Exploring Success Factors for Business Intelligence System (BIS) Implementation Readiness: A Study on Malaysia Banking Sector

by Muhamad Faizal Bin Hanafi

February 2022

Abstract

Throughout the year, there is the growing utilization and the implementation of Business Intelligence (BI) systems as part of innovation to support decision making process the organization’s operation. In Banking industry, there are millions of data generated and transacted on daily basis, therefore implementing the BIS as for better management decisions play crucial roles on for industry’s survival and sustainability. Business intelligence systems (BISs) are an important tool for today’s challenging business operations, as they have a substantial impact on business performance.

However, BIS implementation and readiness may be influenced by a various of internal and external factor. This study is aimed to explore the key success factors that influenced the banking sector in Malaysia to adopt the BI system based on simplified Technology, Organization, and Environment (TOE) framework and test the relationship between the six (6) independent variables: perception of the comparative advantage, perception of business intelligence system’s (BIS) complexity, flexible and appropriate technological infrastructure framework, management support, organizational readiness, competitive pressure against Business Intelligence System (BIS) implementation readiness.

For the study evaluation purpose, quantitative approach uses and designs using a five-point Likert Scale and 161 data collected using questionnaire survey. For data analysis, the demographic and descriptive analysis techniques were adopted for data interpretation purpose using IBM SPSS. Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM) had been developed using IBM AMOS to create better understanding how for overall model representation and to confirm the factor structure that extracted in the exploratory factor analysis. With the presence of multiple variables on the study, the multiple regression model develops as to examine and test the relationship of the success factor of BIS
implementation readiness on Malaysian Banking industry.

The results shows that three independent variables (perception of the comparative advantage, flexible and appropriate technological infrastructure framework, organizational) have statistically significant relationship towards the BIS implementation readiness

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