Check out Madan Sheina from ovum - 'the commercial impact of technology' points a way into a new market: BI and LI.  Key points include: LI is not GIS - GIS is the science, necessary for Location Intelligence, but GIS is an engine...  LI is for suport to decisions.

Madan seems to equate LI with simply mapping data - points, so to speak, on a background from Virtual Earth or Google Earth.  This is a great start - but there is more to LI than simply putting points on a map.  If so much BI data already has the signal of location (and this is true!) what LI also brings is the capacity to create 'new' data from two existing mapped layers - this is the Geo-Analytics part of LI (yup, the engine is GIS). 

Geo-analytics enables to not only view my stores by key demographic but to actually calculate how many of that demographic are within x distance, for example.  This now is quantitative information enabling me to further understand my sales...  Add to this my competitors and suddenly assessment of performance includes significant insight into each market.

So yes, LI is a wonderful addition to your BI capacity... But teamwork also implies that the contribution is part of a bigger effort.  Unlike classic GIS investments (GIS software + heavy hardware + THE IT Technician to run it) where the GIS is the center of the universe and the output 'a map', LI offers an interactive experience accross the value chain - from sales and marketing people to analysts and even R&D.  Madan certainly made this point correctly: the key is teamwork, part of the daily work-flow; affordable and on everyone's desktop.