Business intelligence and data-driven decision-making : a management accounting perspective

Abstract

PURPOSE: The purpose of this study is to evaluate the statuses of business intelligence and data-driven decision-making in Malta and explore their linkages to the management accounting profession. DESIGN: For the exploratory nature of this study, a qualitative approach was determined to be most appropriate. Nineteen semi-structured interviews were carried out with local executives and technical experts across fifteen different organisations. FINDINGS: This study has found that local business are rapidly adopting business intelligence and that data-driven decision-making is becoming a standard industry best practice, with organisations identifying technology to be their biggest issue in data-driven transformation. Furthermore, business intelligence is accelerating the evolution of management accountants towards more value-adding roles. However, much is left to be desired in the contribution of management accountants to the development and implementation of business intelligence. Moreover, this study found that it is crucial to have leaders for the organisations’ business intelligence initiatives, but it is difficult to prescribe a set of rules which identifies the most ideal person for this leadership role. CONCLUSIONS: This study concludes that business intelligence and management accounting have mutually empowering roles to play, and that business intelligence is creating several opportunities for management accountants to become the indispensable value-creators that the profession aspires to be. Management accountants need to adapt to the data-driven business environment, or else they will become marginalised as reporting tools with no real business relevance. VALUE: This study identifies the links between business intelligence and the management accounting profession and makes recommendations for management accountants in practice to take advantage of BI to increase their business relevance. It is expected that the key findings and recommendations from this study will be relevant for all practising professionals who are facing the need to adapt to a more data-driven business environment.