Keeping it brief...

Here's my thought for today, for you to ponder...

There’s no guarantee that good information will lead to good decisions, but there’s no doubt bad information leads to bad decisions.

Jim

Consensus

Wow! Three weeks into another year, and this is my first blog post! I feel great shame!!! :)

The topic for today is Consensus, and how it is critical for a successful BI deployment.

Many organizations that start down the path to enabling their users with Business Intelligence capabilities leap into the fray, boldly planning to put answers into the hands and heads of everyone. The problem is that sometimes the users can't ask the question in the way they want. Not because the tool isn't capable. Rather it is because the tool doesn't speak their language.

When you decide to implement a Business Intelligence solution, start by ensuring it speaks the same language as your users. Use their terminology and definitions. And if different groups have different meanings for terms like Product or Vendor or Customer, make sure you get them to either reconcile their definitions into one universal one, or define a different name for their respective elements. Whatever avenue you take, you must eventually reach a consensus about the definitions. Inconsistent semantics result in inconclusive or untrusted BI, and that's never a good thing.

Are you ready for BI? Test the waters first.

I noticed that a lot of the work we have done over the past few years has not necessarily been with a BI platform, such as BusinessObjectsd Edge. For sure Edge offers a whack of functionality for a great price, but in reality, especially in the SMB space, not everyone can afford it. Here are a few ways you can do Business Intelligence without buying a platform:

• Leverage the power of your database engine - most SMBs, somewhere in their business are using a SQL database of some sort. (If it happens to be Microsoft SQL, you're in great shape!) With a modest amount of technical skill, it is possible to use that platform to bring shape to your information. Some of our clients have created data mats using SQL, and we've helped some create multi-company consolidations. Are they as comprehensive and robust as they would be with a sophisticated ETL (Extract-Transform-Load) tool? No, but they're pretty darn reliable, and the cost of deploying and maintaining them was really quite modest - especially when you think of the value achieve.
  


• Use the Force! - I mean, "Use the Power"... of the technologies you already own. Let's face it - we both know you're going to use Excel. It's hard to deny it is a great tool for manipulating data, and with lots of ERP systems providing export abilities, it can be quite easy to get to raw data. Keep in mind when working with Excel that you are now disconnected from the data source, and this is where errors start to occur!!! I'm not saying don't do it, but do it with the knowledge that there is risk involved here.
  


• Let's be Crystal clear! - When we talk about the technologies you already have, I'm thinking you may/probably already have at least one license for Crystal Reports Designer. Now Crystal is not an end-user tool, and does require some understanding of data structures and links. But Crystal is by far the best tool I can think of for designing great-looking reports. And if you give people access to the Crystal Reports Viewer, they can review a report created for them, whether they're on a PC or Mac.
  


• Online Tools - While we're talking about Crystal Reports, did you know you can get a FREE five user start access to crystalreports.com? So with one person creating reports, five others can login securely and view them in a Browser. And like I said - it's FREE! It's one of the best ways I can think of to start testing the waters of Business Intelligence. Use it to gauge your readiness.
  

Hopefully that helps give you some ideas about how to move slowly towards integrating Business Intelligence into your operations. When computerized accounting systems first started to become available, many businesses were reluctant to jump on board because of the large up-front investment. Some tested spreadsheet programs (remember SuperCalc?), using it as an alternative, or as a way of getting some experience. The same kind of path is available for Business Intelligence. And I believe that in the next few years, Business Intelligence can have as profound an impact on your business as computerized accounting did ten or fifteen years ago.

Regards,

Jim

What else can Business Intelligence Do?

A lot of time, when I'm discuss Business Intelligence with people, we end up talking about the really standard things that can be done - Operational reporting, Ad Hoc analysis, a bit of dashboarding... stuff like that. What I have come to realize is that, in many cases, the power and utility of a Business Intelligence platform is realized when you use it for the 'not so standard' business applications. Let's discuss a couple of examples.

One of our clients (an equipment rental company) found that staff were having problems keeping track of the many shipping jobs they had on the go throughout the day. New orders would constantly be coming in, and the packers/shippers were trying to keep on top of what orders had to go out, and in what priority. What did we do? We created a small tracking dashboard, updated every minute, that showed the sequence of orders still to be picked/packed. The board was visible for all packers to see, all day long, and it immediately brought focus to the shipping department, significantly reducing the number of late deliveries. Result? Happy staff and equally important happy customers!

As another example, a client of ours runs a fairly high volume distribution business, with several staff entering lots of orders througout the day. There are several components that are very active in the business, and it is crucial for staff to monitor the level on hand at any time, to avoid promising shipment of an out-of-stock item. The staff could certainly navigate through the order entry system while on the phone with the customer, but for each item this would take about 10-15 seconds, and about 8 mouse-clicks each. Solution - we created a simple report that automatically refreshes every 15 seconds containing stock levels for the critical items. Now the order taker can open the report while on the phone, and see the status of all the critical items immediately. Impact - a significant reduction in time on the phone, and much improved customer service.

As a final example, another client (also in distribution) was requested by one of their vendors, to provide sales volume and location information, so that they could together determine effectiveness of marketing and sales efforts. By leveraging their BI platform, the client was able to create a monthly report with all the required information, delivered automatically to the vendor. Not only that - they have been able to develop similar relationships with several other vendors, and have turned the information into a 'for-fee' offering. Essentially their BI platform has created its own direct revenue stream!

These are just a couple of examples of where BI pays off. I hear lots of people talking about "Time to value" and "Return on Investment", and these are certainly critical to effectively making decisions and leading a business. My point is that these aren't the only criteria. Sometimes the benefit of a BI system is not immediately apparent. And sometimes it comes from areas you least expect.

Regards,

Jim

Is BI really for the masses?

I've read quite a few articles over the last year or two that talk about how Business Intelligence should be pervasive throughout a business. The theory is that more information will make anyone better at doing their job. Yet adoption rates for Business Intelligence are currently hovering around 12-15%.

So is it true? Does everyone need BI? Must it be used by everyone throughout your organization. Contrary to many of my peers, I think not!

Rolling out BI is not cheap, and in terms of cost justification, you need to take a look at who inside your business is going to be able to achieve the greatest return from use of the technology. That means that your CFO who needs a comprehensive view of the finiancial position of your business would certainly derive great benefit from having quick access to information that would otherwise be time-consuming and difficult to collect. Similarly, your VP Sales who is mandated to ensure customers are profitable would benefit from being able to keep her team focused on key accounts and products. But an order entry clerk? What's the benefit there? Or more importantly, what is the incremental benefit derived, and how does it compare to the cost of deploying the technology?

I love BI - It allows business aspects that have never been explored previously to be exposed and leveraged for great benefit. It allows companies to make information a real business asset, and to use it for successful business outcomes. But I don't buy into the idea that BI is (at this point, anyway) a business imperative for all your employees. And I suggest you don't buy into that idea either. Instead, make sure your investment in Business Intelligence is targeted at high-value projects and processes, and make them most effective. Think Quality, not quantity.

Is Technology an Expense or an Asset?

In your business, do you look at technology purchases as an expense? Or are they considered instead as an investment in a corporate asset? Regardless of the business you are in, how you look at the tools and equipment you use can have a profound impact on your willingness to embrace innovation. Similarly, your staff should always be considered an asset. Make sure to let them know that.

The History of Business Intelligence

I recently came across this video, and thought I should share it. It's a great overview of what Business Intelligence is... and has some humour to it, too. Check it out here: http://www.youtube.com/watch?v=_1y5jBESLPE