Benefits and Challenges of Business Intelligence Adoption in Small and Medium-Sized Enterprises

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 shows that small and medium-sized enterprises (SMEs), in particular, lag behind in the proliferation of BI. In this exploratory study we examine BI adoption within German SMEs in the state of Saxony (n = 214). We explore perceived benefits and challenges in their efforts to implement BI. By applying cluster analysis to these results we suggest four types of BI SMEs, each with an individual profile concerning potential benefits as well as a certain set of challenges that are to be expected when it comes to adopting BI solutions. Results can create value for enterprises that plan to implement a BI solution, BI consultants as well as BI suppliers.