A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014

A Research Framework
For The Adoption Of
Business Intelligence By SMEs
Waranpong Boonsiritomachai
Principal supervisor : Professor Michael McGrath
Co-supervisor : Assoc. Professor Stephen Burgess
Victoria University, Melbourne
Date : 17 July 2014
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
The reasons why firms need to adopt BI
Definition of BI
Research questions
The process in developing this
research framework
Overview
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Competition
Product
flexibility
Demanding
customers
Highly
complex and
dynamic
environments
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
data
overload
challenges
International Data Corporation, 2012
90%
Unstructured
Data
48%
Digital Data
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
SWARE
2.9%
ICT
3.6%
BI
8.7%
What is BI?
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Business Intelligence (BI)
The capability of an enterprise to use its human
resources together with a broad category of
processes, applications and technologies for
accessing, collecting and analysing data in order
to generate actionable and competitive
information that can support its users to make
better decisions.
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
2,053 CIOs
36 industries
41 countries
BI
is a first priority
in technology
investment
Gartner Research, 2013
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Small and medium sized
enterprises (SMEs) have
lagged in BI uptake.

Wirtschaft, P, Schieder, C, Kurze, C,
Gluchowski, P & Bohringer, M 2010
Benefits and challenges of business intelligence adoption in small and medium-
sized enterprises, paper presented to 18th European Conference on Information
Systems, 7-9 June 2010, Pretoria, South Africa.
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
BI in SMEs
Flawed Decisions
instinctive
knowledge
inadequate
access to
information

loss of
productivity
less agility in the
market place
Hilgefort, I 2010, Inside SAP BusinessObjects Explorer, SAP Press,
Boston.
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
TODAY
BI more diverse, flexible, cheaper
and less complex.

SMEs need BI

LogicXML 2009, BI for small and mid-sized businesses, LogicXML,
<http://www.logixml.com/content/02_SMBMarket.pdf>.
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Research
questions

1. What is the state of BI
adoption in SMEs?

2. What are the enabling factors
affecting the adoption of BI
in SMEs?
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Developing the research
framework
1. Classify the SMEs to levels of BI
adoption

2. Determine the enabling factors affecting
BI adoption

A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
BI Maturity Model
No common classification
of BI level adoption among
researchers.

STEP 1: Classify SMEs to levels
of BI adoption
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
BI Maturity Model
BI Maturity
Model
Source Concentration Area
First level Second level Third level
IEM
SAS (2004)
Operate Consolidate Integrate
TDWI
Eckerson (2007)
Infant Child Teenager
BIDM
Sacu and Spruit
(2010)
Predefined
reporting
Department data
warehouse
Enterprise-wide
data warehouse
EBIMM
Chuch (2010)
Initial Repeatable Defined
Individual Department Enterprise
Source: Adopted from SAS (2004), Eckerson (2007), Sacu and Spruit (2010) and Chuah (2010)
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Information Evolution Model (IEM)
Four different dimensions
Human
Capital
Infrastructure
Knowledge
Processes
Culture
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Information Evolution Model (IEM)
five levels of
Information
Evolution
Optimize
Integrate
Consolidate
Operate
Innovate
Human Capital Infrastructure
Knowledge
Processes
Culture
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
STEP 2: Determine the enabling factors
affecting BI adoption
1. Diffusion of Innovation theory (DOI) by Rogers
(1983,1995,2003)
2. Technology-Organisation-Environment (TOE)
framework by Tornatzky and Fleischer (1990)
3. IS adoption model for small business by Thong
(1999)

Theoretical frameworks used

A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Innovativeness
IT background
(knowledge)
Competitive
pressure
Vendor
selection
Size
Age
Absorptive
capacity
Resource
availability
Relative
advantage
Complexity
Compatibility
Trialability
Observability
Enabling factors affecting BI adoption
Organisational
characteristics
Technological
characteristics
Environmental
characteristics
Owner-
manager
characteristics
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
BI Adoption in SMEs
The Conceptual Framework
Organisational
characteristics
Technological
characteristics
Environmental
characteristics
Owner-
manager
characteristics
Optimize
Integrate
Consolidate
Operate
Innovate
BI Adoption in SMEs
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
The proposed BI adoption framework is based
on literature review, thus it is open and requires
testing to determine its relevancy and validity in
the practical environment.
Conclusion and
Future research directions
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014
Prospective outcomes are expected to provide a
clearer understanding of the BI adoption rates
which government agencies and IT providers can
design policies and tailor their products in
accelerating BI diffusion among SMEs.
Conclusion and
Future research directions
A Research Framework For The Adoption Of Business Intelligence By SMEs / 2014 Waranpong Boonsiritomachai, SEAANZ 2014

Contact Details
Waranpong Boonsiritomachai
Phone 0430 611 580
Email
waranpong.boonsiritomachai@live.vu.edu.au
A Research Framework
For The Adoption Of
Business Intelligence By SMEs

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