Cloud Business Intelligence in SMEs
IS 4030 - Business Intelligence
University of Cincinnati
Abstract
The paper focuses on Cloud business intelligence as applied to small and medium enterprises.
After an examination of the definition and basic terms used in cloud business intelligence, the
paper contains a literature review on its application in SMEs. It was found that Cloud BI leads
to cost reduction, and enhances flexibility and management of data.On the other hand, it
requires investment in training and may lead to errors in implementation. A case study of the
use of Cloud BI was done as seen through prominent SMEs. Lastly, a discussion of the need to
implement Cloud BI followed, and it was recommended that SMEs should adopt the
technology for greater efficiency.
Introduction
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
Cloud business intelligence may be defined as a software platform in which a series of users
are hosted on a cloud. Firms do not need to invest in software or hardware when using Cloud
Business Intelligence. Furthermore, all business intelligence projects can be operated and run
at the same platform.Custom applications can also be done in order to meet the needs of an
organisation. Alternatively, companies may choose to link their applications to the cloud.
Through Cloud BI, firms may also access industry-level data concerning their respective
competitors.
An organisation can carry out a range of activities using this approach, some of which include:
storage and networking, analytic solutions, normalisations and collection of components for
analytics (SAP AG 2009).
Not all organisations may be at a stage where they need Cloud BI. However, it is necessary to
take it up when one wants to get rid of all the complexities of permanent solutions. In certain
circumstances, one’s IT resources may not be sufficient to deliver results, so Cloud BI can
come in handy. If flexibility is a necessity within an organisation, then Cloud BI may prove to
be helpful.Some organisations have massive usage levels while others handle large volumes of
data. When such characteristic exist, then the most effective way of dealing with one’s needs
is through this mode of technology. At the end of the day, a business that succeeds is one that
uses a well-integrated solution that can solve real problems in the organisation (Pirttimaki
2007).Digital data is growing exponentially and many firms are open to new computing trends.
A survey carried out by a US-based research organisation called IDC revealed that about 50%
of the interviewees were willing to take on Cloud computing for their business intelligence
needs in 2011. A further 70% said they would use the cloud for private use. Given these
findings, it is likely that the number of Cloud BI users will increase with time (Turban et al.
2011).
Businesses use cloud business intelligence in order to meet three specific needs. The first is
horizontal business intelligence. Here, an organisation will depend on its traditional database
as the source of its data management system. This means that internal analysis and reporting
of data will take place within that premises.
Alternatively, the technology may be used as an application framework in which integrators
provide customer oriented solutions to those who require them speedily. The technology may
be employed as a template for analysis and reporters. In this case, the Cloud system will possess
components that can be used severally.
They usually depend on the domain or function attached to them. Additionally, the applications
can be used more than once but ought to be reassembled by people interested in using them.
Lastly, Cloud BI may be employed as a development platform. Here, companies will allow
others to solve their problems through the use of data analysis of certain issues.
For instance it may be supply chain analytics, customer relationship management analytics or
even financial analytics. The IT team that specialises in this process would need to build
software-as-a-service architecture in order to add it to cloud infrastructure. It is likely that the
applications platforms would solve problems for consumers without having to customise them
extensively (Kinman & Duan 2000).
Literature review
Users of cloud business intelligence may fall under three major categories: small to medium
enterprises (SMEs), large organisations and systems integrators. Although the focus of this
paper is on SMEs, it is still essential to understand what the other groups entail. SMEs would
utilise Cloud BI for horizontal purposes (as explained in the introduction above).
This means that they will use it for on-demand services where they pay for services as they go.
If an SME finds the right platform, then it can enjoy the benefits of a low-cost and internally
oriented business intelligence solution.On the other hand, if an SME happens to be a developer,
then it may use the Cloud BI for more than just horizontal applications. The organisations may
opt to think of it as a development platform. This could provide them with high levels of
affordability. Some of them may choose this business intelligence for the speed and value
obtained.
Large enterprises are the second category of Cloud BI users. These companies may use the
technology for horizontal applications. Consequently, they can get the benefit of protecting
their environment from irregularities by taking project experimentation to the cloud. Large
organisations always have operation systems that run continuously and do not entertain
interruption (Burns 2007).This means that external analytics applications would provide them
with the opportunity to engage in risky or new endeavours without having to compromise
operations. The speed and low cost of Cloud business intelligence would eliminate the need
for interruption of normal operational processes hence ensuring seamless production.
The third category of users consists of systems integrators. These are individuals who use cloud
computing for the purpose of an application framework. They aim at offering business
intelligence solutions to customers with varying needs (Ivanova 2012). Members of this group
can particularly benefit from cloud BI because they can easily customise applications to meet
certain needs.
The process is inexpensive and fast. Furthermore, they can integrate various data sources or
integrate it into a data warehouse. The scalability and efficiency of the cloud is invaluable to
systems integrators.
Even though cloud computing was initially presumed to benefit large multinationals in the past,
SMEs still need cloud BI for a number of reasons. Several SMEs are embracing the technology
and using it to boost their returns. Almost all types of businesses are represented; some of them
come from the financial sector, others are in manufacturing and retail. These organisations use
the platform owing to a number of advantages.
The first is that it allows for faster deployment or speed. Small and relatively new companies
are under intense pressure to stay profitable. This means that if new technology is adopted, it
needs to provide benefits as soon as possible. Cloud business Intelligence allows SMEs to enjoy
the benefits of the process in a short amount of time.
It is easy to streamline internal processes like marketing, human resources, supply chain
management, and finance once a company embraces the technology. In the past, this translated
into greater returns and a competitive edge for the small or medium enterprise.Perhaps one of
the major reasons why SMEs use Cloud BI is the low cost of the technology. Most of these
organisations operate under low budgets that require value maximisation for tangible returns.
A number of such businesses cannot afford conventional software solutions, yet they still have
needs that must be met through BI technology.
It is a known fact that business intelligence architecture can be quite cumbersome for firms to
implement. Efforts that are based on warehousing are particularly difficult to deal with. SMEs
are increasingly handling large volumes of data. If they used conventional BI, they would need
to hire professionals who often charge exorbitant fees.
However, Cloud providers can handle the availability and hiring of staff more efficiently than
SMEs. It makes sense to deploy those activities to people who can easily understand them
(Disterer & Fink 2006). Cloud BI companies already have data scientists and other
professionals who are well versed with management of large amounts of data.
Consequently, the Cloud frees up more finances for SMEs to use on critical aspects of business.
When looking at the cost of a business intelligence solution, one must consider the total cost
of ownership. This covers the amount of money that a firm must invest in so as to implement
it.
In the past, this involved all the expenses entailed in the purchase of the license for the software
and license associated with running it. Furthermore, the total cost of ownership also involved
the integration of data. If it was difficult for companies to access this data, then they needed to
pay a lot more for the BI solution.
However, this is no longer true for organisations as most of them have embraced the benefits
of cloud computing. BI costs were also relatively high because expenses depended on the
processes related to the technology. Total cost of ownership would increase whenever new
technological processes needed to be developed (Raymond & Bergeron 2002).
Cloud BI dramatically altered this expense because it was no longer necessary to concern
oneself with the processes behind a technology. Costs have also changed because it takes less
time to develop a workable application on the cloud. The more time a company spends on
working on these issues, the higher the amount of financing they need in order to handle these
projects.
SMEs who adopt this technology also enjoy the benefit of data management on their behalf.
Small businesses can find it painstaking to maintain the hardware that is required for data
maintenance. Further, they need to invest in back up systems that can overwhelm them. The
cloud option allows them to grow their businesses and deal with security issues that may
otherwise have been ignored if nothing was done about them.
Companies can thus free up their time to dwell on those aspects that will grow their businesses.
Traditional business intelligence used to challenge most organisations because it was not
available to non technical workers (Van Hoesel & Gibcus 2008). However, the new wave of BI
through the cloud has changed this trend because most individuals fully understand it as they
utilise it.If small and medium enterprises solely focused on maintaining their on-premise
databases, then they would have a difficult time when doing data recovery. Cloud BI enables
firms to enjoy the benefit of recovering their data in the event that a disaster occurs in their
premises. This minimises the amount of downtime consumed as well as the possibility of
continuity whenever such events arise (Watson & Wixom 2010).
Conventional software solutions would need to be replaced in the event that a small or medium
enterprise needs to grow. Consequently, this would involve a lot of time and resources that the
company may not have. However, Cloud BI provides easy scalability and flexibility. The
number of users in a small business can increase but the software employed does not have to
be replaced if it is cloud-based.
All the organisation has to do is to upgrade its functions and continue focusing on its core
activities. Furthermore, when data sources change, then a company would easily incorporate
those alterations. SMEs often need to experiment or carry out trial runs; these can be effectively
done through the use of Cloud BIs. Many of them may also need to widen their user base and
this is easily handled on the cloud.
In the past, business intelligence was quite restricting to small and medium firms because most
of them could not alter its structure within a set time. Additionally, it took those organisations
a lot of time to implement the solution.
Most SMEs required a period of 6 months to work on a BI structure, yet that would be too long
for most of them. This made it quite frustrating because business needs are quite dynamic. The
problem of inflexibility does not bother most cloud users.
Regardless of all the above-mentioned advantages, cloud based computing does have its
disadvantages. First, initial capital investments may be low, but as a company’s systems begin
to grown, it may have to pay more in terms of subscription costs. Therefore, the long term cost
or sustainability of such a solution is slightly questionable.
When thinking about adopting certain types of technology, companies have to incorporate their
future needs. If these expenses will be too much, then the organisation ought to think about
other options. This factor may prevent some SMEs from fully adopting the technology
(Hostmann 2009).Cloud computing, by its very nature, does not allow for a lot of
customisation. SMEs are organisations that require such a feature on a regular basis. Therefore,
the company may find that their cloud cannot meet their business intelligence needs on
occasion. It is a given fact that an SME may require some level of expansion or change in the
business intelligence solution after every six months. However, this time span may be too short
for cloud providers.
Although it has been stated earlier that cloud BI allows firms to secure their data; most
organisations prefer to do their own protection. Placement of data security needs in the hands
of a third party may not be an acceptable fact for some companies that prefer to remain in
control (Chaudhury & Bharati 2006).
In fact, several SMEs are reluctant to adopt this technology because they object to the
availability of their data in another party’s database. Cases of mismanagement of information
among some unethical cloud providers have also been noted. Although these situations may
not be common, it is sometimes possible for some unethical staff within a certain cloud
provider’s firm to sell crucial information to competitors.
Alternatively, some marketers may approach cloud company representatives for access to
demographic information about the firm’s users. Although providers are required to protect
their consumer’s information, it is sometimes possible for some staff members to engage in
illegal activities that the provider has no idea about.
Evidence: case study
The medium enterprise chosen for analysis is known as Biobest. It is based in Belgium but
does business in over fifty countries around the world. Biobest was started by Roland Jonghe
who ran it as a family-owned business for over two decades.
It specialises in the production of bumblebees for agricultural or environmental purposes. The
bees lead to pollination and control of unwanted pests such as mites. Currently, the firm boasts
of making approximately 20 million Euros in turnover per year.
Before adopting cloud BI as a technological solution, the company encountered several
problems along the way. First, it had an enterprise resource planning system (ERP) that was
not standardised. This was particularly troubling because the organisation operated in several
countries around the world, such as Mexico, Spain, Canada, France and Turkey.
They had adopted a business intelligence solution known as Microsoft Navision ERP, but this
had not spread to all parts of the organisation. Furthermore, there were challenges with business
budgeting as it only relied on Excel. Before thinking about a new method for handling their BI
problem, the company needed to instate strong security measures.
The firm wanted to ensure that all the distributors accessed their own information without
peeking into other people’s sources. At the time, business forecasting was done on Excel. This
implied that the company had to spend a lot of time when reporting its information. As if that
was not enough, the reporting process was haphazard and poorly coordinated.
With regard to financial management of their business, the company had issues with its
accounting personnel; few of them were well connected to the consumer. This implies that they
could not relate to their customers or provide commercially viable solutions. The company also
suffered from varied interpretations of facts as each distributor or department had their own
understanding of what was true on not.
Uncertainties existed in the nature of information used; the correctness of figures as well as the
data quality within the ERP solution that they had adopted was doubtful. There were no
transparent definitions for issues and only a small portion of the firm’s budget was allocated to
information technology solutions (Microsoft 2012).
In order to deal with all the above challenges, Biobest approached a company called elementary
61 which had a lot of experience in offering cloud BI solutions for small and medium sized
enterprises. The major goals of their business solutions were to make a correct project scope,
develop a thorough requirements analysis, engage in data modelling and analyse data.
The solution also involved a definition of reports and structure for the reports. At the time of
the project implementation, the concerned company had no experience with the use of IT
solutions. It was essential for the cloud provider to guide them throughout the entire process so
as to minimise any possible complications.Their solution entailed a two-layered approach in
which data warehousing took place. It also covered an error tracking system that was
automated. It should be noted that the reporting solution would be located in the cloud.
When conducting this process, the firm used Microsoft SQL Azure for its database and
Microsoft SQL for integration of server services. Additionally, the process also involved the
adoption of Microsoft SQL Azure reporting.In the implementation of the project, the Cloud
provider company (Element 61) was responsible for the definition of a roadmap for its own BI
systems. It also carried out an analysis of the requirements needed by the company and did all
project management issues related with it. They defined the architecture involved in the
business solution.
After definitions of goals were done, the provider then defined all the architecture required for
the process and used its Microsoft experts in order install components in their structure. It then
designed and built the system and coached Biobest on how they would use the infrastructure
(Microsoft 2012).
After completion of the project, the company can now boast of a number of benefits. First, the
problem of disintegrated data has been eliminated. Now the company stores information in one
central location regardless of where it comes from. This implies that it easily turns the data into
valuable information. Members of Biobest can also access information through reports
regardless of their status in the company.
This has challenged the way the company understands their customers or the way it handles
business. Additionally, now Biobest can boast of the ease of information sharing across all the
functions in the entity.
Managers located in various segments can easily understand customer needs since they now
depend on accurate figures. Lastly, the company’s sales force now has a comprehensive view
of its clients and has adopted a multinational dimension of the same.
Discussion
The case is strong for adoption of Cloud BI for SMEs. First, these organisations can reduce the
cost of their information technology systems through Cloud BI. They can also enjoy great
mobility and flexibility. In addition, they do not need to worry about data management as
another company will do this for them.
Issues of data recovery can be easily streamlined through Cloud BI. Companies can therefore
free up their resources and time to deal with the most relevant or critical activities. Nonetheless,
long term concerns about costs are still a major problem and so are security issues. Prior to
adoption of Cloud BI, SMEs need to weigh the cost implications of investment as well as
maintenance costs (Pervan & Arnott 2008).
If customisations are not excessive, then the SME needs to consider this option. Companies
also need to think about the IT skills that ought to be retained within the firm as a large portion
of the skills will be in the cloud. Only a thorough analysis of their prevailing situation as well
as the alternative Cloud BI solutions available to the company will yield desirable results.
Companies that are new to the technology, such as the one in the case study, need to use Cloud
providers that have a lot of experience with SMEs. Furthermore, they should select providers
that have the capacity to grow with them. If a provider possesses these qualities, then chances
are that the company will succeed in development of some of its business intelligence systems
(Kamal et al. 2011).
Conclusion, contributions, implications and research limitation
From the findings in the literature review and the case study, it is clear that small and medium
enterprises can access more benefits than losses if they adopt Cloud BI. The technology would
assist them in increasing their competiveness as well as their productivity levels.
Furthermore, since SMEs aim at growing rapidly, then they require solutions that would
facilitate it. It is wise to adopt such a strategy as the company would reap more benefits than
losses. Nonetheless, care must be taken to consider the nature of the organisation’s IT needs
and the capabilities of the cloud provider.
This research has contributed to literature on Cloud BI by demonstrating its usefulness to
SMEs. Through a case study analysis of an SME, the paper has proven that the business
intelligence solution works. The case also shows the preconditions necessary for SMEs to make
a success out of Cloud BI. This paper also strengthens previous researches done on the
challenges and benefits of the technology.The research implications are that circumstances
involved in an organisation and among common vendors should be considered before
embracing cloud computing. Essentially, SMEs should not be left behind in adoption of this
revolutionary IT solution. However, it is only through careful consideration of the sustainability
of the venture that they can succeed.
Research limitations include the use of only one organisation for analysis. A case study cannot
be generalised to a whole population. Further, the nature of the organisation may not be
representative of all SMEs. Opinions of employees were not obtained so it is not possible to
understand how relevant the technology was to individuals.
In the future, researchers should carry out a survey of Cloud BI use in SMEs to overcome
problems with the case study approach. The topic should also be expanded to include
implications of the technology in performance of daily tasks among employees.
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