Title: Natural intelligence applications for business intelligence in online and catalogue retailing firms: a case study

Authors: Dien D. Phan; Mark B. Schmidt; Lawrence Roth

Addresses: Information Systems Department, St. Cloud State University, St. Cloud, MN 56301, USA. ' Information Systems Department, St. Cloud State University, St. Cloud, MN 56301, USA. ' Management Department, St. Cloud State University, St. Cloud, MN 56301, USA

Abstract: The rapid proliferation of business intelligence (BI) applications and customer relationship management (CRM) over the past decades has created many opportunities for natural intelligence theory to be used in business applications. The theory of natural intelligence can help to explain some of the strategies in the e-commerce arena. Indeed, companies have been using herd behaviour and swarm applications of natural intelligence to solve complex business operation problems. The sudden and unexpected failure and liquidation of one of the largest catalogue sales companies in the USA presents an opportunity for a unique case study for natural intelligence (NI) applications in retailing. This paper uses the experiences of three separate Fingerhut Companies (now Bluestem Brands) to validate the NI and BI concepts. For nearly two decades the authors have had the rare opportunity to interview executives and other representatives of critical members of the Fingerhut community. The paper ends with lessons learned and discussions of new insights.

Keywords: herd behaviour; natural intelligence; business intelligence; swarm theory; swarm intelligence; collective behaviour; decentralised systems; self-organised systems; online retailing; catalogue retailing; electronic retailing; e-retailing; internet; world wide web; customer relationship management; CRM; business applications; e-commerce; electronic commerce; swarm applications; complex problems; business operations; company failures; company liquidations; United States; USA; Fingerhut Direct Marketing; Federated Direct; Federated Department Stores; FAC Acquisitions; Bluestem Brands; Petters Group; information systems; change management.

DOI: 10.1504/IJISCM.2012.050346

International Journal of Information Systems and Change Management, 2012 Vol.6 No.1, pp.68 - 83

Received: 18 Jul 2012
Accepted: 21 Aug 2012
Published online: 16 Aug 2014 *

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