Organizational Intelligence (OI) is the capability of an organization to comprehend and conclude knowledge relevant to its business purpose. In other words, it is the intellectual capacity of entire organizations. With relevant organizational intelligence comes great potential value for companies and therefore organizations find study where their strengths and weaknesses lie in responding to change and complexity. Organizational Intelligence embraces both knowledge management and organizational learning, as it is the application of knowledge management concepts to a business environment, additionally including learning mechanisms, comprehension models and business value network models, such as the balanced scorecard concept. Organizational Intelligence consists of the ability to make sense of complex situations and act effectively, to interpret and act upon relevant events and signals in the environment. It also includes the ability to develop, share and use knowledge relevant to its business purpose as well as the ability to reflect and learn from experience
While organizations in the past have been viewed as compilations of tasks, products, employees, profit centers and processes, today they are seen as intelligent systems that are designed to manage knowledge. Scholars have shown that organizations engage in learning processes using tacit forms of intuitive knowledge, hard data stored in computer networks and information gleaned from the environment, all of which are used to make sensible decisions. Because this complex process involves large numbers of people interacting with diverse information systems, organizational intelligence is more than the aggregate intelligence of organizational members; it is the intelligence of the organization itself as a larger system