Business Intelligence Myth -

Responding to Business Intelligence Myths: BI Is About Technology Software

Have you considered implementing a business intelligence program? What are the critical steps in creating an effective BI system. What are the ultimate results you should expect? This series of articles intends to simplify the process and convince the financial decision makers of the ultimate productive reasoning that a well constructed BI program can produce. Business intelligence can produce a high ROI, and financial executives can approve as well as participate in the BI program with a reliance on the final product adding significant value to the organization.

First, let us examine why you should consider a business intelligence program at all. In my view, the answer is simple. As a chief financial officer of a regional business, I realized that all of the data that I needed to effectively run the business did reside in various places within the organization. The data, however, was not in a universally accessible location. Some data was in our primary ERP system, some was kept by various employees on Excel spreadsheets for different purposes, and some data resided only in the mind of certain people. I called these various data locations "silos". I realized, in making a business decision, all of the information I needed existed within the company. It was maddening, however, to realize that I could not reach much of the data in a coherent, timely, and well defined manner.

Some decision makers believe that simply purchasing the business intelligence software will automatically create the data solutions needed to more effectively run the business. This step alone will not produce an effective result. As with all software, BI technology is a tool and all tools are subject to the skill of the user. BI technology allows the data to be compiled in one easily accessible location and the software is designed to render the data in the most productive way to the user. The overarching need of the program, however, is to ensure that several steps are effectively carried out so as to ultimately bring enhanced business insight to the user. Before selecting and installing the most appropriate BI software for your organization (a critical step to be sure), you must create procedures that will:

1. Establish at a high level the ultimate objectives required by the BI program.
2. Create an experienced, skilled, and knowledgeable Business Intelligence Team.
3 Ensure that the BI Team has the clear authority to achieve the BI objectives.
4. Determine what data should be available in real time for principle decision makers.
5. Determine where the required data resides within the organization.
6. Ensure the accuracy of the data.
7. Determine how to create a real time, automatic flow of data to the BI system.
8. Input data to the system using the processes to be used for all future data capture.
9. Ensure that the data combines in the most effective means possible.
10. Ensure that the BI program is well maintained, with regular evaluations to improve the process.

The ultimate benefit of an effective and well-implemented business intelligence program can be incredible for a financial executive. Imagine having the necessary data, in real time on your computer, to make critical decisions. The benefits can be decisive in the success or your business (and career). As most financial executives know, the race usually goes to the organization with the best data making the best and quickest decisions. It is my belief that a robust business intelligence program is an indispensable tool in achieving that result.

So, while business intelligence software is clearly an important tool, the program that continuously feeds data to the software is the more critical issue. The rewards of a well planned and well executed business intelligence program can enhance your business and your career. I recommend that the financial executive initiate the steps to create a BI program in your organization. Approve an initial BI project budget to investigate which BI software best suits your needs. Look to the long term and create a trusted project team to evaluate the best software and processes required to achieve your objectives. If you do not, I believe your competitors will.

© 2009 Ron Box