Lund University School of Economics and Management 2 Företagets underrättelsearbete Stein Kleppestø Företagsekonomiska institutionen

Lund University School of Economics and Management 3 Grundläggande elementen hos intelligenta aktörer Perception Se Beslut Handla Kognition Förstå/Inse

Lund University School of Economics and Management 4 Managerial culture 2 23, ,20 i.e. Not an integrated part of decision making Lack of relevance of output to action 1 31,70 9,60 i.e. Not perceived as relevant in decision making

Lund University School of Economics and Management 5 Some fundamental problems: 1.Perceived lack of relevance of output to action 2.Credibility problems 3.Managerial culture 4.Lack of information-sharing culture 5.Lack of management support 6.Lack of feed-back from users to BI- unit 7.Perceived lack of predictability 8.Too much data, too little analysis 9.Subordination of intelligence to policy 10.Received opinion 11.Mirror-imaging 12.Unavailability of information when and where needed 13.Intelligence is not used 14.Misinterpretation by decision makers 15.Capability to identify real intelligence needs (by users and analysts) 16.Methodological (perceptive, cognitive, scientific) problems in collection and analysis of data 17.Distortion problems in storing data 18.Distribution problems, identifying “need-to-know” solutions 19.Communication problems with users 20.Lack of comprehensive organizational learning and use of Intelligence

Lund University School of Economics and Management 6 The Vietnam case: –Intelligence not used –Misinterpretation by decision makers –Cooked on demand –Intelligence little else than common-sense –Focus on easily quantifiable data

Lund University School of Economics and Management 7 Top list of beginner’s errors: Starts researching before understanding the needs Spends too much time on research and too little on analysis Recites facts instead of interpreting facts Forgets to state what is known and what is rumor Does not clearly present the bottom line or what is the essence of the analysis Produces a data dump instead of a concise analysis Concentrate of the past and does not try to anticipate the future Fails to understand the importance of a deadline

Lund University School of Economics and Management 8 Conscious Automated Objectified Collective Individual Social Explicit Implicit or taken-for- granted Codified as in a library As in company culture From Spender

Lund University School of Economics and Management 9 Four premises of organizational learning (OL) OL involves a tension between assimilating new learning (exploration) and using what has been learned (exploitation) Organizational learning is multilevel: individual, group, and organization The three levels of OL are linked by social and psychological processes: initiating, interpreting, integrating, institutionalizing Cognition affects action (and vice versa) From Crossan et al, 1999

Lund University School of Economics and Management 10 Organizational learning (4Is) LevelProcessInput/outcomes IndividualIntuiting Experience Images Metaphors Interpreting Language Cognitive maps Conversation/dialogue Integrating Shared understanding Mutual adjustment Interactive systems OrganizationInstitutionalizing Routine Diagnostic systems Rules and procedures Group From Crossan et al, 1999

Lund University School of Economics and Management 11 Organizational learning as a dynamic process IndividualGroup Feed forward Organizational Intuiting Institutionalizing Individual Group Organizational Feed back Interpreting Integrating From Crossan et al, 1999

Lund University School of Economics and Management 12 Strategic knowledge – what is it? Strategic knowledge is an endogenous part of the totality of organizational knowledge, but analytically separate (in the eyes of observers and actors) in as much as it is given (temporal) importance when explaining the business at hand. It can either be seen as a fairly stabile entity adjusted only for minor environmental changes and realized ignorance. or It can be seen as a truly ongoing learning process in the face of emerging strategic contexts. Emerging should be understood in the sense of: constantly created in the field between environment and corporation.

Lund University School of Economics and Management 13 Strategic Learning The concept of strategic knowledge points to strategic learning, availability of information and the conduciveness of the organization (i.e., how organizational structures and processes facilitate strategic learning).

Lund University School of Economics and Management 14 The traditional concept of business intelligence: The predominant methodology and organization of business intelligence operations (separation of tasks, specialization, and centralization) The fundamental metaphor: the jigsaw puzzle. Strategic knowledge is predominately explicit. The fundamental problem of (perceived) irrelevance and distrust. Strategic decision making is orderly and rational.

Lund University School of Economics and Management 15 Looking for a new concept of business intelligence: Strategic knowledge is mainly tacit. Organizational learning (creation of knowledge) in Nonaka’s knowledge spiral, emphasizing “Sympathized knowledge”. The need for distributed control. The inherent uncertainty of chaos. Strategic decision making is a complex sense making process, inseparable from action and learning.

Lund University School of Economics and Management 16 The BI function in a growing complexity Yes ?No Moving towards closer integration

Lund University School of Economics and Management 17 Analyst Environment controller Benchmarking KPI analyst Information collection Librarian Press-clipping Historian Information seeker Journalist Trend spotter Strategist Trend analyst Consultant Devils advocate The new BI Analyses Research Reactive Proactive

Lund University School of Economics and Management 18