THE ROLE OF BUSINESS INTELLIGENCE (BI) IN SERVICE INNOVATION: AN AMBIDEXTERITY PERSPECTIVE

Abstract

Advancement in information and communication technologies has been a key driver of the transition from a goods-basedeconomy to a services-based economy where significant changes are occurring in the way that services are produced andconsumed. There is tremendous opportunity to realize business value from service innovation by using the knowledge aboutservices to develop and deliver new information services and business services. Organizations can seize this opportunity touse service innovation initiatives to set themselves apart from competitors. One of the means for organizations to achieveservice innovation is to incorporate business intelligence (BI) both at the strategic and operational levels. A review of extantIS literature on service innovation and BI revealed that the strategic and operational role of BI in fostering service innovationfrom an organizational ambidexterity perspective is one that has not been explored. We address this gap in research bydeveloping a theoretical model and hypotheses to examine the role of BI in service innovation. Our literature review revealedthat firms use BI strategically and operationally for exploration and exploitation respectively to create opportunities forservice innovations which have the potential to impact organizational performance.

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