When companies grow they need systems that will streamline and optimize operation performance, help them in making better decision based on data and trends and come up with strategies that are in line with the business goals of the organization. This is possible through Business Intelligence. In an effort to implement a BI system, companies either plan to (1) have a team that will be dedicated to write the software, (2) outsource the job of developing the systems to a vendor or (3) implement a product that will meet the BI requirements. Option (3) is, in most cases, better than option (1) and (2) because it can be implemented faster and in most cases will cost lesser. The most important factors of a BI implementation is to know and understand why BI is required, the goals that should be met, the strategies that will help in meeting the goals and product that will fit the immediate and the long term needs of the organization. Reports say that companies, over a period of time have purchased and implemented different BI products under different leaderships. CIOs come and go and they leave their mark in the company in terms of a product implementation or changes to the software environment based on what they feel are the best. This drains out the resources of the company and never gets them what they really want. In this article, I will try to focus on how a company can take the right steps to successfully implement a BI system that will meet the strategic business goals of the company.
Most of the companies get all their reporting needs by having someone write SQL queries against the database and export the reports to excel. When their business and database grow, their current systems fail to meet all their reporting needs. Some reports become very complex to be generated. Some might take a very long time to get generated. In such cases, companies typically give the responsibility of implementing a BI system to one of the IT managers who would then consult a BI product company or a System Integrator for advice and implementation. During the engagement, a BI product is identified (not using scientific means, but in most cases driven by budget availability) and implemented to take care of their operational and other reporting needs. The advantage is that this approach will meet the short term goals and possibly improve report generation speed and also make the generation of a few complex reports possible. But the disadvantage is that this approach (1) will not meet the long term needs (2) will not, in most cases, have full support from the management and the users because they don’t understand the benefits or none are consulted, (3) will be used mostly as a reporting system without taking the full advantage of BI features and (4) since the IT managers have minimal business knowledge the final system fail to deliver the expected business benefits.
A BI system implementation should aim at getting an accurate picture of the current performance of the enterprise. The BI system should be capable of responding to changes in the market. It should be able to integrate financial consolidation with the operational performance. Basically, a BI system should be able to guide the enterprise in the right direction after deriving insights from the current data that is fed into the system. In order to make full use of the BI implementation and cater to the long term needs of the organization, the company should take a few initial steps:
1. The company should know why they need a BI system and the expectations from the same. For e.g. the goal can be centralization of key business process or getting a 360 degree view of the global customer base.
2. The company should ensure that the senior management and the other essential stakeholders across processes are involved in the decision making and understand the goal. All the stakeholders should be on the same page and should be committed to working towards the mission of taking the BI system implementation successfully towards it goal. All the stakeholders should be given the BI training specially designed for the stakeholders. Without this a company can be sure that it will never reach its goal set to be achieved through the BI implementation.
3. Hire a BI consultant with proper knowledge of the domain. This consultant will study the current landscape of the systems and advice an approach that will help the company reach its goal. The initial study done by the consultant should be able to generate the following output:
a. Conduct a cause and effect analysis to develop business process models to evaluate the decision alternatives and identify the KPIs that will meet the business needs
b. Draw the requirements of the BI system that is aligned with the goals of the implementation. The BI consultant should come up with the requirements of the system after discussions with the stakeholders and understanding the goal.
c. A conceptual view of the various sources, single version of truth (data warehouse) and the final BI system
i. Clear understanding of the ‘as is’ and ‘to be’ model
d. The BI product that will fit the needs of the organization
e. A roadmap showing the implementation path to reach the final goal. If the sources are high in number the company can adopt a phased approach. The roadmap should be able to depict the evolution of a full fledged BI system that will touch upon almost every area of the business to achieve the final goal.
f. The requirements can be floated as an RFP or given to the preferred Systems Integrator for the implementation.
i. Choosing the right System Integrator or vendor should be one of the tasks for the BI consultant. The right vendor choice will go a very ling way in determining the success of the BI implementation and whether the implementation will help the company in meeting the goals.The success of any BI implementation will depend on having the BI consultant work with the Systems Integrator till the implementation is over. The stakeholders from the company along with the BI consultant should work closely with the vendor to ensure that the BI application functionality is rightly aligned to the business goals. The stakeholders should also have a very good understanding of the ROI that can be generated out of this initiative and this should be revisited and checked regularly. Last but not the least the whole program should have a clear governance structure defined in place that will ensure proper planning, risks and their mitigation, definition of roles and responsibilities and overall management of the program.