Business Intelligence Implementation in SME

SegmentNavin Shukla – 2013N05

Prasanta Pattnaik – 2013N09Rushikesh Shah – 2013N12

Executive Summary

Leveraging information is a key success factor for companies.

Over the last two decades Business Intelligence (BI) has evolved

to become a foundational cornerstone of enterprise decision

support. However prior research carried by many organisations

shows that SMEs lag behind in the adoption of BI.

In this study we present the benefits of Business Intelligence (BI)

and challenges in the process of BI implementation in SME sector.

Results can create value for enterprises those plan to implement

a BI solution, BI consultants and BI solution suppliers.

Introduction to SME Segment What is Business Intelligence (BI) Adoption of BI Benefits of BI Challenges in Implementation of BI Case Study Future

Keywords Used› SME - Small and Medium-sized Enterprises› BI - Business Intelligence

What We’ll Cover Today

Introduction to SME Segment SME sector of India is considered as the backbone of economy contributing:

› 45% of the industrial output,

› 40% of India’s exports,

› employing 60 million people,

› create 1.3 million jobs every year

› produce more than 8000 quality products for the Indian and international markets.

We have approximately 30 million SMEs in India, 12 million people expected to join the workforce in next 3

years and the sector growing at a rate of 8% per year,

Government of India is taking different measures so as to increase their competitiveness in the international

market.Manufacturing Enterprises – Investment in Plant & Machinery

Description INR(₹) USD($) Micro Enterprises Upto Rs. 25 Lakh Upto $ 62,500

Small Enterprises Rs. 25 Lakh - Rs. 5 Cr $ 62,500 - $ 1.25 million Medium Enterprises Rs. 5 Cr - Rs. 10 Cr $ 1.25 million - $ 2.5 million

Service Enterprises – Investment in Equipments Description INR(₹) USD($) Micro Enterprises Upto Rs. 10 Lakh Upto $ 25,000 Small Enterprises Rs. 10 Lakh - Rs. 2 Cr $ 25,000 - $ 0.5 million Medium Enterprises Rs. 2 Cr - Rs. 5 Cr $ 0.5 million - $ 1.5 million

Note: The amount of investment does not include their original cost excluding land, building and items specified Under Section 7 of the Micro, Small and Medium Enterprises Development Act, 2006

Introduction to BI Business Intelligence is a set of processes and methodologies which

helps to obtain crucial information to improve strategic decision making and hence it plays an important role in current decision support system.

Due to the complexity and high cost of implantation and maintenance of BI solutions, the technology itself is used preferably by large enterprises.

As SMEs play a important role in the global economy, they could drive benefit with proper utilization of BI.

Improvements in Data Support› BI implementation leads to ease of

access to information.› Increase employee productivity.› Streamlined workflow and process

Improvement in Decision Support› BI improves business decision through

analysis on current and historical data. › Deeper insights into data.› Better customer service› Fraud detection and prevention

Benefits of BI

Though the market of BI seems growing, there are several issues one has to consider when implementing BI system in the SME segment. Some of these are:

Limited IT Resources: Most of the SMEs don’t have a in-house IT team or trained personnel to work with BI systems, so they have to rely on third parties to help and this adds additional cost.

Lack of Top Management Commitment to Projects

Awareness: SMEs does have low level of awareness about BI vendors, applications and products. Most of the time they don’t even know what BI system are and what it can do for the business.

Perception: People in SME sector have a perception that BI is only for large enterprises mainly because of high cost of acquisition, implementation, maintenance and complexity.

Implementation Approach:

Cost: SMEs have less capital then their large counterparts.

Security: Data security

Challenges in Implementation

Adoption of BI

Fig 1: Top challenges that drives SMEs to invest in BI & analytical technology.

Fig 2: The emergence of SaaS & On-Demand BI has affected the deployment of BI among SMEs.

Fig 4: Technology wise adoption by company size

Fig 3: Top departments driving the need for BI

About SMEs- http://www.eisbc.org/Definition_of_Indian_SMEs.aspx

ERP Implementation in Indian SMEs: Issues and Challenges, P. T. Kale, S. S. Banwait and S. C. Laroiya - http://innovation.gov.in/innovation/inntoolkit/Innovation%20Management/Case%20Studies/ERP.pdf

Benefits and challenges of Business Intelligence adoption in small and medium-sized enterprises, 18th European Conference on Information Systems, International Journal

Benefits of Business Intelligence: Smart Companies in the 21st Century: The Secrets to Creating Successful Business Intelligence Solutions - http://tdwi.org/research/2003/07/exective-summary-smart-companies-in-the-21st-century-the-secrets-to-creating-successful-business-int.aspx

References

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