BI-based Organizations: A Sensemaking Perspective

Business intelligence (BI) offers opportunities for managers to master vast data resources for operational and strategic gains, and allows BI-based organizations to generate significant business value. While several researchers emphasized the importance of BI to assist making quality decisions, no study explored the use of BI for improved understanding of business before such decisions are made and assessing the impact of the actions derived from these decisions. To fill this gap we use the theory of organizational sensemaking. The presented research uses hermeneutic phenomenology to study the experiences of decision-makers in using BI-generated insights to guide their actions while altering business processes, structures and information. The study emphasizes the necessity of using BI in the creation and maintenance of individual and organizational identity, as well as, enactment of this identity on the business and its environment, which need to be molded in response to changing circumstances.