Business Intelligence 'out of the box'?
In my last blog I suggested that I would pose some answers to the question "Why do BI projects fail?". Well, perhaps I should start by clarifying what BI actually is:
“Business Intelligence” is a broad term used to describe any system of reporting that helps an organisation to better understand itself or the environment in which it operates. By environment I mean such things as the organisation’s customers, competitors, marketplace or the economy in general.
The above is my own definition, (which I obviously like), but if you want a second opinion you can try Wikipedia at http://en.wikipedia.org/wiki/Business_intelligence. It is interesting to note that Wikipedia says the term has been around since 1968, ie. back when punch-cards were hi tech and Bill Gates was still getting wedgies in high school. But I digress….let’s get back on topic.
The definition above would suggest that Business Intelligence is something that must be relatively unique to each organisation. Why is that? Well, I think it is safe to say that every organisation and its environment are relatively unique. OK some organisations may be similar, but on the whole most are radically different. For example, how can a not-for-profit aged care provider develop an understanding of itself and its own unique environment by using the same reporting system as a manufacturer of mining equipment? (That’s a rhetorical question, obviously it cannot).
This brings us to the first reason why many BI implementations fail to meet their goals: A BI solution must be designed specifically for the needs of the business.
Unfortunately many customers (and some vendors) mistakenly think of BI software as just another reporting add-on. Consequently Business Intelligence is often treated as an afterthought or a minor feature to be bolted on at the end of the ERP project. In reality, BI software should be implemented as part of an overall BI strategy. In future blogs I intend to outline a suggested approach to designing a BI strategy.
The definition above would suggest that Business Intelligence is something that must be relatively unique to each organisation. Why is that? Well, I think it is safe to say that every organisation and its environment are relatively unique. OK some organisations may be similar, but on the whole most are radically different. For example, how can a not-for-profit aged care provider develop an understanding of itself and its own unique environment by using the same reporting system as a manufacturer of mining equipment? (That’s a rhetorical question, obviously it cannot).
This brings us to the first reason why many BI implementations fail to meet their goals: A BI solution must be designed specifically for the needs of the business.
Unfortunately many customers (and some vendors) mistakenly think of BI software as just another reporting add-on. Consequently Business Intelligence is often treated as an afterthought or a minor feature to be bolted on at the end of the ERP project. In reality, BI software should be implemented as part of an overall BI strategy. In future blogs I intend to outline a suggested approach to designing a BI strategy.
As a final thought, I would like to suggest one exception to this rule: A packaged BI solution for a specific vertical industry is one scenario where a BI solution can provide benefit to the business 'out of the box'. This is particularly true if that industry is quite standardised for some reason (eg. government regulations). In such a scenario it is likely that all members will have similar reporting and management requirements. However tailoring of the packaged solution will always be of value, to account for differentiating factors such as the size of the business, legal structure, internal culture, geographic location, funding, organizational goals, etc.
