Abstract

This paper examines empirically the role of business intelligence (BI) in customer relationship management (CRM). Drawing on relevant literature on BI and CRM, the research model for the current investigation proposes that BI approaches of an organisation and its competition in°uence organisational business strategy which in turn impacts its customer strategy. The model is tested empirically using survey data of 165 respondents from 73 di®erent private and state owned businesses operating in a transitional economy of East Europe. Empirical evidence con¯rms a key role of BI in CRM through its impact on organisational business and customer strategies development. Such ¯ndings make two important contributions. For research, they provide an improved understanding of the factors and processes involved in realising bene¯ts from BI. For practice, they show managers how BI can be leveraged to achieve performance gains through competitive actions. Further research is recommended to con¯rm and extend the current investigation.

Introduction

Modern organisations function in a business environment that is characterised by unprecedented complexity, uncertainty and fast pace of change. Some of the crucial developments that initiated such transformation include globalisation, knowledge-intensive economy and rapid technological advancement. These developments have brought new challenges for both individuals and organisations. One’s ability to adjust to the new perspective, and comprehend and react swiftly to environmental changes has become critical for success (Liang, 2012).