Description
Integrating Business Intelligence In State Administrative Structures For Stimulating Innovative Clusters
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
183
Ioana COMSULEA
Cristina A. FLOREA
The Bucharest University of Economic Studies, Bucharest,
Romania
INTEGRATING BUSINESS
INTELLIGENCE IN STATE
ADMINISTRATIVE STRUCTURES
FOR STIMULATING INNOVATIVE
CLUSTERS
Case
study
Keywords
Businessintelligence
Knowledge management
Innovation
Clusters
JEL Classification
A11,H11, M16, M21, M48, O44, Q18, Q26, Q32
Abstract
Business intelligence and knowledge management seems to gain the attention of the society
regarding the benefits that brings to it when this two domains are considered as a whole. The
advantage of using business intelligence in order to take decisions and bring innovation to
the business, are convincing more and more entrepreneurs to implement this solution. The
challenge in managing and using the knowledge that the business intelligence offers to the
business, comes with the integration of the information with state administrative structures
datas that have to be available to business clusters in order to improve their decisional
process. In our paper, we demonstrate the benefits of using business intelligence in
Romanian state administrative structures underlying the way that this adoption would
support the activity of innovative and creative clusters.
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
184
Introduction
Innovation is the main catalizator of the progress,
and both are the key of economic and social
development. In the Information Age, the states
have to be efficient in order to develop themselves
and survive. Regardless of the nature of the
innovation (technological, commercial or strategic)
the scanning activity is to identify the way to reach
this major goal, both by the companies and public
authorities.
Also, while many organizations are still immersed
in the Information Age where the linear, process -
oriented work is being automated or shipped
overseas, another age is foreseeing. This is the
Integral Age,where the approach to productivity
have a focus on “redesign rather than fine-tuning,
on transformation rather than reformation or
renewal, and on open, flow-state dynamical
systems rather than closed-in, boxed-in, and rigid,
final-state models and methodologies”, as Beck D.
E. sustain in Human Capacities in the Integral Age.
This next phase for business is one that competes
on innovation.
Through it’s mechanism created to give whole
picture of the processes of an enterprise in order to
analyze them and take proper decisions, Business
Intelligence (BI) is the top-most priority of many
chief information officers as an instrument in
creating business effectiveness and innovation that
achieve their strategic initiatives. More than that,
there is a growing need among state administrative
structures around the world in order to revitalize
their activity and their delivery of service to
business and citizens.
On the other side, an important feature of
innovation is that this development catalyst is
increasingly organized under innovative clusters.
This because, this form of grouping under the same
umbrella of interconnected businesses, associated
institutions, suppliers, catalizators and other
stakeholders with common interests, is capable to
create a dynamic growth, with a greater impact in
the society, rather than an individual focused on
innovation. So in Romania, there are three main
innovative clusters that are meant to create value
into the society. Their activity have to be hardly
sustained from all the levels, because their impact
can be unexpectedly good.
In the next sessions, we present previous work on
this subject, with an overview on the benefits that
implementing BI in Romanian administrative
structures would bring for sustaining the activity of
innovative clusters and thus, the development of
the society. For argue our paper, we present a case
study based on data obtained from a BI tool, the
way they can be transformed into information for
giving valuable input to the innovative clusters and
also they can benefit from them to develop their
business. In the last part of the paper we bring
some concluding notes in order to resume the work.
Business Intelligence in State
Administrative Structures
Business Intelligence (BI) “combines products,
technology, and methods to organize key
information that management needs to improve
profit and performance” (Williams & Williams,
2007). For this, BI is composed by two key
elements that are business information and business
analyses considered in the context of business.
These, lead to decisions and actions of the business
that adopt them and conduct to an improved
business performance result. In other words, BI is
not a single product, a technology or a
methodology, it is a mechanism composed by these
elements in order to offer information assets to the
enterprise that make decisions to improve business
processes.
According to Muntean et al., (2014), Business
Intelligence approaches are subordinated to
Performance Management. In order to have
a successful BI, there must be assure a specific
framework based on technologies, tools and
systems. One of the most important factor that
influences BI is key performance indicator (KPI).
Business intelligence integrates business analysis,
companies reporting and performance
management.
For enterprises, the main goal is to increase
revenues and/or reduce costs, improving
performance and increasing profits. On the other
side, the public sector primary focus is service to
citizens, coping with budget constraints and using
resources wisely in support of the agency’s
mission. Also, in many countries there is a need to
revitalize state administrative structures to facilitate
customer centered, cost-efficient, and user-friendly
delivery of services to citizens and businesses
(Gnanet al., 2013; Gupta et al., 2008). Figure 1.
illustrate this concept.
In developed countries like Poland, business
intelligence is implemented on state administrative
structure, being present on all functional areas
(Ziemba&Ob??k,2014). Business intelligence is
improving the capacity of government to adapt to
market conditions and to be better prepared in this
smart environment.
In the last years, many countries around the
identified the need to revive the public
administrations to improve and facilitate their
services. For this, governments decided to
introduce innovation in their structures, processes
and services, also in their activity management. A
concluding example for this is Italy where
Information System Consortium Piemonte (CSI
Piemonte) has promoted innovation in public sector
since 1977 as a provider of BI and IT platforms. In
1980 they implemented SAS, a BI analysis tool, in
public administration. In this way, they built a
substantial information asset (850 databases, 500
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
185
collections of information, about 20,000 tables)
which has been organized in sectoral data marts
including historical and integrated information
from different domains of activities like tourism,
health, agriculture, environment, cultural heritage,
demography, justice and others, in order to “to
support projects in a wide variety of areas” (Miller
et al., 2006).
In Romania, there are no public institutions that
implemented BI. Only few of them use reposts
implemented in BI by external providers, but the
level of extracting real information analyzing the
data, and integrating different domains in order to
create value to other institutions and businesses is
an unsatisfied need for our society and a real
opportunity for development.
Innovative Clusters
All around the world, the endogenous growth
sources are directed towards intellectual capital,
knowledge management and human creative
potential. In literature review is using a more
diversified terminology, which includes also
specific approaches of knowledge economy and the
last trends of creative economy and creative-
innovative clusters.
The business environment is adapting continuously,
creating the prerequisite to attract the intellectual
capital, in order to improve the creative-innovative
potential, especially in cluster, but also at regional
or sectoral level. On this line, smart and creative
cluster are a good example of stakeholders that
interact and create a network for enhance their
performance on short and long term. Clusters
support the start-up process and new business
ideas, which contribute to competitiveness
increasing.
In limited situations, sectoral clusters could help
businesses to develop, through: costs reduction,
innovation opportunities and efficient using of local
resources. The most important objective for cluster
implementation in business is to create and develop
on short and long term the competitive and
sustainable advantage, contributing in so to
competitiveness, productivity and profitability
increasing. Using the creative-innovative potential,
in the third stage of competitive development,
named by Michael Porter in the last Global Reports
for Competitiveness launched by Global
Competitiveness Forum, “innovation stage” in
innovative clusters could increase the number of
employees and could create new business
opportunities (2011). Michael Porter and his
followers as Michael Best are known because of his
concept of “clusters’ dynamics”, considers that
common use of knowledge, technologies, resources
and institutions, that could give a value added and
significant advantage special to the sectoral activity
of clusters. This fact is based on the
complementarity principle at cluster formation.
According to Romanian legislation (Impact
Program, 2006), clusters reflect a group of
manufacturers, users and beneficiaries, that are
reunite to the purpose of applying good practices
from European Union for the competitiveness
increasing.
Regarding international experience there is a large
diversity. Thus, regarding the density of clusters’
distribution, made by research institutes from USA,
it observed that the number and density of clusters
is different in USA than Europe. In European
Union prevails small clusters, less dense, relatively
dispersed. This fact could determine a reduction of
success rates associated to clusters.
The investigation made by now in literature review,
allows us to consider that creative, innovative and
smart clusters’ model appear to be the most better
developed in United Kingdom. Besides, Bridget
Rosewell (2011) identifies four principal domains
as center of innovation: creative industries, goods
and services based on diminished carbon
emissions, advanced manufactures services and
IT/technology services.
A similar model was designed in Romania in 2008,
when Minister of Economy started a campaign to
registered all clusters, formed a cluster association
and created a formal framework for clusters’
supervision. Nowadays this association held 31
clusters with theirs companies, stakeholders,
research institutes, academies, universities and
public institutions. United for the same objective,
clusters’ members are more performing and
competitive, at national and international level,
where are formed cooperation partnerships and
technologic transfer. The presence of catalysts,
even if there are expertise centers, consultants or
incubators, all of these help the information
transferring.
According to Clusters Associations from Romania,
the “Four Leaves Clover” modelis formed by
companies, research institutes and universities,
public institutions and catalysts, and has already
success. For instance:
· “Dacia-Renault Cluster” automotive industry,
with 31 members
· “Pro Wood Cluster”, furniture industry, 29
members.
In October 2012 at Bucharest had been place a
conference on “Innovation Cluster Days” , where it
were present cluster representatives, European
Commission members, World Bank members,
delegates of public institutions, universities and
research centers. The main objective was ideas and
experience changing between clusters.
In the paper of Steven Casper (2007) from Keck
Graduate Institute of Claremont was analyzing the
employees mobility and the implication on know-
how, knowledge transfer in order to stimulate
innovation. Also, he marked three important
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
186
characteristics of technologic clusters: the network
effect, heterogeneity, market orientation.
The innovation report“Mosaic L3C” by Biggers et
al., in 2012, develop the idea of business incubator
that ensure an innovative framework based on ITC
applying. The relevant aspects are referring at
entrepreneurial support, technological support,
concentration on key sectors, international linkages
for clusters, competitive, creative and innovative
environment. Through cluster creation and
development, the ideas and experience changing,
stimulate the creativity of clusters (Varney, 2007;
Dingli, 2007).
In the paper “Steve Jobs – innovation Secrets”
(Gallo, 2011), it is presented the companies role in
other manner. The organizations must encourage
their employees to act like a entrepreneurs. This
companies affirmed Jobs,gave time to their
employees to follow their passions and also
encourage them to assume risks.
According to Edward de Bono (2010), the
innovations came from anticipative thinking,
because it represents the progress source. From the
same hypothesis starts Tom Peters (2010) who
consider innovations as a competitive advantage.
The challenges launched by Clusnet – Final Report
(Lindqvist, G. 2011,), are to reunite every
important domains in a synergetic and integrated
framework. The purpose of this action is to make
an attractive region, visible at international level.
Michael Porter et al. demonstrates in his paper
“Clusters, Convergence, and Economic
Performance” (2011), that cities based on industrial
clusters lead to new industries, because of the
region convergence. In doing so, Porter sustains
cluster formation.
Case Study
As shown in our paper, we consider the need of BI
implementation in our Public Sector, a valuable
source of generating information that can be wisely
used by innovation catalysts, represented in
Romania, mainly by the innovative clusters.
For this, we took in consideration the waste report
from the food area. This report contains data
collected this year, because the project of
implementing BI in environmental administration
started this year. For this reason, we assume that
data are incomplete, only 39% of the Romanian
districts reported data, and these can be
incomplete.Moreover, there are major
discrepancies between regions regarding their
development stage. The national policies for
development should sustain inter-regional
cooperation and permanent transfer of information
and technology, which facilitate thereduction of
differences between the stages of development.
From available data we observed that from the total
waste quantity reported 12% was removed, 2% was
stored and 86% was capitalized, as shown in Figure
2. This seems to be a positive image, but if we
extrapolate to the entire country considering our
available data, we would observe a percentage of
31% removed waste. More than that, stored waste
represent an important aspect for us, this meaning
that removed and stored waste can be capitalized
reused in other innovative businesses.
The public authorities could interfere and prevent
the risks of innovative clusters, by offering
stimulants and special taxation to thosecompanies
that invest recycling.
To provide a more concrete view, we considered
two categories of waste: other wastes unspecified,
which offer a positive image (Fig. 3) and waste
preparation mixture before thermal processing,
which offer a negative image (Fig. 4).
We choose these indicators mostly because they are
calculated for each region and it is more easily to
make comparisons between them. Another aspect is
their values. As the graphics show the indicator
“other wastes unspecified” is well capitalized.
In Figure 3, we can see that 99% of waste in the
category “other wastes unspecified” was
capitalized and only 1% being stored.The
proportion is in favor of the capitalization.
In Figure 4, we can see that total amount of waste
in the category “waste preparation mixture before
thermal processing” was removed, meaning that
this source of reutilization was untapped.
More exactly, companies did not invest in
capitalization and did not make any efforts to
stored this waste preparation mixture.
Even if we consider the image that category “other
wastes unspecified” offer to us, a positive one, we
can offer a counterexample observer on vegetable
waste. As shown in the following figure (Fig. 5)
92% of vegetable waste was capitalized and only
8% removed. But taking in consideration the way
of capitalizing, we observed that the entire amount
of capitalized waste was given to different salubrity
companies. This means that even the waste was
capitalized, this does not means that it was reused
to produce another product.
For this, we consider that encouraging the
extraction and correlation of different data, can
create important input for innovation, that the
agents that are interested in exploring new
opportunities for creating new products can benefit
from this and contribute to the develop of the
industry.
Conclusions
In order to improve the sustainability and increase
the productivity, governments and economic agents
should invest in resources’ wasting and sustain the
innovation.
Our paper stands for innovation in the Romanian
Administrative Structures through implementation
of Business Intelligence, in order to detect areas of
development and give the right input to sustain the
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
187
activity of innovative clusters. In this way, the
enterprises that are included into these clusters, can
develop their activities, innovate them and drive
economic and social development.
Clusters sustain the development of its members,
contributing to diminishing the entrance costs, to
diminishing the transactional costs, stimulating
interaction and collaboration between companies,
identifying innovation and development
opportunities.
Moreover, companies could use local resources
with the purpose to develop itself more rapidly and
in an efficient and intelligent manner, for
maintaining the competitive advantage for long
run. Thus, through the changes in business
environment, in resources mobility, through
knowledge transfer, through synergies that exist
between industries and networks, innovation
contributes to the productivity increasing and
improving the quality of life.
Acknowledgments
This work was co-financed from the European
Social Fund through Sectorial Operational Program
Human Resources Development 2007-2013,
project POSDRU number 159/1.5/S/138907
“Excellence in scientific, interdisciplinary,
doctoral and postdoctoral research in economic,
social and medical fields – EXCELIS”.
References
[1] Beck D. E., Human Capacities in the Integral
Age, Retrieved fromhttp://www.spiraldynamics.net/DrDonBeck/ess
ays/human_capacities.htm
[2] Biggers, C., Kling, R., Schlesinger, M., Silver,
D.(2012), - Mosaic L3C, Michigan, Retrieved
fromhttp://www.reicenter.org/upload/documents/inn
ovation_report.pdf
[3] Casper, S. (2007), How Do Technology
Clusters Emerge and Become Sustainable?
Social Network Formation and Inter-firm
Mobility within Cluster, Research Policy
[4] De Bono, E. (2010), Lateral Thinking,
CurteaVeche, Bucharest
[5] Dingli, S. M. (2007), Creative Thinking, Malta
University Press, Malta
[6] Gallo C. (2011), Steve Jobs – innovation
Secrets, CurteaVeche, Bucharest
[7] Gnan, L., Hinna, A., Monteduro F., &Scarozza
D. (2013). Corporate governance and
management practices: Stakeholder
involvement, quality and sustainability tools
adoption. Journal of Management &
Governance, 17, 907-937.
[8] Gupta B., Dasgupta, S., & Gupta A. (2008).
Adoption of ICT in a government organization
in a developing country: An empirical study.
Journal of Strategic Information Systems, 17,
140-154.
[9] Lindqvist, G., Solvell O. (2011), Clusnet Final
Report. Organizing Cluster for Innovation,
Retrieved from www.clusnet.eu andhttp://www.businessregiongoteborg.com/search
result.4.10c0ef2104e6c91335800024.html?quer
y=growth&startnr=230&nrperpage=10
[10] Miller G. J., Brautigam D., Gerlach S. V.,
(2006) - Business Intelligence Competency
Centers - A Team Approach to Maximizing
Competitive Advantage, John Wiley & Sons,
Inc., New Jersey, 167.
[11] Muntean, M. I., Mircea, G., Bazavan, S.,
(2014), Reporting in a business intelligence
environment, Bucharest University of
Economics Studies Press, retrieved from
www.conferenceie.ase.ro, Romania.
[12] Peters, T. (2010), Innovation Circle, Publica,
Bucharest.
[13] Porter, M., Delgado, M., Stern, S. (2011),
Clusters, Convergence, and Economic
Performance, Journal of Economic Geography.
[14] Romanian Government, Impact Program 2006,
Retrieved fromhttp://www.fonduri-
ue.ro/res/filepicker_users/cd25a597fd-
62/bi/CIIS_Brosura_Nr.02_2012.pdf.
[15] Rosewell, B. (2011), Creative Clusters and the
Changing Economy, The Work Foundation,
London.
[16] Varney J. (2007) - Creativity – Meaning
Making Creative Thinking. Designing Future
Possibilities.
[17] Williams S., Williams N., (2007) The Profit
Impact of Business Intelligence, Morgan
Kaufmann Publishers, San Francisco, 2,3.
[18] Ziemba, E. &Ob??k, I. (2014). The survey of
information systems in public administration in
Poland. Interdisciplinary Journal of
Information, Knowledge, and Management, 9,
31-56. Retrieved fromhttp://www.ijikm.org/Volume9/IJIKMv9p031-
058Ziemba468.pdf
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
188
Figures
Fig 1. - What BI means in practice [17]
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
189
Figure 2 - Total reported waste in 2014 (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
189
Figure 2 - Total reported waste in 2014 (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
189
Figure 2 - Total reported waste in 2014 (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
190
Figure 3 - Other wastes unspecified (tons)
Figure 4 - waste preparation mixture before thermal processing (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
190
Figure 3 - Other wastes unspecified (tons)
Figure 4 - waste preparation mixture before thermal processing (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
190
Figure 3 - Other wastes unspecified (tons)
Figure 4 - waste preparation mixture before thermal processing (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
191
Figure 5 - Vegetable waste (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
191
Figure 5 - Vegetable waste (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
191
Figure 5 - Vegetable waste (tons)
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
192
doc_411917432.pdf
Integrating Business Intelligence In State Administrative Structures For Stimulating Innovative Clusters
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
183
Ioana COMSULEA
Cristina A. FLOREA
The Bucharest University of Economic Studies, Bucharest,
Romania
INTEGRATING BUSINESS
INTELLIGENCE IN STATE
ADMINISTRATIVE STRUCTURES
FOR STIMULATING INNOVATIVE
CLUSTERS
Case
study
Keywords
Businessintelligence
Knowledge management
Innovation
Clusters
JEL Classification
A11,H11, M16, M21, M48, O44, Q18, Q26, Q32
Abstract
Business intelligence and knowledge management seems to gain the attention of the society
regarding the benefits that brings to it when this two domains are considered as a whole. The
advantage of using business intelligence in order to take decisions and bring innovation to
the business, are convincing more and more entrepreneurs to implement this solution. The
challenge in managing and using the knowledge that the business intelligence offers to the
business, comes with the integration of the information with state administrative structures
datas that have to be available to business clusters in order to improve their decisional
process. In our paper, we demonstrate the benefits of using business intelligence in
Romanian state administrative structures underlying the way that this adoption would
support the activity of innovative and creative clusters.
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
184
Introduction
Innovation is the main catalizator of the progress,
and both are the key of economic and social
development. In the Information Age, the states
have to be efficient in order to develop themselves
and survive. Regardless of the nature of the
innovation (technological, commercial or strategic)
the scanning activity is to identify the way to reach
this major goal, both by the companies and public
authorities.
Also, while many organizations are still immersed
in the Information Age where the linear, process -
oriented work is being automated or shipped
overseas, another age is foreseeing. This is the
Integral Age,where the approach to productivity
have a focus on “redesign rather than fine-tuning,
on transformation rather than reformation or
renewal, and on open, flow-state dynamical
systems rather than closed-in, boxed-in, and rigid,
final-state models and methodologies”, as Beck D.
E. sustain in Human Capacities in the Integral Age.
This next phase for business is one that competes
on innovation.
Through it’s mechanism created to give whole
picture of the processes of an enterprise in order to
analyze them and take proper decisions, Business
Intelligence (BI) is the top-most priority of many
chief information officers as an instrument in
creating business effectiveness and innovation that
achieve their strategic initiatives. More than that,
there is a growing need among state administrative
structures around the world in order to revitalize
their activity and their delivery of service to
business and citizens.
On the other side, an important feature of
innovation is that this development catalyst is
increasingly organized under innovative clusters.
This because, this form of grouping under the same
umbrella of interconnected businesses, associated
institutions, suppliers, catalizators and other
stakeholders with common interests, is capable to
create a dynamic growth, with a greater impact in
the society, rather than an individual focused on
innovation. So in Romania, there are three main
innovative clusters that are meant to create value
into the society. Their activity have to be hardly
sustained from all the levels, because their impact
can be unexpectedly good.
In the next sessions, we present previous work on
this subject, with an overview on the benefits that
implementing BI in Romanian administrative
structures would bring for sustaining the activity of
innovative clusters and thus, the development of
the society. For argue our paper, we present a case
study based on data obtained from a BI tool, the
way they can be transformed into information for
giving valuable input to the innovative clusters and
also they can benefit from them to develop their
business. In the last part of the paper we bring
some concluding notes in order to resume the work.
Business Intelligence in State
Administrative Structures
Business Intelligence (BI) “combines products,
technology, and methods to organize key
information that management needs to improve
profit and performance” (Williams & Williams,
2007). For this, BI is composed by two key
elements that are business information and business
analyses considered in the context of business.
These, lead to decisions and actions of the business
that adopt them and conduct to an improved
business performance result. In other words, BI is
not a single product, a technology or a
methodology, it is a mechanism composed by these
elements in order to offer information assets to the
enterprise that make decisions to improve business
processes.
According to Muntean et al., (2014), Business
Intelligence approaches are subordinated to
Performance Management. In order to have
a successful BI, there must be assure a specific
framework based on technologies, tools and
systems. One of the most important factor that
influences BI is key performance indicator (KPI).
Business intelligence integrates business analysis,
companies reporting and performance
management.
For enterprises, the main goal is to increase
revenues and/or reduce costs, improving
performance and increasing profits. On the other
side, the public sector primary focus is service to
citizens, coping with budget constraints and using
resources wisely in support of the agency’s
mission. Also, in many countries there is a need to
revitalize state administrative structures to facilitate
customer centered, cost-efficient, and user-friendly
delivery of services to citizens and businesses
(Gnanet al., 2013; Gupta et al., 2008). Figure 1.
illustrate this concept.
In developed countries like Poland, business
intelligence is implemented on state administrative
structure, being present on all functional areas
(Ziemba&Ob??k,2014). Business intelligence is
improving the capacity of government to adapt to
market conditions and to be better prepared in this
smart environment.
In the last years, many countries around the
identified the need to revive the public
administrations to improve and facilitate their
services. For this, governments decided to
introduce innovation in their structures, processes
and services, also in their activity management. A
concluding example for this is Italy where
Information System Consortium Piemonte (CSI
Piemonte) has promoted innovation in public sector
since 1977 as a provider of BI and IT platforms. In
1980 they implemented SAS, a BI analysis tool, in
public administration. In this way, they built a
substantial information asset (850 databases, 500
Network Intelligence Studies
Volume II, Issue 2 (4), 2014
185
collections of information, about 20,000 tables)
which has been organized in sectoral data marts
including historical and integrated information
from different domains of activities like tourism,
health, agriculture, environment, cultural heritage,
demography, justice and others, in order to “to
support projects in a wide variety of areas” (Miller
et al., 2006).
In Romania, there are no public institutions that
implemented BI. Only few of them use reposts
implemented in BI by external providers, but the
level of extracting real information analyzing the
data, and integrating different domains in order to
create value to other institutions and businesses is
an unsatisfied need for our society and a real
opportunity for development.
Innovative Clusters
All around the world, the endogenous growth
sources are directed towards intellectual capital,
knowledge management and human creative
potential. In literature review is using a more
diversified terminology, which includes also
specific approaches of knowledge economy and the
last trends of creative economy and creative-
innovative clusters.
The business environment is adapting continuously,
creating the prerequisite to attract the intellectual
capital, in order to improve the creative-innovative
potential, especially in cluster, but also at regional
or sectoral level. On this line, smart and creative
cluster are a good example of stakeholders that
interact and create a network for enhance their
performance on short and long term. Clusters
support the start-up process and new business
ideas, which contribute to competitiveness
increasing.
In limited situations, sectoral clusters could help
businesses to develop, through: costs reduction,
innovation opportunities and efficient using of local
resources. The most important objective for cluster
implementation in business is to create and develop
on short and long term the competitive and
sustainable advantage, contributing in so to
competitiveness, productivity and profitability
increasing. Using the creative-innovative potential,
in the third stage of competitive development,
named by Michael Porter in the last Global Reports
for Competitiveness launched by Global
Competitiveness Forum, “innovation stage” in
innovative clusters could increase the number of
employees and could create new business
opportunities (2011). Michael Porter and his
followers as Michael Best are known because of his
concept of “clusters’ dynamics”, considers that
common use of knowledge, technologies, resources
and institutions, that could give a value added and
significant advantage special to the sectoral activity
of clusters. This fact is based on the
complementarity principle at cluster formation.
According to Romanian legislation (Impact
Program, 2006), clusters reflect a group of
manufacturers, users and beneficiaries, that are
reunite to the purpose of applying good practices
from European Union for the competitiveness
increasing.
Regarding international experience there is a large
diversity. Thus, regarding the density of clusters’
distribution, made by research institutes from USA,
it observed that the number and density of clusters
is different in USA than Europe. In European
Union prevails small clusters, less dense, relatively
dispersed. This fact could determine a reduction of
success rates associated to clusters.
The investigation made by now in literature review,
allows us to consider that creative, innovative and
smart clusters’ model appear to be the most better
developed in United Kingdom. Besides, Bridget
Rosewell (2011) identifies four principal domains
as center of innovation: creative industries, goods
and services based on diminished carbon
emissions, advanced manufactures services and
IT/technology services.
A similar model was designed in Romania in 2008,
when Minister of Economy started a campaign to
registered all clusters, formed a cluster association
and created a formal framework for clusters’
supervision. Nowadays this association held 31
clusters with theirs companies, stakeholders,
research institutes, academies, universities and
public institutions. United for the same objective,
clusters’ members are more performing and
competitive, at national and international level,
where are formed cooperation partnerships and
technologic transfer. The presence of catalysts,
even if there are expertise centers, consultants or
incubators, all of these help the information
transferring.
According to Clusters Associations from Romania,
the “Four Leaves Clover” modelis formed by
companies, research institutes and universities,
public institutions and catalysts, and has already
success. For instance:
· “Dacia-Renault Cluster” automotive industry,
with 31 members
· “Pro Wood Cluster”, furniture industry, 29
members.
In October 2012 at Bucharest had been place a
conference on “Innovation Cluster Days” , where it
were present cluster representatives, European
Commission members, World Bank members,
delegates of public institutions, universities and
research centers. The main objective was ideas and
experience changing between clusters.
In the paper of Steven Casper (2007) from Keck
Graduate Institute of Claremont was analyzing the
employees mobility and the implication on know-
how, knowledge transfer in order to stimulate
innovation. Also, he marked three important
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characteristics of technologic clusters: the network
effect, heterogeneity, market orientation.
The innovation report“Mosaic L3C” by Biggers et
al., in 2012, develop the idea of business incubator
that ensure an innovative framework based on ITC
applying. The relevant aspects are referring at
entrepreneurial support, technological support,
concentration on key sectors, international linkages
for clusters, competitive, creative and innovative
environment. Through cluster creation and
development, the ideas and experience changing,
stimulate the creativity of clusters (Varney, 2007;
Dingli, 2007).
In the paper “Steve Jobs – innovation Secrets”
(Gallo, 2011), it is presented the companies role in
other manner. The organizations must encourage
their employees to act like a entrepreneurs. This
companies affirmed Jobs,gave time to their
employees to follow their passions and also
encourage them to assume risks.
According to Edward de Bono (2010), the
innovations came from anticipative thinking,
because it represents the progress source. From the
same hypothesis starts Tom Peters (2010) who
consider innovations as a competitive advantage.
The challenges launched by Clusnet – Final Report
(Lindqvist, G. 2011,), are to reunite every
important domains in a synergetic and integrated
framework. The purpose of this action is to make
an attractive region, visible at international level.
Michael Porter et al. demonstrates in his paper
“Clusters, Convergence, and Economic
Performance” (2011), that cities based on industrial
clusters lead to new industries, because of the
region convergence. In doing so, Porter sustains
cluster formation.
Case Study
As shown in our paper, we consider the need of BI
implementation in our Public Sector, a valuable
source of generating information that can be wisely
used by innovation catalysts, represented in
Romania, mainly by the innovative clusters.
For this, we took in consideration the waste report
from the food area. This report contains data
collected this year, because the project of
implementing BI in environmental administration
started this year. For this reason, we assume that
data are incomplete, only 39% of the Romanian
districts reported data, and these can be
incomplete.Moreover, there are major
discrepancies between regions regarding their
development stage. The national policies for
development should sustain inter-regional
cooperation and permanent transfer of information
and technology, which facilitate thereduction of
differences between the stages of development.
From available data we observed that from the total
waste quantity reported 12% was removed, 2% was
stored and 86% was capitalized, as shown in Figure
2. This seems to be a positive image, but if we
extrapolate to the entire country considering our
available data, we would observe a percentage of
31% removed waste. More than that, stored waste
represent an important aspect for us, this meaning
that removed and stored waste can be capitalized
reused in other innovative businesses.
The public authorities could interfere and prevent
the risks of innovative clusters, by offering
stimulants and special taxation to thosecompanies
that invest recycling.
To provide a more concrete view, we considered
two categories of waste: other wastes unspecified,
which offer a positive image (Fig. 3) and waste
preparation mixture before thermal processing,
which offer a negative image (Fig. 4).
We choose these indicators mostly because they are
calculated for each region and it is more easily to
make comparisons between them. Another aspect is
their values. As the graphics show the indicator
“other wastes unspecified” is well capitalized.
In Figure 3, we can see that 99% of waste in the
category “other wastes unspecified” was
capitalized and only 1% being stored.The
proportion is in favor of the capitalization.
In Figure 4, we can see that total amount of waste
in the category “waste preparation mixture before
thermal processing” was removed, meaning that
this source of reutilization was untapped.
More exactly, companies did not invest in
capitalization and did not make any efforts to
stored this waste preparation mixture.
Even if we consider the image that category “other
wastes unspecified” offer to us, a positive one, we
can offer a counterexample observer on vegetable
waste. As shown in the following figure (Fig. 5)
92% of vegetable waste was capitalized and only
8% removed. But taking in consideration the way
of capitalizing, we observed that the entire amount
of capitalized waste was given to different salubrity
companies. This means that even the waste was
capitalized, this does not means that it was reused
to produce another product.
For this, we consider that encouraging the
extraction and correlation of different data, can
create important input for innovation, that the
agents that are interested in exploring new
opportunities for creating new products can benefit
from this and contribute to the develop of the
industry.
Conclusions
In order to improve the sustainability and increase
the productivity, governments and economic agents
should invest in resources’ wasting and sustain the
innovation.
Our paper stands for innovation in the Romanian
Administrative Structures through implementation
of Business Intelligence, in order to detect areas of
development and give the right input to sustain the
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Volume II, Issue 2 (4), 2014
187
activity of innovative clusters. In this way, the
enterprises that are included into these clusters, can
develop their activities, innovate them and drive
economic and social development.
Clusters sustain the development of its members,
contributing to diminishing the entrance costs, to
diminishing the transactional costs, stimulating
interaction and collaboration between companies,
identifying innovation and development
opportunities.
Moreover, companies could use local resources
with the purpose to develop itself more rapidly and
in an efficient and intelligent manner, for
maintaining the competitive advantage for long
run. Thus, through the changes in business
environment, in resources mobility, through
knowledge transfer, through synergies that exist
between industries and networks, innovation
contributes to the productivity increasing and
improving the quality of life.
Acknowledgments
This work was co-financed from the European
Social Fund through Sectorial Operational Program
Human Resources Development 2007-2013,
project POSDRU number 159/1.5/S/138907
“Excellence in scientific, interdisciplinary,
doctoral and postdoctoral research in economic,
social and medical fields – EXCELIS”.
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Figures
Fig 1. - What BI means in practice [17]
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Figure 2 - Total reported waste in 2014 (tons)
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Figure 2 - Total reported waste in 2014 (tons)
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Figure 2 - Total reported waste in 2014 (tons)
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Figure 3 - Other wastes unspecified (tons)
Figure 4 - waste preparation mixture before thermal processing (tons)
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Figure 3 - Other wastes unspecified (tons)
Figure 4 - waste preparation mixture before thermal processing (tons)
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Figure 3 - Other wastes unspecified (tons)
Figure 4 - waste preparation mixture before thermal processing (tons)
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Figure 5 - Vegetable waste (tons)
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Figure 5 - Vegetable waste (tons)
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Figure 5 - Vegetable waste (tons)
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