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Business Technology

Monday, June 25, 2007

Nine ways to screw up a good BI implementation

June 4, 2007 from CIO Insights – “According to a BusinessWeek Research Services survey released in the fall of 2006, 62% of respondents said recent large-scale or strategic business intelligence (BI) initiatives returned the value they expected. What about the other one-third?
Vendors touting BI like Cognos, Oracle, SAP, Microsoft, IBM and Business Objects say it can deliver knowledge, efficiency, better decisions, and profit to almost any organization that uses it—when done wisely.

Even the smartest companies can make some dumb mistakes when it comes to business intelligence.

Dumb idea #1 – Not having BI. No surprise that Gartner's 2007 survey of 1400 CIOs found BI was again the most highly ranked technology priority. A Ventana Research study in the fall of 2006 of 488 companies indicates that 53% of companies plan to implement query and reporting software, while 40% plan to implement analytics and data mining applications.

Dumb idea #2 – Not having a BI roadmap and buy-in. "Just build it, they will come," is stinking thinking. Too many IT departments build a data warehouse based on the assumption that once it is built, users will automatically see the benefit. They don’t, unless you get the users on board.

Dumb idea #3 – Reliance on spreadsheets. Admit it, you know people who hide behind spreadsheets. They do it because they are comfortable with them and because they know how to manipulate the numbers to satisfy the politics of their organizations. Not smart in the long run..."

180 View – We especially like the “stinking thinking” re “just build it, they will come”. The writer says you need users on board to overcome this problem. We agree that will help, but often users don’t know what they want. As the writer discusses in dumb idea #8 (“Not knowing how to define information requirements), BI needs to link back to metrics that support the business. We think that the metrics should map to the critical success factors (defined as those things you must do well in order to be successful). BI is not just about technology; more importantly, it’s about knowing what to measure and how to motivate.

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