Case Study

This section discusses the organization under study and describes the collection and analysis of primary and secondary data.


The Organization Under Study

The case study was conducted in an organization that operates a variety of businesses in the service sector. It consists of four companies that represent the Rio Grande do Sul business sector, with activities geared towards promoting and developing the economy of that state and Brazil as a whole. The first company operates within the education and technological services industries, the second in the social arena, the third promotes integration between universities and businesses and the fourth carries out services in the fields of economic research, industrial certification and other services catering to industries. This organization was selected because it has an integrated system with a single database for most operational applications, and its information architecture was in the implementation phase, using BI.


Primary Data

Primary data were gathered through interviews. This section briefly describes the analysis of these data, in accordance with the sections of the research instrument. The content of interviews was evaluated and high, average and low values were assigned to classify variables. High, average and low levels were recorded in studies by Reich and Benbasat and Audy and Brodbeck, with levels in the present study attributed by the researchers based on content analysis of the interviews. The analyses presented were grouped, that is, they represent summaries of interviews with business executives and IT analysts. Several contradictions emerge from the analyses, and are remarked on when this occurs.

Organizational Context

The assessment of the organizational context aimed to obtain a general overview in relation to the use of IT and how executives perceived the position of this department within the organization. This section provides a description of variables such as the focus of the organization's IT department and receptiveness to new technologies, in order to determine the perception of the interviewees regarding these variables.

According to the analysis performed and the interviews conducted, the focus of the IT area is that of providing operational support for business.Evaluations of the interviews indicated concern regarding the strategic use of information. For example, we identified a need to create a platform of more detailed information, enabling better relationships with clients and the use of existing databases to add value.

The organizational context assessment found that interviewees perceived the capability of meeting informational needs at operational level (corporate) as high. Fulfillment of these needs at the final product level (in areas associated with management) was perceived as average, with improvement needed. There is a clear need for the use of tools to improve the strategic fulfillment of information needs, as demonstrated by an excerpt from one of the interviews:

Information needs are not entirely met, particularly in regard to management and strategic information. Most areas rely on accounting and financial information, which often takes time to be made available, meaning these areas lack fast access to this data.

Planning for IT Resources

This section addresses the perception of interviewees concerning planning and investment for resources related to technological aspects, including: hardware, software, telecommunications systems, management of data and operating systems.

The organization adopts a single planning methodology for all the companies that make up the System, with a centralized IT department. Differences were observed with respect to system development. A certain maturity was highlighted in resource planning, since it has been carried out in line with this methodology for several years by most of the companies.

Human Resources

In relation to human resources, we evaluated issues such as professional IT qualifications, training of system users, participation in ITP and SBP and effective knowledge of the business among IT professionals. Regarding the qualification and training of IT professionals, most of the interviewees attributed high levels. This point was also emphasized for planning of the organization's IT area. Knowledge of the business among IT professionals was considered average.

Information Needs

The information needs of executives were studied based on the concept of Critical Success Factors - CSF, analyzing whether these were provided by the organization's current transaction processing systems. Information needs were investigated through interviews with company executives and IT analysts and the analysis of documents, systems in use and database models.

It was found that measurement of indicators via transaction processing systems was only partially achieved and that some were not integrated into the corporate systems. For example, some indicators are entered manually and measured through electronic spreadsheets. One interviewee emphasized the need for systematic control of indicators using IT tools, specifically Business Intelligence (BI):

We are currently developing a tool to monitor the metrics. At operational level we have tools with these characteristics, but we feel they can be enhanced, improved. We understand that Business Intelligence tools, for example, exhibit components that meet these needs.

With respect to the existence of specific systems for obtaining strategic information, most interviewees cited BI tools. BI has been gradually implemented within the organization, initially in specific areas where its implementation could be assessed and modifications recommended for specific solutions. Decision support systems, data warehousing, data mining and balanced scorecards were cited as tools for indicator analysis.

IT analysts interviewed stressed that searching for and cross-referencing information in the transactional database may result in performance issues for the remaining systems and, as such, the ideal solution would be an exclusive database specifically for this purpose. Chart 1 presents a summary of the main information needs identified, categorized by subject.

Chart 1  Main Information Needs

Subject Information Brief Description Inf.(1) Source
Cost Control Revenue generated by marketing agents Percentage of revenue generated by marketing agents for other Units. Y IS (2)
Education Technical Man-hours Number of man-hours spent on technical and technological services. Y IS Interviews
Education Placement Rate Percentage of graduates inserted into the labor market N BSC (3)
Strategic Recurring Revenue Rate of Committed Recurring Revenue Y BSC
Strategic Projects and actions Number of projects and actions that ensure quality and innovation in Technological Services. Y Interviews
Strategic Projects and Partnerships Number of projects and partnerships established and maintained with other organizations. Y IS
Strategic Joint projects Number of projects involving more than one Unit Y BSC IS
Strategic Brand Recognition Perception of the general public (media, companies and potential clients) regarding the brand. N BSC
Strategic Operating Results Growth capacity calculated by the difference between current income less current expenditure. Y BSC
Client Profile Perceived value of the service provided Estimated perceived benefit by the companies serviced. N BSC
Client Profile Special service for contributors Indicator design plan including number of visits, priority service and price differences according to size and demand. N BSC Interviews
Client Profile Client satisfaction with Professional education Rate of client satisfaction with Professional Education N BSC
Client Profile Satisfaction with Technological and Technical Services. Rate of client satisfaction with technical and technological services. N BSC
Services to Society Number of individuals benefitted Number of direct beneficiaries of social responsibility initiatives Y BSC
Services to Society Percentage of investments in social initiatives Expenditure on social initiatives in relation to the revenue budget. Y BSC

It is important to underscore that the items presented in Chart 1 represent the main needs among all of those identified. These indicators may consist of other indicators in the form of calculations. A total of 170 key indicators were identified, with a variety of sources and formulas, classified by subject into 9 proposed data marts (DM). Two main causes were cited in relation to difficulties obtaining information and performance indicators: transaction processing systems not containing the information and the profile of information use. In other words, the executives do not yet have a culture of using analytical tools, representing a challenge for the organization.


Secondary Data

The secondary data in this research were the study of company business and its source systems.

Study of the Company Business:

A Study of the Company Business was conducted in order to relate business processes with analytical solutions and information needs, and involved an analysis of systems and system models, cross-referenced against interviews and supported by IT analysts.

The operational structure of the company provides services in the following areas: social, education, technology, international relations and foreign trade, agribusiness, business expansion and incentive, infrastructure, competitiveness, economic research and studies, legal consultancy, the environment and sustainable development, support for micro and small industries and labor relations.

One of the companies in the organization uses the BSC tool as part of its strategic planning. The methodology has been in place for approximately two and a half years and enables planning to be measured using objectives, indicators and targets. It also allows communication planning for the entire company via a strategy map. The method is currently under development in another company within the group. However, the existing information architecture does not yet provide access to these metrics in BI tools. They are measured separately, as confirmed in interviews with both company executives and IT analysts.

Study of the Source Systems

The companies are interconnected by an Integrated Management System, referred to as the IMS in this study. It consists of several modules that provide most of the transaction controls needed for process management. The IMS modules were developed internally by organization employees, in accordance with the specific needs of each area. They are maintained according to demand in the business areas and carry out specific functions, including: accounts payable, accounts receivable, tax control, inventory control, accounting and cost control. All the systems are integrated into a single database.

The role of the main system modules is summarized in Chart 2, together with the type of support the system provides to the organization, indicated by: 'O', for operational support, 'M', for management support and 'S' for strategic support. Strategic support systems are capable of providing information that can be cross-referenced and analyzed to improve business performance.

Chart 2:  Main IMS Modules.

Module Brief Description Support
Health Agenda Allows appointment scheduling for healthcare professionals, controls medical charts, refers services to suppliers and maintains records of leave. O
Scheduling Manages spaces administered by the Gated Community System, Exhibition Center and Theater. Performs scheduling, rental and quoting for spaces and services in the Mobile Units and areas of the Sporting Centers O, M
Revenue Controls operations responsible for monitoring payments from institutional funds, identifying late payments, and forecasting amounts receivable. Controls installments related to transactions following audit visits. Controls direct and indirect revenue. O, M, S
Corporate Records Services all the companies, recording information pertaining to industries within Rio Grande do Sul, products, raw material and performance markets. Also contains data on individuals and legal entities such as suppliers, clients, associations, unions and federations. O, M
Accounts Payable Enables the preparation, control and execution of payments to suppliers, comprising the following modules: maintaining a record of suppliers and bank details, maintenance of payment documents, forecasted payments, payment control reports, reports of payments made to suppliers, as well as accounting. O, M, S
Accounts Receivable Operates the records of agreements between the organization and client companies, for payments with installments by employees in the units. Manages billing documents, as well as overdue, maturing and defaulted payments O, M, S
Inventory Control Maintains records of the physical and financial inventories of products in the business units, issues inventory statements and calculates the average cost of merchandise, as well as recording accounting operations. O, M
Asset Control Registration and control of the inclusion and handling of all assets and property, managing processes related to definite equity write-off, enabling the registration of changes or additions to assets. O
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