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Source : SAP
Business Intelligence: A Guide for Midsize Companies
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CONTENT
- Executive Summary
- Signs Your Company Needs a Business Intelligence Solution
- What Is Business Intelligence?
- How Business Intelligence Is Helping Midsize Organizations
- BI Components Explained
- Much More Than Just a Simple Query
- Reporting Across the Enterprise
- Easy-to-Use Advanced Analytics
- Visualization Techniques
- Distribution and Control
- Using BI with Data Warehouses and Operational Systems
- The Benefits of BI
- Approaches to Implementing BI
- Make Business Users Self- Sufficient BI Consumers
- Facilitate Analysis with a Data Warehouse
- What to Look for in a BI Product
- What to Look for in a BI Vendor
- Conclusion
Executive Summary
Make Informed Decisions Across
Your Company
Furthermore, you need the ability to
determine where to concentrate your
efforts. You can't check every detail,
yet you would like to be able to monitor
your operations and focus on quickly
finding and resolving potential problems
while identifying and leveraging new
opportunities despite the current
uncertainty of the world economy.
You want to ensure that employee
and departmental metrics are aligned
with your company's strategic goals.
You realize that your company does not
have the resources of a Fortune 500
enterprise, but you believe that ' man
for man and woman for woman ' your
company's employees are more passionate
about their jobs and more committed
to its customers. Your company
may be relatively small right now, but
it's on a planned growth path. You've
heard the term "business intelligence"
and know that large companies ' and
maybe even your direct competitors '
are using it to obtain a competitive
advantage; however, your company's
primary analysis tool is a spreadsheet.
You were there when your company's
first location was its founder's garage.
Now that your operations have graduated
from the garage to real offices,
isn't it time your company's analysis
capabilities graduated from spreadsheets
to more powerful tools as well?
This white paper from SAP offers guidance
on how to improve the efficiency
and effectiveness of your company with
business intelligence.
Signs Your Company Needs a Business
Intelligence Solution
Can Your Company Benefit from
Business Intelligence ?
The following scenarios represent typical
situations that indicate your company
could benefit from a Business Intelligence (BI) solution:
- Multiple versions of the truth. Interdepartmental
meetings frequently
turn into shouting matches as participants
argue about whose spreadsheet
has the correct figures.
- Inability to perform in-depth analysis.
Your company knows which of its
retail outlets have the greatest sales
volume, but it doesn't know which
products have the highest sales by
season.
- Inability to locate important information.
Someone in accounting mentions
that a report showing year-over-year
growth for each customer has been
posted to the company's intranet.
However, no one can find it.
- Need for simple-to-use production reporting
technology. Your accounting
department uses a word processor
to generate customer invoices. Customers
frequently complain about
being invoiced twice for the same
purchase or shipment.
- Difficult-to-use BI technology. Your
company's sales manager used analysis
tools at her former job that she
insists be used in your company as
well. Although your company has
invested in several licenses, users
that have tried to use these tools
have given up in frustration and rely
exclusively on spreadsheets instead.
- No retention policy or practice for
historical values. The sales department
is conducting account reviews
and wishes to compare each customer's
sales to date this year with
its sales to date at this time last year.
Sales maintains a spreadsheet for
this year's results, but the person
who maintained the spreadsheet last
year has left the company ' and no
one has any idea what happened to
last year's spreadsheet.
- Limited operational flexibility due to
weak or nonexistent BI technology.
Your company has grown to the point
where its customer base has expanded
to the hundreds. While it values
every customer, it would like to identify
the top 10 in sales volume each
month and offer them extra attention
and special incentives.
- Inability to differentiate and prioritize
problems. While all problems need to
ultimately be addressed, you should
be able to identify which ones need
immediate attention. Oftentimes, you
can only identify projects that are
behind schedule or departments that
are over budget after they are deeply
in trouble.
- No alignment of operations with
strategic goals. Although your company
has defined its strategic goals,
you are not sure if they are in tune
with its daily operations. Several
managers have told you that while
they know how to optimize the work
of their own departments, they would
like to better understand how their
efforts support the overall goals of
the organization.
- Inability to comply with government
reporting requirements. While your
company is still relatively young, it
hopes to one day go public ' or at
least demonstrate compliance for
any given future business scenario.
In your role as IT director, you want
to take steps now to provide proper
audit trails and data lineage to ensure
that your CEO and CFO have confidence
in the accuracy of business
data.
What Is Business Intelligence?
Why Midsize Organizations Need Business
Intelligence
Business intelligence helps your organization turn
data into useful and meaningful information and then
distribute this information to those who need it, when
they need it ' so that they can make timely and betterinformed
decisions.
How Business Intelligence Is
Helping Midsize Organizations
Business intelligence allows organizations
to better understand, analyze,
and even predict what's occurring in
the overall environment and in their
company. BI helps your organization
turn data into useful and meaningful
information and then distribute this
information to those who need it, when
they need it, wherever they need it '
so that they can make timely and better-informed
decisions. It allows organizations
to combine data from a wide
variety of sources and see an integrated,
up-to-date, 360-degree view.
This is especially important for midsize
companies, which ' while not having
the vast resources of industry giants '
are typically able to more quickly implement
business decisions. BI provides
a win-win solution for IT and business
users by allowing the IT department
to be more productive in working with
its business users to service special
requests ' while permitting those
business users to become more self-sufficient.
Operations and analysis
are two sides of the business, and BI
allows IT to be a valued partner in both.
Typical uses of a BI solution for a midsize
company are to:
- Determine the inventory level of
a product or part
- Identify its best-selling products and
see if this holds true in all of its distribution
channels
- Identify customers that are cutting
back on their purchases so that
special inducements can be offered
to retain them
- Implement dashboards and scorecards
so that executives and supervisors
can quickly recognize operational
exceptions or key performance
indicators (KPIs) that fall outside of
accepted ranges
- Establish and monitor performance
metrics and take corrective actions
if they are in danger of not being met
- Compare departmental turnover to
identify potential morale problems
- Compare year-to-date sales for this
year with last year and forecast what
sales are likely to be for the entire
year
- Track customer orders and desired
ship dates against finished-goods
inventory and adjust the manufacturing
production cycle and supply chain
logistics to reduce inventory carrying
costs
- Integrate operational, spreadsheet,
and historic data for analysis purposes
' while helping to stamp out "spreadsheet
chaos" ' to provide consistency
and "a single version of the truth" for
the organization
- Provide business users with the ability
to perform their own ad hoc analyses
without having to involve scarce IT
resources
- Align daily operations with strategic
objectives and quickly recognize
when they are not in agreement
BI Components Explained
A Broad Choice of Tools and Functionality
Much More Than Just
a Simple Query
The BI spectrum is very broad in terms
of its tools and functionality. At its core
are the traditional functions of query,
reporting, and analysis. This is complemented
by data quality and data integration
to accurately and consistently
consolidate data from multiple sources.
Dashboards and other visualization
techniques help users quickly understand
analysis results, a critical component
of the BI solution spectrum.
Other tools include:
- A search function to locate information
and reports
- Predictive analysis to discover hidden
patterns and enable what-if analysis
- Scorecards and performance management
to help monitor business
metrics and KPIs, such as customer
satisfaction, profitability, and sales per
employee, in order to align individual
and departmental metrics with the
organization's strategic goals
Reporting Across the Enterprise
A simple query might access your
company's data to ask, for example,
"What were total sales to customer
ABC Corporation last December?"
or "What's the current salary of the
employee with employee number
157?" or even "How much of part
123 do we have in inventory?" Most
query tools also provide simple reporting
functionality and could, for example,
be used to generate a report listing
the accrued vacation of all employees,
sorted and totaled by department.
Enterprise or production reporting
typically involves high-volume, high resolution
reports that are run on a regular
basis. An example might be a manager's
report showing monthly sales and
associated sales commissions sorted
by salesperson and then by customer
or inventory status by product or warehouse.
The report distribution would
likely be controlled so that each sales
or production manager could see only
the entries for his or her sales force,
product, or warehouse location. It might
be e-mailed or viewed through a Web
browser. Enterprise reports can also be
used to generate statements or invoices
for customers or individualized benefit
summaries for each of your employees.
Easy-to-Use Advanced Analytics
With advanced analysis functionality,
users can view data across multiple
classifications or dimensions (for example,
product, customer, location, time
period, salesperson, and so on) and
slice and dice the data to look at various
combinations, such as the sales in each
region for December or the products
each customer purchased last year.
Advanced analysis functionality also
permits organizations to define hierarchies
so that, for example, a user could
view sales first for each region and
then could drill down to view sales in
each state or country in each region.
By drilling down further, the user could
view the sales of each store within
each state or country. It would also
be possible to see the sales of each
product in each store or the sales for
each salesperson for each product.
These advanced analysis functions
make it easy to compare the results
from one time period with another so
that total sales of a product for this
month (or some other time period)
could be compared to the same month
last year ' while allowing the user to
drill down and perform year-over-year
comparisons at levels such as store,
customer, or salesperson.
Other advanced analysis functions,
such as filtering, can be used to include
or exclude specific stores, regions,
products, salespeople, or time periods
in the analysis ' and provide the ability
to look at the top-25 or bottom-25 (or
any other number) or best- or worst performing
products, stores, or salespeople.
The ability to look at results
across several dimensions and easily
request the top or bottom performers '
when combined with drill-down, slice-and-
dice, and filtering functions ' provides
powerful but easy-to-use analytics.
Star Trac of Irvine, California, is
a midsize manufacturer of quality
physical-fitness equipment serving
a global market. Like many rapidly
growing companies, its data was
spread across multiple silos ' making
it difficult to aggregate and reconcile
data to facilitate better decision making
and align key objectives and business
processes. Star Trac needed
a product suite that offered flexible
reporting, ad hoc query and analysis,
interactive dashboards, and visual
analytics. "Fast, easy business
intelligence will save us time, boost
productivity, and deliver the data to
help us grow the business," says
Jeff Kuckenbaker, senior director
of information systems. "We'll
use SAP BusinessObjects Edge
to deliver information across the
company, so everyone can better
understand how to execute our
strategies for growth."
Simple reports were initially designed
for passive viewing, while solutions
providing advanced analysis features
enable interactive analysis. Many of
these advanced functions were once
available only in specialized online analytical
processing (OLAP) products
that involved the use of proprietary
databases and highly skilled technical
specialists. Now OLAP functionality
is often incorporated into query and
analysis tools, thus allowing business
users to perform interactive analyses
and, for example, click on a number in
a report to drill down to and analyze the
underlying details ' ascertaining root
causes in many cases.
Effective BI should be an interactive process,
and query and analysis tools ' with
embedded OLAP functionality ' permit
business users to perform dynamic
analyses on their data. As most IT practitioners
can attest to, a user working
with a static report will likely ask for
additional details and modifications;
query and analysis tools allow business
users to formulate a high-level query
and then immediately explore the underlying
details on their own.
Core BI technology ' like query, reporting,
and interactive analysis ' is used to
view or analyze what is or has already
occurred, while data mining and predictive
analysis allow users to predict what
may occur in the future ' very critical
in today's uncertain economy. BI uses
sophisticated statistical techniques to
find relationships that are hidden or
not obvious. It can be used to identify
which factors closely relate to customer
churn and attrition or which factors
(such as a prospect's income, education,
age, or last purchase amount) were
most closely related to a successful
response in a marketing campaign.
Visualization Techniques
A picture is worth a thousand numbers,
and highly graphical techniques ' including
dashboards ' strongly complement
the other members of the BI spectrum.
Using graphical gauges analogous to
an automobile dashboard and symbols
such as traffic lights ' where red represents
an alert condition and yellow a
warning ' users can quickly identify
exception conditions.
It has often been said, "If you can't
measure it, you can't manage it."
Scorecards and other performance
management tools enable you to establish
business metrics, update and monitor
the results, and communicate them
as appropriate so that minor problems
can be identified early on and corrective
action taken quickly. Dashboards are
used frequently to display performance
metrics and can allow users to drill
down from the visual image to view the
underlying detail. Other visualization
techniques include "slider bars," which
allow a user to perform what-if analyses
and, for example, show how profit
margins would increase if maintenance
revenues were increased or distribution
expenses reduced.
Marcus & Millichap Real Estate
Investment Services Inc. specializes
in investment real estate brokerage,
providing real estate investment sales,
financing, research, and advisory services.
With SAP® BusinessObjects™
Edge software, the company can
efficiently distribute current market
information to its agents. According
to Marty Louie, vice president of
finance at Marcus & Millichap,
"The name of the game in brokerage
is information ' the type and quality
of information that you give to your
clients will help them more efficiently
deploy their assets and maximize
their returns. By implementing SAP
BusinessObjects Edge, we can
aggregate the data quickly and efficiently
distribute it to all of our agents
and management team."
While many small businesses and midsize companies
have relied on spreadsheets as their primary BI
tool, most of them have come to realize that this is
a stopgap solution and one that's apt to lead to data
chaos and inconsistent analysis results.
Distribution and Control
Business intelligence is not just about
tools and their applications; it's also
concerned with distribution and control.
Reports should be able to be published
to the Web and delivered to a user's
preferred mobile device. However, not
every employee should have access to
every report or analysis ' and administration,
monitoring, security, and control
are also part of the BI environment.
The use of commercial BI products
does not necessarily mean the elimination
of spreadsheets; rather, BI can
provide controlled linkage of spreadsheets
to up-to-date data while enforcing
proper distribution and control so that
"spreadsheet chaos" is no longer an
issue, and trying to determine whose
spreadsheet is "more correct" is no
longer part of every company meeting.
The ability to locate and search out relevant
reports is also part of the BI landscape,
as a report is of little value if no
one knows it exists or how to find it.
Using BI with Data Warehouses
and Operational Systems
The use of BI, however, is not limited to
data warehouse environments in which
snapshots of data from multiple systems
are consolidated for analysis; it can be
used with operational systems as well.
When deployed with operational systems
(that is, those that help run or
operate the business), BI might be
used to show current values ' such
as current inventory levels, outstanding
customer balances, salaries, or student
attendance. When deployed with a data
warehouse, which contains data values
taken at periodic points in time and
frequently sourced from several operational
systems through the use of data integration
and data-quality technology,
it often involves comparing one period's
results with another period's results.
A typical use would be to compare this
quarter's sales against the same quarter
in each of the preceding three years.
Some data integration vendors offer
connectors or integration kits to facilitate
access to commercial enterprise
application software.
Data quality is of paramount importance
in both operational systems and data
warehouses. In an operational environment,
no one wants to ship the wrong
order to the wrong address, deliver 50
kilograms of a product when 50 pounds
were ordered, provide a patient with
the wrong medication, or transfer funds
to the wrong bank account. In a data
warehouse environment, no one wants
to make decisions based on incomplete,
incorrect, or inconsistent data. The
deployment of data-quality tools can
help ensure that this does not happen.
By using BI with both operational
systems and data warehouses, a
company can not only improve its daily
operations but also compare current
results with historic values to identify
trends and head off problems before
they become more serious.
The Benefits of BI
Improve the Overall Efficiency and
Effectiveness of Your Organization
When selecting a business intelligence product, it's
important to consider other factors in addition to
specific product features ' such as ease of use,
ease of implementation and administration, scalability,
user-interface options, and how well it integrates
into your company's existing and future platform
environment.
A major part of any manager's job is
to make decisions. If you can improve
the overall quality of your organization's
decision-making processes, you can
improve not only the overall effectiveness
of your organization but also the
overall efficiency of your business.
Business intelligence can help your
organization make better decisions '
and help you not only run your business
but also manage your business
more efficiently and effectively.
BI allows business users to analyze
and better understand their organization's
plans and results. It provides
insight into what's working correctly
while identifying potential problem
areas in time for corrective actions
to be taken. It can be used to recognize
opportunities as well as problems and
alert your organization to potential
issues when exception conditions
occur ' such as sales dropping 20%
below forecast or inventory falling
below a threshold value.
Since BI product suites include a
variety of functional options, organizations
can pick those that are most
appropriate for the task at hand and
for the experience level of their individual
employees ' implementing functions
needed immediately and introducing
others when needed in the future.
While in the past only technical specialists
typically used BI tools, most business
people can now successfully
use them as well. This has served to
democratize BI usage throughout organizations.
The role of IT has evolved
positively from maintaining user names
and passwords and updating reports
to more strategic activities by applying
appropriate technology to bring analytical
power to business users. This has
provided business users with quicker
response time and the ability to drill
down and perform interactive analyses
while enabling IT to serve its organization
more effectively and more
efficiently.
While many managers and supervisors
pride themselves on their intuition,
BI provides tools to help verify their
insights and even discover new ones.
It permits business users to explore
results at a high level and then drill
down to analyze the underlying details.
Business intelligence is one of the primary
keys to effective decision making.
When selecting a business
intelligence vendor, it's
important to consider many
factors ' including experience,
reputation, and
stability ' as well as the
vendor's professional
services capabilities and
the quality and strength of
its partnerships.
Approaches to Implementing BI
Start Small But Get Ready to Move Quickly
Beginning a BI initiative is not necessarily
expensive, especially if you choose
a vendor with a suite of products that
allow you to easily start with your initial
BI needs and expand your BI usage,
implementing the tools you need as
your business continues to grow and
expand.
Make Business Users Self-
Sufficient BI Consumers
As your company transitions from
an undisciplined spreadsheet environment,
it often makes sense to start
small ' perhaps deploying BI against
one business application with a query
and reporting tool. Your company can
expand its BI deployment to additional
applications and use additional functionality
as the organization quickly
masters the technology. One place to
start is with the application that has the
greatest reports backlog. While the IT
department can certainly use BI tools
to reduce this backlog, the ultimate
goal should be to make your business
users self-sufficient and less dependent
on IT for their analyses.
IT can assist business users by using
the "guided analysis" functions of
some BI tools to create parameter driven
reports with user-selected filtering
criteria that business users can use
to perform their own customized analyses.
As users gain experience, some
of them generate their own reports and
contribute to a corporate report library.
It's up to each company to determine
the approach that works best for it. In
general, as an organization discovers
the benefits of BI, usage is likely to
spread quickly throughout the organization.
Using commercial BI tools does
not mean that your organization has
to abandon spreadsheets. Instead, IT
needs to establish procedures for proper
distribution and control and acquire BI
tools that can interface with them.
Facilitate Analysis with
a Data Warehouse
At any point in time there are a range
of users for BI, from novice to expert.
The IT department can set up and
enforce policies as to who can access
what reports and who can create their
own reports. If your organization is
using a commercial software package,
popular BI tools may have been bundled
with it, and your organization may already
have experience using these tools.
After using BI for operational purposes,
organizations likely want to use it for
deeper analysis, often requiring the
comparison of one period's results
against another period's results. This
is facilitated by the use of a data warehouse
that contains historical data
values ' thus making time-period comparisons
possible. A data warehouse
usually contains data from many sources,
and data integration software provides
the enabling technology for loading
the warehouse, while data-quality
software helps ensure that the consolidated
data is both accurate and consistent.
Many organizations have attempted
to build data warehouses that, for all
practical purposes, were data dumps;
the use of data-quality software would
have prevented this. One of the oldest
IT adages is "garbage in, garbage out,"
and this applies to both data warehouses
and operational systems.
FreshDirect, an online grocery
delivery company, first used SAP®
BusinessObjects™ Edge software to
gain insight into customer complaints
and feedback to identify key issues
across their value chain, understand
their trending, and evaluate how
these issues affected the business.
With SAP BusinessObjects Edge,
the customer feedback report
became a gold mine of information.
Using information from the report,
FreshDirect was able to dig into
customer data product-by-product,
recognize trends and understand
how they affected the business, and
even identify the products that were
either negatively affecting customer
loyalty or bringing them back for
more. Armed with such insights, executives
were able to look at processes
within the plant where they had issues
' whether at the picking operation or
on the assembly line ' and proactively
address them. As a result, FreshDirect
was able to improve product and
shipment quality and save significantly
on discounts provided to customers
to compensate for a packaging or
delivery problem.
What to Look for in a BI Product
Go Beyond Product Functions and
Consider Your Users
When selecting a business intelligence
product, it's important to consider other
factors in addition to specific product
features ' such as ease of use, ease of
implementation and administration, scalability,
user-interface options, and how
well it integrates into your company's
existing and future platform environment.
Among the most important of these
considerations are:
- An integrated product suite with a
range of functions that your company
can deploy as needed. As your company
grows, it should not outgrow
the software of its BI vendor. In addition,
individual users may require different
functions, and an integrated
product suite provides the greatest
deployment flexibility.
- The scalability to handle an expanding
user base as your organization
grows and usage increases. As your
organization gains experience with BI
and its usefulness becomes evident,
it's quite likely that its usage will
spread quickly.
- Data-quality functionality to ensure
a trustworthy data foundation so that
your company is analyzing accurate,
consistent, and complete data. High quality
data is a requirement for high quality
decisions, helping you avoid
the problems associated with having
"multiple versions of the truth."
- The ability to access and integrate
a wide variety of disparate data
sources. Although many companies
initially run their analyses against individual
systems, the time will come
when data from several sources is
needed to show the total picture.
A product suite that includes data
integration technology and the ability
to have the data appear as if it were
located in a single source allows you
to accomplish this easily.
- Integration with your desktop software,
in particular Microsoft Office.
This allows users to complement BI
with their familiar desktop tools,
which can reduce your organization's
training requirements.
- Support for multiple operating
systems. You can keep your future
options open and not constrain your
organization to a single operating
system. Linux is growing rapidly in
importance, and your BI solution
should support it.
- Ease of initial installation and deployment,
as well as ease of adding more
users. This not only makes it easy
to add new users quickly but can
increase the productivity of your IT
department.
- Powerful but easy-to-use administration
tools. Your IT department needs
to control "who can access what"
and provide a level of security and
privacy that's simply not possible
in a spreadsheet-only environment.
Your data is an organizational asset
that your BI products should help you
protect, while allowing those who
need to analyze it to do so efficiently.
- Robust report cataloging and distribution
functions that allow authorized
business users to receive their analyses
on both a periodic-subscription
and an on-request basis. A function
to alert users when certain events
or value thresholds occur is also
important.
- The ability to deliver reports to a wide
variety of desktop and mobile devices,
with content formatted to match the
functionality of these devices
- Strong search functionality that
facilitates finding needed information
and locating relevant analyses and
reports
- Support for business users who
want to "speak" in business terms.
A product suite with a semantic layer
transparently isolates users from
underlying technical complexities
and allows them to focus on their
business issues, not technical software
details. For users that need to
know where data was sourced from
and the underlying formulas (for
example, how gross profit and net
profit are computed), data lineage
details should be readily available.
What to Look for in a BI Vendor
Examine the Provider Behind the Package
When selecting a business intelligence
vendor, it's important to consider many
factors ' including experience, reputation,
and stability ' as well as the vendor's
professional services capabilities
and the quality and strength of its
partnerships.
Among the most important of these
considerations are:
- A vendor's education and training
capabilities. While many vendors offer
on-site and in-house training, a few
have developed self-paced computer based
training that can assist new
users in getting started or help experienced
users quickly master advanced
product functionality.
- A proven track record and a history of
successful growth ' both in revenue
and in capabilities. Solid growth and
profitability can indicate astute management
and product acceptance. It
allows the vendor to better serve its
customers and invest in the future.
- A history of acquiring complementary
technology and successfully integrating
it with its own. Such a vendor is
likely to be able to react quickly to
new market demands and to supply
the technology your company needs
' both now and in the future.
- A history of vision and innovation.
A vendor with a proven track record
of innovation and industry leadership
is likely not only to meet the current
needs of its customers but also to
anticipate and meet their future
requirements.
- Reputation and ability as a BI specialist.
As BI usage increases, it's likely
that your organization will deploy it
against additional systems and additional
databases. While a database
vendor may offer its own proprietary
BI technology, what happens when
your organization decides to use
another database? You need a BI
specialist that can handle a wide
variety of data sources.
- Multiple delivery options. While many
vendors only allow you to license
their products to run on your company's
servers, others provide on demand
or software-as-a-service
(SaaS) options. In this scenario, the
vendor hosts the software on its own
servers, and your organization uses
it through Web browsers. The SaaS
model can be especially appealing to
small companies that wish to minimize
upfront startup costs while still having
the ability to bring the software in-house
at a future time when it would
make economic sense.
- A large cadre of partners ' both software
vendors and consultants. One
measure of "openness" is the number
of other software products that
a BI tool works with. A vendor that
actively encourages partnerships is
likely to have little problem integrating
its technology with your current and
future software environments. Vendors
with a strong base of consulting
partners make it easier to find outside
expertise should your organization
have special requirements.
- A vendor with a product set that
provides a strong growth path. Your
organization needs a solution that
works in multiple operational systems
and data warehousing environments
to provide maximum deployment
flexibility.
- A successful track record and extensive
experience with organizations of
all sizes. Your organization will likely
grow and expand. It may not be
a giant today, but it could be one
tomorrow. Choose a vendor that
you can growth with.
- A multinational presence. If you expect
to operate on an international scale
someday, you need a vendor that
does the same.
Beginning a BI initiative is not necessarily expensive,
especially if you choose a vendor with a suite of products
that allow you to easily expand your BI usage and implement
the tools you need as your business continues to
grow and expand.
Conclusion
Improve Organizational Results with
Business Intelligence
Business intelligence allows business users to analyze
and better understand their organization's plans and
results. It provides insight into what's working correctly
while identifying potential problem areas in time for
corrective actions to be taken. It can be used to
recognize opportunities as well as problems and alert
your organization to potential issues when exception
conditions occur.
All employees have the responsibility
to make the best decisions possible,
based upon the data available to them
at the time. If their ability to analyze this
data and transform it into useful information
is improved, the overall quality
of their decisions can be improved as
well.
Business intelligence provides a spectrum
of tools and solutions to achieve
this. It's the underlying technology
behind, and a key component for, more
effective decision making. Helping
to align individual and departmental
efforts with overall corporate strategies
should lead to improved organizational
results.
While many small businesses and
midsize companies have relied on
spreadsheets as their primary BI tool,
most of them have come to realize that
this is a stopgap solution and one that's
apt to lead to data chaos and inconsistent
analysis results. This is not to say
that spreadsheets should be abandoned;
rather they can be a part of
an organization's BI tool set, especially
if used in conjunction with a commercial
BI product suite that integrates with
spreadsheet environments.
Shouldn't your organization be using
business intelligence technology
to help it run its business more
intelligently?
Michael A. Schiff
Michael A. Schiff is the founder and principal analyst of MAS Strategies. He has
over 30 years of experience in the information technology industry, providing
tactical market intelligence and analysis in areas such as data warehousing and
advanced decision support. Schiff earned his Bachelor and Master of Science
degrees from Sloan School of Management at Massachusetts Institute of Technology
(MIT), where he specialized in operations research as an undergraduate
and in information systems as a graduate.
Your company's focus has been on streamlining operations,
acquiring customers, increasing revenues and profitability,
and outpacing the competition. And while your company
has continued to improve its operating efficiencies (sometimes
by quickly learning from past mistakes), you feel
your company should be spending more time analyzing
what's going on and predicting
and planning for the future
- rather than having your employees constantly running
around trying to solve operational problems based on
history and putting out fires.