The use of business intelligence (BI) in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina

THE USE OF BUSINESS INTELLIGENCE (BI) IN SMALL AND MEDIUM-SIZED

ENTERPRISES (SMEs) IN BOSNIA AND HERZEGOVINA

Kasim Tatić1, Zijad Džafić2, Mahir Haračić3, Merima Haračić4

ABSTRACT 1. INTRODUCTION

Small and medium-sized enterprises (SME)
represent an extremely important aspect for
an economy of a country, especially for the
economies of developing countries such as Bosnia
and Herzegovina (BiH). Increasingly demanding
market, process of globalization, advancement of
information and telecommunication technology,
and an increase in the negotiating power of
certain stakeholders such as customers/clients,
have caused the need for a better, faster and more
efficient system of making day-to-day decisions,
both on operational and strategic level. SMEs are
not an exception, as confirmed by the research
results, which imply that SMEs in BiH, in most
cases, do not have the Business Intelligence
(BI) system. The research results also suggest
that a significant number of SMEs have one or
more information systems, such as Enterprise
Resource Planning (ERP), Customer Relationship
Management (CRM), Data Management Systems
(DMS), Warehouse Management System (WMS),
which generate the required data into one or more
databases, which are the main source of data for
BI. The research also confirms that SME companies
in BiH recognize the role and importance of BI,
but there is a significant number of barriers and
obstacles that hinder the implementation of BI
system. These key obstacles and barriers relate
to the lack of financial resources, insufficient
knowledge and management experience, lack
of vision and clearly defined strategic goals,
insufficiently defined Key Performance Indicators
(KPIs) and their requirements.
Keywords: SME - Small and medium-sized
enterprises, BI - Business Intelligence, KPI
- Key Performance Indicator, improvement
of decisionmaking in SME in Bosnia and
Herzegovina
Small and medium sized enterprises (SMEs)
in developing countries such as Bosnia and
Herzegovina (BiH) have a very important and
significant role for the overall economy. Creating
an effective strategy for strengthening SMEs has
multiple positive effects both on economic, social,
and other segments, thus tremendously increasing
the competitiveness and economic prosperity of a
country (Džafić, 2015). Under the conditions of
modern economy, extremely high competition,
lower entry barriers, the process of globalization
and market liberalization, and the increase in
the negotiating power of certain stakeholders,
SMEs genuinely need to be more innovative
and efficient in their business. Carefully making
the right decisions based on real time data/
information generated on the basis of accurate
and reliable databases can help SMEs to operate
efficiently and effectively. SMEs with accurate and
precise databases based on carefully defined Key
Performance Indicators (KPIs) that are changed
and customized over time, have the ability to
proactively affect internal and external changes.
An efficient reporting system primarily relates to
Business Intelligence (BI) systems which include
establishing business performance measurement,
discerning business problems, integrating
information, predicting the business future, and
making the proper decisions for conducting the
changes (Shaheb, Shah, Shahadat 2017, p. 155).
The goals of the research are given as follows:
• Analysing and using business data/
information for making business decisions
in SMEs
• Analysing and using BI in SMEs
• Analysing the impact of BI implementation
within SMEs on the efficiency and
effectiveness of operations

1
School of Economics and Business, University of Sarajevo, e-mail: kasim.tatic@efsa.unsa.ba
2
Faculty of Economics, University of Tuzla, Univerzitetska 8, 75000 Tuzla, e-mail: zijad.dzafic@untz.ba
3
BH Telecom, Zmaja od Bosne 88, e-mail: mahir.haracic@bhtelecom.ba; mahir.haracic@hotmail.com
4
Buyer / Supplier Quality Assurance Assistant at Prevent, e-mail: merima.handzic@prevent.ba

Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018 23
 Tatić K., Džafić Z., Haračić Mahir, Haračić Merima
• Analysing key causes and barriers for BI
implementation in SMEs
The hypotheses are postulated as follows:
• SMEs do not have advanced reporting
systems (BI tools), posing a risk and
danger for SMEs’ business.
• Implementation of BI systems in SMEs leads
to increased efficiency and effectiveness of
operations.
2. LITERATURE REVIEW
SMEs can be defined as relatively small sized
industries with the following characteristics:
actively managed by their owners, highly
personalized, largely local in their area of
operations dependent on internal sources
of capital to finance their growth (Shahe,
Shah, Shahadat 2017, pp. 151-152). There
is no unique division of SMEs due to a
varying degree of development and size of
a country’s economy, meaning that SMEs in
large economies and developed countries can
represent large companies in small economies
and underdeveloped countries. However, what
is common to many countries and economies
(historically observed) is the role of SMEs as the
hidden engines of country’s development. SMEs
have a critically important role in the economy
of each country, especially in underdeveloped
countries and developing countries such as BiH.
The key roles are the economic and social role,
fundamental for economic development. SMEs
face significant constraints and struggles with
resources issues in relation to large companies
and corporations. That is why SMEs have the
need for constant monitoring of business and
the use of resources in everyday business,
especially in the information management
and decision-making segment (Raj, Wong,
Beaumont 2016, Ngah, Abd Wahab, Salleh 2015,
pp. 1325-1328).
Systemic approach and application of
information technology are crucial in the
process of collecting, managing and using data/
information. Having accurate information at
the right time leads to making better business
decisions that directly affect the business of
SMEs, both in the segment of revenue increase
and/or in the reduction of costs (Agostino,
Søilen, Gerritsen 2013, p. 7). The progress of
24 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018
information and telecommunication technology
contributes to rapid lowering the cost of data
storage and access. This allows companies to
create the most effective interaction between
applications, databases, technologies, and
analytical methodologies to increase business
performance (Horakova, Skalska 2013, p. 50).
BI system can be defined as “The processes,
technologies to turn data into information,
information into knowledge, and knowledge
into plans that drive cost-effective business
action. Business intelligence (BI) encompasses
data warehousing, business analytic tools and
content management.” (Al-ma’aitah 2013, p. 25).
BI represents the knowledge gained through
the access and analysis of business information
(Dresner Advisory Services 2017, p. 3). It is
important to point out and emphasize that BI
is not a product, technology or methodology. It
is a combination of products, technologies and
methodologies that leverage information assets
to key business processes to achieve improved
business performance (Benjamin 2013).
BI fulfils a highly significant and important role
in the business of all companies, including SMEs.
However, the implementation of BI in SMEs is
slow and gradual, primarily due to a significant
number of constraints that SMEs face, because
of which BI solutions are less frequent in SMEs
compared to large companies and organizations.
It is also important to point out that BI is not
equally implemented in all SME departments,
but it is most commonly used in: sales, marketing,
purchasing, accrual, finance, accounting, human
resources, and IT (Horakova, Skalska 2013,
p. 52). Therefore, it can be concluded that the
application of BI is not an exclusive top-level
management (Raj, Wong, Beaumont 2016, p. 42,
Davenport, Harris, Morison 2010, Negash, Gray
2008). Moreover, the justification for investing in
BI solutions is questionable if the same will be
used exclusively by a limited and small number of
SME managers/employees. BI system should be
implemented and included for decision-making
processes, whether day-to-day operational or
strategic decisions. Of course, BI needs to be
adjusted to diverse functions, needs and levels
of decision-making, to improve the efficiency of
decision-making.
Essentially, BI tools provide analytical data
and KPI that allow organizations of all sizes to
 The use of business intelligence (BI) in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina
have better management (Raj, Wong, Beaumont
2016, p. 48) and therefore to be more efficient
and effective. For SMEs, it is also an interesting
fact that in most cases top management decides
on IT issues. Due to this, top management
support in SMEs is not a question of “success”
but of general interest in BI systems (Scholz,
Schieder, Kurze, Gluchowski, Böhringer 2010,
p. 5). Top management awareness of the
opportunities and risks of implementing BI
solutions is crucial as well as their awareness
of potential implementation risks (financial,
process, hierarchical, etc.) or the risks that
SMEs encounter in case they do not implement
BI system (e.g. inefficient system of making
business decisions and KPI monitoring).
Some of the most significant benefits of BI
system are faster and more accurate reporting,
improved decision making, improved customer
service, and revenue increase. BI is considered
as a technique to collect the internal and external
data available to a company, backing decision
making and improving corporate performance
(Olexová 2014, p. 95, Vugt, Jacobsen 2017, p.
3). Tangible benefits of BI relate to time saving,
cost saving, return on investment (ROI), while
intangible benefits relate to revealing the
true state of business, better strategic plans
and decisions, and customer and supplier
satisfaction (Ipomai 2016, pp. 10-12).
Most companies are interested in BI primarily
because of the value generated by converting
data into information or information into
knowledge used to make business decisions
(Srichai, Thammakoranonta 2011, p. 32,
Haračić 2012, p. 162). BI does not only improve
the process of decision making, it also improves
business processes within the company (Al-
Ma’aitah 2013, p. 24). It therefore increases
the efficiency and effectiveness of operations.
Adequate implementation of BI includes its
application in various business segments of
a company, one of which is Business Process
Management (BPM). A survey carried out
among domestic companies clearly shows that
domestic companies have plenty of room for
improving the efficiency and effectiveness of
their operations but also that BPM is no longer
a luxury for companies, but rather a means of
survival in the market (Tatić, Haračić, Haračić
2018, pp. 11-12).
Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018
BI empowers better understanding of internal
business processes (micro view) but it also
enables more thorough understanding of all
the participants in the market (as a macro
view) through systematic acquisition, collation,
analysis, interpretation, and exploitation
of information. A crucial segment of BI is
identifying opportunities and market-related
threats, relationships with customers,
suppliers, and competitors (Olszak 2014, p.
1103). Implementation of BI systems in SMEs
is a strategic decision that affects performance,
efficiency, cost, resource use, and so on (Vugt,
Jacobsen 2017, p. 2).
When it comes to BI, it is essential to point out
the existence of various BI versions. Thus, for
instance, BI 1.0 relates to data warehousing, data
mining and Online analytical processing OLAP.
Implementation of web mining, opinion mining
techniques, mobile mining techniques, and
semantic processing are applied in establishing
BI systems. BI designed for acquiring and
processing data from web resources relates to
version BI 2.0 (Horakova, Skalska 2013, p. 54).
BI 3.0 is responsible for gathering and analyzing
data from various mobile devices (Olszak 2014, p
1103). A typical BI system includes the following
components (Kfouri, Skyrius 2016, p. 99):
• On-line analytical processing referring to
the way end users navigate through data
along various dimensions.
• Advance analytics for analyzing data using
statistics and other quantitative techniques
to predict and indicate patterns.
• Data warehouse handling integration
of numerous organization records for
aggregation and query tasks.
• Real-time (BI) functions for real-time
analysis and distribution of information.
There are certain signals that may indicate
the company has problems in analyzing the
data. Some of the signals include the following
(McCabe, Aggarwal, Davis 2011, page 3):
• Employees spend too much time re-
entering data from one system to
another, and reconciling data from these
inconsistent systems.
• Managers invest too much time creating
Excel spreadsheets to make business
decisions.
25
 Tatić K., Džafić Z., Haračić Mahir, Haračić Merima
• Different managers make decisions based
on different sets of data that report various
versions of stories.
• Managers do not utilize the company’s
business data because they do not trust it.
• Managers have no way to measure
key performance indicators such as
productivity, return on investment, time to
report, days sales outstanding, etc.
• Managers are incapable to track real
performance against the strategic plan.
• Only a handful of specialists are able to
analyze data and generate reports; most
users have to request analytic reports that
are labor intensive and slow to arrive.
• Reports are routinely created for historical
reasons (“that’s what we’ve always done”)
rather than for business-driven reasons.
• The budgeting and forecasting process is
complex and takes weeks instead of days.
• There is a lack of real-time visibility and
collaboration capabilities.
BI system processes information and data
from numerous sources (internal and external)
supporting superior business decision-
making through past, present, and predictive
compositions/trends of organizations’
operations (Benjamin 2013, p. 2, Ipomai 2016,
p. 1). The conditions of modern economy create
an environment in which a final customer/
user is more important and significant for the
company. BI is an excellent tool that can help
SMEs to maintain an adequate level of customer
satisfaction and loyalty (Al-ma’aitah 2013, p. 24).
BI has a number of characteristics and goals,
while the following are considered as the
most important (Al-ma’aitah 2013, p. 25,
Horakova, Skalska 2013, p. 51): data access
from various different sources, continuous
improvement, threats and opportunities
anticipation, response to internal and external
environmental decisions, speed-low cost,
problem identification and problem solving,
easy way to display knowledge and easy
data retrieval. Additionally, BI empowers
the achievement of the following business
26 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018
goals: meeting business strategy and mission,
improving business performance, maximizing
profit, minimizing cost, improving customer
satisfaction, taking right decision and actions,
reducing risks and uncertainty, providing
constant monitoring and control, etc.
Successful BI implementation requires making
a strategic decision and clearly defining
the implementation steps as the basics.
Implementation of BI solution has a number
of basic preconditions that relate, inter alia, to
the existing information systems of SMEs (ERP,
WMS, DMS) or the construction of adequate
databases Data or DW Data Warehouse (DW).
This means SMEs should have adequate
information systems, regulated business
systems, and satisfying databases on the basis
of which it is possible to generate proper KPIs,
data and information.
Complex BI implementation steps incur huge
costs, due to considerable investments in
infrastructure, software, licenses, training,
and wages. Unfortunately, due to this
valuable investment many organizations
fail to recognize the expected benefits of BI
(Gaardboea, Nyvanga 2017, p. 484). The most
important characteristics which differ SMEs
from larger companies include resource and
knowledge limitations, lack of money, reliance
on a small number of customers, and need for
multi-skilled employees (Dyczkowski, Korczak,
Dudycz 2014). These characteristics constitute
the prime reasons why SMEs need BI for
analyzing and satisfying their customer’s needs
(Vugt, Jacobsen 2017, p. 1). SMEs are socially
and economically important and need tools and
solutions to maintain their competitiveness
in challenging environments, particularly
because they operate in extremely competitive,
turbulent and uncertain markets (Fedouaki,
Okar, El Alami 2013, p. 2). Implementation of
BI requires SMEs to possess an organizational
structure and hierarchy built on the
organizational culture and business processes
that rely on information technology in everyday
work. Unfortunately, there are many examples
of unsuccessful implementation of BI within
SMEs and other companies, directly affecting
financial and all other operations. For instance,
about 60% to 70% of BI applications fail due
to the technology, organizational, cultural
 The use of business intelligence (BI) in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina

and infrastructure issues (Clavier, Lotriet,
Loggerenberger 2012, Karim 2011, pp. 196-203,
Olszak, Ziemba 2012). Progress in information
technology as well as the modern software and
hardware solutions have helped in overcoming
some of the key barriers and implementation
issues. The usage of modern technology enables
final customers to use BI applications, unlike
in the near past, with the optimal utilization of
resources and the necessary financial resources
for the successful implementation of BI system.
The growing application of cloud computing,
Software as a Service, as well as open source BI
expand the opportunities for SMEs to implement
BI (Fedouaki, Okar, El Alami 2013, p. 2).
research, comments and conclusions relate to
the companies belonging to the SME segment.
3.1. General data about the respondents
and SMEs
On the basis of the research results, 66% of
the respondents were male while about 33%
of them were female. Additionally, 47% of the
respondents had a university degree and 38%
of them completed master’s degree. Over two-
thirds of the respondents work in SMEs that
have been in business for over 11 years or more.

3. RESEARCH RESULTS

The research was conducted in the period from

July 2018 to October 2018. A total of 2500
questionnaires was distributed by e-mail to
the respondents who were employees of SME Graph 3.1. Respondents’ level of education
companies in BiH. Only 101 questionnaires
were filled in full, with all required answers.
Considering the number of completed
questionnaires, it can be concluded that SME
employees were not interested in participating
in the survey and they were unwilling to provide
information about the SME in which they work,
even though the research was completely
anonymous. The questionnaire consisted of
the following five segments: general data about
respondents, analysis of the current situation,
business practice in SMEs, decision making, Graph 3.2. The duration of SMEs business operations
causes and barriers of BI implementation in Source: Authors’ analysis.
SMEs.The research questions were intentionally
created on the basis of an analysis of available The majority of the respondents were from
literature and research covering the subject area SMEs with up to 50 employees (46%), 33%
(Srichai, Thammakoranonta 2011, Horakova, of them were from SMEs with 51 to 150
Skalska 2013, Dresner Advisory Services 2017, employees, 10% of them were from SMEs with
Agostino, Søilen, Gerritsen 2013, Olexová 2014, 151 to 300 employees (10%), while 12% of
Scholz, Schieder, Kurze, Gluchowski, Böhringer them were from SMEs with over 300 employees.
2010, Olszak, Ziemba 2012, McCabe, Aggarwal, The majority of the respondents were from
Davis 2011), the authors’ experiences and SMEs whose primary activity is trade (36%),
defined goals of the research. following by production (27%), services (30%),
education (3%), and others (4%). Based on the
The classification of SMEs is based on the results of the survey, it can be concluded that
number of persons employed defined by the SMEs generate significant annual revenues
EU regulation (European Commission 2018). exceeding several hundred thousand to several
A smaller number of respondents belong to a million BAM, which points to the fact that SMEs
group of large companies whose results will involved in the research maintain a stable
be presented. However, the specific focus of business.

Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018 27
 Tatić K., Džafić Z., Haračić Mahir, Haračić Merima

3.2. Analysis of the current situation in systems are ERP and CRM, as presented in
SMEs the graph below. The survey did not include a
segment related to the development stage of
According to the results of the research, a information systems, modules implemented
considerable number of respondents specified and everyday usage among employees.
that SMEs used one or more information
systems. The most frequently used information

OTHER
OTHER 11%11%
SME DOES NOT HAVE INFORMATION SYSTEM 19,80%
SME DOES NOT HAVE INFORMATION SYSTEM 19,80%
BI (BUSINESS INTELLIGENCE) 17,80%
BI (BUSINESS INTELLIGENCE) 17,80%
WMS (WAREHOUSE MANAGEMENT SYSTEM) 25,70%
WMS (WAREHOUSE MANAGEMENT SYSTEM) 25,70%
CRM (CUSTOMER RELATIONSHIP MANAGEMENT) 37,60%
CRM (CUSTOMER RELATIONSHIP MANAGEMENT) 37,60%
ERP (ENTERPRISE RESOURCE PLANNING) 29,70%
ERP (ENTERPRISE RESOURCE PLANNING) 29,70%
0,00% 5,00% 10,00%15,00%20,00%25,00%30,00%35,00%40,00%
0,00% 5,00% 10,00%15,00%20,00%25,00%30,00%35,00%40,00%
Graph 3.3. 3.3:
Graph Information systems
Information systemsused
usedin
inSMEs
SMEs
Source: Authors’ analysis.
Source: Authors’Graph 3.3: Information systems used in SMEs
analysis.
On the basis ofAuthors’
Source:
On thebasis
the results thepresented
analysis.
of in the
results presented in theof the respondents
previous graph, it can bebelieve
concludedtheir company is
that the
previous graph, majority of SMEs have the basic prerequisites for implementing BI system, meaning that systems,
it can be concluded that the constantly improving the information
On the basis of the results presented in the previous graph, it can be concluded that the
majority majority
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they have
could the basic
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11% of SMEs with “Other” information systems relate to economy.
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have
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30,00% for accounting. About 50%26,70%
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40,00%
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30,00%
20,00% 24,80% 27,70% 24,80%
30,00% 26,70% 26,60% 40,00%
10,90% 20,00%
7,90% 34,70%
10,00%
9,90% 30,00%
10,00%
20,00% 5,90% 24,80% 24,80%
0,00% 10,90% 20,00%
0,00%
7,90% 1 2 3 4 5
10,00%
9,90% 10,00%
5,90%
SME constanly improves information systems
0,00% 0,00%
1 2SME will in near future3 implement new information
4 systems 5

SME constanly improves information systems

Graph 3.4: Research results related to the improvement and implementation of new
SME will in near future implementsystems
information new information systems

Graph (13.4.
– I do not agree, Very little;
Research 5 – I fully agree, Very much)
Graph 3.4: Researchresults
resultsrelated
related to
to the
the improvement
improvement and andimplementation
implementation of of
newnew
Source: Authors’ analysis. information systems
information systems
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
Optimistic
(1 – I do not agree,research results5relate
Very little; to the
– I fully fact that
agree, Verya much)
significant number of the respondents
Source: Authors’ analysis.
sincerely believe their company will implement new information systems in the future.
Source: Authors’
This analysis.
sufficiently proves the fact that SMEs undoubtedly recognize the role and
Optimistic research results
importance relate information
of advanced to the fact Unique
systems databases
in order to ensure are essential
efficient for successful
and effective
Optimistic research results relate to the fact that a significant number of the respondents
that a significant number
long-term of
business. the respondents BI implementation, on the
sincerely believe their company will implement new information systems in the future.
basis of which it is
sincerelyThis
believe their company
sufficiently proves will
the implement
fact that SMEs possible to generate
undoubtedly the required
recognize the role andreports. The
new information systems in the future. results of the research suggest
importance of advanced information systems in order to ensure efficient and effective most respondents
This sufficiently proves the fact that SMEs consider their company has a unique database,
long-term business.
undoubtedly recognize the role and importance collecting 8 data from a broad number of internal
of advanced information systems in order and external sources. The research did not
to ensure efficient and effective long-term include a segment of quality and size of the
business. database, or hardware configuration of the
8
servers.

28 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018
 Unique databases are essential for successful BI implementation, on the basis of which it
is possible to generate the required reports. The results of the research suggest most
Unique databases are essential for successful BI implementation, on the basis of which it
respondents consider their company has a unique database, collecting data from a broad
is possible to generate the required reports. The results of the research suggest most
number
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respondents
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and
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a broad
quality and size of the database, or hardware configuration of the servers.
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60,00%and size of the database, or hardware configuration of the servers.
42,60%
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40,00%
28,70% 42,60%
40,00% 24,80% 25,70%
20,00% 14,90% 14,90% 23,80% 28,70%
5,90% 10,90% 7,90%
24,80% 25,70%
20,00% 14,90% 14,90% 23,80%
0,00% 5,90% 10,90% 7,90%
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Graph 3.5: Databases in SMEs
(1 – I do not agree, Very little;Graph
5 – I 3.5:
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Source: Authors’ analysis. analysis.
Source: Authors’ specified
The respondents analysis.
The respondents specified that that the the databases in
databases thetheir companies
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The reasons
respondents for this
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be the be
mayaccording specific the types of information
research results systems
sharedreveal thatininSMEs use
SMEs, meaning that ERP, CRM to andtheir
WMSarchitecture and use
are precisely information data stored
systems that a
types of complement
information
single database systems
eachorother used
separately in SMEs,
in compatible
according
different sources
and consolidated
to their architecture
of
databases.
and use
data. ERP system
shared data stored in a
should
meaning single
that ERP, CRMorand
database WMS are
separately in preciselyandbeconsolidated
compatible regarded as the foundation of business, with
databases.
Significant research results refer to data sources typically used in SMEs, powerfully
information systems that complement each other a broad number of specific modules intended
suggesting the primary source of data is not ERP typically
system, asused
presented in the following
accordingSignificant research
to their architecture
graphs. Additionally,
results
and refer
useto data
shared sources
to generate in SMEs,
significant powerfully
data/information on a
suggesting the primarythe research
source results
of data reveal
is not ERPthat SMEsasuse
system, differentinsources
presented of data.
the following
data stored in a single
ERP system
graphs.
database
should be
Additionally,
or separately
theregarded
researchas
in daily
the foundation
results
basis,
reveal that of
which
business,
SMEs
should
with a broad
use different
not only
sourcesnumber
represent
of data.of
the
compatibleERP and
specific consolidated
modules
system should databases.
intended to generate
be regarded excellent
as thesignificant
foundation base for
data/information business
of business, withonaabroad reporting
daily basis,
number but
which
of should
should modules
specific not onlyintended
represent the excellent
to generate also
base
significant for provide
business input
data/information on aparameters
reporting butbasis,
daily should for
alsobusiness
which
Significant research
provide
should input
not results
only refer to
parameters
represent for data
the sources
business baseprocesses
processes
excellent andreporting
andbusiness
for purposes purposes
that are not
but inthatthe are
should narrownot in the
also
focus
usedofininput
typically provide ERP
SMEs,(e.g., CRM, for
powerfully
parameters WMS, DMS,processes
suggesting
business etc.) narrow focus ofthat
and purposes ERPare(e.g., CRM,
not in WMS, DMS, etc.)
the narrow
focus of ERP (e.g., CRM, WMS, DMS, etc.)
40,00%
40,00% 27,70%
30,00% 25,70%
29,70% 28,70%
27,70% 25,70% 19,80%
30,00% 29,70% 28,70%
20,00% 13,90% 12,90% 19,80% 15,80%
20,00% 13,90%
10,00% 13,90%11,90% 12,90%
13,90% 15,80%
10,00% 11,90%
0,00%
0,00% 1 2 3 4 5
1 2 3 4 5
The main source of data in SME is ERP system SME's web page is significant source of data
The main source of data in SME is ERP system SME's web page is significant source of data
40,00%
30,00% 22,80% 29,70%
21,80%
17,80% 18,80% 23,80% 18,80%
20,00% 20,80%
15,80%
10,00% 9,90%
0,00%
1 2 9 3 4 5
Social networks are significant source of data
9 in SME
SME uses external sources of data (statistical databases, databases of agencies and domestic and
foreign organizations)

Graph
Graph 3.6. Data
3.6: sources
Data in SMEs
sources in SMEs
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
(1 – I do
Source: Authors’ not agree, Very little; 5 – I fully agree, Very much)
analysis.
Source: Authors’ analysis.
According to the results of the research, over one or more employees with the sophisticated
According
half of the to thestated
respondents resultsthere
of theisresearch,
at least over half of the
knowledge respondents
in Excel. In thestated
case ofthere
good is quality
at
least one employee in charge of the analysis and reporting. Furthermore,
one employee in charge of the analysis and data (e.g. relevant, consistent, up-to-date) in a significant
reporting.number of SMEs,
Furthermore, inExcel is a verynumber
a significant important and
tool used for reporting
practical and to
possibility analysis
exportanddata
theyfrom
typically have one or more employees with the sophisticated knowledge in Excel. In the
of SMEs, Excel is a very important tool used for databases, Excel can be a reporting solution,
case of good quality data (e.g. relevant, consistent, up-to-date) and practical possibility to
reporting and analysis and they typically have especially for small companies. However, when
export data from databases, Excel can be a reporting solution, especially for small
companies. However, when it comes to companies with a higher number of employees or
with significant turnover and increasing number of business processes, it is necessary to
Economichave
Review – Journal
a more of Economics
advanced and
reporting Business, Vol. XVI, Issue 2, November 2018
system. 29
 least one employee in charge of the analysis and reporting. Furthermore, in a significant
number of SMEs, Excel is a very important tool used for reporting and analysis and they
typically have one or more employees with the sophisticated knowledge in Excel. In the
caseK.,
Tatić ofDžafić
good Z.,
quality data
Haračić (e.g.
Mahir, relevant,
Haračić consistent, up-to-date) and practical possibility to
Merima
export data from databases, Excel can be a reporting solution, especially for small
companies. However, when it comes to companies with a higher number of employees or
with significant turnover and increasing number of business processes, it is necessary to
it comes have
to companies with a higher number necessary to have a more advanced reporting
a more advanced reporting system.
of employees or with significant turnover and system.
increasing number of business processes, it is
50,00% 42,60%
40,00%
24,80%
30,00% 31,70% 24,80% 32,70%
26,70%
7,90% 22,80% 38,60%
20,00% 14,90%
5,90% 10,90%
10,00% 6,90%
7,90%
0,00% 1,00%
1 2 3 4 5

At least one employee is in charge of creating analysis, reports and business performance
indicators, on the weekly and monthly basis
Excel is the key tool for creating the reports and analysis

In SME (in which I work) there is a large number of employees who have advanced knowledge and
skills in Excel

Graph 3.7:
Graph 3.7. The
The use
use of
of Excel
Excelin
inSMEs
SMEs
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
Source: Authors’ analysis.
Source: Authors’ analysis.
On the
On the basis basisresearch
of the of the research
resultsresults presented
presented in so far, itinis the
detail possible to derive part,
discussion a number of are
which
conclusions which will be properly presented in detail in the discussion part,
so far, it is possible to derive a number of highly supported by the results of the research which are
highly
conclusions supported
which will bebyproperly
the resultspresented
of the research presented
presented in in
thethe graph
graph below.
below.
60,00%
40,00%
10
20,00% 40,60%
16,80% 10,90% 15,80% 15,80%
0,00%
1 2 3 4 5

Graph 3.8. SME managers are aware they do not have an adequate system of data analysis and reporting
GraphVery
(1 – I do not agree, 3.8:little;
SME5managers are aware
– I fully agree, they do not have an adequate system of data
Very much)
Source: Authors’ analysis. analysis and reporting
(1 – Iofdo the
Distribution not agree,
researchVeryresults
little; 5 –on
I fully
the agree, VeryBusiness
3.3. much) practice in SMEs
previous graph may
Source: indicateanalysis.
Authors’ that the respondents The research results in this segment lead to a
do not have the exact data/information and that logical conclusion that the respondents are unsure
Distribution
they are not quite sure ifofthey
thepossess
research results on the previous graph may indicate that the
an adequate if their companies have the correct information
system of respondents
reporting and do not have the exact data/information and that they are not quite sure if
analysis. The results of the or whether they have sufficient amount of data,
they possess an adequate system of reporting and analysis. The results of the research
research that will be presented further also point on the basis of which the decisions are typically
that will be presented further also point to similar conclusions, related to the fact that
to similar SMEs
conclusions, made. We can also conclude that a significant
do notrelated
have an toadequate
the fact that SMEs system
reporting and that the same should be improved
do not have an adequate reporting number of the respondents believe that in the
tremendously, which would system
lead toand
better decision making, both on operational and
that the same should
strategic be improved tremendously, course of their business processes, employees
level.
which would lead to better decision making, both do not carry out the re-entry of data, suggesting
that most SMEs have information systems that
on operational and strategic level.
use one or more consolidated databases, which
was presented in the previous graphs.
60,00%
39,60%
40,00%
3.3. Business practice in SMEs
31,70% 18,80%
13,90% 17,80%
20,00% 17,80% 18,80% 9,90%15,80%
15,80%
0,00%
The research results
1
in this segment
2
lead to a3 logical conclusion 4
that the respondents
5
are
unsure if SME
their companies
possesses have
a substantial theofcorrect
amount data whichinformation
is not informationor whether
that can be usedthey
as thehave
base sufficient
amount offor making operating and strategic decisions
data, on the basis of which the decisions are typically made. We can also
The employees spend too much time to perform the re-entry of data in order to harmonize the
conclude that a significant
data from number
different information of the respondents believe that in the course of their
systems
business processes, Graph 3.9.
employees Availability
do
Graph 3.9:Availability not and
and data
carry out
datatheprocessing
re-entryin
processing ofSMEs
in data, suggesting that most
SMEs
(1 – I do not
(1 agree,
SMEs– I do Very
have
not little;Very
information
agree, 5 – I systems
fully
little;agree,
5 –thatVery much)
useagree,
I fully one orVerymore consolidated databases, which was
much)
presented
Source: Authors’ in the previous graphs.
analysis.
Source: Authors’ analysis.
The results of the research presented sufficiently indicate that a considerable number of
the respondents spend a substantial amount of time creating Excel analysis, on the basis
30 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018
of which they make business decisions. Without going into the complexity of the analysis,
we can conclude there is a need for a reporting system where the key focus of managers
will be to make decisions, progressively eliminate barriers and potential obstacles in
 data from different information systems

Graph 3.9:Availability and data processing in SMEs

(1 – I do not agree, Very little; 5 – I fully agree, Very much)
The use of business intelligence (BI) in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina
Source: Authors’ analysis.
The results
The results of ofthethe research
researchpresented
presentedsufficiently
where indicate
the keythat a considerable
focus of managers number
will beofto make
theindicate
sufficiently respondents
that spend a substantial
a considerable amount decisions,
number of time creating Excel analysis,
progressively on thebarriers
eliminate basis and
of which they make business decisions. Without going into the complexity
of the respondents spend a substantial amount potential obstacles in daily business based onof the analysis,
we can conclude there is a need for a reporting system where the key focus of managers
of time creating Excel analysis, on the basis of accurate and reliable information. An additional
will be to make decisions, progressively eliminate barriers and potential obstacles in
which they make business decisions. Without argument supporting this relates to the research
daily business based on accurate and reliable information. An additional argument
going intosupporting
the complexity of thetoanalysis,
this relates we can
the research results
results whichwhich
show show that different
that different reportsreports
do not do not
conclude necessarily
there is a need for a reporting system
lead to the same conclusions. necessarily lead to the same conclusions.

40,00%
29,70%
35,60%
30,00% 20,80% 21,80%
20,00% 14,90% 19,80% 18,80% 12,90%
13,90% 11,90%
10,00%
0,00%
1 2 3 4 5

The managers spend too much time to create Excel sheets on the basis of which the decisions are
made
Different managers make business decisions using different/opposite data/information that do
not lead to the same conclusions

Graph 3.10.
Graph 3.10: Interpretation
Interpretation ofofdata/information
data/information in
in SMEs
SMEs
(1 – I do not
(1agree,
– I do Very little; Very
not agree, 5 – I fully
little;agree,
5 – I Very
fully much)
agree, Very much)
Source: Authors’ analysis.
Source: Authors’ analysis.
Despite the lack of advanced information However, it is critically important to signal
Despite the lack of advanced information systems, most respondents believe managers
systems, have
mostconfidence
respondents believe
in data and managers
information on thethe
factbasis
thatofthe research
which results
they make at the same
business
have confidence
decisionsinordata
thatand
theyinformation
have KPIs ononthe the
basistime pointthey
of which to the
can conclusion
monitor the that thereofis room
efficiency
basis of which they make business decisions for significant improvement, not
operations. However, it is critically important to signal the fact that the research results only in the
or that they
at thehave
sameKPIs
time on thetobasis
point of whichthatsegment
the conclusion of reliability
there is room and accuracy
for significant of data, but
improvement,
they can not
monitor
only inthe
theefficiency
segment ofof reliability
operations. and also in theofrequired
accuracy data, butmetrics.
also in the required
metrics.
40,00% 33,70%
30,00% 30,70% 24,80% 25,70%
26,70%
20,00% 21,80%
8,90% 6,90%
10,00% 11,90%
8,90%
0,00%
1 2 3 4 5
The managers do not use business information12 available because they do not have confidence in
it (the accuracy and reliability of the data is questionable)
The managers do not have insight into the key business indicators (KPI) such as: return on
investment, daily sales and other

Graph 3.11: Reliability

Graph 3.11. Reliabilityand
anduseuseofofKPI
KPIininSMEs
SMEs
(1 – I do not agree, Very little; 5 – I fully agree,
(1 – I do not agree, Very little; 5 – I fully agree, Very much) Very much)
Source: Authors’
Source:analysis.
Authors’ analysis.
The respondents
The respondents believebelieve a great
a great number
number of of reports are
consuming intentionally
reports. These used to may
results monitor
point to
reports business performanceused
are intentionally and make business the
to monitor decisions but a that
conclusion considerable number
the reporting of theis not
system
business respondents
performanceat theand
samemake
time genuinely
businessbelieve that a few employeestohave
available/distributed a direct access
all employees equally
decisions but a considerable number of the and that they do not have an generate
to generating the required reports while the rest of the employees “manually” authority to
time-consuming
respondents at the same reports. These results
time genuinely believemayinstantly
point to access
the conclusion
it, whichthat
canthe reportingaffect
ultimately
system is not available/distributed to all employees equally and that they do not have an
that a few employees have a direct access to the efficiency not only of business processes/
authority to instantly access it, which can ultimately affect the efficiency not only of
generating the required reports while the rest functions but also the general efficiency of the
business processes/functions but also the general efficiency of the company.
of the employees “manually” generate time- company.
35,00% 29,70%
30,00% 29,70% 25,70%
22,80% 27,70%
22,80% 22,80%
25,00% 21,80%
19,80%
20,00% 19,80% 15,80%
Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018 31
15,00% 9,90% 13,90% 8,90%
10,00% 8,90%
5,00%
 respondents at the same time genuinely believe that a few employees have a direct access
to generating the required reports while the rest of the employees “manually” generate
time-consuming reports. These results may point to the conclusion that the reporting
system is not available/distributed to all employees equally and that they do not have an
Tatić K., Džafić Z., Haračić Mahir, Haračić Merima
authority to instantly access it, which can ultimately affect the efficiency not only of
business processes/functions but also the general efficiency of the company.

35,00% 29,70%
30,00% 29,70% 25,70%
22,80% 27,70%
22,80% 22,80%
25,00% 21,80%
19,80%
20,00% 19,80% 15,80%
15,00% 9,90% 13,90% 8,90%
10,00% 8,90%
5,00%
0,00%
1 2 3 4 5
The managers are not able to track the factual business performance in relation to the strategic
plan
Only a few employees have access to the data analysis and reports creating, while the other
employees have to manually process the data, which is time consuming
The reports are made by routine due to the historical practice (“We always worked in that way“)
and not due to business needs
Graph 3.12. Access to reports and their utilization
Graph
(1 – I do not agree, Very little; 3.12:agree,
5 – I fully Access to reports
Very much) and their utilization
(1 – I do not
Source: Authors’ analysis.agree, Very little; 5 – I fully agree, Very much)
Source: Authors’ analysis.
The final conclusion that can be drawn for this 3.4. Making business decisions
reports and analyzingthat
business performance,
drawn for which can undoubtedly be a bottleneck for
segment The final
of the conclusion
research is that SMEscan be possess this segment of the research is that SMEs
possess reliable data and valuable information but they require a systemic approach evident
SMEs with a more considerable
reliable data and valuable information but
number of According
employees, to the
business research
processes,results,
etc. it is to
generate the necessary data and information, SMEs genuinely
such need BIItasisa reporting
as BI system. system
also possible to for
they require a systemic approach to generate
analyzing business performance.
conclude that the respondents actively use Excel as an essential tool for generating Furthermore,
the necessary dataMaking
3.4. and information, such as BI
business decisions the research results clearly indicate there is a
system. It is also possible to conclude that the
certain discrepancy between the indicators
respondents actively use Excel as an essential
available
According to the research results, it is evident SMEs to managers
genuinely and
need BIemployees, creating
as a reporting
tool for system
generating reports and analyzing
for analyzing business performance.confusion about the factual situation in the
Furthermore, the research results clearly
business indicate
performance,
there iswhich candiscrepancy
a certain undoubtedlybetween the indicators available to managers and that
company. Only an adequate BI system
be a bottleneck
employees, for SMEs
creating with about
confusion a morethe 13
factual situation in the company. Only an data
employs accurate, reliable, and timely
considerable number
adequate of employees,
BI system that employsbusiness
accurate,has
reliable, and timely data has the ability to KPIs
the ability to generate reports and
processes, etc. reports and KPIs indicating the real state of business in SME.
generate
indicating the real state of business in SME.
40,00%
26,70% 27,70% 34,70%
26,60%
30,00%
24,80% 24,80%
20,00%
10,90%
7,90%
10,00% 9,90%
5,90%
0,00%
1 2 3 4 5

SME constanly improves information systems

SME will in near future implement new information systems
Graph 3.13.
Graph 3.13: The
Theneed
need for
forBI
BIininSMEs
SMEs
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
Source: Authors’ analysis.
Source: Authors’ analysis.
The vast majority of the respondents consider over SME business and increases productivity and
BI has aThe vast majority
number of the and
of advantages respondents
practicalconsider
quality.BIInhas a number
addition, of advantages
the respondents and BI to
consider
practical applications in SMEs. Thus, for instance, the respondents believe
applications in SMEs. Thus, for instance, the be extremely useful when managing and improving BI provides
better
respondents controlBIover
believe SME business
provides better and increases
control productivity
business and(BI
processes quality.
in the In
BPMaddition, the
service).
respondents consider BI to be extremely useful when managing and improving business
37,6%
processes
40,0% (BI in the BPM service).
30,7% 34,7%
30,0%
23,8%
21,8% 32,7%
20,0%

10,0% 5,9%
2,0% 6,9%
4,0%
0,0%
1 2 3 4 5

I believe BI implementation would enable better monitoring of the business

I believe BI implementation would improve business productivity

40,0% 36,6%
35,0% 27,7% 30,7%
Economic Review – Journal of Economics and Business,32,7%
Vol. XVI, Issue 2, November 2018
32 33,7%
30,0%
23,8%
25,0%
20,0%
 2,0% 6,9%
4,0%
0,0%
1 2 3 4 5

I believe
The use of business intelligence (BI)BIinimplementation would enableenterprises
small and medium-sized better monitoring
(SMEs) of in
theBosnia
business
and Herzegovina
I believe BI implementation would improve business productivity

40,0% 36,6%
35,0% 27,7% 30,7%
32,7% 33,7%
30,0%
23,8%
25,0%
20,0%
15,0%
10,0% 5,9%
5,0% 3,0%
3,0% 3,0%
0,0%
1 2 3 4 5
I believe BI implementation would increase the quality of business operations

BI is used for managing and improving business processes (BPM – Business Process
Management, BPI – Business Process Improvement)

Graph
Graph3.14:
3.14.The
The impact of BI
impact of BIon
onthe
thebusiness
businessperformance
performanceofofSMEs
SMEs
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
Source: Authors’ analysis.
(1 – I do not agree, Very little; 5 – I fully agree, Very much)
At the end
Source:of this research
Authors’ segment, we can the key barrier relates to managements lack of
analysis.
conclude the respondents consider there is a real knowledge and information about BI role and
need forAtBIthe end of tools
effective this research
in SMEs.segment, we can conclude
The majority significancethe respondents
for SMEs. An consider there is
additional a
obstacle
real need for BI effective tools in SMEs. The majority of the
of the respondents believe the implementation for managers who are aware of the role and respondents believe the
implementation of BI would have multiple advantages and positive effects on the
of BI would have multiple advantages and importance of BI for SMEs is precisely the lack
business of SMEs. This segment of the research, compared to other segments of the
positive effects on the business of SMEs. This of information and experience in the field of
research, clearly indicates that respondents in most cases have a clear attitude and the
segmentdistribution
of the research, compared
of respondents' to other
answers confirmssolving the identified
that their problems/opportunities.
attitudes agree with the stated
segments of
claims. the research, clearly indicates that Namely, a significant number of managers are
respondents in most cases have a clear attitude not sufficiently familiar with the techniques
and the distribution of respondents’ answers and types of BI solutions existing on the market,
confirms that3.5. their
Causesattitudes agreeofwith
and barriers the and which
BI implementation of these solutions would be the most
in SMEs
stated claims. appropriate for SMEs in which they operate,
BI role and significance for SMEs. An additional obstacle
which for managers
ultimately who
affects thearevision
awareandof strategy
Thethelast part
role andof importance
the researchofwas BI devoted
for SMEs to the analysis the
is precisely of the
lackkeyofbarriers and obstacles
information and
Causes related to the implementation of BI in SMEs. An
3.5. that directlyand
experience affect
in thethebarriers
possibility
field of theBIidentified BI
of implementing
of solving in SMEs. According Namely,
problems/opportunities. to the research
a
implementation
significant in SMEs
number of managers are not additional
sufficiently and very
familiar with important
the techniquessegment
and in SMEs
results, the key barrier relates to managements lack of knowledge and information about
types of BI solutions existing on the market, is andthe amount
which of financial
of these solutions resource
would be the available for
most appropriate for SMEs in
The last part of the research was devoted to the which they investment.
operate, which The research
ultimately results
affects the suggest
vision one of
analysis ofandthestrategy related and
key barriers to the implementation
obstacles that the of BI in SMEs. barriers
significant An additional and very
of BI implementation is
important segment in SMEs is
directly affect the possibility of implementing the amount of financial
the lack resource
of available
financial for
resources. investment.
The research results suggest one of the significant barriers of BI implementation is the
BI in SMEs. According to the research results,
lack of financial resources. 15
45,0% 39,6% 38,6%
40,0%
35,0%
30,0% 29,7%
25,0% 21,8% 19,8% 25,7% 19,8% 19,8%
20,0% 14,9% 14,9%
11,9% 11,9%
15,0% 15,8%
10,0% 6,9%
5,0% 8,9%
0,0%
1 2 3 4 5

Management's insufficient knowledge and information about BI role and significance for SMEs
The lack of vision and strategic goals related to the BI implementation in SME
The lack of financial resources

50,00%
39,60%
40,00% 37,60% 29,70%
30,00%
Economic Review 8,90%
November15,80%
20,00% – Journal of Economics and Business, Vol. XVI, Issue 2,20,80% 2018 33
10,00% 5,89%14,90% 12,90% 13,90%

0,00%
1 2 3 4 5
 1 2 3 4 5

Management's insufficient knowledge and information about BI role and significance for SMEs
Tatić K., Džafić Z.,
TheHaračić Mahir,
lack of vision andHaračić Merima
strategic goals related to the BI implementation in SME
The lack of financial resources

50,00%
39,60%
40,00% 37,60% 29,70%
30,00%
20,00% 20,80% 15,80%
5,89%14,90% 8,90%12,90% 13,90%
10,00%
0,00%
1 2 3 4 5

The lack of knowledge and experience related to the BI implementation

Lack of defined KPI and SME needs for analyzes, simulations and reports

Graph
Graph3.15.
3.15:Barriers
BarriersofofBIBIimplementation
implementationininSMEs
SMEs
(1 – I do not
(1 –agree, Veryagree,
I do not little;Very
5 – I fully
little;agree, Veryagree,
5 – I fully much)Very much)
Source: Authors’ analysis.
Source: Authors’ analysis.
The lack The
of experience and knowledge
lack of experience and knowledgein in
BIBI the aspect of the
implementation number
segment of aemployees,
is also significant these
implementation segment is also a significant are the companies with 51 or more
barrier. When it comes to BI implementation, we do not suggest SME employees should employees,
barrier. When it comes to BI implementation, we who have operated efficiently
perform the implementation but they should be capable to adequately implement BI for over 11
do not suggest
system SME
withemployees
the help ofshould perform
external years, achieved
companies/consultants significant
according to therevenues
needs andand they
the implementation but they of
specific requirements should
SMEs.beAncapable
additionalprimarily belong
problem and to the
barrier arebranch of defined
unclearly the trade and
to adequately
KPIs,implement
which areBIvery
system with theand
important helpcrucial
production industry.
in the implementation of BI system.
of external companies/consultants according
Implementation of BI system, as outlined, is an exceptionally sensitive process affected by
to the needs and specific requirements of SMEs. Some of the additional prerequisites for
An additional problem and barrier are unclearly successful BI implementation typically include
defined KPIs, which are very important and constant improvement of existing information
crucial in the implementation of BI system. systems or investment in the new ones, as well
Implementation of BI system, as outlined, is as the existence of one or more consolidated
an exceptionally sensitive process affected 16databases. According to the research results,
by many factors. Adequate preparation of the the vast majority of SMEs without ERP, CRM
implementation and explicit definition of the systems, or ultimately BI systems expressed
project tasks and the ways to eliminate/reduce their desire to gradually introduce and
the obstacles directly affects the success of the implement them.
implementation and practical use of BI system.
The foundation of BI is a database on the basis
of which it is possible to efficiently generate
4. DISCUSSION the necessary reports and reliable indicators.
Considering the research results, it is evident
Successful implementation of BI in SMEs is a there is a lot of room for improvement in this
process that depends on a number of internal segment, meaning that it is necessary for
and external factors. Making decisions based SMEs to carefully analyze the architecture and
on accurate and reliable data and key indicators the data they possess and to extract the data/
is recognized as distinctly important by the information they will need to improve the
respondents working in SMEs. The fundamental preparation and implementation of the new
prerequisite for efficiently implementing an information systems.
advanced reporting and analytic system is the
existence of an adequate database, based on The research results uniquely point to the fact
which it is possible to generate the necessary that SMEs recognize the role and importance
reports that are accurate, consistent, and of an adequate reporting system for improving
properly represent the factual situation in the business decision making system. The
SMEs. Because of this, one of the essential existing systems for monitoring and analyzing
prerequisites for the implementation of BI data help in properly supervising the defined
system is a successfully implemented additional goals. However, based on the results of the
information system, such as ERP, CRM WMS and research, there is a significant place for
others. According to the research, SMEs with improvement. Based on the fourth segment of
ERP in most cases have both CRM and BI. From the research, we can reasonably conclude that

34 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018
 The use of business intelligence (BI) in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina
SMEs have an urgent need for an advanced
reporting system such as BI system and that its
successful implementation would lead not only
to the improvement of the decision-making
system but also to a tremendous increase in
efficiency, productivity and effectiveness of
SME operations.
Successful SME business comprises an extremely
important factor for the economy of a country,
especially for developing countries such as
BiH. Implementing BI system and fulfilling
the prerequisites for such a process leads to
increased competitiveness and productivity of
domestic SMEs. However, the implementation
of BI system is a process that typically requires
a more considerable number of resources, both
material and immaterial. According to the results
of the research, the key barriers and obstacles to
the implementation of BI system are the lack of
financial resources, lack of vision and strategic
goals in terms of BI implementation, insufficient
information and knowledge, and other barriers
presented insofar. However, the implementation
and application of BI system are not an exclusive
right and opportunity only for large companies
and corporations. They possess more resources
but the implementation and application process
can be more complex than implementing and
applying it in SMEs. Therefore, it is critical to
emphasize that the implementation of BI system
should be one of the strategic goals for SMEs and
that the process of fulfilling the prerequisites
and reducing/eliminating the barriers should
remain the goal and plan for the near future. It
is equally necessary to emphasize that BI system
should be seen as a long-term investment
that will instantly make returns right after the
moment of successful implementation and
practical application.
Based on the survey results, we present specific
recommendations for SME companies in BiH:
• The successful implementation of
information system (e.g. ERP, CRM, WMS,
etc.), typically requires a strategic approach
that will correctly anticipate SME needs and
requirements for analytical tools such as BI.
• The implementation of information
systems involves carefully designing a
database that should anticipate the current
and future requirements of SMEs in terms
Economic Review – Journal of Economics and Business, Vol. XVI, Issue 2, November 2018
of improving existing or implementing
new information systems as well as BI
solutions.
• Improvement of the existing or
implementation of new information
systems should anticipate current and
future KPI requirements in order to
collect the necessary data and group them
according to the present and future needs
of SMEs, with the aim of faster and simpler
implementation of BI system.
• Implementation of information systems
typically requires significant financial
resources necessary for the procurement,
implementation, and hardware
maintenance. The authors’ practical
recommendation relates to the cloud
solution, one of the possible solutions
available to SMEs, which provide a
significant number of distinct advantages
over traditional hardware solutions (some
companies were proud of their own data
centers but they are now proud they do not
possess them at all, because they instantly
switched to the cloud).
5. CONCLUSION
BI implementation and application in SMEs are a
critical factor for successful business operations,
primarily due to BI role and importance in the
process of making operational and strategic
business decisions, consequently improving
the general business performance and
efficiency of SMEs. The conditions of a modern
economy such as an extremely demanding and
competitive market require SMEs to deliver an
adequate product, at the right time, with low
costs. The key segment of BI system is the rapid
identification of bottlenecks and processes with
black box syndrome, meaning that BI performs
an active role in Business Process Management
- BPM, Business Process Improvement- BPI and
Business Process Reengineering -BPR (Tatić,
Haračić, Haračić 2018, p. 37). It also improves
the productivity and stimulates new ideas and
innovations in business (Olszak 2014, p. 1107).
Based on the considerable amount of research
properly presented in the “Literature Review”,
and based on the research results, we can
35
 Tatić K., Džafić Z., Haračić Mahir, Haračić Merima
draw a conclusion that the implementation
of BI system in SMEs undoubtedly has several
beneficial effects on the business, especially in
the segment of improving strategic and business
decision making, continuous optimization of
resources, improvement of business processes,
and efficiency of SME operations.
Based on the presented research results, it can
be concluded that domestic SMEs have a lot
of room for improving the business decision
making process, both in the segment of existing
systems of reporting as well as in the process
of implementing advanced reporting systems,
such as BI system. The key question is whether
domestic SMEs will recognize the importance
of well-timed BI implementation and start
with the process of surpassing the barriers and
obstacles with the help of modern trends and
technologies, such as cloud computing (Bange,
Eckerson 2017, page 5). Furthermore, an
additional question is whether domestic SMEs
recognize BI advantages and opportunities
which can considerably reduce or completely
eliminate certain key barriers for the successful
BI implementation, which can be a subject of
further research as well.
Recommendations for further research relate to
a comprehensive analysis and extensive research
of the possibilities of properly integrating BI
system into the existing information systems
of SMEs, carefully analyzing the quality of data
and specific information in SME databases as
well as the degree of practical use of BI system
in everyday business for SMEs that already have
implemented BI.
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(Footnotes)
1 School of Economics and Business,
University of Sarajevo,
e-mail: kasim.tatic@efsa.unsa.ba
2 University of Tuzla, Univerzitetska 8, 75000
Tuzla,
e-mail: zijad.dzafic@untz.ba
3 BH Telecom, Zmaja od Bosne 88,
e-mail: mahir.haracic@bhtelecom.ba;
mahir.haracic@hotmail.com
4 Brand Buyer / Supplier Quality Assurance
Assistant at Prevent,
e-mail: merima.handzic@prevent.ba;
merima.haracic@hotmail.com
37
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