Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 5

Impact of Business Intelligence on the Business Performance of Banking Sector in Sri Lanka Anjana Manawadu α , Isuri Namalka σ , Sathma Perera ρ , Charuni Wickramaarachchi Ѡ , Vandhana Dunuwila ¥ & Anuradha Jayakody § Abstract- Business intelligence is a set of tools and techniques which are used to analyze and convert raw data into actionable and coherent insights. This study reveals how BI affects the business performance of banking sector and how banking sector utilized BI in their day-to-day operations. The deductive approach was used as research method and the stratified sampling method was used to determine the sample of this study. Data has been collected by covering twenty-eight state and non-state banks in Sri Lanka. The multiple regression and correlation were used as main analytical techniques to obtain the results. Based on the finding of this study, it has been concluded that there is positive relationship between business intelligence factors ((perception, product, process, team and technology)) and the Business performance and there is significant impact of Business intelligence on the business performance of banking sector in Sri Lanka. Keywords: business intelligence, business performance, banking sector. I. I ntroduction oday, banks must undergo various challenges like increased customer expectations, competition, customer retention, compliance pressure, and acquisitions [1] If the banks make timely and efficient decisions, they can overcome these challenges. In the modern era, almost every bank makes decisions based on their collected databases. So, they must manage a huge set of databases which were collected through customer transactions, financial activities and from external markets. Additionally, it is very difficult for a human being to obtain useful insights by analyzing this data. This proves that information technology plays an enormous role in the decision-making process in banks. Business intelligence (BI) is offering banks the necessary adaptability in both commercial and turbulent times. Globally, banks have a deeper understanding of their business, customers, and future through BI and software processes. It can also open the door for efficiency by lighting areas that are ready for cost reduction, new business prospects and more [2]. Banking implementation of business intelligence allows users to have access to multiple and distinct device sets to view responsive data visualization dashboards which usually cannot communicate across platforms [3]. Author α σ ρ Ѡ ¥ § : e-mails: anjumanawadu@gmail.com , isu.namalka1@gmail.com, sathmaperera74@gmail.com , wickramaarachchicharuni85@gmail.com, vandhana.d@sliit.lk, anuradha.j@sliit.lk Almost every bank in Sri Lanka uses BI in their operations. But the impact of business intelligence on these institutions' business performance does seem to be unknown. Many studies were conducted to measure the efficiency and productivity of the Sri Lankan banking sector. However, no study was carried out to measure the impact of business intelligence on the banking performance in Sri Lanka. The aim of this research is to scrutinize the impact of business intelligence in the business performance of the banking sector in Sri Lanka, and to study the influence of customer’s perspective on the business performance of the banking sector in Sri Lanka. a) Research Objectives The following are the research objectives that were addressed in this study. General Objective: • To determine the impact of the Business Intelligence on Business Performance of the banking sector in Sri Lanka. Sub Objectives: • To determine the relationships between BI Product, BI Technology, BI Process and BI Team, and BI perception and overall Business Performance. • To identify the impact of BI Product, BI Technology, BI Process, BI Team and BI Perception on BP. • To compare the impact of BI among state and non- state bank in Sri Lanka. II. L iterature R eview and C onceptual F ramework a) Theoretical Review Business Intelligence tools and techniques are using by the banks in order to ensure the completeness and accuracy of the operational and corporate business decisions [4]. However, it is difficult to give a definition for Business Intelligence since it subject to change with respective to the changes in the technological environment. The main issue with definitions is that they are more likely to change over time. The main reason for that are the factors which are used to create these definitions change with the time. With that [5] has define BI as a collection of processes which consist of architectures and technologies to convert raw data into meaningful information. According to [6] BI can be T 39 Global Journal of Management and Business Research Volume XXII Issue V Version I Year 2022 ( ) A © 2022 Global Journals