BI Organizations and Transforming Businesses - Free Paper Sample

Paper Type:  Essay
Pages:  4
Wordcount:  939 Words
Date:  2023-10-21


Several patterns and reasons need to be broken down to acknowledge how effective BI organizations, together with business knowledge, transformed the medium quality businesses to standard ones. Most people claim the change to be a "perfect storm." A few others describe the change in quality as aligning of the stars. Despite the details given following the change in the quality of the business knowledge and BI organizations, associate it to changing degrees of opportunity, luck, frustration, and threat. They are the variables that attributed to the change and prominent achievement. In other words, it is termed as LOFT. The paper focuses on the LOFT effect and its importance in BI.

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The four motivational segments in the Business Intelligence initiative are as described below:

L - Luck in BI occurs in the event where preparation meets Opportunity (Samputra & Putra, 2020). Furthermore, it can be spoken to be a "fortuitous timing" since it was introduced to institutions that were experiencing either organizational change, radical cultural change, or change in information systems. Luck enabled BI to be implemented in various situations where change was expected and accepted.

O - It stands for Opportunity, and it presents different chances for change (Samputra & Putra, 2020). Due to Opportunities in BI, a new team or a new line in a company's management can be expanded. Besides, it portrays that BI does not always present solutions to the problems that arise. Instead, it acts as a mechanism where the details of an identified problem can be gathered, analyzed, and resolved to present the required solution. Opportunity helps discover the relationships, especially casual ones, among other factors that are linked to a problem whose root cause and source are not identified.

F - Frustration is the third theme among the successful BI deployments. It can be described as an individual business institution, "throwing a dart in darkness" (Samputra & Putra, 2020). According to Samputra & Putra 2020, customer service agents have widespread frustration since they are pressured to check and improve their performance. It occurs when employees do not get adequate information that they can use to make meaningful actions.

T - Threat is mostly associated with a company at the risk of bankruptcy. When a particular company is faced with the threat of bankruptcy, the burden falls on the top management. It is because the threat is significant such that it can lead the company to become extinct. It is a subject that allows them to collect and analyze data that enables them to establish the root cause of the threats. The top management implements the well-established BI practices to continue utilizing the systems continuously to detect all potential problems in real-time.


The best part concerning luck is that one does not identify how fantastic a decision made by another person is. It becomes challenging to acknowledge whether it was the best time for all the things to fall in order (Etzkowitz & Steiber, 2019). An example is that it was hard to adapt to BI's changes in the event where a company considers moving from one location entirely to the other and its infrastructure. It is because it has to establish a new BI team. However, the company has to worry less about other factors such as adjusting the offices where, in any case, nothing stays normal as they have to progress and continually fight through the newly established journey. If he BI team participates in deciding on a situation like that, the company will receive better results. Then, one does not know if it was just meant to be or luck.

Opportunity refers to a case where those who are acquainted with IT abilities could achieve a forward advancement and offer an answer to business in a scenario where an issue was perceived by the business yet adequate knowledge was not available for determining requirements for developing a plan (Etzkowitz & Steiber, 2019). Opportunity plays an alternative route to achieving success.

Frustration refers to a case where the business does not recognize its location along the success path (Etzkowitz & Steiber, 2019). In the same case, the business confuses its employees who cannot deliver their experiences better to the customers resulting in chaos in this scene.

Threat is the most critical time in the life cycle of a company. It is a time when a company faces the fears created or associated with bankruptcy. The factor dominates a company critically, but it has to resolve by overcoming it (Etzkowitz & Steiber, 2019). It can also be created by an existing or a new competitor from an existing company in the event where they seek to remove one's company of the market, and the company fails to realize it.


In conclusion, LOFT theory is essential for any BI organization as it gives a company valuable insights concerning a business that they do not realize about. Also, it increases the efficiency and productivity of BI tools by helping the management to consider a decision-making process that would be accurate and easier. The theory helps a firm to prioritize the operations which it undertakes to run smoothly. Even though a certain level of pain helps a company conduct its businesses smartly, the LOFT effect would prevent and protect the firm from experiencing the pain.


Etzkowitz, H., & Steiber, A. (2019). SILICON VALLEY: TOO MUCH SUCCESS?. Computing Predictive Analytics, Business Intelligence, and Economics: Modeling Techniques with Start-ups and Incubators, 155.

Samputra, P. L., & Putra, S. Z. (2020). Bitcoin and Blockchain to Indonesia’s Economic Resilience: A Business Intelligence Analysis. JEJAK: Jurnal Ekonomi dan Kebijakan, 13(1), 188-202.

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