Why Companies Need Business Intelligence - Part 2

Business Intelligence BI Software Articles : Why Companies Need Business Intelligence - Part 2

Who is responsible?

"CEOs put the responsibility squarely on the shoulders of the CIO to ensure the make sure this value is extracted out of information stored in the company's IT systems," says Jeroen Dijkxhoorn, technology practice leader at SAS.

Changing the way things get done

Business intelligence has emerged as a top strategic initiative and investment priority for CEOs, but not surprisingly department objectives vary. Having learned from the past, IT is working to standardize on the type of tools it will deploy across the organization.

Users from across the business, not just managers, want quality information on demand, and are no longer willing to wait for IT to serve it. They also want the flexibility and ease of use in engaging tools that they are familiar with (the nearly ubiquitous use of Microsoft Office). And they want their information delivered consistently.

Business users need tools and solutions which not only can deliver information, but can manage information and produce information by integrating with their current systems. Finally they need to be able to tie operational information to financial information.

Minimizing the risk of failure

Business author and management expert Peter Drucker said there is nothing worse than doing the wrong thing well. Why does this happen? Because people don't understand the company plan or have visibility into how the business is performing.

It happens because people are not accountable for their part of the strategy, or can?t rely on their information to make good decisions.

One of the greatest failings of BI has been in how it gets deployed. Intelligence demand often starts out at a specific department where the scope is tactical and thus deployment is departmental in scope.

The result is a proliferation of tools serving the unique needs of specific departments. Unfortunately, the lack of consistent visibility across the enterprise means that these tools will have limited impact and may not even be aligned with the corporate objectives.

"The decision to adopt BI must have senior executive sponsorship. Such endorsement must be tied to overall business objectives and conveyed across the entire enterprise. This would help synchronize all employees," says Dijkxhoorn.

Have you read through a BI tool manual lately? You will notice that it isn't designed to be used by a layman? Many of today's BI tools are used by so-called power users who act as gatekeepers of the information. The result is BI tools do not get widespread adoption.

"BI tools must not be limited to those within an organization based on technical skills or of a certain department. To maximize the adoption of the BI tools within the organization, all employees should be given access to the information they need to make business decisions," advises Shivkumar.

BI is no longer just about the report, but what's IN the report. Just as business dynamics are constantly changing, BI tools must evolve from a report-centric to information-centric approach that delivers "actionable" insight.

Therefore, it needs to be universally recognized within the organization that BI supports improving performance. BI is a tool that is able to deal with the past, present and future and is the power to provide insight that leads to true competitive differentiation.

The only way to maximize the value of BI is to focus on the total picture -- information management, production and delivery that ensures consistent information, and the ability for users to analyze and re-purpose data.

Only then can a standard be identified and adopted across the entire enterprise.

Source: http://www.articlesbase.com/information-technology-articles/why-companies-need-business-intelligence-320561.html