Data Analytics in SME segment in India

1. Business Intelligence
Implementation in SME
Segment
Navin Shukla – 2013N05
Prasanta Pattnaik – 2013N09
Rushikesh Shah – 2013N12

2. Executive Summary
 Leveraging information is a key success factor for companies. Over
the last two decades Business Intelligence (BI) has evolved to
become a foundational cornerstone of enterprise decision support.
However prior research carried by many organisations shows that
SMEs lag behind in the adoption of BI.
 In this study we present the benefits of Business Intelligence (BI) and
challenges in the process of BI implementation in SME sector.
 Results can create value for enterprises those plan to implement a BI
solution, BI consultants and BI solution suppliers.

3.  Introduction to SME Segment
 What is Business Intelligence (BI)
 Adoption of BI
 Benefits of BI
 Challenges in Implementation of BI
 Case Study
 Future
Keywords Used
› SME - Small and Medium-sized Enterprises
› BI - Business Intelligence
What We’ll Cover Today

4. Introduction to SME Segment
 SME sector of India is considered as the backbone of economy contributing:
› 45% of the industrial output,
› 40% of India’s exports,
› employing 60 million people,
› create 1.3 million jobs every year
› produce more than 8000 quality products for the Indian and international markets.
 We have approximately 30 million SMEs in India, 12 million people expected to join the workforce in
next 3 years and the sector growing at a rate of 8% per year,
 Government of India is taking different measures so as to increase their competitiveness in the
international market.
Manufacturing Enterprises – Investment in Plant & Machinery
Description INR(₹) USD($)
Micro Enterprises Upto Rs. 25 Lakh Upto $ 62,500
Small Enterprises Rs. 25 Lakh - Rs. 5 Cr $ 62,500 - $ 1.25 million
Medium Enterprises Rs. 5 Cr - Rs. 10 Cr $ 1.25 million - $ 2.5 million
Service Enterprises – Investment in Equipments
Description INR(₹) USD($)
Micro Enterprises Upto Rs. 10 Lakh Upto $ 25,000
Small Enterprises Rs. 10 Lakh - Rs. 2 Cr $ 25,000 - $ 0.5 million
Medium Enterprises Rs. 2 Cr - Rs. 5 Cr $ 0.5 million - $ 1.5 million
Note: The amount of investment does not include their original cost excluding land, building and items specified Under Section 7 of the
Micro, Small and Medium Enterprises Development Act, 2006

5. Introduction to BI
 Business Intelligence is a set of processes and methodologies which
helps to obtain crucial information to improve strategic decision making
and hence it plays an important role in current decision support system.
 Due to the complexity and high cost of implantation and maintenance
of BI solutions, the technology itself is used preferably by large
enterprises.
 As SMEs play a important role in the global economy, they could drive
benefit with proper utilization of BI.

6.  Improvements in Data Support
› BI implementation leads to ease
of access to information.
› Increase employee productivity.
› Streamlined workflow and
process
 Improvement in Decision Support
› BI improves business decision
through analysis on current and
historical data.
› Deeper insights into data.
› Better customer service
› Fraud detection and prevention
Benefits of BI

7. Though the market of BI seems growing, there are several issues one has to consider when
implementing BI system in the SME segment. Some of these are:
 Limited IT Resources: Most of the SMEs don’t have a in-house IT team or trained personnel to
work with BI systems, so they have to rely on third parties to help and this adds additional cost.
 Lack of Top Management Commitment to Projects
 Awareness: SMEs does have low level of awareness about BI vendors, applications and
products. Most of the time they don’t even know what BI system are and what it can do for the
business.
 Perception: People in SME sector have a perception that BI is only for large enterprises mainly
because of high cost of acquisition, implementation, maintenance and complexity.
 Implementation Approach:
 Cost: SMEs have less capital then their large counterparts.
 Security: Data security
Challenges in Implementation

8. Adoption of BI
Fig 1: Top challenges that drives SMEs to invest in BI &
analytical technology.
Fig 2: The emergence of SaaS & On-Demand BI has
affected the deployment of BI among SMEs.
Fig 4: Technology wise adoption by company sizeFig 3: Top departments driving the need for BI

9.  About SMEs- http://www.eisbc.org/Definition_of_Indian_SMEs.aspx
 ERP Implementation in Indian SMEs: Issues and Challenges, P. T. Kale, S. S.
Banwait and S. C. Laroiya -
http://innovation.gov.in/innovation/inntoolkit/Innovation%20Manageme
nt/Case%20Studies/ERP.pdf
 Benefits and challenges of Business Intelligence adoption in small and
medium-sized enterprises, 18th European Conference on Information
Systems, International Journal
 Benefits of Business Intelligence: Smart Companies in the 21st Century:
The Secrets to Creating Successful Business Intelligence Solutions -
http://tdwi.org/research/2003/07/exective-summary-smart-companies-
in-the-21st-century-the-secrets-to-creating-successful-business-int.aspx
References

10. Thank You