| In a recent study Gartner, Inc., a leading IT research | | | | the project have been split up to begin with to make |
| and advisory company, lists defective strategy - or not | | | | costs more manageable? The message here is, it's |
| having a strategy at all - as one of nine "fatal flaws" in | | | | better to promise less and deliver, than to promise the |
| Business Intelligence (BI) project implementations. A | | | | world and let people down when economic reality hits |
| good BI strategy, on the other hand, is the key to a | | | | home. |
| successful implementation, helping to maximize return | | | | 5. Information silos |
| on IT investment. | | | | An information silo occurs when data from one |
| How do you know if your BI strategy has defects? | | | | computer system is unable to communicate with |
| Below are seven telltale signs - how many of these | | | | another. This is the type of problem that a Business |
| apply in your organization? | | | | Intelligence project with a good strategic plan is able to |
| 1. BI system not seen as relevant. | | | | identify and correct. |
| This often indicates a lack of consultation across the | | | | Soiled information is very expensive to an organization |
| organization. This results in a lack of buy-in, and | | | | because the benefit of information within the |
| potential users do not see what the BI system has to | | | | organization is hidden to parts of it. The issue is usually |
| do with them. If the beneficiaries of the system are not | | | | resolved by making the strategic decision to create |
| involved in the design the system is unlikely to be | | | | and maintain a data warehouse. A data warehouse |
| successful when implemented. The BI strategy, if it | | | | collates data from diverse places into a series of one |
| exists, does not include the requirement to widely | | | | or more 'data marts', in the process reforming and |
| consult internally. | | | | recalculating the data to make it more useful to |
| 2. Seeking strategic advice from the vendor | | | | Business Intelligence. |
| An over-dependence on the software vendor can | | | | 6. Inaccurate metrics |
| leads to a conflict of interest where the vendor siezes | | | | Metrics (I use the word as BI vendors such as IBM |
| the opportunity to get what it wants (more sales) at | | | | Cognos use it) monitor month-on-month changes in |
| the expense of what the organisation needs (an | | | | performance and are often based on calculations |
| appropriate use of the software). | | | | between different items of data. They can become |
| A common example of this would be the overselling of | | | | inaccurate in a number of ways. For example, the data |
| an OLAP cube solution where a reporting application | | | | may be entered incorrectly, or miscalculated due to the |
| would do the job better for the users concerned. | | | | metric being defined incorrectly. Or the calculation itself |
| OLAP cubes provide highly summarised information in | | | | can simply be incorrect. Often there is no single |
| hierarchies, and there are many advantages to this, but | | | | definition of a metric - a strategic error - or they may |
| ease of reporting is not always one of them. | | | | be over-reliance on an inherently unstable data source |
| Furthermore, the number of users for whom OLAP | | | | such as a spreadsheet. These are strategic errors, |
| cubes are appropriate is almost always less than | | | | because they can be remedied by policy decisions |
| those who require a standard reporting application. | | | | such as avoiding spreadsheet input wherever possible |
| 3. Continuation of the past | | | | and publishing a dictionary of metrics for the |
| Doing things "as they have always been done" is the | | | | organization as a whole. |
| enemy a of good BI implementation. It can all too often | | | | 7. No ongoing development of the BI system. |
| lead to attempts to cut budgets, and often does lead | | | | Unlike, say, an accounting system or a CRM (customer |
| to adoption of inappropriate decisions such as reporting | | | | relationship management) system, Business Intelligence |
| from spreadsheets where what is needed is a fair | | | | systems add value by being reviewed and enhanced |
| appraisal of the available BI delivery tools. The use of | | | | on a continuous basis. Projects have a 'lifecycle' which |
| existing solutions simply because they are currently in | | | | involves reviewing your BI needs regularly. New |
| place is a sure sign of a strategy defect, and it is vital | | | | metrics and KPIs (key performance indicators) are |
| to be aware of the latest BI methodologies and | | | | discovered, these need to be added to the data |
| applications. | | | | warehouse and made available to the appropriate |
| Changing one's habits is often not easy, and may well | | | | managers. New data marts which were not in the |
| require training, but a certain degree of change is | | | | original project scope might come on board in a later |
| necessary if you are to maximize the benefits of BI to | | | | phase. |
| your organization . | | | | These developments should be considered as part of |
| 4. Hot-air balloon management | | | | the overall strategic thinking so they can be correctly |
| When budgets start to get out of control, you start to | | | | prioritized and budgeted. This gives BI a more central, |
| see a lot of pet projects thrown overboard. This is | | | | and less peripheral role within the organization, which |
| what I call management by "hot-air balloon". As with a | | | | allows it to reach its full potential in adding value to your |
| hot air balloon, throwing things out of the project make | | | | organization. |
| it a lot lighter and more able to float. The trouble is, this | | | | The role of Business Intelligence within the IT |
| process also makes the BI project a lot less functional | | | | environment is continually evolving and increasing. By |
| and effective. | | | | adopting effective BI strategies you maximise the |
| The problem, more often than not, is failing to correctly | | | | potential that BI has to offer in terms of productivity, |
| assess the cost of the project in the first place. Could | | | | cost saving and in numerous other ways. |