Gartner stated that over a third of business intelligence initiatives fail. Implementing a BI tool properly can deliver actionable information out of the seemingly endless amounts of data enabling organizations to be more agile, get to market quicker, and to save time by managing by exception. This can become a competitive edge, particularly in industries that are fast-changing. BI is not an expensive undertaking though, and the better prepared you are the more likely success will come on time and in budget. Here are 5 tips that can make the difference between competitive edge and failure:
- Be clear on the desired results – Too often entrepreneurs and executives get bogged down in the power of the data sources, how wonderful it is going to be to have so many desperate data sets from different systems normalized and at their fingertips. While planning the data architecture is certainly important, it can quickly eat up the entire budget. Think backwards from the finish: what information do you want and how do you want to see it? With this information your internal IT Department or outside consulting firm can then best design the data structure to goal, not to be all encompassing of any goal you may ever have.
- Get references, good and bad – If you are using a professional services organization, rest assured they should be versed well enough in the technology to make it sound like your initiative is right in their wheelhouse at a technical level you may not be as knowledgeable. It is imperative that you have the ability to talk to other managers, executives, or business owners like yourself that have had success with the firm. I stress managers/executives/business owners because talking to an IT professional can lead to an accurate and wondrous story of a data warehouse that provides absolutely no business value. Be sure to speak with the person who benefits from the work. Because technology by its nature is sometimes not as reliable as one would like, it is also important to speak with a client that faced major challenges in their implementation. Granted, nobody is going to give you a terrible reference. At least though you will get a sense of how the firm deals with unanticipated challenges in time, budget, or expectation setting. A quick word to the wise: unless you have a segment of your IT team dedicated to data administration, reporting and has implemented a BI solution many times before, outsource it. The disruption from normal duties and potential of losing someone who otherwise is an excellent team member over perceived cost savings that may never materialize.
- Chose a flexible platform – There are thousands of BI platforms to choose from that are for small business, mid-sized business, enterprise, industry specific, etc. Connectivity will largely depend on your current data sources: accounting, production, marketing, CRM, project costing, time & attendance, and so on. Be sure to ascertain how the final information or dashboard will be delivered to you. Important questions include: Is it shareable (can I send a file to a colleague)? Is it device dependent (can I see it from my laptop and my iPhone)? Ultimately, how you and your teams work will determine what the best option is. Beware of solution specific clients. While sometimes unavoidable, it is always preferable to use non-proprietary viewers.
- Proof of Concept – If possible, a proof of concept is an excellent way to see what and how you are going to get on a small scale. Often, you can negotiate a fixed price that will go towards the full deployment thereby not costing additional. Even if it is an additional cost, it is a way for you to mitigate the risk of not being happy after a much larger investment. This is also a viable option if your internal IT is leading the project. Find a small, quickly achievable key performance indicator (KPI) and run that piece as a mini project and upon approval you move forward with the larger project.
- Solid Project Management – Strong project management (ideally from the consulting firm and your organization) is be the best way to ensure that expectations are met and challenges overcome in a timely and mutually beneficial manner. This includes sign off on scope, milestone targets, billing milestones, reporting and feedback procedures, and change of scope documentation and procedures. Make sure that whether you are using an outside firm or tackling your BI project internally that you have a project lead who is responsible for monitoring and reporting back relevant details, issues and accomplishments.
BI transforms the way we think of information. Executed properly, key information is put in the hands of those who can act on it quicker, interpret trends, and hopefully keep the organization a step ahead of competition. Take your time before committing resources to the project. Follow these guideline and find a good BI provider to partner with and you will be amazed that you ever waded through those seas of reports that monopolize so much time. Good luck and make it a great day!