A Study on the Drivers and Barriers for the Business Intelligence Adoption
By
Author
Presented To
Department of Transportation
ABSTRACT
In Malaysia, overwhelming of data and information is enforcing the adoption of
Business Intelligence (BI) to support decision making in order to achieve
competitive advantage. In the extent of BI adoption, there are many factors
influencing the BI implementation success which are important information to the
enterprises. This study seeks to identify the common drivers and barriers for BI
adoption as a guideline prior to implement BI in an enterprise. In this study, the
model of technologies-organisation-environment (TOE) was adapted to delineate
the drivers and barriers of BI adoption where the measurement of BI adoption was
based on its core functionalities such as reporting, statistical, decision making,
forecasting and KPI. The study methodology was then extended through the
quantitative method by designed a questionnaire and distributed to respondents
who working in Malaysia in order to collect primary data for analysis.
Subsequently, the data collected was analysed with selected multivariate data
technique to identify the significant BI factors against the adoption. The research
reveals only minor drivers and barriers have significant relationship with BI
functions adoption based on analysed results where most of the drivers are derived
from organisation compare to technologies and environment.
TABLE OF CONTENTS
Page
Copyright Page - - - - - - - - - - - - - - - - - - iii
Declaration……………………………………………………………………… iv
Acknowledgments…………………………………………………………………v
Table of Contents…………………………………………………………………vi
List of Tables…………………………………………………………………… - xi
List of Figures………………………………………………………………… - xiv
Abstract………………………………………………………………………… xv
CHAPTER 1 1
INTRODUCTION - - - - - - - - - - - - - - - - - 1
11 Background of the Research - - - - - - - - - - 1
12 Problem Statement - - - - - - - - - - - - - 6
13 Research Questions - - - - - - - - - - - - 7
14 Research Objectives - - - - - - - - - - - - 8
15 Justification for Research - - - - - - - - - - - 8
16 Outline of the Thesis - - - - - - - - - - - - 10
CHAPTER 2 LITERATURE REVIEW - - - - - - - - - - 11
21 IT in Business - - - - - - - - - - - - - - 11
22 IT Investment - - - - - - - - - - - - - - 13
23 Application System Trends - - - - - - - - - - 14
24 Business Decision Making - - - - - - - - - - 15
25 Advanced Analytical Techniques - - - - - - - - 17
26 Business Intelligence (BI) - - - - - - - - - - 18
261 Decision Support System - - - - - - - - 18
262 Business Intelligence - - - - - - - - - 20
263 The Benefits of BI - - - - - - - - - - 23
264 Challenges for Advanced Analytics Technologies / BI
adoption - - - - - - - - - - - - - 24
265 Drivers - - - - - - - - - - - - - 26
266 Barriers - - - - - - - - - - - - - 27
27 Theoretical and Research Framework - - - - - - - 28
271 Technological - - - - - - - - - - - 30
272 Organisational - - - - - - - - - - - 31
273 Environmental - - - - - - - - - - - 31
28 Empirical Studies - - - - - - - - - - - - - 32
29 Hypotheses Formulation - - - - - - - - - - - 33
291 BI Reporting Adoption (Hypothesis 1) - - - - 33
292 BI Statistical Adoption (Hypothesis 2) - - - - 33
293 BI Decision Making Adoption (Hypothesis 3) - - 33
294 BI Forecasting Adoption (Hypothesis 4) - - - - 33
295 BI KPI Adoption (Hypothesis 5) - - - - - - 34
CHAPTER 3 RESEARCH METHODOLOGY - - - - - - - - 35
31 Introduction - - - - - - - - - - - - - - 35
311 Research Design - - - - - - - - - - 35
312 Sampling Approach - - - - - - - - - 36
32 Primary Data Collection Process - - - - - - - - 38
33 Measurement in Research - - - - - - - - - - 38
34 Questionnaire Design - - - - - - - - - - - - 40
341 Demographics - - - - - - - - - - - 40
342 BI Adoption Level - - - - - - - - - - 41
343 Drivers and Barriers to BI Adoption - - - - - 41
35 Statistical Testing - - - - - - - - - - - - - 46
351 Reliability Analysis - - - - - - - - - 46
352 Descriptive Analysis - - - - - - - - - 48
353 Mean & Standard Deviation - - - - - - - 48
354 Regression Analysis - - - - - - - - - 48
355 One-way ANOVA Analysis - - - - - - - 49
CHAPTER 4 DATA ANALYSIS AND RESEARCH RESULT - - - - 50
41 Introduction - - - - - - - - - - - - - - 50
42 Descriptive Analysis - - - - - - - - - - - - 50
421 Demographic Profile - - - - - - - - - 50
422 BI Adoption Level in Malaysia - - - - - - 54
423 IT-Business Initiatives - - - - - - - - - 55
424 Mean and Standard Deviation Scoring for BI Drivers56
425 Mean and Standard Deviation Scoring for BI Barriers 58
43 Regression Analysis for BI Drivers - - - - - - - - 59
431 Regression Analysis on BI drivers against Reporting
Adoption - - - - - - - - - - - - 60
432 Regression Analysis on BI drivers against Statistical
Adoption - - - - - - - - - - - - 62
433 Regression Analysis on BI drivers against Decision
Making Adoption - - - - - - - - - - 65
434 Regression Analysis on BI drivers against Forecasting
Adoption - - - - - - - - - - - - 68
435 Regression Analysis on BI drivers against KPI
Adoption - - - - - - - - - - - - 74
44 Regression Analysis for BI Barriers - - - - - - - - 76
441 Regression Analysis on BI barriers against Reporting
Adoption - - - - - - - - - - - - 77
442 Regression Analysis on BI barriers against Statistical
Adoption - - - - - - - - - - - - 79
443 Regression Analysis on BI barriers against Decision
Making Adoption - - - - - - - - - - 81
444 Regression Analysis on BI barriers against Forecasting
Adoption - - - - - - - - - - - - 83
445 Regression Analysis on BI barriers against KPI
Adoption - - - - - - - - - - - - 85
45 Summary of Regression Analysis Result - - - - - - 87
46 One-way ANOVA Analysis for BI drivers - - - - - - 88
461 BI Reporting Adoption - - - - - - - - - 89
462 BI Statistical Adoption - - - - - - - - - 89
463 BI Decision Making Adoption - - - - - - - 90
464 BI Forecasting Adoption - - - - - - - - 91
465 BI KPI Adoption - - - - - - - - - - 94
47 One-way ANOVA Analysis for BI barriers - - - - - - 94
471 BI Statistical Adoption - - - - - - - - - 94
472 BI KPI Adoption - - - - - - - - - - 95
48 Summary of One-way ANOVA Analysis Result - - - - 96
CHAPTER 5 DISCUSSION AND CONCLUSION - - - - - - - 97
51 Introduction - - - - - - - - - - - - - - 97
52 Discussion of Findings - - - - - - - - - - - 97
521 Discussion on BI Reporting Adoption (Hypothesis 1) 98
522 Discussion on BI Statistical Adoption (Hypothesis 2)99
523 Discussion on BI Decision Making Adoption
(Hypothesis 3) - - - - - - - - - - - 100
524 Discussion on BI Forecasting Adoption (Hypothesis 4)
- - - - - - - - - - - - - - - 101
525 Discussion on BI KPI Adoption (Hypothesis 5) - 103
53 Overall Conclusions - - - - - - - - - - - - 104
54 Implications of the Study - - - - - - - - - - 106
55 Limitations and Recommendations - - - - - - - - 107
REFERENCES - - - - - - - - - - - - - - - - - 109
APPENDIX A: SURVEY QUESTIONNAIRE - - - - - - - - - 116
CHAPTER 1
INTRODUCTION
This chapter begins with an overview, historical background and development of
Information Technology (IT) and Business Intelligence (BI) in Malaysia Given
the growth of the BI importance, the significant drivers and barriers towards BI
adoption critically necessitate to be determined This research project provided an
opportunity to analyse the BI adoption level in Malaysia and identify the
respective drivers and barriers at the same time to benefit the corporate in making
decision for BI adoption Prior to research literature and analysis, the research
questions, justification, scope and overall outline were formulated in the following
sections
11 Background of the Research
In highly competitive markets, successful companies are differentiated by their
ability to make accurate, timely and effective decisions in addressing the
customers’ preferences and priorities (Bose, 2009) Increasingly, intensity of
Information Technology (IT) usage was witnessed over the needs of business
(Kursan & Mihic, 2010) In order to gain competitive advantage over competitors,
companies have stated the information systems investment to renew and improve
business processes (Rajteric, 2010)
According to Organisation for Economic Co-operation and Development [OECD]
(2010), the Information Communication Technology (ICT) investment was
increasing significantly from year 1980 to 2009 internationally The incremental trends in ICT investment have shown in Figure 1 for five (5) countries, namely
Denmark, Japan, Korea, United Kingdom and United States These countries had
scored the high increment from the range of 80% to 201% where United Kingdom
owned the highest (201%) and Japan has the lowest (80%)
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