| > | | | | this either. And companies don’t teach their |
| Technology is not the fundamental challenge that | | | | employees most people just end up doing |
| organizations face when it comes to implementing | | | | something very similar to whatever they learned from |
| business intelligence (BI) solutions. Certainly a lack of | | | | their managers, if anything. To be clear, I |
| alignment between IT and business is a problem, but | | | | wouldn’t be surprised to discover that such |
| it’s really just a byproduct of the fact that BI | | | | classes and training programs exist somewhere, but |
| solutions have been so complex in the past that | | | | they’re certainly not common. |
| business users were required to bring in IT to create | | | | Imagine what would happen if you hired someone to |
| for them the analysis they wanted. Technology is not | | | | do accounting for you who had no background in |
| the fundamental challenge that organizations face | | | | finance. They’d be forced to make it up as |
| when it comes to implementing business intelligence (BI) | | | | they go. What’s the likelihood that |
| solutions.Certainly a lack of alignment between IT and | | | | they’d come up with the key financial metrics |
| business is a problem, but it’s really just a | | | | like ROI, Cash Flow, Liquidity Ratio, Debt to Equity |
| byproduct of the fact that BI solutions have been so | | | | Ratio, Current Ratio, Inventory Turns, EBIT, Days Sales |
| complex in the past that business users were required | | | | Outstanding, etc? It’s pretty unlikely. So, the |
| to bring in IT to create for them the analysis they | | | | financial analysis this person would do wouldn’t |
| wanted. Of course that will lead to alignment | | | | be very useful in helping the business, so it would fall |
| problems. Is anyone really surprised by this? When | | | | by the wayside. |
| the people asking the questions can’t answer | | | | This is exactly what we do with BI solutions. We ask |
| them for themselves, and the people who can answer | | | | business users to define the key metrics they need to |
| the questions are not the ones asking them, how could | | | | run their business. They don’t have basic |
| we really have expected that everything would be | | | | background in how to use analytics to improve a |
| rosy without a lot of effort? | | | | business, so they have to make it up as they go. |
| It’s not lack of executive commitment. | | | | Though they come up with some good metrics, they |
| Certainly, when BI fails, lack of executive commitment | | | | usually miss others that are absolutely critical. So, |
| plays a part. But, we have to ask why the | | | | management doesn’t see much value coming |
| executives weren’t committed? They | | | | from their BI initiative. Since it’s not really |
| certainly care about growing their business, and | | | | moving the needle in their business, support wanes. |
| analytics are required to do that effectively. So why | | | | We need to give people some basic exposure about |
| aren’t they committed? | | | | how to effectively use analytics. As a society, we |
| It’s not even the complexity of BI solutions. | | | | teach people to read and how to interpret the meaning |
| There have been tons of articles and blog posts | | | | of what they’ve read. That’s basic |
| written about how BI is too complicated. And often | | | | literacy. People also need exposure regarding what |
| it’s suggested that complexity really is the core | | | | numbers to look at in their business, and how to |
| problem. It’s true that if you make things | | | | interpret the numbers. We need basic numeracy to |
| simpler, then you get rid of the great divide between | | | | complement literacy. |
| business and IT because business can now be | | | | How do we move people towards numeracy? Part |
| self-sufficient and answer their own questions. And | | | | of it will be up to analytic vendors and user |
| BI will no longer fail because of lack of internal | | | | communities to define and share best practices for |
| expertise to keep a complex system running. | | | | analyzing a business. But we can greatly accelerate |
| Complexity is certainly a huge issue, but there is | | | | that process by providing users with analytic solutions |
| overwhelming evidence that it’s not really at the | | | | that provide the key metrics for analyzing the various |
| core. First, for years people have been focusing on | | | | areas of their business built into the solutions. |
| trying to make BI more accessible by simplifying the | | | | That’s why analytic applications are so useful. |
| user experience. More recently, several companies, | | | | They get us away from generic BI tools, and move us |
| both old and new, have offered hosted, or software | | | | towards real solutions focused on addressing specific |
| as a service (SaaS) BI solutions to get rid of the | | | | business problems and which include embedded |
| complexity that is involved with managing a BI solution | | | | best-practice metrics and analyses. |
| on premise. The Holy Grail has been to make it | | | | If you don’t think this is feasible because you |
| simple so we can deliver BI for the masses. | | | | believe that each company does business differently |
| But many BI initiatives still fail to get adopted and have | | | | and each therefore must define their own KPI’s, |
| impact on companies. | | | | then I can prove it to you. I can take your sales |
| We’re chasing the wrong grail. Simplicity is | | | | pipeline data, apply generic best practice analyses to it, |
| absolutely required, but simplicity alone is not enough. | | | | and I guarantee you that I’ll find important issues |
| Once you peel away the barrier that was created by | | | | and opportunities regarding your pipeline. Don’t |
| complexity and give users the ability to answer | | | | believe me? Then accept my challenge and I’ll |
| whatever questions they have, you uncover the real | | | | prove it to you. |
| culprit preventing companies from being successful | | | | By removing the barrier of BI complexity, we then |
| with BI: People have no way of knowing which | | | | expose the fundamental issue that we’re |
| questions are meaningful ones to ask, and which are | | | | providing people with tools to get questions answered, |
| meaningless. | | | | but not with the context to identify which questions |
| I’m not aware of any college classes that teach | | | | have the most impact. People need to demand that |
| people how to use numbers to analyze sales, or | | | | their BI vendors provide them not only with the ability |
| customer support, or human resources, or suppliers. I | | | | to get answers, but also with the right questions too. |
| don’t know of any business schools that teach | | | | |