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Incorporating Business Intelligence and Analytics into Performance

Management for the Public Sector Issues and Challenges

Conference Paper · August 2015

DOI: 10.1109/ICEEI.2015.7352549

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 The 5th International Conference on Electrical Engineering and Informatics 2015
Incorporating Business Intelligence and Analytics
into Performance Management for the Public Sector
Issues and Challenges
Nur Hani Zulkifli Abai Jamaiah Hj. Yahaya
UUM Information Technology, Faculty of Information Science and
Universiti Utara Malaysia, Technology
Sintok, Malaysia Universiti Kebangsaan Malaysia,
nurhani@uum.edu.my Bangi, Malaysia
jhy@ukm.edu.my
Abstract—— In order to assist organizations in managing a
stack of information, implementation of Business Intelligence and
Analytics is important. The ability of Business Intelligence and
Analytics in handling big data is undeniable. However, research
on the implementation of Business Intelligence and Analytics in
the public sector has been given less attention. Government
agencies have to make critical decisions in managing people’s
money in order to serve them. The decision itself affects people’s
life and it shall be assisted by appropriate technology. A
qualitative research has been conducted to identify issues and
challenges in the implementation of Business Intelligence and
Analytics in the public sector. This paper discusses issues and
challenges that have arisen in relation to this study.
Keywords— Business Intelligence; Business Analytics;
Organizational Performance; Performance Management; Public
Sector
I. INTRODUCTION
In today's world, information has unlimited power. It
affects daily life, decisions, as well as the success or failure of
an organization. The desire to capture and understand the
insight of information encourages people to create technology
capable of collecting and analyzing information with the most
efficient method. Business Intelligence and Analytics (BIA) is
a technology suitable for this purpose and it has been growing
rapidly. Even though BIA implementation is well known
among the private sector, its significant use in the public sector
is undeniable. It is unimaginable that civil servants make
decisions about public money, health and welfare without
having all the facts before them. It is crucial because the impact
of decision making will not only affect an organization, but the
country as well. Therefore it is important to study the current
situation of BIA implementation in the public sector.
Based on recent studies conducted by several institutions,
BIA technology is increasingly required by industry
practitioners. It has become one of the four latest technology
trend results based on a survey conducted by IBM Tech Trends
Report (2011). Meanwhile, the number of organizations that
used BIA to gain a competitive advantage had increased to
57% within one year [1]. Organization awareness on the
539
August 10-11, 2015, Bali, Indonesia
Aziz Deraman
School of Informatics and Applied
Mathematics,
Universiti Malaysia Terengganu,
Kuala Terengganu, Malaysia
a.d@umt.edu.my
importance of data analysis to improve decision-making
processes has also increased. Hence, many organizations intend
to improve existing BI systems with various analytical tools
[2]. It is presumed that analytics in the organization will
continue to grow and become a high priority in the planning of
the organization in the coming years [3].
This study has been conducted among top managers and
Business Intelligence (BI) practitioners in the Malaysian public
sector to understand hurdles in BIA implementation. In
addition, a number of data scientists were interviewed to obtain
deeper understanding of analytics implementation in Malaysia.
Section II of this article explains the overview of Business
Intelligence and Analytics (BIA), past research in BIA
framework and the application of BIA in performance
management. It is then followed by Section III that elaborates
the empirical structure of this research. The findings of this
research are discussed in Section IV. Finally, Section V
summarizes the conclusion of this study.
II. RELATED RESEARCH
A. Business Intelligence and Analytics
In 1989, Howard Dresner coined the term of Business
Intelligence (BI). He defined BI as a collection of technology
that supports end-user access to data and analysis of
quantitative information source at the very basic level [4].
Research in BI has been blooming since that moment. Most
researchers agreed that BI is a group of technology that
organizes data and transforms the data into knowledge to
support knowledge workers in making decision [5]–[9]. It
combines data gathering, data storage and analysis in order to
provide input to the decision-making process and becomes a
data-driven decision support system [10]. Going through two
decades, the analytical capabilities of BI are still improving to
fulfill the needs of accurate and practical insight. Due to this
situation, the academic world has started to use the term
Business Intelligence and Analytics (BIA). The term BIA can
be defined as technique, system, practice, methodology and
application that analyze organizational and environmental data
to assist decision making in an appropriate time frame [11].
 Basically, BIA consists of a few main components to
support its implementation, such as data sources, ETL, data
warehouse, analytical engine and BI software [5], [6]. Data
sources consist of multiple platform databases and structured
files. Normally, the sources contain operational data to be
analyzed. These data will be extracted, transferred and loaded
into data warehouse using ETL tools [12]. Data warehouse is a
subject-oriented, integrated, non-volatile, and time-variant
collection of data [13], [14]. Data loaded into data warehouse is
classified into subjects to enable multiple dimension of data
analysis. It also prevents from any updates and keeps historical
data for analysis [13]. Another important component is the
analytical engine. It consists of an Online Analytic Process
(OLAP) server that organizes data into cubes for faster
multidimensional data analysis. It also consists of a data
mining engine for analytic activities using data mining
techniques. Analytical results will be visualized using BI
software either in normal reports, interactive reports, charts or
dashboards.
BIA characteristics are unique from operational system and
database. It causes the differences in its development and
implementation. Research in BIA has been widely
implemented; however, the area of research is mostly focused
on data warehouse development [13]–[16], requirement
analysis [17]–[19], OLAP [20], [21], Extract,Transform and
Loading (ETL) [12], [22] and data mining [23]–[26]. There are
also a few studies on the fundamental of BIA implementation
process [13], [14].
Past research of BI also emphasizes data integration and
format standardization issues [27], [28]. However, the research
interest nowadays is shifted to improve analytical capabilities
of BIA in decision making [10], [29]. Analytics is a wide
concept that can be defined as data-driven decision making
[30]. It can be applied in lots of different domains. Practically,
analytics is the process of building actionable insight of data
through problem definitions and applications of statistical
models [31]. Even though analytics has been in BI indirectly,
academicians and practitioners agreed that extended research
on analytical capabilities in decision making is necessary.
Several factors influence the emphasis of analytics in BIA.
One of the factors is the complex and competitive environment
between organizations that require immediate action in order to
maintain the continuity of organizational performance. This
increases the needs of analysis to identify and articulate the
flow and reaction for faster and accurate decisions [32], [33].
Another factor is related to the stack of data to be analyzed; not
just the organization's operational data, but also competitors
and environmental data that involve various formats. Models
and complex statistical analysis are required to assist the top
management to identify the best and suitable action to increase
performance [2]. In addition, the required data is not only to
support action plan, but also to analyze the suitability of
strategy implementation and identify improvements that need
to be made [29]. These factors led to analytical deliberation in
the implementation of BIA.
There are clear objectives of analytical deliberation in BIA.
The main objective is to speed up decision-making process in a
competitive environment [1], [33], [34]. In addition, the
540
analytical step is also performed in order to reveal potential
actions implicit in the stack of data [1], [29], [35], [36].
Another objective in empowering analytics is to ensure
accountable decision making for every action taken is based on
fact. It also aims to raise the level of operational efficiency and
improve existing performance [1], [34], [36]. Apart from that,
it could also assist organizations to adjust themselves in the
changing environment. However, the implementation of BIA
should be consistent with the implementation of performance
management so that the organizations could obtain a greater
impact.
B. Organizational Performance Management
Decision-making process within an organization is a critical
step. In this research, past literature regarding organizational
performance management has been reviewed to gain
proficiency in the implementation of BIA in managing
organizational performance. Efforts to improve performance
and competitiveness of an organization require accurate
information and at the right time for suitable stakeholders [37].
Therefore, studies on suitable methods for managing
performance have been carried out [38]–[42] and past
researchers had agreed that performance management is
essential to ensure achievable organizational objectives .
Performance Management System (PMS) refers to a
process of setting objectives, vision and mission development,
as well as structuring tactical and operational strategy to ensure
that the actions taken are able to improve the performance or
organizational services systematically [43]–[47]. It
incorporates three main objectives. The first objective is to
manage the implementation of the information strategy
developed by the stakeholders. Subsequently, it is to
understand and monitor organizational performance to create
awareness of performance level and ensure the management is
always on high alert. Finally, it aims to be a tool that can help
stakeholders in making decisions to improve the existing
strategy in order to maximize success.
PMS framework has been constructed to form the
fundamental operations involved in managing organizational
performance [45], [48], [49]. Among the identified operations
are (i) determining vision and mission, (ii) identifying critical
success factors ,(iii) establishing organizational structure, (iv)
structuring strategy and action plan, (v) identifying key
performance indicators, (vi) setting targets and (vii) performing
evaluations. However, the studies have pointed out that
management issues and lack in initiatives are insignificant
factors towards effective strategy implementation [47]. The
strategy should be constantly evaluated to ensure its
implementation suitability with the current environment.
Therefore, the implementation of performance management
should be parallel with technology to ensure the increment in
performance remains viable in today’s fast moving and
competitive business environment [50].
C. Business Intelligence and Analytics for Public Sector
Government agencies are measured not by profits and
losses, but by their ability to deliver their missions. This leads
to different perspectives of BIA between the public and private
sector. Although the impact of the decision making in the
public sector is wider, they are still lagging behind in the
implementation of BIA in managing performance. However,
currently, the awareness level of the public sector towards BIA
implementation has increased.
According to the Eleventh Malaysia Plan 2016-2020,
Malaysia is looking forward to empower the public sector by
ICT development and use [51]. They support integrated
systems and the use of Business Intelligence to enhance the
capability of government agencies to serve the people. This can
be seen through the IT strategic planning in some agencies
such as the Department of Public Service [52] and Perbadanan
Labuan [53]. Most agencies have set up the implementation of
BIA in the high priority category.
In the academic world, a few studies have been done on
BIA implementation in the public sector [54]–[56] and
researchers agreed that BIA implementation in government
agencies is a necessity. However, there is still lack of research
in this area.
III. RESEARCH SETTING AND APPROACH
Qualitative research methodology was applied throughout
this research. The researchers agreed to apply phenomenology
approach due to the suitability of the approach to understand
life experience among people with common experience [57],
[58]. This approach is able to develop the question of what is
observable in the real world [59]. It is also capable in building
coherent account of the meaning of those experiences. The
objective of this research is to study the issues and challenges
in BIA implementation in the public sector in Malaysia.
The processes in this research are classified into three
stages; planning, interview and qualitative data analysis. The
planning stage consists of designing interview questions,
identifying respondents, obtaining interview permission and
identifying interview medium. Interview questions were
constructed based on three main areas; performance
management practice in the public sector, business intelligence
implementation and business analytics. However in this paper,
only two items were chosen for discussion, which are issues
and challenges. Meanwhile, the interview stage consists of
instrument preparation, audio recording and noting important
points. The qualitative data analysis stage includes audio
transcription, text cleaning, construct and theme development,
and defining terms.
A. Research Context: Government Sector in Malaysia
Malaysia consists of 25 ministries and for this research, a
few civil servants from various departments were selected to
explain the current practices, expectations, issues and
challenges in BIA implementation to manage performance
within the public sector. Among involved agencies include the
Ministry of Education, National Language Hall, Malaysia
Public Service Department and public universities. There were
also several respondents who had performed BIA projects for
various government agencies in Malaysia.
B. Data Collection
Data were collected primarily using face-to-face interviews.
Purposeful sampling technique was applied in choosing expert
respondents in selected areas. According to Creswell [60],
minimum number of respondents required for a
541
phenomenology research is 5 persons. However, level of
expertise towards research fields could lower the number of
respondents. In this research, middle and high level of expert
respondents had been chosen. Their working experience range
between 5 to 15 years. To obtain a holistic view of BIA
implementation in managing organizational performance, 18
respondents were chosen from three main areas related to the
research subject; Business Intelligence, Analytics and
Performance Management. In the Business Intelligence field, 7
respondents were interviewed. 5 of them are Business
Intelligence Consultants involved in BIA projects in the
government sector. Another 2 respondents served the
government sector in managing BIA projects.
Meanwhile, in the Analytic field, 5 respondents were
interviewed. Since this field is considered new in Malaysia and
unfamiliar to the government sector, the respondents chosen
are Data Scientists with experience in analytic activities in
Malaysia. For organizational performance management, 6
respondents were interviewed. All of them are managers that
plan and manage organizational performance in the
government sector in Malaysia.
Interviews were typically conducted in office or conference
room. However, 2 interviews were conducted online using
online messenger software due to interviewee’s limited time to
attend face-to-face interview. All interviews were recorded and
transcribed verbatim. Notes were also taken during interviews.
The data collections focused on the experience of BIA
implementation and on understanding the difficulties faced
during its implementation. In conclusion, this approach enables
deeper analysis of practices from different implementation
perspectives.
C. Data Analysis
Content analysis was conducted for the interview transcript.
It is used to generate themes and constructs. The objective of
this approach is to answer questions of practice and policy in
everyday terms rather than to generate theory [61]. First, text
reading was identified and grammar issues were corrected to
facilitate the analysis process. Next, the data were analyzed to
generate holistic view of issues and challenges that have arisen.
This process involves simultaneous reading and coding of
transcribed interview. Throughout the data analysis stage, the
text was examined and the coding process was done repeatedly
to increase the understanding of the studied phenomena.
Through the coding process, patterns and themes were
identified and analyzed
To build the theme, inductive techniques were used to
formulate an item with reference to the statement text. The
problems and challenges faced in implementing BIA quoted
from the statement text were grouped into one group. Analysis
of the theme involved the combination and implementation of
theme fraction to ensure the integrity of the findings. In order
to assist the researchers, ATLAS.ti software was used to
manage and classify constructs into appropriate themes.
Finally, based on collected statements and constructs, each
theme was summarized to establish generalized findings.
 IV. FINDINGS
BIA has assisted lots of government agencies in handling
data and information. Most respondents agreed that BIA has
become one of the important technology in government
agencies that could increase effectiveness in decision making.
However, several issues and challenges have been identified
and need to be addressed.
A. Process Synchronization
BIA implementation process in managing performance
shall be viewed holistically. It involves the participation of
several departments that are inter-related to each other.
Therefore, the implementation process should integrate with
each other. One of the issues is unsynchronized
implementation of BIA and performance management.
Determining clear objectives, KPI and organizational strategy
should be implemented prior to BIA implementation.
Synchronized implementation between management and IT
will give great support towards BIA implementation. This
research had found that there are still gaps in the
implementation process of BIA. Creating synchronized process
is still a challenge in the implementation of BIA to assist
organizational performance management. The following is a
statement in support of this issue.
“One of the challenges is when you want to start a BI project,
then you notify that the user is still not clear with their
objectives and things to measure. They should be able to
identify their KPIs and goals. It will be a chaos for BI
development if they can’t identify it, because when the users
are not clear with what they want, the development process
will also be unclear.” (BI Consultant)
B. Data Quality
Although data quality is an issue that is often raised in
research, it is still an issue in BIA implementation in the public
sector in Malaysia. Data quality is credential data that is used
effectively and repeatedly. Data quality is an important factor
for successful BIA implementation because it affects the
reliability of users towards data and analysis from BIA. The
analysis found poor understanding of the data quality concept
at every stage of the BIA implementation. Data quality levels
are still at an unsatisfactory level.
“One of the problems in BIA implementation is data quality.
Before BIA implementation, I didn’t expect there would be any
data issues because we believe every department will keep
high quality of data but I was wrong. After the
implementation, I realize that no one is responsible to ensure
the quality in data. Everyone is pointing at others. Most
people assume that it should be the responsibility of the IT
people but in reality, no one is taking the responsibility. They
don’t even understand the meaning of quality data. When we
mention about quality data, what they understand is as long as
they have data.”(Project Manager)
C. Delivering Analysis Results
Analytical results could be presented in many ways. However,
the selection of the best data visualization is a challenge.
542
Delivering analysis result is a process of delivering the insight
of data to decision makers. Since data analysis is performed
using statistical and data mining terms, it is difficult to be
understood by the management. This is a challenge faced by
data scientists; to translate the results of data analysis into a
form that is easily understood. The statement in support of this
issue is as follows:
“Delivering analytical result to the management is very
challenging; you need to be a good storyteller.” (Senior Data
Scientist)
D. Analytics Use
Analytics could be used in many stages in managing
performance. It is the key to obtain the insight of data.
However, one of the challenges is organizations are still
confused about analytics implementation. Most government
agencies don’t have data analysts to analyze data. They are
also still unclear about the analytic process flow. Although the
BIA infrastructure is already in place, organizations still did
not fully manipulate analytic techniques to get the insight of
data. The supporting statement is as follows:
“We have structured our goals between departments. For
example, to achieve our goals, we had set a strategy to
increase production. But how do we know that the strategy
actually gives impact for our objectives? Lots of people use
our product but how can we measure the impact of our
output? Personally, I think it has an impact but how can we
measure it? That’s the challenge.” (Top Manager)
E. Data-driven Decision Making Acceptance
Technology acceptance is an issue that is familiar in system
implementation. People need time to adapt technology and
make it as part of daily work. In the context of BIA
implementation, despite strong support from the top
management in its implementation, yet the data-based
decision-making process is still not fully acceptable. Most
decisions are still based on intuition and experience.
“Among arising issues, people are talking about manager’s
attitude related to the acceptance of BI analysis. The
requirement of BI is supposed to come from top to down;
unfortunately, decision-making process is still based on the
intuition of managers rather than data that had been analyzed
from BI.” (BI Practitioner)
V. CONCLUSION
In this paper, we have provided an overview of Business
Intelligence and Analytics, Performance Management and its
implementation in the public sector. We have also discussed
the current BIA implementation in the public sector and related
research that has been done. A qualitative research was
conducted to identify issues and challenges in the
implementation of BIA in the public sector in Malaysia. As a
conclusion, even though the awareness of BIA implementation
within the public sector is growing, there are a few issues and
challenges that obstruct organizations from fully utilizing BIA
capabilities
ACKNOWLEDGMENT
This material is financially supported by University
Kebangsaan Malaysia. Any opinion, findings, conclusion or
recommendation expressed in this material are those of the
authors and not necessarily reflect University Kebangsaan
Malaysia.
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