Startupreneur Business Digital (SABDA)

Vol. 1 No. 2 October 2022

P-ISSN:
2962-0279
E-ISSN:
2962-0260

The Effectiveness of Business Intelligence

Management Implementation in Industry 4.0
Lee Kyung Choi1, Aropria Saulina Panjaitan2, Dwi Apriliasari3
Information System, University of Miyazaki, Japan
Information System, University of Esa Unggul, Indonesia
Information System, University of Raharja, Indonesia
Email: leekyungchoi@yahoo.com1 , ria.panjaitan@esaunggul.ac.id1 ,
dwi.apriliasari@raharja.info3

Article Info ABSTRACT

DOI:
Changes in business processes that run very fast in the
https://doi.org/10.34306 industrial era 4.0 have positive and negative impacts on
/sabda.v1i2.106 business players. Industry 4.0 is a technology that companies
need to promote Industry 4.0 is a technology that businesses
Article history:
need to promote innovation strategies and respond quickly in a
Notifications Author volatile market. It primarily focuses on interconnectivity, digital
07 July 2022 technology, predictive analytics, and machine learning to
Final Revised transform the way businesses operate and thrive. As a result,
31 Agustus 2022 this article suggests and encourages the implementation of
Industry 4.0 in organizations. Examining the current state of
Published business intelligence (BI), how it is positively impacting
01 Oktober 2022 organizations at the economic and business levels in terms of
decision making, and some success stories applied across
various business, academic, social, and government circles.
Keywords:
Furthermore, it discusses the expected future of Industry 4.0,
Industry 4.0, particularly in BI, and how businesses should prepare for this
Business Intelligence revolution. This article contributes knowledge about the current
Management state and positive consequences of Industry 4.0, as well as the
rapid advancement of technology when implemented in
Digital Transformations organizations and the harmonization of production and
intelligent digital technology.

This is an open access article under the CC BY 4.0

license.

Corresponding Author:
Information System, University of Raharja, Indonesia
Email: dwi.apriliasari@raharja.info

1. INTRODUCTION
Artificial intelligence in the industrial era 4.0 has been widely used, both in the
industrial/manufacturing world, economy, education, services, and finance. But of course

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the application and development of artificial intelligence will have a negative and positive
impact on the ecosystem of human resource development. The negative impacts, for
example, are the reduction of employees who supervise transaction activities, reduction of
employees for the production process of goods, reduction of employees for the field of
analysis, are simple examples. While positive things that are felt include the production
process using intelligent robots, automatic answering machines in the field of customer
service and the emergence of several e-commerce.

Figure 1. E-commerce transaction

In the context of business process management, of course, the role of artificial

intelligence is quite significant. In conventional business processes, the role of humans is
quite dominant, for example in terms of monitoring production, sales, inventory, finance,
and others. Artificial intelligence has gradually begun to take on a human role, especially
in activities that require complex computational processes and large data volumes, a quite
real example in the development of industry 4.0 [1] is digital transactions carried out in
several e-commerce (Figure 1). The presence of artificial intelligence has an impact on
developments in business intelligence management, which currently has quite significant
and massive developments. Business intelligence (BI) is defined as a decision-making
process aided by the integration and analysis of an organization's data resources. In fact,
BI is becoming increasingly important in some types of businesses because, as the most
valuable asset of a company, information is a critical resource for its growth. Making better
business intelligence decisions necessitates a strong data base that is available and
accessible at all times throughout the organization, from strategic to operational levels [2]
[3].
The data warehouse, which stores all relevant internal and external data, is
frequently regarded as the heart of BI. The quality and format of data sources vary, as do
their meanings, depending on their origin. Data is now more granular and produced in
much larger volumes than ever before. Extract, Transform, and Load are common methods
for integrating this data and ensuring its validity and utility to an organization.
Furthermore, the tool cleans the data before storing it in the data warehouse and preparing
it for BI tasks. These are the back-end processes of a traditional BI system. When data is
available in a central data warehouse, different media server levels are used for data
analysis, which serves as the foundation of the basis of the decision reports used by
decision makers [3].
Today, because data is a new economic asset class, similar to currency or gold, BI
has become a challenge for Industry 4.0 as well as a critical management issue. The
significance of developing analytical-based decision-making capabilities reflected in
computer software and systems has been specifically recognized. The business
environment is becoming more complex as Industry 4.0 takes shape. Companies need
innovation and advanced technology to respond quickly in this dynamic market. In this
context, technological tools such as Business Intelligence (BI) are required to process
information as well as make enterprise-level decisions. There are various levels of power
and ordinary users required to run the entire BI system. Power users are BI experts who

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retrieve the data required to create reports that serve as the foundation for decision making
[4]. Managers and decision makers are typically ordinary users who base their decisions
in an organization on these reports. Ordinary users typically have less experience with data
use and analysis than power users. When a technology tool like BI is implemented in a
company, it provides several benefits such as architecture, efficient information
management, and customer data management. Companies can gain a better
understanding of the importance of BI in all of these different environments by taking this
approach.
Today, because data is a new economic asset class, similar to currency or gold, BI
has become a challenge for Industry 4.0 as well as a critical management issue. The
significance of developing analytical-based decision-making capabilities reflected in
computer software and systems has been specifically recognized [5]. The business
environment is becoming more complex as Industry 4.0 takes shape. Companies need
innovation and advanced technology to respond quickly in this dynamic market. In this
context, technological tools such as Business Intelligence (BI) are required to process
information as well as make enterprise-level decisions. There are various levels of power
and ordinary users required to run the entire BI system. Power users are BI experts who
retrieve the data required to create reports that serve as the foundation for decision
making. Managers and decision makers are typically ordinary users who base their
decisions in an organization on these reports. Ordinary users typically have less experience
with data use and analysis than power users. When a technology tool like BI is
implemented in a company, it provides several benefits such as architecture, efficient
information management, and customer data management [6]. Companies can gain a
better understanding of the importance of BI in all of these different environments by taking
this approach [7].
This study will present 5 chapters, starting from an introductory discussion which
is the background in conducting this research, then a literature review which contains
several studies and detailed background of the elements to be examined in the study. In
chapter 3, we will discuss the methods used in solving the problem, then the results of the
research obtained from the data of the methods used will be presented and finally there
will be a conclusion of the overall research.

2. LITERATURE REVIEW
2.1. Industry 4.0
The modern industrial revolution lasted hundreds of years, and the Industry 4.0
era has just begun. In 2011, the concept of Industry 4.0 was first proposed for the
development of the German economy. The ongoing Industry 4.0, with the characteristics
of cyber-physical system (CPS) production, includes the integrity of knowledge with the use
of heterogeneous data.

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Figure 2. Industry 4.0

CPS's primary role is to meet the challenges of active and dynamic production. CPS
Industry 4.0 is based on key technologies (Figure 2) that aim to improve the overall
efficiency and effectiveness of the industry. Enterprise resource planning (ERP), radio-
frequency identification (RFID), Internet of Things (IoT), cloud computing, additive
manufacturing, augmented reality, and collaborative robotics with machine learning and
big data are all part of Industry 4.0. [8]. Automation, digitization, allocation, production,
optimization, and adaptation of human-machine interactions [9], as well as value-added
processes and communications enterprises based on automated data exchange, are
potential characteristics of Industry 4.0.
The introduction of smart factories in Industry 4.0 was marked by extensive
development of digitization and automation with the application of Information Technology
(IT) and electronic devices in services and manufacturing [10]. Big data, cloud computing,
IoT, mobile computing [11], and RFID are playing an important role in Industry 4.0.

2.1. Business Intelligence

Business intelligence is a set of technical tools and techniques that provide users
with historical data for analysis and reporting, assisting management in making important
decisions and improving the efficiency of business processes. Organizations can use
Business Intelligence (BI) to not only maintain competitiveness, but also to increase
revenue by improving decision making. Researchers and practitioners agree that BI
technology has received a lot of attention from organizations and industries. According to
the Gartner Group survey, nearly 80% of US firms and 50% of European firms have
implemented BIS [12]. The use of BI can provide numerous benefits to businesses. BI has
several notable characteristics, including attracting the attention of decision makers to
adopt this innovation in modern business. By transforming internal and external data into
meaningful information that guides the company to remain sustainable and competitive,
BI simplifies the analytical process of a company's market position, capabilities,
operations, and objectives [13]. A large industry survey conducted by Hannula and
Pirttimäki and Olexov confirmed the perceived benefits of Business Intelligence adoption
(BI). The following are the most significant benefits of BI adoption:
● Obtaining quality information for decision making (95%)
● Improved ability to analyze expected opportunities and threats (83%)
● Improved organizational/company knowledge (76%)
● Improved information sharing (73 %)
● Better analysis and information retrieval (58%)
● Faster decision making (54%)
● More accurate and faster reporting (82%)
● Improved decision-making quality (78%)
● Improved customer service (58%)
Wixom and Watson reveal [14] that most of the perceived benefits are intangible because they are difficult
to measure. Various benefits that may be achieved with BIS integration are shown in Figure 3.

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Figure 3. Benefits of Business Intelligence

3. METHOD
This study used a qualitative data collection method, analyzing several previous
research documents as well as solutions for implementing BI management in the coming
years [14]. The following electronic sources were used to select documents for this paper:
MDPI, IEEE, Scopus, and Science Direct. As a pioneer in knowledge base technology and
having conducted extensive research, these sources of information were chosen as the
basis for indexing and cataloging as Q1 to Q3. Review articles can be divided into several
categories based on their purpose, evaluation, reasoning, and examination. Table 1 shows
a list of the main categories and methodological aspects of search, analysis, and synthesis
found in [10].

Table 1. Stages of Research Methods

No Stages of Information

1. Identification The research

databases used are
sourced from IEEE,
Scopus and Science
Direct research

2. Screening Year of publication

(maximum 5 years of
the last publication)

3. Feasibility The selected

documents must be
complete from the core
of the problem to the
results obtained

4. The scope Research taken will be

related to existing
research, which will
discuss BI , Big data
as well as IoT and
industry 4.0.
Based on the stages and conditions of the method carried out, the results of data collection
will be attached to chapter 4 regarding the results and discussion of the research.

4. RESULTS AND DISCUSSION

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Business intelligence has become a requirement for strategic decision making in

corporations and governments all over the world. It is critical for business survival,
maintaining relationships with other companies, counterintelligence, goals, and both
short-term and long-term objectives. Furthermore, studies [11] confirm the benefits of BI
implementation, such as improved performance, efficiency, productivity, business growth,
resource planning, supplier-buyer relationships, and cost reduction, all of which can lead
to a competitive advantage [12]. According to this research, The factors that motivate BI
investigations have been divided into five categories: skills and qualifications, factors for
successful implementation, literature, user satisfaction, and competitive advantage.
Sources define Industry 4.0 as “a concept used to describe technological
advancements that provide the basis for increasing the level of digitization of the industry
and the business environment” [13]. Usually when discussing the development of Industry
4.0, four main components are distinguished. The key components are shown in Figure 4.

Figure 4. Key Components of Industry 4.0

According to the information consulted and depicted in Figure 4, Core Technologies

have a 68 percent impact on Industry 4.0. This 68 percent has been reflected in
organizations with high Big Data and Artificial Intelligence implementation, providing
organizational development and several advantages for key asset management. On the
other hand [15], it provides predictive analytics for making high-value decisions. Virtual
reality and 3D printing can also help with training and operational processes [14, 15]. In
other words [16], Industry 4.0 is becoming increasingly important to organizations on a
daily basis. Second, we have the Internet of Things, which is growing at an exponential
rate and has risen above the key components. Cyber–physical systems and smart factories
are still evolving gain strength [17].
Users must be able to quickly access data and information to make the right
decisions wherever they are in the Industrial Revolution 4.0, which is defined by the
extensive use of various technologies in all fields [18]. particularly the Internet [17].
Industry 4.0 is a process that results in technological transformations in the design,
production [19], and distribution of systems and manufacturing products, with an
emphasis on automated and interconnected industrial production. This has a significant
impact not only on the production process [20], but also on project management in the
company [19], operations, and the future of the region, and understanding the phenomena
occurring in the social and economic spheres, as well as human resources , is critical.
Industry 4.0 has been shown to contribute to overall efficiency improvements in
sustainability (clean and renewable energy), adaptive work environment, financial
performance and innovation [20].
"Industry 4.0" refers to the era of smart factories [21]. The term was first used in
2011 at the Hannover Fair. Industry 4.0 awareness and the vision of a "smart factory"
emerged as a result of a government project to encourage the use of information technology
in manufacturing; thus, it is closely related to industry, technology, and operations.

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Automation [22]. Furthermore, as a government procurement specialist in Florida points

out, this implies that a portion of the intelligence gathered by organizations should be
centered on doing business with the government [23]. Market intelligence and business
intelligence (BI) are the keys to the development of smart factories in this era. Market
intelligence is the cornerstone of the marketing concept; it is critical for strategic planning
and gic marketing implementation [24]. Despite the widely acknowledged importance of
market intelligence, managers continue to face challenges in ensuring the generation,
deployment, and responsiveness of market intelligence across organizations . When
implementing BI in their organizations, enterprise managers face a challenge in identifying
tools that are highly effective and have a significant impact. Table 3 compares these
business intelligence tools based on the survey results .

Table 2. Application Analysis Business Intelligence

No Tools functions

1 Tableau Used to visualize the data of a product

2 Cognos Used to display product performance

management

3 Sisene Analyzes and visualizes large data sets and

an ideal tool for building interactive
dashboards

4 Microsoft BI Analyzing and visualizing large data sets

and ideal tools for building interactive
dashboards

5 Nundas BI Data Visualization

Information generated through different reports is provided by the source

database (such as: social networks and news websites which in practice can be
heterogeneous). The above collections pose difficulties in managing and organizing
complete information and they have been optimized using different algorithms to reach
the best decisions for the company [25]. One of several algorithms delivered through
research that discusses the implementation path and configuration of a large-scale
reinforcement learning model in data scenarios. Then, it uses the relevant background
of the zero inventory case and the current zero inventory situation [26]. Furthermore,
specific applications that are strengthened by learning methods in BI are validated
through an assessment with zero-inventory case applications in companies that use
the Qlearning algorithm. In this way, the authors prove that the enhanced learning
method can be used to solve certain practical problems [27].
A study shows that organizations increasingly expect their employees to make
data-driven decisions to gain a competitive advantage. This expectation requires greater
flexibility and support for faster decision making. Classic BI reporting standards often
do not quite meet these demands [28]. The use of Self-Service BI (SSBI) software has
provided increased flexibility, and thus has been instrumental in meeting these new
demands [29]. As a result, this software can help reduce the workload of the IT
department and free up resources for other activities. However, the application of the
SSBI software alone does not necessarily lead to a better BI environment. It has been
determined that, in order to realize the full potential of a BI environment, a change in
culture and behavior is required [30].

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5. CONCLUSION
Sustainable development and the circular economy are critical issues for business
growth and market competition. Reconfiguration of production processes to reduce their
impact on natural systems, development of new environmentally friendly products, and
redesign of business models are examples of programs that seek to integrate sustainability
with industrial activities. The use of information and management support tools is central
to the enterprise digitization evaluation. One study looked at the integration of Enterprise
Resource Planning (ERP) and Business Intelligence (BI), which had previously been used
independently when migrating to Industry 4.0 technologies. Centralized functions such as
R&D, asset optimization, enterprise planning (strategy, investment planning, finance), and
supply chain, among others, add significant business value. The integration of these
functions across Industry 4.0 provides significant business value, both strategically and
operationally. Figure 5 depicts the primary goals of the resulting digital transformation.

Figure 5. Objectives of Digital Transformation

If we continue to examine the digital transformation process for BI, advanced digital
technologies such as the Internet of Things, Big Data analytics, and data visualization have
created highly automated industries in the Industry 4.0 era [46]. This technology has
recently become popular in the industry as a dashboard, a BI tool that provides corporate
executives and business managers with analytical data insights.
in summary, this study concludes that technologies such as big data, BI, and the
Internet are the true development pillars for businesses because they aid in decision
making, forecasting, and corporate economics. Development will be accelerated if these
technologies are supported by effective leadership and training. Furthermore, this research
demonstrates that the application of this technology, when combined with the proper use
of their main asset, namely information, drives companies to success. Furthermore, BI
technology assists businesses in achieving their primary business objectives. This study
emphasizes the significance of integrating ERP, IoT, and BI technologies in order to
contribute to growth in all aspects of the organization, beginning with operational changes
and concluding with a decisive basis for managerial decision-making.

ACKNOWLEDGEMENTS
Author would like to thank University of Raharja and Alphabet Incubator for the
completion of the journal on inputting the title The Effectiveness of Business Intelligence
Management Implementation in Industry 4.0.

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BIOGRAPHIES OF AUTHORS

Aropria Saulina Panjaitan Lecturer at Esa Unggul

University who is currently actively writing articles for various
scientific journals and has produced several research results and other
articles.
contacted at email: ria.panjaitan@esaunggul.ac.id

Dwi Apriliasari
(Student Member, IEEE) runs an undergraduate program with the
Faculty of Science and Technology at University of Raharja. She has 8
research studies. Areas of interest are Information Systems,
Business Intelligence, Blockchain.
contacted at email: dwi.apriliasari@raharja.info

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