In this paper we explore how management of sustainability in organisations can be supported by business intelligence (BI) systems. We suggest that BI has an important role to play in helping organisations implement and monitor sustainable practices. We pay particular attention to one phase of any BI project, the information planning phase, i.e., the systematic way of defining relevant information in order to integrate it in reporting activities. Using grounded theory, the main contribution of our study is to propose a conceptual model that seeks to support the process of integration of socio-environmental indicators into organizational strategy for sustainability.
The main purpose of this research is to explore how business intelligence (BI) models can support the management of sustainability business practices in contemporary firms. We advance the view that BI methods and tools have an important but as yet not well studied role to play in helping organisations implement and monitor sustainable and socially responsible business practices. The contribution of this paper is to shed light on what role and how.
After years of significant investment in putting in place a technological platform that supports business processes and strengthens the efficiency of operational structure, most organizations have reached a point where the use of tools to support the decision making process at the strategic level emerges as more important than ever. Herein lies the importance of the area known as business intelligence (BI), seen as a response to current needs in terms of access to relevant information through intensive use of information technology (IT) (Petrini and Pozzebon, 2008). BI systems have the potential to maximize the use of information by improving the company’s capacity to structure a large volume of information and make it accessible, thereby creating competitive advantage, what Davenport calls “competing on analytics” (Davenport, 2005).
Moreover, the concepts of sustainability and corporate social responsibility (CSR) have been among the most important themes to emerge over the last decade at the global level. Although the concept of CSR historically precedes the emergence of the sustainability concept, the two are considered comparable concepts in this paper since both, nowadays, take into consideration environmental, social and economic dimensions. In addition, both refer to a long-term perspective based on requirements necessary to provide for the present without compromising the needs of future generations. Issues typically included in a sustainable and socially responsible agenda relate to business ethics, community investment, environmental protection, human rights and workplace conditions, among others. The increasing importance of sustainability and CSR should be assessed within the complex context of globalization, deregulation and privatization, where social, environmental and economic inequalities continue to increase (Raynard and Forstarter, 2002). In light of this contextual perspective, managers have to take into account not only increased sales and profits and/or decreased costs, but also sustainable development of the business itself and of the surrounding context. Therefore, a growing number of companies worldwide have engaged in serious efforts to integrate sustainability into their business practices (Jones, 2003).
This study seeks to advance our knowledge of how BI projects can support the integration of sustainability into business strategy and management, particularly regarding the initial phase of BI projects where performance indicators are defined based on the firm’s strategic goals. Social responsibility and sustainability are becoming part of an organisation’s vision, mission and goals. However, most of the time, they are not integrated into operative business management models, remaining detached in practice from corporate strategy and appearing more as particular actions and activities related to social projects in the community, philanthropic initiatives or regular changes in business process. The main motivation for our study grew out of our years of work in the BI area, and we see BI as a set of methods and tools, based on intensive use of IT, that has a large potential, still unexplored, for supporting sustainability practices and management. We have attempted to develop a model that integrates social, environmental, and economic questions while according the same degree of importance to each. The Indicators in Perspective model attempts to categorize social, environmental and economic indicators in a way that allows evaluation and analysis of business strategy and management within a single frame of reference. The multidimensional structure developed for integrating economic, social and environmental indicators is part of the facilitation process supporting a firm’s attempt to become truly sustainable. Moreover, this structure is of fundamental importance as the purposive choice and periodic (preferably real-time) monitoring of indicators are essential to maintaining a company’s reputation for sustainability.
Using an adapted version of grounded theory, the main contribution of our study is to propose a conceptual model that seeks to support the process of definition and monitoring of socio-environmental indicators and its relationship with management and business strategy. Although the model was grounded from Brazilian cases, we believe that it shows a certain degree of transferability to firms located in other countries, particularly if differing socio-economic norms are taken into account. A BI system has evident importance as a communication and information diffusion channel, preferably one that is open, trustworthy, transparent and permanent. In supporting the monitoring and evaluation of business results while maintaining information integrity, BI systems strengthen interaction between groups with a view towards established objectives, and serve as a tool for collaborators to learn, discover and exchange information regarding social and environmental actions taken within the organisation and by other organisations. This feedback process is an essential feeding source, which reinforces organisational behaviour aimed at socially responsible performance. Future research might build on the results proposed here by refining and extending the conceptual model, by reflecting about the transferability of the proposed model to different contexts, and by applying it in concrete situations (using action-research, for instance).
