are used in practice for this purpose . at the beginning of a total of eight variables. Crobach’s alpha According to the findings of the research, the most complex was calculated to examine internal consistency and it was phase in making marketing decisions is linked to strategy concluded that one variable should be dropped. Thereafter implementation. A prerequisite of the effective marketing obtained a satisfactory size Cronbach’s alpha (0.715).The strategy considers different criteria which should be second group includes claims related to access to data and fulfilled– accuracy, measurability and applicability of information. There were four claims. Cronbach's alpha was information. Also, the important aspect is the suitability of 0.77. information which is used in existing marketing information The third group of variables is made of claims relating to system of a company. Companies that satisfy those criteria advanced analytics. There were also four claims. Cronbach's make promptly decisions to eliminate market risks which alpha was 0.778. also indicate the control role of Business Intelligence, The fourth group includes claims related to intuition and through Supply Chain Management (SCM) at the tactical time and consists of five claims. Cronbach's alpha was 0.765. and strategic level. The basic hypothesis of the research is: The fifth group consists of claims related to the Correlation concept of business intelligence and supply organization of business intelligence and consists of five chain management is significant in making marketing claims of which one is expelled because of internal decisions in order to preserve and strengthen marketing inconsistencies. Cronbach's alpha was 0.64. position. After testing the internal consistency, factor analysis was Business Intelligence in Supply Chain Management performed in order to create five latent variables to facilitate contributes to the differentiation of the business entity. handling in the later stage of analysis. All the results were Market differentiation assumes constant collection of satisfactory in accordance with the requirements of factor information of competitors’ supply. Making strategic and analysis. Main indicators considered about the validity of tactical marketing decisions based on the application of factor analysis were: Kaiser-Meyer-Olkin measure of Business Intelligence in the management of SCM is more sampling adequacy, Bartlett's test of sphericity, Kaiser's efficient and responsible. Moreover,
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