Setting a Business Intelligence Strategy

Below is the continuation of the transcript of a Webinar hosted by InetSoft on the topic of Business Analytics and Competitive Advantage. The presenter is Mark Flaherty, Chief Marketing Officer at InetSoft.

Mark Flaherty (MF): So here is where we are today in terms of setting a business intelligence strategy. We know we have to take some steps to get there. This is our future state which will obviously require this next step in what is our roadmap to get to the future state, both from an organizational perspective, as well as from a BI solutions and tools perspective.

And just continuing down this thread, a BI strategy helps us define what metrics we need to track to be successful, what is most important to our executives, and how should we align organizationally to fulfill that BI vision. Finally, ultimately, what is our data warehouse or set of operational data stores? What is our architecture, and what tools are needed to meet these needs according to our vision?

If we take a look at the importance or the benefit of business intelligence to both IT and the business, there is a connection there. For the IT side, one, they actually get tied into the business to understand what their needs are so they can more easily align their strategies to support the business because the business is typically their number one customer.

Align CIO and Business Exec Strategy

And as we talked about earlier how the CIO strategy and the business exec strategy are not aligned. Getting them together to discuss a BI strategy will help align those priorities. And also based on not only the needs of a single department, business department, IT can start rationalizing the needs across departments, across business units and across the enterprise to determine what their BI and roadmap approach is going to be from where they are at a departmental level to then serve the enterprise as they increase their BI maturity.

Third, which is key, is with this collaboration, with this business and with a clearly defined BI strategy, they can justify the enterprise scope and the spending for the business intelligence initiatives with the buy-in of the business across the organization.

Now from a business perspective or line of business perspective, they can expand their line of business contributions to leverage what other organizations are doing both from an information sharing and common business language perspective as well as sharing the needs and best practices across the departments and pain points to understand where they can reuse this information.

Finally once they have a consolidated business approach, they now have better governance over their data, they have a better process to understand what we mean by profit versus what you mean by profits or a common business language and they can more quickly get insight to information across the business.

What Is the Strategy for Selecting an Enterprise BI Solution?

Selecting an enterprise Business Intelligence (BI) solution is a critical decision that can significantly impact the efficiency and effectiveness of an organization's data-driven decision-making processes. Developing a sound strategy for selecting the right BI solution involves several key steps and considerations:

1. Define Business Objectives and Requirements: Before evaluating any BI solutions, it's essential to have a clear understanding of your organization's business objectives, as well as the specific requirements of different user groups within the organization. This involves consulting with stakeholders across departments to identify their needs and pain points.

2. Evaluate Data Sources and Integration Capabilities: Assess the types and sources of data that your organization needs to analyze. Consider whether the BI solution can integrate with various data sources, including databases, data warehouses, cloud platforms, and third-party applications. Compatibility with existing systems and data formats is crucial to ensure seamless data integration.

3. Scalability and Performance: Choose a BI solution that can scale with your organization's growth and handle increasing volumes of data without compromising performance. Consider factors such as processing speed, query performance, and the ability to handle concurrent users and large datasets.

4. Analytical Capabilities: Evaluate the BI solution's analytical capabilities, including its support for ad-hoc querying, data visualization, advanced analytics (such as predictive modeling and machine learning), and self-service analytics features. The solution should empower users to derive meaningful insights from data without requiring extensive technical expertise.

5. Ease of Use and Accessibility: User adoption is critical for the success of any BI initiative. Look for a solution that is intuitive and easy to use, with a user-friendly interface and interactive dashboards. Additionally, consider the accessibility of the BI platform across devices and operating systems, including desktops, laptops, tablets, and smartphones.

6. Security and Governance: Data security and governance are paramount, especially when dealing with sensitive or confidential information. Ensure that the BI solution provides robust security features, including role-based access control, encryption, data masking, and auditing capabilities. Compliance with industry regulations and standards should also be considered.

7. Total Cost of Ownership (TCO): Assess the total cost of ownership of the BI solution, including upfront licensing costs, implementation expenses, ongoing maintenance fees, and support costs. Consider whether the solution offers flexible pricing models, such as subscription-based or pay-per-use pricing, to align with your budget and scalability requirements.

8. Vendor Reputation and Support: Evaluate the reputation and track record of the BI solution vendor, including their experience in the industry, customer references, and support services. Choose a vendor that offers comprehensive technical support, training resources, and regular software updates to ensure the long-term success of your BI implementation.

9. Future Roadmap and Innovation: Consider the vendor's vision and commitment to innovation, as well as their roadmap for future product enhancements and updates. Look for a BI solution that is continuously evolving to address emerging trends and technologies, such as artificial intelligence, natural language processing, and augmented analytics.

10. Pilot and Proof of Concept: Before making a final decision, consider conducting a pilot or proof of concept (POC) to evaluate the BI solution in a real-world environment. This allows you to test the solution's performance, usability, and suitability for your organization's needs before making a full-scale deployment.